France: CbC reporting notification, filing requirements | KPMG Global
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France: Country-by-country reporting notification and filing requirements

France: CbC reporting notification, filing requirements

The French legislation on country-by-country (CbC) reporting includes a notification requirement that, depending on the facts in each instance, could require French entities subject to the notification rules to report on their annual corporate income tax returns whether they will be filing the CbC report or whether another entity will be filing the CbC report and, if so, the name and location of the entity that has been selected to file the CbC report.


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Summary of CbC reporting rules

With respect to the fiscal year ended 31 December 2016, French legal entities must file their tax return no later than 3 May 2017 (paper) or 18 May 2017 (electronically filed). 

The CbC reporting notification requirements depend on the facts and circumstances, and there are three factors to be considered:

  • If a legal entity established in France is the parent company of a multinational group and if the entity files the CbC report, that entity must “check a box” indicating this information on its tax return. 
  • If a legal entity established in France is the subsidiary of an ultimate parent company located in a jurisdiction that has implemented CbC reporting and a competent authority agreement has been agreed to with France under the current international agreements for the automatic exchange of the CbC report, that entity is not required to mention any CbC reporting information on its tax return. The entity could, however indicate the legal name and address of the entity filing the CbC report on its tax return. A list of countries having agreed to the automatic exchange of CbC reports will be published by the French tax authorities after approval by the newly appointed prime minister. 
  • If a legal entity established in France is the subsidiary of a multinational group subject to the CbC reporting requirements, and if the entity filing the CbC report is not located in a country on the list expected to be published by the French tax authorities, that entity must indicate the legal name and address of the entity filing the CbC report on its income tax return. The entity selected or designated to file the CbC report must be located in jurisdiction meeting the two conditions described above.

The form used to file the CbC report in France—form 2258-SD—is expected to be filed electronically, in the French language, no later than 31 December 2017.



What's next?

It is the opinion of tax professionals with Fidal* that U.S. parented multinational entities (MNEs) are not to file a French notification at this time unless they have elected for a surrogate filing.

First, it is expected the United States and France will soon sign a bilateral qualified competent authority agreement (QCAA), rendering any notification unnecessary. In addition, notifying that the CbC report will be filed in the United States would be improper because the United States and France currently do not have a QCAA in place and, therefore, the United States is not a jurisdiction from which France could obtain the CbC report through an automatic exchange procedure.

In the unlikely event that the United States and France do not sign a QCAA by the time the U.S. CbC report is due, the MNE group could make a late French notification (i.e., identifying a surrogate jurisdiction), subject to a nominal penalty. Note that filing a current notification naming a surrogate jurisdiction, but amending later, would carry the same nominal penalty, but could result in additional scrutiny from the French tax authorities.


For more information, a tax professional with Fidal associated with KPMG's Global Transfer Pricing Services group or with KPMG in New York:

Nadia Sabin | +33 1 55 68 17 38 |

Patrick Seroin | +1 (212) 954-2523 |





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

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