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This chapter is not exhaustive and is limited to broadly outline the tax consequences of the main events occurring when doing business in France. It does not constitute a tax advice or a client - attorney relationship. Materials are not suitable for tax analysis. Visitors are invited to consult a tax lawyer before taking any decision.
 For e-commerce purposes, French tax authorities consider that the sole location of computer equipment located in France is not sufficient to constitute a PE.
The position of the French tax authorities differs from the OECD position which considers that servers may be treated as PE irrespective of the existence of any human presence. According to OECD, a PE exists when a server meets the criteria for a fixed place of business and performs business operations that are not only preparatory or auxiliary in nature.
French enterprises planning to locate computer servers in foreign countries should carefully review the local tax consequences e.g. the existence of a PE.
However in most cases, the profit generated through e-business remains taxable in the home country of the enterprise.
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