French General Code of Local Authorities
In forceI. - Casinos governed by articles L. 321-1 et seq. of the code de la sécurité intérieure, holding a récépissé de déclaration d'entrepreneur de spectacles vivants valant licence, may benefit from a tax credit in respect of quality artistic events that they have directly organised or have contracted to organise in their name and on their behalf during the gaming season defined in article L. 2333-55-2.
II. - The quality artistic events mentioned in I of this article meet the following cumulative conditions:
1° They fall within the live or recorded performance sector and the graphic, plastic or photographic arts;
2° They are organised on the territory of the municipality with headquarters of the casino or the public establishment for inter-communal cooperation benefiting from the repayment, in whole or in part, of the levy mentioned in article L. 2333-54;
3° They meet at least three of the following four objectives:
a) Contribute to the promotion and dissemination of shows or works accessible to the widest and most diverse audience;
b) Implement a programme of events produced with the assistance of performing artists, within the meaning of articles L. 7121-1 et seq. of the French Labour Code, and receiving remuneration, or with the assistance of graphic, plastic or photographic artists, within the meaning of articles L. 382-1 et seq. of the social security code;
c) Give a significant place to creations, commissions for works, new productions, co-productions or co-directions;
d) Have international or national renown.
The benefit of the tax credit is subject to the prior decision of the competent State authority, which certifies compliance with the condition mentioned in 1° and assesses the criteria mentioned in 3° of this II by means of a scale of points, the content of which is set by the decree provided for in VIII.
III. - The tax credit mentioned in I is equal to 77% of the difference between the expenses mentioned in IV borne by the casino and the revenue mentioned in V collected by the casino.
It is capped at 4% of gross gaming revenue, as defined in article L. 2333-55-1, of the games season during which the high-quality artistic events took place.
IV. - The following expenses are taken into account in the calculation of the tax credit:
A. - The expenses of staff recruited exclusively for the event in question and relating to the artists mentioned in article L. 7121-2 of the French Labour Code and to the article L. 212-1 of the Intellectual Property Codeand to workers and technicians in the performing arts professions and occupying one of the jobs defined by the agreement relating to the application for these professions of the unemployment insurance scheme provided for in article L. 5422-20 of the Labour Code.
They include:
1° Salaries;
2° Social security charges relating to salaries where they constitute compulsory social security contributions;
3° Travel, accommodation and catering expenses for these staff;
B. - The expenses of casino staff other than those mentioned in A and falling under the following jobs: lighting and sound control, assistant operator, operator, show host and presenter, musician, artist, usher, prop assistant, propsman, stage manager, artistic director and agent in charge of security and fire safety.
They include:
1° Salaries;
2° Social security charges relating to salaries, insofar as they constitute compulsory social security contributions;
3° Benefits in kind and bonuses granted to these personnel.
These expenses are deducted for their actual amount per show, within the limit of a ceiling determined on the basis of a maximum number of hours, set by the decree provided for in VIII, for each of the jobs and on the basis of the hourly rate set by the national collective agreement for casinos;
C. - For entertainment venue operators only, other operating expenses incurred in connection with the organisation of the event in question. These are retained:
1° For venues with a seating capacity of one thousand or more, up to the amount of the expenses mentioned in A and B multiplied by a rate, expressed as a percentage and rounded to the first decimal place, equal to the number of eligible events multiplied by a coefficient of 0.4 ;
2° For theatres with a seating capacity of less than one thousand, up to the amount of the expenditure mentioned in A and B multiplied by a rate, expressed as a percentage and rounded to the first decimal place, equal to the number of eligible events multiplied by a coefficient of 0.2;
D. - Expenses relating to the exploitation of the event:
1° Expenses for the acquisition of the right to perform or exploit the show as well as travel, accommodation and catering expenses for the artists and technicians involved;
2° Accommodation and catering expenses for jury members, artists, journalists, photographers and art critics taking part in opening and closing galas for film festivals and exhibition openings. Accommodation expenses are included in the tax credit base, up to a limit of €200 per night;
3° Expenses for artistic creation services;
4° Expenses for the hire of premises hired specifically for the organisation of the event;
5° Expenditure on materials or services relating specifically to the performance of the event, i.e. those relating to costumes, artists' hair and make-up, stage props, scenery, sound and light, machinery, reception of the public and security for the event...;
6° Advertising expenditure, provided that its main purpose is to promote the event eligible for the tax credit;
7° Electricity and heating expenditure, determined with regard to the surface area of the auditorium and the number of days during which the event or events in question took place there;
E. - Expenses incurred by the parent company mentioned in article 223 A of the General Tax Code, provided that they comply with the conditions set by the decree provided for in VIII of this article.
The expenses provided for in A to E must neither have been nor be included in the basis for calculating an income tax or corporation tax credit or reduction.
V. - The following receipts are taken into account in the calculation of the tax credit:
1° Box office receipts;
2° Receipts from the sale of programmes or merchandising related to the event;
3° Non-reimbursable public subsidies paid to the casino by the State or local authorities and directly allocated to the expenditure mentioned in IV;
4° Private subsidies;
5° Receipts from patronage and sponsorship.
VI. - The amount of the tax credit is deducted from the levies mentioned in articles L. 2333-54 and L. 2333-56, due in respect of the expired gaming season during which the quality artistic events took place.
VII. - The amount of the tax credit gives rise to a refund, the claim for which is submitted, investigated and judged in accordance with the rules applicable to turnover taxes.
VIII. - A Conseil d'Etat decree specifies the conditions for application of this article, in particular the reporting obligations.
IX. - The tax credit is borne by:
1° The State budget, up to the ratio between the amount of the levy mentioned in Article L. 2333-56 allocated to the State and the sum of the levies mentioned in Articles L. 2333-54 and L. 2333-56 collected in respect of the gaming season to which the tax credit is charged;
2° The local authority receiving the levies mentioned in the same Articles L. 2333-54 and L. 2333-56, up to the balance.
