Tax reform package contains more breaks for corporate art buyers
Sunday, September 25, 2005, 00:00
Under the government's tax reform package, companies that buy contemporary art will be able to deduct more of the purchase price from their tax base and over a longer period of time, Prime Minister Ferenc Gyurcsány announced on Friday. At present, companies may deduct the purchase price of works by artists recognized by a peer review body, up to 1% of their total investments, and only in the year the purchase was made. Under the new tax package, companies may write off over a period of up to five years contemporary art purchases worth up to 20% of their total investments. Gyurcsány said companies deducted art purchases of Ft 180 million under the law in 2003. Under the amended law, the government expects to lose about Ft 1 billion in tax revenue, he said.