FRANCE [ S.L.123.14 SUBSIDIARY LEGISLATION 123.14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE ORDER 4th February, 1983 LEGAL NOTICE 5
1983, as amended by Legal Notices 238
1998 and 329
2010, as modified by S.L.123.183. 1. The title
this Order is Double Taxation Relief on Taxes on Income with the Republic
France Order. 2. It is hereby declared (a) that the arrangements specified in the Agreement set in the Schedule to this Order have been made with the Government
the Republic
France with a view to affording relief from double taxation and preventing fiscal evasion in relation to the following taxes imposed by the laws
the Republic
France: (
FRANCE SCHEDULE AGREEMENT BETWEEN THE GOVERNMENT
THE REPUBLIC
MALTA AND THE GOVERNMENT
THE FRENCH REPUBLIC FOR THE AVOIDANCE
DOUBLE TAXATION AND THE PREVENTION
FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL The Government
the Republic
Malta and the Government
the French Republic desiring to conclude an Agreement for the avoidance
double taxation and the prevention
fiscal evasion with respect to taxes on income have agreed as follows: CHAPTER I Scope
the Agreement ARTICLE 1 Personal Scope This Agreement shall apply to persons who are residents
one or both
the Contracting States. ARTICLE 2 * Taxes Covered
each Contracting State or
its political subdivisions or local authorities, irrespective
the manner in which they are levied.
income or
capital, including taxes on gains from the alienation
movable or immovable property, taxes on the total amounts
wages or salaries paid by enterprises, as well as taxes on capital appreciation.
France: (
the social debt (contributions pour le remboursement de la dette sociale); (hereinafter referred to as "French tax''); *as amended by Protocol reproduced in Legal Notice 329
2010. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE [ S.L.123.14 3 (b) in the case
Malta: the income tax, (hereinafter referred to as "Malta tax").
signature
this Agreement in addition to, or in place
, the existing taxes. The competent authorities
the Contracting States shall notify to each other any substantial changes which have been made in their respective taxation laws. CHAPTER II Definitions ARTICLE 3 General Definitions
the French Republic, and any area outside the territorial sea
those departments which is, in accordance with international law, an area within which France may exercise rights with respect to the sea-bed and subsoil and their natural resources; (b) the term "Malta" means the Republic
Malta and includes in addition to the Island
Malta, the Island
Gozo and the other islands
the Maltese Archipelago, together with the territorial waters thereof, and any area outside the territorial sea
Malta which, in accordance with international law, has been or may hereafter be designated, under the law
Malta concerning the Continental Shelf, as an area within which the rights
Malta with respect to the sea bed and subsoil and their natural resources may be exercised; (c) the term "person" means an individual, a company and any other body
persons; (
a Contracting State" and "enterprise
the other Contracting State" mean respectively an enterprise carried on by a resident
a Contracting State and an enterprise carried on by a resident
the other Contracting State; (
France, all individuals possessing the nationality
France; (ii) in respect
Malta all citizens
Malta as provided for in Chapter III
the Constitution
Malta and in the Maltese Citizenship Act; (iii) all legal persons, partnerships and associations deriving their status as such from the law in force in a Contracting State; (h) the term "international traffic" means any transport by ship or aircraft operated by an enterprise which has its place
effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; [ S.L.123.14 4 (i) DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE the term "competent authority" means (i) in the case
France, the Minister
Economy and Finance or his authorised representative; (ii) in the case
Malta, the Minister responsible for finance or his authorised representative.
the Agreement by a Contracting State, any term not defined therein shall have the meaning which it has under the laws
that State concerning the taxes to which the Agreement applies. The meaning
a term under the taxation law
that State shall have priority over the meaning provided for such term in other branches
law
that State. ARTICLE 4 Fiscal Domicile
this Agreement, the term "resident
a Contracting State" means any person who, under the law
that State, is liable to taxation therein by reason
his domicile, residence, place
management or any other criterion
a similar nature. But this term does not include any person who is liable to tax in that Contracting State in respect only
income from sources therein or capital situated in that State.
