What is the Dation-in-payment scheme?
The "Dation in payment" scheme in France is a measure that allows you to pay all or part of a tax by offering the State a work of art or cultural property of heritage interest. This means that the work of art is remitted to the State in settlement of the tax due, which leads to a reduction in the amount of tax payable.
Dation in payment can apply to different taxes, such as real estate wealth tax (IFI) or inheritance and gift tax. It is subject to certain specific conditions and procedures.
What are the eligibility criteria for Dation in payment?
To be eligible for the Dation in payment, the work of art proposed must be of heritage interest, that is to say, it must present a major interest on the artistic, historical or scientific level.
The work must present a patrimonial interest
- Major artistic interest
- Major historical interest
- Major scientific interest
The value of the work is appraised by a specialized commission which determines whether it meets the required criteria.
If the work is accepted, it is then considered as a means of payment of the tax. The value of the work is deducted from the amount of tax due, and if the value of the work is greater than the tax to be paid, the excess can be carried over to the taxes of the following years, within the limit of five years.
Dation in payment thus makes it possible to reconcile the payment of taxes with the preservation of French artistic and cultural heritage. It also makes it possible to ensure the conservation and enhancement of works of art by integrating them into public collections, museums, libraries, etc.
Sources:
BNF - Dation in payment
© Raphael Perez
Jean Dubreil