France has published interest rates for entities whose financial year (FY) ended between 31 December 2022 and 30 March 2023, which are used to determine the deductibility of interest payments to shareholders. If the interest payments exceed the following rates, that are generally not deductible unless evidence is provided to prove that the applied interest rate is at arm’s length. The applicable rates and fiscal year end dates are as follows:
- From October 31, 2022 to November 29, 2022, the rate is 1.84% (revised);
- From November 30, 2022 to December 30, 2022, the rate is 2.03% (revised);
- From December 31, 2022 to January 30, 2023, the rate is 2.21%;
- From January 31, 2023 to February 27, 2023, the rate is 2.40%; and
- From February 28, 2023 to March 30, 2023, the rate is 2.58%.
