Talents & Violon’celles is recognised as being of general interest by the FRENCH tax authorities. Donations are therefore eligible for a tax reduction.
Donation from a private individual
The income tax reduction is 66% of the donation up to a limit of 20% of income.
Example: a donation of €300 will give rise to a €198 income tax reduction. The donation will only cost 102 €.
The donation in kind of an instrument, owned by a private individual and given to Talents & Violoncelles, is estimated at the appraised value of the instrument and opens up the right to a tax reduction under the same conditions.
When the donation exceeds 20% of taxable income, the excess is carried forward successively over the next 5 years.
Corporate donation
The corporate tax reduction is 60% of the donation up to a limit of €20,000 or 5% of turnover excluding tax, whichever is higher.
Example: a company has a turnover of €30 million. It will therefore be able to obtain a 60% reduction in its corporation tax on a maximum donation of €150,000, i.e. €90,000. The donation will therefore cost it €150,000 – €90,000 = €60,000.
When donations exceed 5 per thousand of turnover, the surplus is carried forward over the next 5 years.
Purchase/lending of an instrument by a company
A company that purchases and retains ownership of an instrument may deduct from its taxable income the cost of acquiring the musical instrument that it undertakes to lend to performers.
The deduction is made in equal parts from the results of the year of acquisition and the four following years. The deduction is limited to €10,000 or 5% of the turnover excluding tax, whichever is higher.
Example: a cello purchased for €30,000 will give rise to a deduction of €6,000/year from the company’s taxable income, i.e. a tax saving of €2,000/year (with a 33% corporation tax rate). Over 5 years: €10,000 in tax savings, i.e. a cost price of the instrument of €20,000.