Except in cases in which a tax treaty can be applied, the liability of a foreign company for French corporate tax results, for the said company, only from a repetitive profit generating activity that takes place in the French territory. Case law has established three alternative criteria: the existence of a permanent establishment having certain autonomy, the realisation of a complete commercial cycle or the presence of an agent who lacks independent professional status. The Paris Administrative Court of Appeal, in a decision dated March 2, 1995 specified that an office of a foreign company in France, managed by an agent placed under the authority of the foreign company, that has human and material means (i.e., employees, furniture, fixtures), and receives directly orders forms from the clients, is a permanent establishment.

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