Fiscal handling of the transfer of a graphic designer’s copyright

The Service of Advance Rulings (hereinafter the SDA) recently issued a new decision relative to the application of the tax system covering copyright. This decision has not yet been published. It concerns a graphic designer exercising his profession in a company. Not surprisingly, the SDA recognises that the graphic designer is the author of works protected by copyright within the meaning of the Code of Economic Law. It then found that the author had transferred, through a written agreement, all of his rights to the company against the allocation of compensation set as a share of the company’s turnover. Within the framework of its activity, the company finds itself transferring the rights on to its customers. It retains a margin. The author, also the manager of the company, is committed to maintaining his remuneration. As for the company, it is committed to distinguishing in the future in documents designed for its customers the share that pays for the transfer of rights and the share relative to the actual services. This distinction has no influence on the VAT handling of the operation. It should be noted that the SDA has also expressed concern about the impact of this transfer on the profitability of the company. Finally, the SDA has confirmed the non-application of the provision of anti-abuse (art. 344 § 1 of the Income Tax Code), in particular due to the objective of legal security pursued by the applicant.