Businesses · French taxation
Article 238 bis AB of the French Tax Code allows eligible businesses to deduct the acquisition cost of an original work by a living artist from taxable profit over five financial years, subject to conditions.
The scheme applies to acquisitions made before 31 December 2028. Read Article 238 bis AB (French) ↗
20 %
of the eligible cost deductible each financial year, within the available annual limit
5
financial years: the year of acquisition and the next four
20 000 €
or 0.5% of turnover excluding VAT if higher, reduced by qualifying charitable donations
This reduces taxable profit. The tax saving depends on the business’s tax position and applicable tax rate. Any unused annual deduction cannot be carried forward. Rules and limits — BOFiP (French) ↗
Key conditions
Companies subject to French corporation tax, or businesses taxed under the French BIC income category, able to establish the required special reserve. Personal purchases and businesses taxed under the BNC income category are excluded.
Eligible businesses — Service Public (French) ↗The artist must be living when the work is acquired. For ceramics, the tax definition requires a unique piece made entirely by the artist and bearing their signature. Limited-edition or handcrafted status alone does not establish eligibility.
Artwork definition — Tax Code, Annex III, Art. 98 A (French) ↗The work must be displayed continuously and free of charge during the acquisition year and the next four, in a place accessible to the public or employees, excluding their offices. A clients-only space does not suffice. Public access must be advertised.
Display requirements — BOFiP (French) ↗The work is recorded as a fixed asset, with deductions allocated to a special reserve on the balance sheet. Resale inventory is excluded. Disposal, a change of use or a withdrawal from the reserve triggers a tax add-back.
Requirements — Article 238 bis AB (French) ↗Deduction example
An eligible cost of €10,000 produces a €2,000 deduction from taxable profit per financial year for five years, provided all conditions are met and sufficient annual allowance is available. The €2,000 is the profit deducted, not the tax saved.
The eligible cost includes acquisition expenses incorporated into the asset’s cost and excludes recoverable VAT. BOFiP ↗
Your acquisition
Tell us about the work you are considering, your business and its display location. Eligibility must be reviewed for each individual work with your accountant; it is not assumed for the entire collection.
Plan my acquisitionGeneral information about the French scheme, checked on 9 September 2026. Confirm its application with your adviser for your circumstances and the rules in force when you acquire the work.