Press Room

July 13, 2018

From France: Decree Provides More Details on the New TP Documentation in France from January 1, 2018

Denis Fontaine-Besset - Andersen Tax & Legal in France, a member firm of Andersen Global


Following the adoption of the finance law for 2018, modifying the law for detailed content of the mandatory transfer pricing documentation to be prepared by companies with, or controlled by or controlling entities with a turn over or a gross asset exceeding €400 m, the application decree providing more precise guidelines on the implementation of these changes was published on June 29, 2018. This decree details the modifications to be included in the documentation for financial years beginning on January 1, 2018, or after.

Modifications are aiming at adopting for French documentation obligations, the OECD Masterfile/Entity file model. Despite the relatively high level of information already requested for mandatory transfer pricing applicable since 2010, new requirements will result in the increase of requested information and especially with the following new requirements:

  • Categorization of local file information in three parties: French entity, Controlled transactions, and financial information,
  • Documentation of controlled transactions of all nature with a global gross turn over exceeding €100.000 and information thereon shall include relevant information on the nature of the transaction with specific information on the five more important transaction types,
  • The functional analysis shall highlight changes compared to the situation of the previous two years,
  • Information shall be presented in standardized tables in a format allowing for direct data processing by the tax administration and with a direct reference to book entries in the statutory accounts of the entity,
  • More details are requested on the financing of the group and on how this is impacting intragroup financial transactions, and
  • A higher level of explications will be requested on economical analysis with respect to the choice of the testing method or party as well as on different options selected for the realization of economical analysis.