Section V: Calculation of tax

I.-Companies engaged in the business of providing live performances, within the meaning of article L. 7122-2 of the French Labour Code, subject to corporation tax, may benefit from a tax credit in respect of expenditure on the creation, exploitation and digitisation of theatrical performances of dramatic works mentioned in III of this article if they meet the following cumulative conditions:

1° they are responsible for the performance, in particular as the employer of the artistic team;

2° Bear the cost of creating the show;

II. II - Expenditure incurred for the creation, exploitation and digitisation of theatrical performances of dramatic works that meet the following cumulative conditions is eligible for the tax credit:

1° Be carried out 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 tax avoidance, and that provide services related to the production of theatrical performances of dramatic works;

2° Relate to a show that has the following characteristics:

a) The majority of the creation costs are incurred on French territory;

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b) Be the first showing of a show featuring new direction and set design that has not yet been performed;

> c) Be performed by a company that has been established in France. c) Be performed by a team of artists at least 90% of whom are professionals;

> d) Have at least one year's production experience. d) Have at least six artists on stage, each with at least twenty rehearsal sessions;

> e) Be programmed for more than one performance period. e) Be programmed for more than twenty dates, at least half of which must be in France, over a period of twelve consecutive months in at least two different venues.

III.-The tax credit is a tax credit for the production of works of art. III - The tax credit, calculated for each financial year, is equal to 15% of the amount of the following expenses, incurred until 31 December 2024, for performances mentioned in II carried out 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 to combat tax fraud and evasion, provided that they are included in the calculation of taxable income:

> For expenses corresponding to the costs of the performances mentioned in II, the tax credit is equal to 15% of the amount of the following expenses, incurred until 31 December 2024, for performances mentioned in II, carried out 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 to combat tax fraud and evasion, provided that they are included in the calculation of taxable income 1° For expenditure relating to the costs of creating and running the show:

> a) The costs of the permanent staff of the show a) The company's permanent staff costs, including:

-salaries and social security contributions for staff directly involved in the show: artistic directors, production directors, communication or public relations directors, marketing directors, public relations or communication managers, production, touring or distribution administrators, artistic advisors, coordinators, production, distribution or marketing managers, repetiteurs, artistic collaborators, production or distribution 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 participation 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:

-the salaries and social security 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, stage director, choreographer;

c) Royalties paid to copyright collective management organisations in respect of performances of the show;

d) The cost of hiring rehearsal and performance rooms;

> e) The cost of hiring equipment e) The cost of hiring equipment used directly in connection with the performance or for the purpose of receiving the public;

> f) Where they are not incurred in connection with the performance or for the purpose of receiving the public. f) Provided they are not capitalised and are used exclusively in the context of the eligible performance, the cost of purchasing small items of equipment used in the context of the performance or for the purposes of welcoming the public;

> g) Depreciation allowances for the cost of equipment used in the context of the performance or for the purposes of welcoming the public. g) Depreciation charges, where these relate to tangible or intangible fixed assets used exclusively in connection with the performance;

> h) Cancellation insurance costs, where these relate to tangible or intangible fixed assets used exclusively in connection with the performance h) Cancellation or equipment insurance costs directly attributable to the eligible show;

> i) Expenses incurred during the performance of the 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 a limit per night set by decree, which may not exceed €270;

j) Expenditure required to promote the show: expenditure incurred for the creation, production and dispatch of physical or dematerialised promotional material, expenditure relating to the production of images to develop the show, expenditure relating to the creation of a website dedicated to the show and expenditure incurred for appearances on television or radio programmes. The expenses mentioned in this 1° are taken into account within the limit of the first sixty performances per show, with the exception of those mentioned in f, which are taken into account in their entirety if they are incurred during the same financial years;

2° For expenditure relating to the digitisation of all or part of the show defined in 2° of II : the cost of acquiring copyright for photographs, illustrations and graphic creations, as well as the technical costs required to produce these creations, the cost of recording (sound, image, light), the cost of acquiring pre-existing images, the transfer of rights invoiced by all rights holders, the cost of authorisations issued by cinema operators or festival organisers, post-production costs (editing, colour grading, mixing, coding and mastering), the remuneration and social security charges required to carry out these operations and, in the case of a digital multi-purpose music medium, technical design costs such as the creation of interactive elements or a tree structure or the use of special effects.

This expenditure is taken into account if it is incurred during the same financial years as the expenditure mentioned in 1° of this III.

IV. IV.-The same expenditure may not be included both in the basis for calculating the tax credit referred to in I and in the basis for calculating any other tax credit.

V.-The rate referred to in the first paragraph of this Article may not be exceeded. V.-The rate mentioned in the first paragraph of III 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 to the aforementioned Commission Regulation (EU) No 651/2014 of 17 June 2014.

VI - The expenditure mentioned in III is eligible for the tax credit from the date of receipt by the Minister 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 laid down by decree.

VII. VII - The following are deducted from the basis for calculating the tax credit:

>Non-refundable public subsidies are deducted from the basis for calculating the tax credit 1° Non-reimbursable public subsidies and non-reimbursable grants paid by the association for the support of private theatre and directly allocated to the expenditure mentioned in III;

> Other non-reimbursable public subsidies paid by the association for the support of private theatre and directly allocated to the expenditure mentioned in III 2° Other non-refundable 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.

VIII. VIII - 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.

IX. IX.-The benefit of the tax credit referred to in I is subject to compliance with Article 53 of the aforementioned Commission Regulation (EU) No 651/2014 of 17 June 2014.