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France Approves Corporate Tax Changes 

Global Tax Adviser


January 21, 2014


Alex Feness
Toronto, International Corporate Tax


France's Parliament approved the country's Finance Act for 2014 and Corrective Finance Act for 2013 on December 19, 2013. Most of the legislative changes concern the taxation of companies and aim to reduce a budget deficit by focusing on the taxation of large corporate taxpayers. The new legislation also focuses on the tax treatment of indirect transfers of profit.

Among other changes, the legislation:


  • Introduces a new limitation on the deductibility of interest on loans obtained from (French or foreign) related parties
  • Makes it mandatory to provide cost accounting and consolidated accounts to the French tax authorities during a tax audit
  • Requires taxpayers to include rulings from foreign tax authorities in transfer pricing documentation disclosed to the tax authorities.


For more information, contact your KPMG adviser.






Information is current to January 21, 2014. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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