French General Tax Code
In forceCompanies subject to corporation tax on the basis of their actual profits may benefit from a tax reduction equal to 90% of payments made towards the purchase of cultural property having the status of national treasures that has been refused an export certificate by the administrative authority, under the conditions set out in
article L. 111-4of the French Heritage Code and for which the State has made the owner of the property an offer to purchase in accordance with the conditions set out in
article L. 121-1of the same code.
This tax reduction is also applicable, after a reasoned opinion from the commission provided for in the aforementioned article L. 111-4, to payments made towards the purchase of cultural property located in France or abroad, the acquisition of which would be of major interest to the national heritage from the point of view of history, art or archaeology.
Payments are not deductible when determining taxable profit.
Payments must be approved by the ministers responsible for culture and the budget.
The tax reduction applies to corporation tax due in respect of the financial year during which the payments are accepted. However, the tax reduction may not exceed 50% of the amount of tax due by the company in respect of that financial year in accordance with I of
Article 219. For companies that are members of a group within the meaning of
Article 223 A or Article 223 A bis, the 50% limit applies for the group as a whole by reference to the tax payable by the parent company of the group.
A decree in the Conseil d'Etat sets out the terms and conditions for the application of this article.
