Creation of the tax credit for craft trades businesses

Article 45 of the 2005 Amending Finance Act creates Article 244 quater O of the General Tax Code. Craft trades businesses (where employees in a craft trade account for at least 30% of the payroll), manufacturers in watchmaking, jewellery, goldsmithing, eyewear, tableware, toys, musical instruments and furniture, and businesses labelled 'living heritage company' receive a tax credit of 10% of their new product design expenses: designers' salaries, depreciation, design registration and defence costs, flat-rate running costs and use of external stylists. The rate rises to 15% for living heritage companies. The credit applies to expenses incurred from 1 January 2006 to 31 December 2007, within the de minimis aid limits.