DT7330 - DT: France: double taxation agreement, Article 29A: Taxation of certain offshore activities
Notwithstanding any other provision of this Convention
(1) An enterprise of a Contracting State which carries on
activities offshore in connection with the exploration or
exploitation of the sea bed and sub-soil and their natural
resources in areas which are, in accordance with international law,
under the jurisdiction of the other Contracting State shall,
subject to paragraphs (2), (4) and (5) of this Article, be deemed,
except as regards paragraph (2) of Article 15 of the Convention, to
be carrying on in respect of those activities a business in that
other Contracting State through a permanent establishment situated
therein.
(2) The provisions of paragraph (1) of this Article shall not
apply where the activities referred to therein are carried on in
the areas specified in that paragraph for a period not exceeding in
the aggregate 30 days in any period of 12 months. However, for the
purposes of this paragraph:
(a) where an enterprise carrying on activities referred to in
paragraph (1) of this Article in those specified areas is
associated with another enterprise carrying on substantially
similar activities there the former enterprise shall be deemed to
be carrying on all such activities of the latter enterprise except
to the extent that those activities are carried on at the same time
as its own activities;
(b) an enterprise shall be regarded as associated with
another enterprise if one is controlled directly or indirectly by
the other, or both are controlled directly or indirectly by a third
person or persons.
(3) A resident of a Contracting State who carries on activities
offshore, in connection with the exploration or exploitation of the
sea bed and sub-soil and their natural resources in the areas
specified in paragraph (1) of this Article, which consist of
independent professional activities as defined in Article 14(2) of
this Convention shall be deemed to be performing those activities
from a fixed base in the other Contracting State. However, this
paragraph shall not apply where such activities are carried on in
those specified areas for a period not exceeding in the aggregate
30 days in any period of 12 months.
(4) Profits derived by a resident of a Contracting State from
the transportation of supplies or personnel to a location where
activities in connection with the exploration or exploitation of
the sea bed and sub-soil and their natural resources are being
carried on in areas which are under the jurisdiction of a
Contracting State or from the operation of tugboats and similar
vessels in connection with such activities, shall be taxable only
in the Contracting State of which he is a resident.
(5) The provisions of Article 15 of this Convention, and not
paragraph (1) of this Article, shall apply in respect of an
employment.
(6) Where a resident of France derives income which in
accordance with the provisions of this Article may be taxed in the
United Kingdom, France may tax such income but shall allow as a
deduction from the French tax on that income an amount equal to the
tax paid in the United Kingdom. Such deduction shall however not
exceed that part of the French tax, as computed before the
deduction is given, which is attributable to the income which may
be taxed in the United Kingdom.
