France: Country-by-country reporting, transfer pricing | KPMG | BE

France: Country-by-country reporting, transfer pricing declaration

France: Country-by-country reporting, transfer pricing

New legislation in France provides rules for country-by-country reporting and the transfer pricing declaration.


Related content

Several pieces of legislation—the Finance Act for 2016 and the Amended Finance Act for 2015, among other legislation—were published in the official journal on 30 December 2015. 

Country-by-country reporting

The Finance Act for 2016 enacts a country-by-country reporting requirement (Article 223 C of the French general tax code) in accordance with Action 13 of the OECD’s base erosion and profit shifting (BEPS) project. These reports will be subject to an automatic exchange between countries. 

This country-by-country declaration aims at reinforcing the transfer pricing documentary obligations of multinational groups. Two types of companies are subject to this declaration.

  • Companies that (1) create and maintain consolidated accounts; (2) belong to a group with a consolidated turnover in excess of €750 million; and (3) have foreign branches or hold or control, directly or indirectly, foreign entities. [Companies that are held by entities subject to the requirement to file a country-by-country reporting are not subject to this obligation themselves.]
  • Companies held by entities established in countries that do not participate in the automatic exchange of country-by-country reports: (1) the companies are held, directly or indirectly, by a legal entity established in a state that does not participate in the automatic exchange and would be required to file the country-by-country report if it were established in France; and (2) the companies are designated by the group, to which it belongs, to file the report of that have not demonstrated that another entity of the group established in a country that participates in the automatic exchange of country-by-country reporting has been designated to file the declaration.

The country-by-country report must include a breakdown, by country, of the group's earnings and aggregate economic accounting and information on the location and activities of the different members and entities of the group. The format of the report, which would be based on the international standard, is to be defined and established by a separate decree (to be published within the four months of 2016). The report must be filed in the electronic form for each fiscal year.

A failure to produce the report would be subject to a penalty in an amount up to €100,000. Omissions or inaccuracies in the report would be subject to a penalty in an amount of €15 per omission or inaccuracy, with the total amount of such penalties not being less than €60 or more than €10,000.

The new country-by-country reporting requirements apply to fiscal years opened on or after 1 January 2016. Accordingly, the first reports are to be filed by the end of 2017 and automatically exchanged between the countries in 2018.

KPMG observation

Tax professionals with Fidal* note that the constitutionality of this measure was challenged before the French Constitutional Council which, on 29 December 2015, found that the country-by-country reporting measure complies with the French Constitution.

Transfer pricing declaration

The Finance Act for 2016 specifies the content and terms of an annual transfer pricing declaration, pursuant to Article 223 B of the French tax code.

In consolidated tax group, it is now the parent company that is required to file this declaration—both for itself and for each of its subsidiaries that are members of the tax group. In addition, the information entries of the transfer pricing declaration are specified in accordance with the existing administrative guidelines.

The Finance Act for 2016 also provides that the declaration must now be filed electronically. These new measures apply to transfer pricing declarations that are required to be filed on or after 1 January 2016. 


For more information, contact a tax professional at Fidal* in Paris:

Olivier Ferrari | +33 (0)1 55 68 14 76 |   

Olivier Schmitt | +33 (0)1 55 68 15 92 | 


* Fidal is a French law firm that is independent from KPMG and its member firms.

© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal