Foreign Entity Classification: Article 8 of the French Tax Code Prevails Over Article 123 bis, Even Without a Distribution of Profits

In this article published on July 29, 2026 in Le Fiscal by Doctrine, Franck Le Mentec analyzes a recent decision of the French Conseil d'État holding that Article 8 of the French Tax Code takes precedence over Article 123 bis for certain foreign entities, even in the absence of a distribution of profits, with significant implications for the taxation of foreign partnerships and cross-border structures.