We Art Partners allows companies and independent professionals, looking to acquire an artwork, to finance the amount through a contract of lease with option to purchase.
At the end of the location period, the client gets to remove the purchase option to own the artwork for its residual value.
For all companies and independent professionals automatically or alternatively subject to the Corporation Tax, the location is subject to the applicable codified law on deductible charges (Art. 39-1 of the french general tax code).
The rents coming from the location can be entirely deducted if they are invested in the Company’s best interest. Let’s keep in mind that one of the major assets for a company is the positive brand image associated to the artwork. Moreover it is a creative form of strengthening the Company’s internal and external communication. Indeed, the artworks exposed in the business premises are accessible to all employees and clients. The artworks represent therefore an acquisition serving the company.
For all companies and firms subject to the Corporation Tax on industrial and commercial profits, the location is also subject to the applicable codified law on deductible charges (Art. 39-1 of the french general tax code).
For all companies and firms subject to the Corporation Tax on non commercial profits, the fiscal administration has not yet decided wether the rents will be subject to the same Code and therefore be considered deductible charges.
Consequently, We Art Partners has already taken steps to clarify this legal point.
The French Wealth Tax
The Inheritance System
Transfer of Assets
Acquisition of Artworks from Living Artists