Transfer Pricing Forum - France
1 July 2011
By Sébastien Gonnet with Julien Monsenego of Oslwang France LLP
In this article from BNA International's Transfer Pricing Forum, NERA Principal Sébastien Gonnet and Julien Monsenego, tax partner at Oslwang France LLP, provide an overview of the application of the permanent establishment (PE) concept in France in light of the revision of Article 7 of the OECD Model Convention. The authors describe the circumstances in which a PE can be characterized under French law, and provide insights into the economic methods used for the attribution of profits to the PE. The authors provide examples of PEs and the attribution of profits to such PEs in the case of turnkey projects, involving both offshore and onshore legs of work, or in the case of service provision by a local subsidiary. This article is the second of two prepared for Transfer Pricing Forum on the subject of PEs.
