Management fees: audit defence
At what conditions do the management fees paid by the French subsidiary to its parent remain deductible, and how do we make the file audit-proof?
Deduction remains defensible only if the services are real, useful to the French company, and priced at arm's length.
Under article 39 of the CGI, these fees are deductible only on three cumulative conditions: real and individualised services, a benefit to the subsidiary's own business, and arm's-length pricing. The classic reassessment route is the abnormal act of management: under BOFiP guidance and the Conseil d'État case law, the burden falls on the materiality of the services and the consistency of the charging key.
Dated deliverables, invoices, benefit test, transfer-pricing support, decision trail.