France Administrative Court of Appeal of Nantes Clarifies Taxation of Trademark Royalties, Sales Commissions

The French Administrative Court of Appeal of Nantes March 24 issued Decision No. 25NT01484, clarifying the taxation of trademark royalties and sales commissions. The taxpayer, a water treatment device retailer, sought discharges from multiple taxes. On appeal, the Administrative Court of Appeal of Nantes found that: 1) reintegrating into the taxpayer’s tax base a trademark liability to a Luxembourg company was correct when both companies had the same partners, and there was no non-accounting evidence; 2) royalties paid to the Luxembourg company weren’t deductible expenses when, although the taxpayer proved that company was subject to a foreign preferential tax regime, ...