French General Tax Code
In forceI. - Companies engaged in the activity of live performance entrepreneur, within the meaning of Article L. 7122-2 of the Labour Code, and subject to corporation tax, may benefit from a tax credit in respect of the expenses for the creation, exploitation and digitisation of a live musical or variety show mentioned in III of this article if they meet the following cumulative conditions:
1° Have responsibility for the show, in particular that of employer with regard to the artistic line-up. In the case of a co-production, this condition is met by at least one of the co-producers;
2° Bear the cost of creating the show.
II. - Expenses incurred for the creation, exploitation and digitisation of a musical or variety show meeting the following cumulative conditions are eligible for the tax credit:
1° Be made by companies established in France, in another Member State of the European Union or in another State party to the Agreement on the European Economic Area that has signed an administrative assistance agreement with France with a view to combating tax evasion and avoidance and that perform services there relating to the production of a musical or variety show;
2° Relate to a show that has the following characteristics:
a) The majority of the creation costs must be incurred on French territory;
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c) Not be presented in a venue whose capacity, defined as the maximum number of audience members that can be admitted to the venue, exceeds a number of people defined by decree for each category of performance.
3° (Repealed).
III. - The tax credit, calculated in respect of each financial year, is equal to 15% of the total amount of the following expenses, incurred until 31 December 2024 for shows mentioned in II performed in France, in another Member State of the European Union or in another State party to the Agreement on the European Economic Area that has entered into an administrative assistance agreement with France to combat tax fraud and evasion, provided that they are included in the determination of taxable income:
1° For expenditure corresponding to the costs of creating and running the show for all its performances, including promotional performances:
a) The company's permanent staff costs including:
- salaries and social charges relating to staff directly involved in the show: artistic directors, production directors, musical directors, communications or public relations directors, marketing directors, public relations or communications managers, production, touring or broadcasting administrators, artistic advisers, coordinators, production, broadcasting or marketing managers, repetiteurs, artistic collaborators, production or broadcasting attachés, press or public relations attachés, box office managers, box office managers, placement managers, booking managers, reception attachés, box office and reception agents, webmasters ;
- the remuneration, including social security contributions, of the manager(s) corresponding to their direct involvement in the creation and operation of the show. This remuneration may not exceed an amount set by decree, subject to a ceiling of €50,000 per year. This remuneration is only eligible for the tax credit for small businesses, within the meaning of Article 2 of Annex I to Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty;
b) The company's non-permanent staff costs including:
- salaries and social charges relating to artists and technicians assigned to the show. Artists' remuneration taken into account for the calculation of the tax credit is capped at five times the amount of the conventional minimum wage in force;
- remuneration, royalties, fees and services paid to natural or legal persons who have contributed directly to the show: graphic designer, costume designer, make-up artist, dresser, hairdresser, dressmaker, props designer, set designer, lighting designer, sound effects or ambience designer, video or special effects designer, director, choreographer ;
c) Royalties paid to copyright collective management bodies in respect of performances;
d) Rental costs for rehearsal rooms and performance halls;
e) Rental costs for equipment used directly or indirectly as part of the performance or for the purpose of welcoming the public;
f) Provided they are not capitalised and are used exclusively in the context of the eligible show, the cost of purchasing small equipment used in the context of the show or for the purposes of welcoming the public;
g) Depreciation allowances, when they correspond to tangible or intangible fixed assets used exclusively in the context of the show;
h) Cancellation insurance or equipment insurance costs directly attributable to the eligible show;
i) Expenses incurred during the tour of the show: maintenance and repair costs for touring equipment, stage management costs, transport costs, catering and accommodation costs up to an amount per night set by decree, which may not exceed €270 per night;
j) Expenditure required to promote the show: expenditure incurred for the creation, production, manufacture and dispatch of physical or dematerialised promotional material, expenditure relating to the production and production of images to develop the artist's career, expenditure relating to the creation of a website dedicated to the artist as part of the development of his or her career in the digital environment and expenditure incurred in respect of the artist's participation in television or radio broadcasts;
2° For expenditure relating to the digitisation of all or part of the show: the costs of acquiring copyright for photographs, illustrations and graphic creations, as well as the technical costs required to produce these creations, the costs of recording (sound, image, light), the costs of acquiring pre-existing images, the assignment of rights invoiced by all rights holders, the costs corresponding to authorisations issued by venue operators or festival organisers, post-production expenses (editing, colour-grading, mixing, coding and mastering costs), the remuneration and social charges required to carry out these operations as well as, in the context of a multi-purpose digital music medium, technical design costs such as the creation of interactive elements or a tree structure or the use of special effects.
IV. - The same expenses may not be included both in the bases for calculating the tax credit mentioned in I of this article and in those for any other tax credit.
V. - The rate mentioned in the first paragraph of III of this article is increased to 30% for companies that meet the definition of micro, small and medium-sized enterprises provided for in Article 2 of Annex I of the aforementioned Commission Regulation (EU) No 651/2014 of 17 June 2014.
VI. - The expenditure referred to in III is eligible for the tax credit from the date of receipt by the Minister responsible for culture of an application for provisional approval. This approval, issued after consultation with a committee of experts, certifies that the show meets the conditions set out in II. The operating procedures of the committee of experts and the conditions for issuing provisional approval are set by decree.
VII. - The following shall be deducted from the bases for calculating the tax credit:
1° Non-reimbursable public subsidies received by the companies calculated on the basis of the ratio between the amount of eligible expenditure and the total amount of the company's expenses shown in the profit and loss account;
2° Aid known as "support tours" received by the company from the phonographic producer and directly allocated to the expenditure mentioned in III.
VIII. - A. - The amount of expenditure eligible for the tax credit is limited to €500,000 per show. The tax credit is capped at €750,000 per company and per financial year. When the financial year is less than or greater than twelve months, the amount of the ceiling is reduced or increased in the same proportions as the duration of the financial year.
B. - In the case of a co-production, the tax credit is granted to each of the companies in proportion to its share of the expenditure incurred;
IX. - The benefit of the tax credit referred to in I is subject to compliance with Article 53 of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.
