Artworks Saved From Taxes in France

October 17, 2012 Taxation in France

Artwork in FrancePARIS – Art collectors in France have been spared from an extra increase in their tax obligations as the government backtracks on its plans to tax high value artworks.

In a radio interview on October 16th the Prime Minister of France Jean-Marc Ayrault said that artworks will not be included in the calculation of individuals’ net worth for tax purposes, as was originally proposed in the 2013 government budget as part of France’s efforts to improve its fiscal position.

The  measure was intended to apply to any all individuals who own art valued in excess of EUR 50 000, and would have seen the value of the piece added to the calculation of the net worth.

The proposal was met with an almost immediate uproar from the art community in the country, and the situation culminated in seven of the country’s most prominent museums signing a joint letter on October 12th to the Minister of Culture of France Aurélie Filippetti voicing their opposition to the tax.

The museums claimed that any measure which would effectively apply a tax on art works would be a “… threat to our mission, to the enrichment of our collections and the exhibition of a great number of public and private works of art”, as wealthy individuals would be hesitant to lend their collections to museums and some individuals might even be sell their collections to overseas buyers.

Photo by dewet