FRANCE Law and Practice Contributed by: Alexis Popov, Martin Serre and Stéphane Duchesne, &Co Advisory
7. Advance Pricing Agreements (APAs) 7.1 Programmes Allowing for Rulings Regarding Transfer Pricing France operates an advance pricing agreement pro - gramme pursuant to Article L. 80 B, 7° of the French Tax Procedures Code (FTPC), with legal protection granted under Article L. 80 A, FTPC. This programme allows taxpayers to obtain prior agreement from the French Tax Administration on the transfer pric - ing methodology to be applied to future intra-group transactions. APAs may be unilateral, bilateral, or multilateral, depending on the jurisdictions involved. In practice, bilateral and multilateral APAs are generally preferred, as they offer a higher level of protection by reducing the risk of double taxation. The programme covers a broad range of trans - fer pricing matters, including transactions involving goods, services, intangibles, financial arrangements, and dealings with permanent establishments. It is designed to secure the transfer pricing methodology, the selection of comparables, and the critical assump - tions underlying the pricing of controlled transactions over a defined period. Recent administrative guidance, including the SJCF‑4B Charter (2026), has further streamlined and formalised the APA process. This guidance clarifies procedural expectations and strengthens the pro - gramme’s role as a key instrument for dispute pre - vention in France. 7.2 Administration of Programmes The French APA programme is administered by the SJCF-4B Bureau ( Prévention et résolution des diffé - rends internationaux ) within the DGFiP. This bureau acts as the French competent authority for transfer pricing APAs and is also responsible for handling mutual agreement procedures (MAPs). Official guid - ance confirms that APA applications must be submit - ted to SJCF-4B and, in bilateral or multilateral cases, must be mirrored in the other relevant jurisdictions. The 2026 SJCF-4B charter introduces a more struc - tured framework for administering the programme. It
6.3 Simultaneous Controls France participates in simultaneous controls conduct - ed alongside other jurisdictions. Each tax authority carries out its own audit while exchanging information throughout the process. These controls are generally co-ordinated through EU frameworks or bilateral agreements, with communica - tion maintained via competent authority channels. In practice, this requires taxpayers to present a con - sistent justification of the arm’s length nature of their transactions across all relevant jurisdictions. 6.4 International Compliance Assessment Programme (ICAP) France participates in the OECD International Com - pliance Assurance Programme (ICAP), a voluntary multilateral tax risk assessment initiative launched by the OECD in 2018. ICAP enables multinational groups to obtain a co-ordinated assessment of key tax risks – particularly transfer pricing and permanent establishment issues – from multiple participating tax administrations. The programme is based on information provided by the taxpayer, such as country-by-country reports and transfer pricing documentation, and involves direct interaction between the taxpayer and the relevant tax authorities. France has been involved in ICAP since its initial phase and continues to participate in subse - quent iterations of the programme. In practice, ICAP is primarily used by large multina - tional groups and may result in an indication that cer - tain tax positions are considered low risk, although it does not constitute a binding ruling. Participation in ICAP can facilitate dialogue with tax authorities and reduce the likelihood of subsequent audits; however, it does not preclude reassessments if new information comes to light.
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