Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

Start by selecting your Topic of interest below. Then choose your Regions and finally refine the exact Subjects you are seeking clarity on to view detailed analysis provided by our carefully selected internationally recognised experts.

4. Results: Answers
Corporate Tax
7.
Consolidation
7.1
Is tax consolidation permitted, on either a tax liability or payment basis, or both?
France

Answer ... A French parent company and its 95% owned French subsidiaries which are liable for corporate tax can opt for a tax consolidation tax regime to combine their profits and losses and pay corporate income tax on the consolidated result. A French parent company that indirectly owns at least 95% of its French affiliates through one or more foreign companies based in the European Union, Iceland, Norway or Liechtenstein (‘intermediate companies’) can also form a tax consolidated group. Similarly, it is possible to set up a tax group between sister companies with the parent company established in the European Union, Iceland, Norway or Liechtenstein.

This mechanism makes it possible to offset the tax profits and tax losses made by the various subsidiaries within the tax consolidated group, as well as to neutralise certain intra-group transactions.

The head of the tax consolidated group can pay corporate income tax for all companies within the scope of the group.

For more information about this answer please contact: Eglantine Lioret from Pinsent Masons LLP
Contributors
Topic
Corporate Tax