DT7319 - DT: France: double taxation agreement, Article 19: Government service
This agreement applies for periods before the new comprehensive agreement has effect (see DT7250).
(1)
(a) Subject to the provisions of sub-paragraph (b) of this paragraph, remuneration or pensions paid out of public funds of the United Kingdom or Northern Ireland or of the funds of any local authority in the United Kingdom to any individual in respect of services rendered to the Government of the United Kingdom or Northern Ireland or a local authority in the United Kingdom in the discharge of functions of a governmental nature, shall be taxable only in the United Kingdom.
(b) Where the individual is a French national without also being a United Kingdom national, sub-paragraph (a) of this paragraph shall not apply, but the remuneration or pension shall, for the purposes of Article 24, be deemed to be income from a source within the United Kingdom.
(2)
(a) Subject to the provisions of sub-paragraph (b) of this paragraph, remuneration or pensions paid by, or out of funds created by, France or a local authority thereof to any individual in respect of services rendered to the Government of France or local authority thereof, in the discharge of functions of a governmental nature, shall be taxable only in France.
(b) Where the individual is a national of the United Kingdom without also being a French national, sub-paragraph (a) of this paragraph shall not apply, but the remuneration or pension shall, for the purposes of Article 24, be deemed to be income from a source within France.
(3) The provisions of paragraphs (1) and (2) shall not apply to remuneration or pensions in respect of services rendered in connection with any trade or business.
(4) Notwithstanding anything in this Convention:
(a) the pensions referred to in paragraphs (4), (5) and (6) of Article 81 of the French General Tax Code shall be exempt from United Kingdom tax, regardless of the nationality of the pensioner, so long as they are exempt from French tax:
(b) the following pensions shall be exempt from French tax, regardless of the nationality of the pensioner, so long as they are exempt from United Kingdom tax:
(i) wounds pensions granted to members of the naval, military or air forces of the Crown;
(ii) retired pay of disabled officers granted on account of medical unfitness attributable to or aggravated by naval, military or air force service;
(iii) disablement or disability pensions granted to members, other than commissioned officers, of the naval, military or air forces of the Crown on account of medical unfitness attributable to or aggravated by naval military or air force service;
(iv) disablement pensions granted to persons who have been employed in the nursing services of any of the naval, military or air forces of the Crown on account of medical unfitness attributable to or aggravated by naval, military or air force service;
(v) injury and disablement pensions payable under any scheme made under the Injuries in War (Compensation) Act, 1914, the Injuries in War Compensation Act, 1914 (Session 2), the Injuries in War (Compensation) Act, 1915, the Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939, the Personal Injuries (Emergency Provisions) Act, 1939, or under any War Risks Compensation Scheme for the Mercantile Marine.
Provided that paragraph (1) of this Article shall apply to such part of any income from those pensions as is not exempted from United Kingdom tax.
