The DEMPE Concept and Its Role in Domestic Transfer Pricing Practice – Report on France

This article examines the application of the DEMPE concept in France’s domestic transfer pricing practice. While French legislation and guidelines do not explicitly address DEMPE, the OECD Transfer Pricing Guidelines serve as a key reference for both administrative doctrine and audit procedures. Recent legislative updates, including the 2024 Finance Bill, introduce measures for hard-to-value intangibles. Although no case law directly interprets DEMPE, French tax authorities routinely expect DEMPE analyses during audits and advance pricing agreements, making it a practical framework despite limited formal guidance.This article is part of a special issue of the International Transfer Pricing Journal on the DEMPE concept in domestic transfer pricing practice. The other articles include the General Report and contributions on Belgium, Germany, Ireland, Italy, Korea, Luxembourg, the Netherlands, Spain and the United States.