International Tax

Transfer Pricing: Rules and Practice in Selected Countries (E-G) (Portfolio 6950)

  • This Portfolio presents the rules and practice related to transfer pricing in France and Germany.


Chapter 50, “Transfer Pricing Rules and Practice in France,” examines the primary legal basis for French transfer pricing adjustments, Section 57 of the General Tax Code, as well as the alternative legal bases (the act of mismanagement concept, the abuse of law theory, excessive payments to tax havens, and recapture of profits shifted to tax havens). The chapter describes the approach of the French revenue authorities in determining transfer prices, the practical considerations in transfer pricing investigations, and the role of double taxation agreements in the transfer pricing context.

Chapter 55, “Transfer Pricing Rules and Practice in Germany,” begins with a discussion of the relevance of transfer pricing in Germany and the role of transfer pricing in the German tax system. The chapter then analyzes the German transfer pricing rules and describes the application of those rules to specific types of transactions, including transfers of tangible and intangible property, interest and similar remuneration, services, and cost sharing arrangements. The chapter also discusses the consequences of a transfer pricing adjustment, compliance and litigation, administrative rules, and the coordination of transfer prices with German customs and value added tax declarations.


Table of Contents

Portfolio 6950-1st: Transfer Pricing: Rules and Practice in Selected Countries (E-G)



CHAPTER 50: TRANSFER PRICING RULES AND PRACTICE IN FRANCE by Bruno Gouthière, Partner CMS Bureau Francis Lefebvre France

50:I. Introduction

50:II. The Predominant Legal Basis for Transfer Pricing Adjustments: Section 57 of the French General Tax Code

50:III. Alternative Legal Basis for Transfer Pricing Adjustments

50:IV. Tentative Approach of the French Method for Determining Transfer Pricing

50:V. Further Practical Considerations in Transfer Pricing Investigations

50:VI. Elimination of Double Taxation Resulting from Transfer Pricing Adjustments

CHAPTER 55: TRANSFER PRICING RULES AND PRACTICE IN GERMANY by Dr. Klaus Sieker, Partner Flick Gocke Schaumburg Frankfurt, Germany

55:I. Introduction

55:II. Basic German Transfer Pricing Rules

55:III. Specific Transfer Pricing Rules for Certain Transactions

55:IV. Consequences of a Transfer Pricing Adjustment

55:V. Compliance and Litigation

55:VI. Competent Authority Proceedings, Advance Rulings, and Arbitration

55:VII. Coordination of Transfer Prices with German Customs and Value Added Tax Declarations

Bruno Gouthière
CMS Bureau Francis Lefebvre
Klaus Sieker
Flick Gocke Schaumburg