Bloomberg Tax Transfer Pricing Forum

Co-authored by Guillaume Madelpuech, NERA Economic Consulting

1. Services or Intangible Property

1. If a senior manager or management team is relocated into or out of your jurisdiction, does your country have a view about whether the transfer is purely a services transfer, or includes an intangible asset such as goodwill (or even workforce in place); or of an intangible such as profit potential?

As a matter of principle, the French tax legislation does not qualify "human capital" as constituting an 'asset.' Therefore, in the current state of the French law, "workforce - in place"would be viewed as a component of a company's function. Consequently, since such tax law is aiming at taxing asset transfers, no compensation would be required on a transfer of a work force, to the extent the transfer is not reflective of or associated to any other asset transfer, in particular of an intangible.