Transfer pricing

Transfer pricing :
Simplified declaration and lowering of thresholds

The so-called French “Sapin II” Law [Loi Sapin II] of 9 December 2016, on transparency, curtailing corruption and modernising the economy, has introduced significant new declarative measures with regard to transfer pricing that need to be taken into consideration when preparing simplified tax form no. 2257 SD, pertaining to the transfer-pricing policy, due on 3 November 2017.

From now on, companies achieving a turnover of 50 million Euro or whose Gross Assets exceed 50 million Euro, or that hold an entity exceeding said thresholds or are held by any such entity, are obliged to file transfer-pricing policy form No. 2257 SD by 3 November 2017. As a reminder, the thresholds for the 2016 declaration were 400 million Euro.

Below is a summary of the current updated French obligations in terms of transfer pricing:




Turnover or Gross Assets of the French entity, its subsidiaries or parent companies, not exceeding €50m.  

  • Proof to be shown afterwards, and only in the event of control.

L. 13 B of the French Tax Procedures Handbook [Livre des Procédures Fiscales - LPF]

Art. 57 of the French General Tax Code [Code Général des Impôts - CGI]

Annual Turnover excl. VAT or Gross Assets of the French entity, its subsidiaries or parent companies, equal to or exceeding €50m.  

  • Simplified Tax Declaration - Form no. 2257 SD.

  • Information on the entities of the group and on the prices practised with regard to certain transactions (upon prior request from the Tax Department with due reason).

  • Cash flows to be declared
    > 100,000 Euro.

Article 223 quinquies B of the CGI (texts deriving from the “Sapin II” Law)

€400m Turnover or Gross Assets of the French entity, its subsidiaries or parent companies.    

  • Simplified Tax Form no. 2257 SD.

  • Preliminary comprehensive documentation with Master File and Local File, according to OECD’s 2015 BEPS recommendations;


L 13AA of the LPF.

Article 223 quinquies B of the CGI.


Consolidated Turnover of the group in excess of €750m.

  • Country-by-Country declaration.

  • Notification of the person filing the Country-by-Country declaration in the tax package.


Article 223 quinquies C of the CGI.


The measures taken under the “Sapin II” Law come under the current tendency of Governments to prevent tax base erosion, thus enabling the tax authorities to pinpoint a greater number of companies illustrating transfer pricing problems, regardless of such entities not yet being obliged to submit preliminary comprehensive documentation.  

Tax form no. 2257 SD should provide the following information:

      1. General information on the group:

  • General description of the business conducted.
  • List of the main intangible assets held.
  • General description of the group’s transfer-pricing policy.

       2. Specific information concerning the company:

  • Description of the business conducted.
  • Summary statement of the transactions realized with other partner companies,
    for the case where the aggregate amount by transaction type exceeds €100,000.
  • Presentation of the transfer-pricing determination methods by cash flow,
    in compliance with the fair competition principle, with mention of the main method used.