CORPORATE SPONSORSHIP

TOTAL TAX EXEMPTION of WORKS OF ART

Article 238a of the General Tax Code provides a special deduction to businesses that purchase original works by living artists.

They may deduct from the result of the year of acquisition and the following 4 years in equal fractions, a sum equivalent to the price of the work.

Only limitation: the deduction cannot exceed 5 per thousand of revenues.

For works whose price is less than €5,000 excluding tax, the Minister Delegate for the Budget admits that the condition of exposure to the public is satisfied as soon as the work is exhibited in a place accessible to customers and/or employees of the business, excluding personal offices.

For works over €5,000 excluding tax, the company must: exhibit the work in a place accessible to the public, register the work in a fixed asset account and carry the sums deducted from a special reserve account (liabilities balance sheet).

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