Art Advisory

Why is investing in art for your company a smart move?

Bringing art into the workplace offers more than just something beautiful to look at, it can transform the atmosphere of your office, from the reception area to meeting rooms and common spaces. Art not only creates a welcoming and inspiring environment, but it can also be a subtle yet powerful way to communicate your company’s values and identity to employees and visitors alike.

Art in the workplace speaks volumes about who you are as a business. It reflects the principles and vision that drive your company forward. Think of it as a visual representation of your mission—something that’s often challenging to express with words alone.

Beyond making a statement, having artwork in your office can boost employee morale, inspire creativity, and enhance productivity. It contributes to a pleasant and engaging work environment, reducing stress and promoting a sense of well-being.

Art can also strengthen your company’s brand. The right pieces can communicate your taste, economic status, and your connection to culture and creativity. For customers, partners, and suppliers, it gives a tangible sense of your company’s success and forward-thinking culture.

Moreover, supporting local or international artists can elevate your company's image as socially responsible, showing that you're not only about business but also committed to making a positive contribution to the broader community.

Call us at +45 5383 4347 or e-mail us at info@spacegallery.dk

Art in your company, buy art and get a tax advantage (only for Danish clients)

Companies that purchase art generally cannot deduct these expenses in their tax accounting. This is because the value of an artwork typically does not depreciate.

However, there is an exception. To support artists, tax rules include a special set of regulations that, under certain conditions, allow companies to deduct or depreciate expenses for art purchases. Here, we provide an overview of the essential parts of these regulations.

**Types of Art**
The special rules only apply to original visual artworks. This includes paintings, sculptures, graphics, photographic art, installation art, and similar forms. A distinction is made between artworks that are hung or displayed and those that are part of a building.

For graphic and photographic works, there is an additional requirement that they must be numbered and signed by the artist and produced in a limited edition. Reproductions are not covered by the rules.

The artwork must be a first-time purchase and must be bought directly from the artist or from a gallery that has the artwork on consignment.

The rules cannot be applied if the company purchases the artwork from an artist who is a family member or otherwise closely related to the company's owner.

**Artwork Displayed or Installed**
Expenses for the purchase of artworks that are displayed or installed in the company's premises can be depreciated using the so-called declining-balance method at up to 25% per year. This is done following the same rules as for inventory. Full depreciation can be made in the acquisition year, even if the purchase occurs late in the fiscal year.

If the purchase price is DKK 33,100.00 or less per artwork (2024), the company can deduct the entire amount in the year when the artwork is purchased.

Source: BDO Danmark read more here

For more information, please contact us by phone or e-mail:

SPACE / 宇宙

Ronald Hofman
Tlf:    +45 5383 4347
Mail: info@spacegallery.dk

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