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Tax reform package contains more breaks for corporate art buyers

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.