🇺🇸 🇫🇷 Franco-American transfer pricing: how to avoid tax traps in 2026?
- Noham Layani
- Dec 11
- 5 min read
The United States remains, more than ever, a land of opportunity for growing French SMEs. But as we approach 2026, one thing is certain: transatlantic tax risk is not decreasing, it is becoming more professional.
After several years of stricter regulations, the American and French tax authorities have changed their approach: less tolerance, more targeting, more controls on medium-sized groups.
For French SMEs that invoice services, licenses or products to their American subsidiary, transfer pricing has become a strategic issue, far beyond a simple documentary obligation.
In 2026, mishandling them could be costly. Anticipating them well, on the other hand, can become a lever for security and international credibility.
2026: Why tax risk is increasing for Franco-American SMEs
For a long time, transfer pricing was perceived as a topic "reserved for large groups". That era is over.
As we approach 2026, several fundamental trends are becoming firmly established:
In the United States, the tax administration is refining its tools for analyzing intragroup transactions, particularly those related to distribution, services and the exploitation of intangible assets (software, brands, platforms).
In France, transfer pricing documentation is now an expected standard, even for groups whose turnover remains "modest" on an international scale.
The exchange of information between administrations makes inconsistencies increasingly visible: a margin deemed "abnormal" on one side of the Atlantic is quickly questioned on the other.
As a result, French SMEs operating in the United States find themselves exposed to a double risk:
Tax adjustment (intra-group price adjustments, tax reassessments).
Heavy penalties , sometimes disconnected from the actual size of the company.
The essential starting point in 2026: Are you taxable in the United States?
Even before discussing transfer pricing, one question continues to trap many SMEs: does your business create a tax presence in the United States?
The key criterion remains the concept of trade or business in the United States (USTB). Once your US activity is considered regular, continuous, and substantial, your income can be classified as effectively connected income (ECI) and therefore taxable in the United States.
In practice, by 2026, the following situations are almost systematically analyzed as being at risk:
an American subsidiary that distributes products or services designed in France,
a French parent company that invoices a US entity for licenses, support, management fees or R&D,
an American structure with active sales teams, even if value creation remains mainly in France.
In these cases, US reporting obligations become unavoidable, with one major point of attention: failure to file or an incomplete return often costs more than the tax itself .
2026: Transfer pricing becomes the heart of risk (and response)
While 2025 marked a regulatory turning point, 2026 marks an operational turning point . Tax authorities are no longer content with simply verifying the existence of documentation: they are analyzing its economic coherence.
The question is no longer:
"Do you have a transfer pricing method?"
but rather:
"Is your business model credible in light of your intra-group flows?"
The key principle remains unchanged, but its application is becoming more stringent.
The prices charged between the French parent company and the American subsidiary must comply with the arm's length principle . In other words, your intra-group terms must reflect what two independent companies would have agreed to under comparable circumstances.
In 2026, the methods remain the same… but their justification must be more robust:
CUP : relevant but demanding in terms of reliable comparables.
Cost + : closely monitored regarding the actual costs and the margin applied.
TNMM : often used, but vulnerable if the US subsidiary shows "out-of-market" profitability.
Profit split : increasingly examined for SaaS, data and platform models.
2026: The classic trap for French SaaS and e-commerce SMEs
The scenario has become almost commonplace... A French SME develops the technology, the brand, and the product. The American subsidiary handles sales, invoices US clients, and provides some support. On paper, everything works. But what about the tax implications?
If the US subsidiary generates a net profit margin significantly higher than that of a comparable distributor , the US administration may consider that:
the parent company under-invoices its assets or services,
The creation of real value is not properly compensated.
Conversely, if the US subsidiary is structurally loss-making, France can question the reality of its substance .
By 2026, this type of imbalance is one of the primary triggers for control.
How to avoid tax traps in 2026: the Blendy approach
As 2026 approaches, securing transfer prices is no longer simply a matter of "putting together a file".
The aim is to align taxation, operational reality and international growth strategy.
At Blendy , this approach is based on a simple conviction: transfer pricing cannot be dealt with remotely from a business that is not understood on the ground .
It is precisely with this logic in mind that Blendy is now also present in the United States, in Florida (Miami) , in order to support French SMEs as closely as possible to their American operations and their local challenges.
1. Consider transfer pricing before invoicing
The right question is not "how much to charge?", but:
Who actually creates the value?
Who bears the commercial, technological, and financial risks?
What assets (software, brands, data, know-how) are actually being used on both sides of the Atlantic?
This functional analysis, conducted on both the French and American sides, constitutes the cornerstone of a credible and defensible transfer pricing policy in 2026.
2. Transforming documentation into a management tool
By 2026, a good transfer pricing plan is no longer a static document intended solely to "tick a tax box." It must reflect the actual evolution of the business: growth in the US market, changes in the distribution model, the strengthening of local teams, new products, or new revenue streams.
At Blendy, documentation becomes a strategic management tool , useful not only in the event of a tax audit, but also in discussions with investors, partners or financial institutions.
3. Anticipate rather than correct
Retroactive adjustments are almost always more costly than proactive ones. In 2026, reviewing transfer pricing policies before an audit—or before a significant change in the business model—is one of the most effective levers for securing Franco-American expansion.
The goal is not to optimize at all costs, but to build a coherent, readable and robust structure, capable of withstanding scrutiny by tax authorities on both sides of the Atlantic.
Conclusion: By 2026, transfer pricing is no longer an option
For a French SME operating in the United States, transfer pricing is neither a luxury nor an administrative constraint. It is a structuring element of the international strategy .
If poorly prepared, they expose companies to costly corrective actions and a loss of credibility. If well anticipated, they secure growth, reassure investors, and allow for the smooth management of transatlantic expansion.
👉 The key message for 2026 : It is no longer SMEs that ignore transfer pricing that are at risk, but those that think they can deal with it "later".
At Blendy, we support French and international SMEs in structuring and securing their Franco-American flows, with a pragmatic approach adapted to their operational reality.
Are you preparing for 2026?
This is when the transatlantic tax strategy is being built.
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