DT7324 - DT: France: double taxation agreement, Article 24: Elimination of double taxation

Double taxation of income shall be avoided as follows:

(a) Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof):

(i) French tax payable under the laws of France and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within France (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the French tax is computed;

(ii) when a dividend is paid by a company which is a resident of France to a company resident in the United Kingdom which directly controls at least 10 per cent of the voting power in the French company, the credit shall also take into account the French tax payable by the Company in respect of the profits out of which such dividend is paid if, at the time when the dividend is paid, a company resident in France bears, in respect of any dividend received from a company which is a resident of the United Kingdom, taxation in France which is no more burdensome than the taxation of any such dividend under the internal law of France in force at the date of the signature of this Convention.

(b) In the case of France:

(i) income other than that mentioned in sub-paragraph (ii) below shall be exempt from the French taxes mentioned in paragraph (1) of Article 1 while the income is, under the Convention, taxable in the United Kingdom;

(ii) as regards income mentioned in Articles 9 and 17 which has borne United Kingdom tax in accordance with the provisions of these Articles, France shall allow to a resident of France receiving such income from the United Kingdom a tax credit corresponding to the amount of tax levied in the United Kingdom. Such tax credit, not exceeding the amount of French tax levied on such income, shall be allowed against taxes mentioned in sub-paragraph (1)(b) of Article 1 of this Convention, in the bases of which such income is included;

(iii) notwithstanding the provisions of sub-paragraphs (i) and (ii) French tax may be computed on income chargeable in France by virtue of this Convention at the rate appropriate to the total of the income chargeable in accordance with French law.

(c) A resident of a Contracting State who maintains one or more places of abode in the other Contracting State shall not be subject in that other State to an income tax according to an imputed income based on the rental value of the place or places of abode.

(d) For the purposes of this Article profits or remuneration for personal (including professional) services performed in a Contracting State shall be deemed to be income from sources within that Contracting State, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of one of the Contracting States shall be deemed to be performed in that Contracting State.