France has updated the list of countries that have concluded an agreement on the exchange of country-by-country reporting (CbCR). Companies that do not submit this declaration must expect a fine of EUR 100,000. However, there are exceptions. The Ecovis experts know the current rules.
Multinational companies with consolidated revenues of EUR 750 million or more are required to file a country-by-country reporting return each year in France within 12 months from the date of closing of their financial year (CGI art. 223 quinquies C of the French tax code). A EUR 100,000 penalty may apply for failing to file the return. However, entities owned or controlled by an entity established in a country that has adopted similar regulations and has entered into an agreement with France allowing for the automatic exchange of reported information are exempt from this obligation.
The initial list of countries concerned was set out in order ECOE1714076A dated 6 July 2017 and has been progressively updated (order ECOE1834376A, 26 December 2018; order ECOE2013143A, 20 July 2020; order ECOE2100179A, 3 February 2021). Order ECOE2201859A dated 14 February 14 2022 updates the list of countries for financial years (FY) beginning on or after 1 January 2020.
List of countries with country-by-country reporting agreements with France
The countries listed now are: the member states of the European Union, Andorra, Anguilla, Argentina, Australia, Azerbaijan, Belize, Bermuda, Brazil, British Virgin Islands, Canada, Cayman Islands, Chile, China, Colombia, Costa Rica, Curaçao, Gibraltar, Guernsey, Hong Kong, Iceland, India, Isle of Man, Indonesia, Japan, Jersey, Kazakhstan, Liechtenstein, Macau, Malaysia, Mauritius, Mexico, Monaco, New Zealand, Nigeria, Norway, Oman, Pakistan, Panama, Peru, Qatar, Russia, Saudi Arabia, San Marino, Seychelles, Singapore, South Africa, South Korea, Switzerland, Turkey, Turks and Caicos Islands, United Arab Emirates, United Kingdom, Uruguay.
Israel is not on the list because although it was added for FYs beginning on or after 1 January 2017, it has been removed for FYs beginning on or after 1 January 2020.
We can support you in correctly implementing country-by-country reporting for your company.Vanessa Raindre, Tax partner, MD Legal, Paris, France
Exceptions for non-listed countries
For countries that are not listed (such as, for example, the USA) and based on the “Ultimate Parent Surrogate Filing” derogatory procedure provided by the OECD, the French tax administration has declared that French subsidiaries of a foreign group whose parent company resides in a country that has not signed an automatic CbCR exchange agreement with France will not have to file this return in France if:
- The parent company of the group has filed a CbCR return in its country of residence for the financial year concerned (including voluntary filings)
- The country authorises the voluntary filing of CbCR
- The tax treaty in force allows for the spontaneous exchange of information with France
- The country formally indicates that it undertakes to voluntarily send the returns filed by the ultimate parent entities resident in their countries
For further information please contact:
Vanessa Raindre, Tax partner, MD Legal, Paris, France