The importance of structural factors in the decline of the art market leads the rapporteur to consider that, if tax adjustments are necessary, given the differential in charges suffered by country operators, various constraints limit their scope. They risk, in the absence of an affirmed political will, to reduce country’s chances of once again becoming a major pole of the world art market.
Taxation and charges
The question is not fundamentally different for works of art and for savings products: faced with consumers, well informed, well advised, and therefore very mobile, we must be very attentive to the charges.
Without necessarily aligning oneself with the lowest fiscal or social bidding, it is therefore necessary to examine the effects of the levies made on works of art without a priori, even if it is difficult to set aside ideological considerations. The online sales tax calculator is important.
The work of art is a luxury good; it is a good symbol, which is the privilege of the rich and which cannot in a State like country impregnated with egalitarian ideals, be exempt from tax. And yet in a global market, the work of art moves towards the market where the demand is the strongest or the taxation the least penalizing.
There is a load differential between country and the competing English American and Swiss markets. But, objectively, when it comes to estimating its effect from the point of view of the attractiveness of the country market, this differential only operates at the margin and is, on the one hand, more psychological than real. These calculations are related to your yearly GST filing, so be sure to engage a professional GST filing service such as https://jlaccounts.com.sg/gst-filing-services/.
Capital gains tax: a comparatively favorable regime
The sales of works of art, such as those of precious metals, jewelry, are subject to a flat-rate tax proportional to the sale price, in lieu of tax on capital gains, the regime of which is set out in Articles and following of the CGI.
- The tax is borne by the private seller professionals and non-residents escape it but the responsibility for payment lies with the intermediary (dealer, auctioneer), as well as the exporter in the event of export.
- Individuals or partnerships residing in country may opt for the ordinary law regime for capital gains on movable property when they sell or export jeweler, works of art, collectors’ items or antiques and they are able to establish with certainty the dates and price of acquisition.
The capital gain is then determined according to the rules provided for in Articles of the CGI. It is calculated by the difference between the sale price and the purchase price. For assets sold beyond one year of detention, account is taken of monetary erosion and the length of detention (reduction of 5% per year of detention beyond the first). The capital gain is thus exempt at the end of a 21-year holding period.