France - Public consultation opens on transfer pricing reporting requirements 

June 5: There are new transfer pricing reporting requirements for certain entities in France, and a public consultation concerning the information return required to be filed, in order to report transfer pricing information, has just been announced by the French tax authorities.


French legislation (known in English as the “Bill against Tax Fraud and Serious Financial and Economic Crime”) was adopted by the French Assembly in November 2013. This legislation established a new reporting requirement for enterprises that are within the scope of article L 13 AA* of the French tax procedure law.

*Concerning the French transfer pricing documentation requirements for entities established in France:

  • Having annual turnover or total gross assets exceeding €400 million, or
  • Directly or indirectly held by a company satisfying one of the €400 million turnover or total assets thresholds, or
  • Directly or indirectly holding a company that satisfies either of the €400 million turnover or total assets thresholds, or
  • Belonging to a French tax consolidated group including a company satisfying one of the thresholds

These enterprises now must file a specific transfer pricing declaration form with the French tax authorities within six months of the date of filing their tax returns.

Public consultation

The French tax authorities this week opened the public consultation process on the new transfer pricing declaration rules.

Subject to possible future changes to the draft version of the form, the new reporting requirement directs a taxpayer file a specific tax form and to include a detailed table summarizing all significant information relating to the enterprise’s transfer prices (e.g., the amount of intra-group transaction income flows above €100,000 for each type of transaction, the countries involved or concerned by the transaction, and the transfer pricing method selected).

The draft version of the form generally is in line with the OECD’s country-by-country reporting approach in the BEPS project, and is also similar to existing requirements in other countries (including the United States and Canada).

Based on the comments from officials with the French tax administration, the form would have to be prepared and filed in French. At this point in time, there is no possibility for reporting enterprises to use English or any other language.

The documents and form proposed by the French tax authorities are expected to be discussed within the next couple of weeks, before the final version of the form is approved.

KPMG observation

Tax professionals with Fidal* report that they will provide comments during the consultation period and possibly propose amendments to the draft form—ranging from suggestions that other languages be allowed (perhaps English) to recommendations concerning the confidentiality aspects of the declaration as regards the nature and ownership of intangibles.

For more information, contact a tax professional with the Global Transfer Pricing Services group (Fidal*) in Paris:

Olivier Kiet

+ 33 1 55 68 16 15

Pascal Luquet

+ 33 1 55 68 15 22

Kate Noakes

+ 33 1 55 68 16 57

François Vincent

+ 33 1 55 68 14 92

Anne-Laure Goetzinger

+ 33 1 47 38 89 32

*FIDAL is an independent legal entity that is separate from KPMG International and its member firms.

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