Tax deductions when a company purchases an artwork

August 23, 2026 - by The ARTsynonyme team

Purchasing an original artwork can enrich a company’s premises, directly support a living artist and, when every condition is met, qualify for a deduction from taxable profit.

Which companies can use the scheme?

The scheme under Article 238 bis AB of the French General Tax Code is open to:

• companies subject to French corporation tax, either automatically or by election;
• companies and sole traders taxed under the industrial and commercial profits category (BIC) of French income tax.

Businesses taxed under the non-commercial profits category (BNC) are not eligible. Artworks purchased for resale and recorded as inventory are also ineligible.

Which artworks qualify?

The artwork must be original and the artist must be alive at the time of purchase. Subject to the applicable tax criteria, the scheme notably covers hand-executed paintings and drawings, certain limited-edition engravings and lithographs, original sculptures, certain ceramics, tapestries, copper artworks, and signed and numbered photographs.

The company must keep documents proving the artwork’s origin, price and author, and that the artist was alive on the purchase date. A detailed invoice and a certificate of authenticity are essential records.

The four main conditions

1. Recognise the artwork as a fixed asset: it must be recorded as an asset on the balance sheet and not as inventory held for resale.
2. Display it for five years: it must be displayed continuously during the year of purchase and the following four years, in a place freely accessible to the public or employees, excluding their offices.
3. Publicise the display: the company must make access to the artwork known through suitable communication.
4. Create a special reserve: an amount equal to the deductions claimed must be recorded in a special reserve account under liabilities on the balance sheet.

How is the deduction calculated?

The basis is generally the artwork’s cost price excluding tax, plus incidental expenses incorporated into that price, after deducting recoverable VAT. It is divided into five equal portions over five financial years: the year of purchase and the following four years.

The annual deduction is limited to the higher of €20,000 or 0.5% of turnover excluding tax. Payments already made under France’s corporate philanthropy scheme reduce this limit. A portion that cannot be deducted in a given financial year is permanently lost and cannot be carried forward.

When can the benefit be reversed?

Amounts previously deducted may be added back to taxable profit if the artwork is no longer used for the required display, if it is sold during the relevant period, or if the company withdraws all or part of the special reserve.

What about individuals?

A private individual’s straightforward purchase of an artwork does not fall within this scheme, which is reserved for eligible companies. Tax reductions connected with donations to certain organisations are governed by a separate scheme and should not be confused with purchasing an artwork for a personal collection.

Official sources

• Entreprendre.Service-Public.fr — artwork purchases and tax deductions
• French General Tax Code — Article 238 bis AB
• BOFiP — purchase of original works by living artists

General information updated on 23 August 2026, provided for information only and not constituting tax or legal advice.