• Service: Tax, Global Indirect Tax, Global Transfer Pricing Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/28/2013

France - Electronic records, French accounting standards mandatory in 2014 

March 28:   Multinational enterprises with activities in France and that maintain their global accounts based on accounting standards other than those of France (such as U.S. GAAP) need to be aware of new mandatory documentation rules that are effective beginning 2014.

Effective 1 January 2014, new rules require companies to maintain digitalized systems and produce audit documentation in a “dematerialized” (electronic) format. Moreover, the documents must comply with the French accounting standards.

The new requirement applies to all French tax areas and issues—including transfer pricing, income tax, and value added tax (VAT)—for which a notification of the start of an audit is issued by the French tax authorities after 1 January 2014 (keeping in mind that an audit can cover at least the last three financial years, even more years if the company was in a “loss position”).

Read a March 2013 report prepared by KPMG LLP: Tax audits - Changes in French law require multinational, U.S. companies to follow French accounting standards

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