Double Tax Treaties in France
Double Taxation Treaties in FranceUpdated on Friday 24th September 2021
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France has signed double tax treaties with many countries in order to avoid double taxation. Tax treaties may cover a wide range of taxes applicable in France and in its partner countries. According to these treaties, the amounts of tax withheld from interest are reduced, as well as royalties paid by a French resident to residents of one of the countries with which double treaties are in force.
Foreign entrepreneurs who choose to open a new business, branches or subsidiaries in France can benefit from double tax relief. Our French lawyers can offer you personalized counselling to see if your business complies with the provisions for double tax relief and they can also help in case of immigrating to France or other European country such as Malta or Georgia.
The provisions of a double tax treaty
A Convention for the avoidance of double taxation signed between France and other countries will cover income taxes and corporate taxes, social contribution taxes as well as the taxes on salaries and other contributions. Dividends, royalties and interest are taxed using preferential rates. A subsidiary or a branch opened in France can benefit from a double taxation treaty in regards to the dividends distributed to the mother company abroad. Also included on the list of taxes levied in just one of the countries are business profits, income from immovable property, director’s fees and income derived from sport and artistic activities.
Likewise, foreign employees in France can benefit from these treaties and are taxed only once, just on the income proceed on French territory.
Double tax treaties between France and other countries
France has signed numerous tax treaties with countries within the European Union and with countries outside the European Economic Zone. The list of partners includes: Albania, Algeria, Argentina, Armenia, Austria, Australia, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Burkina Faso, Cameroon, Canada, Central African Republic, Chile, China, Congo, Croatia, Comoro Islands, Cyprus, Czech Republic, Denmark, Ecuador, Egypt, Estonia, Ethiopia, Finland, French Polynesia, Gabon, Georgia, Germany, Ghana, Greece, Guinea, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Ivory Coast, Jamaica, Japan, Jordan, Kazakhstan, Korea Republic, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Madagascar, Malawi, Malaysia, Mali, Malta, Mauritania, Mauritius, Mexico, Moldova, Monaco, Mongolia, Montenegro, Morocco, Namibia, the Netherlands, New Caledonia, New Zealand, Niger, Nigeria, Norway, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russia, St. Pierre, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tajikistan, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Venezuela, Vietnam, Zambia, Zimbabwe, Saudi Arabia.
France has also signed tax information exchange agreements with certain countries in order to avoid tax fraud.
According to the double tax treaties between France and its partner countries, companies may benefit from reduced withholding taxes on dividends, interests and royalties. Our lawyers in France can offer you complete information about the taxation of foreign companies. Please contact our law firm in France for more information.
If you are interested by financial services in other countries, such as Luxembourg or UAE, we may put you in touch with our affiliates.