Tax reward for promoters in France

While the French concert industry is facing significant higher expenses due to increased safety standards, the live music community is benefitting from a unique tax break scheme for promoters.

It is one of the very few positive examples of how an entrepreneur-friendly tax law for smaller and midsized concert companies could look. The so-called Crédit d’impôt pour les entreprises de spectacles vivants musicaux (Tax credit for performing arts companies) is a French tax law that enables eligible promoters to be rewarded for their investment in new talent and live entertainment formats.

As elsewhere in Europe, the development of new artists is under pressure. While shows with headliners and popular artists are doing reasonably well, it’s the business with new and less prominent artists that is becoming more difficult and financially risky, due to increased competition.

Ten years after the French government installed a similar tax law for French record companies, it last year implemented a crédit d’impôt for live music companies.

Smaller and midsized concert companies are now able to apply for a tax credit of up to €500,000 per show or a ceiling of €750,000 per year

Similar in design to the existing incentives for music labels, smaller and midsized concert companies are now able to apply for a tax credit of up to €500,000 per show or a ceiling of €750,000 per year and per company on deductable expenses.

The law is applicable for live entertainment events within the market segments for concerts, comedy or spoken word events, but excludes shows with more than 12,000 visitors. Deductable amongst others are expenses for staff, royalties, rental fees for venues and investments related to the digitalisation of an event such as recording or post-production.

Eligible companies must pay earnings tax and have managing directors that do not earn more than €50,000 per year. However, promoters need to apply beforehand at the Ministry of Culture to obtain a certificate to make use of the law. The tax credit itself is partitioned over three years.

No official figures have yet been published on how many companies are benefitting from the new tax law, but the legislation is being welcomed as an interesting model in terms of support programmes for smaller concert companies.

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