50% allowance on the profits of young visual artists during their first five years

Article 50 of the 2005 Amending Finance Act adds a paragraph 9 to Article 93 of the General Tax Code. Authors of original works of art (painting, sculpture, engraving, photography, etc. within the meaning of Article 297 A) taxed under the controlled return regime receive a 50% allowance on their non-commercial profit for their first year of activity and the following four years. The allowance covers income from selling works and exploiting economic rights, excluding transactions subject to the reduced VAT rate of Article 279 bis; it is capped at €50,000 a year and cannot be combined with the averaging system of Article 100 bis. It applies to profits from activities started from 1 January 2006.