(French General Tax Code, art. 238 A)
Commissions Paid To A Swiss Subsidiary - Payments Too Important Compared To The Services Rendered
According to Article 238 A of the French General Tax Code, the commission paid by a French company to its Swiss subsidiary in charge of the marketing of its goods, which is set up at a 3.5% rate of the amount of the sales cannot be booked as a deductible charge insofar as the activity of the subsidiary involved is limited to the reinvoicing of operations totally performed by the parent company (C.A.A. Nancy, March 6, 1996, no. 93-868 and 93-1013).
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For additional information contact Claire Acard on 33/(1)/55 61 10 10, Lionel Benant on 33/78.63.72.35, Joel Fischer on 33/78.63.72.31, or Laurent Borey on 33/(1) 55 61 10 10 or enter text search: "ARCHIBALD ANDERSEN Profile".
The members of ARCHIBALD ANDERSEN Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar and the Lyon Bar.
