(Article 121 of the 2016 Finance Act)

The Finance Act for 2016 introduces a new country-by-country reporting requirement (new Article 223 quinquies C of the French Tax Code)[1]. The requirement is largely based on the OECD/G20 recommendations contained in the October 5, 2015 report Transfer Pricing Documentation and Country-by-Country Reporting (BEPS Action 13).


The report will contain "an allocation on a country-by-country basis of the group profits, economic, accounting and tax aggregates, as well as information on the localization and activity of the constituent entities". The exact contents of the information to be filed will be specified by Decree.

In practice, it is expected to be identical or very similar to the one recommended in the OECD/G20 report.

The OECD/G20 model is reproduced below:

Click here to view table.


The new requirement mainly targets parent companies of multinational groups. It applies to legal persons established in France which : 

  • prepare consolidated accounts, directly or indirectly own or control entities or branches established outside of France, generate an annual net consolidated turnover equal to or greater than  EUR 750 millions, and  
  • are not held by one or more legal entities, established in France and required to file this report, or established outside of France and required to file a similar report.

Moreover, a French subsidiary of a foreign group may also be required to file such a report in certain circumstances.


The report should be electronically filed within 12 months of the end of fiscal years opened as from January 1, 2016. Therefore, for a company with a fiscal year matching the calendar year, the first filing will concern 2016 data and will need to be submitted before the end of 2017.

Penalty for non-compliance:

Lack of filing may lead to a penalty of up to EUR 100,000, to which could be added penalties applied by local tax authorities of the countries where subsidiaries are located. A fine of EUR 15 for each omission or inaccuracy could also apply, up to a maximum of EUR 10,000.

Automatic exchange of information between tax authorities:

Subject to reciprocity, the report can be automatically exchanged by the French tax authorities with States or territories that have concluded with France an agreement to this end. The first automatic exchange is planned for 2018, regarding 2016 data filed in 2017.

The French Tax Authorities should also receive, in application of automatic exchange agreements, the country-by-country reports filed by parent companies of foreign groups established in France.