The French Culture ministry decided on September 20th 1999 to lower the gain tax levied on all private art transactions from 7 to 4,5 per cent, a rate already applied at auction. Such tax has been applied on all amounts of over 20 000 FF (US $ 3,300)
and the decision taken by the ministry is likely to simplify its application.
However, in most cases regarding private sales, dealers have usually taken care of the payment of such tax, knowing that individuals were not inclined to declare what they had been paid for a work of art.
Fiscal authorities stressed the special tax, which yields some US $ 43 million yearly, was to be paid by buyers or intermediaries.
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