French Parliament updated their transfer pricing documentation rules. Under the Finance Act for 2018, which was approved by the Parliament on 21 December 2017, French companies must submit the transfer pricing documentation for financial years beginning on or after 1 January 2018. The aim is for the French transfer pricing documentation rules is to bring the transfer pricing documentation process in line with the standard under Action 13 of the OECD’s base erosion and profit shifting (BEPS) project.
The transfer pricing documentation includes information concerning items such as:
- A description of the supply chain for the main goods and services as well as offered by the group as well as any other goods and services amounting to more than 5% of the group’s turnover.
- Intangible assets and intragroup agreements regarding such assets.
- A description of the significant intra-group transactions and the conditions under which they were entered into.
The new Article thus appears to limit the transfer pricing documentation requirement to the most important intra-group transactions.
