Code général des impôts, CGI – Article 238 bis AB

Companies that acquire original works of art of living artists and record them as fixed assets can deduct the

acquisition price from taxable income – for current fiscal year and the next four years – in equal installments.

The deduction cannot exceed 0.5% of each fiscal year’s turnover minus expenses on corporate

sponsorship. In addition, original works of art of living artists are excluded from the fiscal base of the French

“Tax professionnelle”. During the fiscal deduction period, the acquired works of art have to be displayed in a

place open to the public or to employees and / or to the company’s clients, excluding offices.


A company with a turnover of €2m can deduct up to 5% (€10,000) of its turnover annually by acquiring one

or several works of art from a living artist for the same amount.

During five years, the company would deduct 20%:

€2,000 per year from annual profit, which represents a fiscal gain of : (2,000 x 5) = €10,000 x 33.33% =

€3,333 over 5 years

The acquired work’s fiscal cost  is then only : €10,000 – €3,333 = €6,667€, including all taxes

In return, the company has to display the work during 5 years in a place open to employees, clients or

suppliers, excluding individual offices.

The company must record the amount equivalent to the annual deduction in a special reserve account, in

the liability side of the balance sheet.

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