Legal entities established in France must subscribe a declaration concerning their transfer prices (Form 2257-SD) when annual turnover excluding tax, or the gross asset show in the balance sheet is greater than or equal to € 50 million for the financial years closed from 31 December 2016 (CGI Article 223 quinquies B).
The declaration must be filed within 6 months of the statement of result deadline. This deadline is deducted from the legal date (namely the May 3th 2017 for companies whose fiscal year ended on 31 December) and not from the extended date of 15 days to make the teletransmission of the statement of results.
The term “legal entities established in France” includes foreign legal entities having a permanent establishment in France, it being specified in this case that the terms of the amount of turnover or assets are deemed to be satisfactory if they are filled at the level of the permanent establishment in France or at the level of the legal entity abroad (BOFiP-BIC-BASE-80-10-20-§ 414-01 / 03/2017).
Legal entities established in France must also subscribe to the declaration (BOFiP-BIC-BASE-80-10-20-§ 414-01 / 03/2017):
– When they directly or indirectly own more than half of the capital or voting rights of a legal entity meeting one of the conditions of turnover or assets at the end of the financial year. In attendance of a permanent establishment in France of the foreign entity, the conditions shall be deemed satisfactory if they are filled at the level of the permanent establishment in France
– When more than half of their capital or voting rights are possess directly or indirectly at the end of the financial year by a legal entity that satisfies one of the conditions of turnover or assets. In attendance of a permanent establishment in France of the foreign entity, the conditions are considered satisfactory if they are met at the legal entity abroad.
The term “legal entity” means any corporate, agency, trust or comparable institution established or constituted in France or abroad.
It should be noted that the declaration must also be filed when the legal persons established in France belong to an integrated group where that group includes at least one legal person meeting one of the conditions mentioned above.
Source: La Revue Fiduciaire