The tax authorities of France released the final version of the tax form No 2257-SD on 16 September 2014 which is also known as the abridged documentation report, requiring some information;
Information for MNE:
- Multinational Entity’s principal activities
- Intangibles occupied by the group and used by the filing entity
- General description of transfer pricing policy of the MNE as it relates to the filing entity
Information about transactions exceeding €100,000 involving non-arm’s length entities :
- The full spectrum of transactions that involve or take place within a MNE (tangible goods, services, commissions, royalties, financial transactions, and “other” transactions, as well as transfers of assets moveable and immoveable, tangible and intangible).
- The information to be provided covers the aggregate amount of each type of transaction, the relevant countries, the transfer pricing methodology used (CUP, resale, cost-plus, TNMM, profit-split or other), and whether any changes occurred during the last year.
Changes in final version
- “Other royalties relating to intellectual property” (royalties for patents, trademarks and know-how were already covered) and for “Payments with respect to term financial instruments’’ are added in rows.
- There is a column for “Other Methods” regarding the description of transfer pricing methods used.
- A column has been removed (that previously referred to maximum and minimum royalty rates paid or received).
Filing requirements
As a reminder, form No. 2257-SD must be completed by taxpayers in French, and must be filed annually by a date that is six months from the date for filing the tax return.