the provisions
paragraph
both Contracting States, then his status shall be determined as follows: (a) he shall be deemed to be a resident
the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident
the Contracting State with which his personal and economic relations are closest (centre
vital interests); (b) if the Contracting State in which he has his centre
vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident
the Contracting State in which he has a habitual abode; (c) if he has a habitual abode in both Contracting States or in neither
them, he shall be deemed to be a resident
the Contracting State
which he is a national; (d) if he is a national
both Contracting States or
neither
them, the competent authorities
the Contracting States shall settle the question by mutual agreement.
the provisions
paragraph
both Contracting States, then it shall be deemed to be a resident
the Contracting State in which its place
effective management is situated. ARTICLE 5 Permanent Establishment
this Agreement, the term "permanent establishment" means a fixed place
business through which the business
an enterprise is wholly or partly carried on.
FRANCE (
management; a branch; an
fice; a factory; a workshop; and a mine, an oil or gas well, a quarry or any other place
extraction
natural resources including an
fshore drilling site.
this Article, the term "permanent establishment" shall be deemed not to include (a) the use
facilities solely for the purpose
storage, display or delivery
goods or merchandise, belonging to the enterprise; (b) the maintenance
a stock
goods or merchandise belonging to the enterprise solely for the purpose
storage, display or delivery; (c) the maintenance
a stock
goods or merchandise belonging to the enterprise solely for the purpose
processing by another enterprise; (d) the maintenance
a fixed place
business solely for the purpose
purchasing goods or merchandise, or for collecting information, for the enterprise; (e) the maintenance
a fixed place
business solely for the purpose
carrying on, for the enterprise, any other activity, if it has a preparatory or auxiliary character; (f) the maintenance
a fixed place
business solely for any combination
activities mentioned in sub-paragraphs (a) to (e)
this paragraph, provided that the overall activity
the fixed place
business resulting from this combination is
a preparatory or auxiliary character.
paragraphs
an independent status to whom paragraph
an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name
the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect
any activities which that person undertakes for the enterprise, unless the activities
such person are limited to those mentioned in paragraph
business, would not make this fixed place
business a permanent establishment by virtue
that paragraph.
an independent status, where such persons are acting in the ordinary course
their business.
a Contracting State controls or is controlled by a company which is a resident
the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not itself constitute either company a permanent establishment
the other. 6 [ S.L.123.14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE CHAPTER III Taxation
Income ARTICLE 6 Income from Immovable Property
the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, rights to which the provisions
general law respecting landed property apply, usufruct
immovable property and rights to variable or fixed payments as consideration for the working
, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.
paragraph
immovable property.
paragraphs
an enterprise and to income from immovable property used for the performance
professional services.
shares or other rights in a company or legal person entitles the owner to the enjoyment
immovable property situated in a Contracting State and held by that company or legal person, income derived by the owner from the direct use, letting or use in any other form
his right or enjoyment may be taxed in that State. The provisions
this paragraph shall apply notwithstanding the provisions
Articles 7 and 14. ARTICLE 7 Business Profits
an enterprise
a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits
the enterprise may be taxed in the other State but only so much
them as is attributable to that permanent establishment.
paragraph
a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise
which it is a permanent establishment.
the profits
a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes
the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.
an DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE [ S.L.123.14 7 apportionment
the total profits
the enterprise to its various parts, nothing in paragraph
apportionment adopted shall, however, be such that the result shall be in accordance with the principles embodied in this Article.
the mere purchase by that permanent establishment
goods or merchandise for the enterprise.
the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
income which are dealt with separately in other Articles
this Agreement, then the provisions
those Articles shall not be affected by the provisions
this Article. ARTICLE 8 Shipping and Air Transport
ships and aircraft in international traffic shall be taxable only in the Contracting State in which the place
effective management
the enterprise is situated.
effective management
a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour is situated, or if there is no such home harbour, in the Contracting State
which the operator
the ship is a resident.
paragraph
a Contracting State participates directly or indirectly in the management, control or capital
an enterprise
the other Contracting State; or (b) the same persons participate directly or indirectly in the management, control or capital
an enterprise
a Contracting State and an enterprise
the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for these conditions, have accrued to one
the enterprises, but by reason
those conditions, have not so accrued, may be included in the profits
that enterprise and taxed accordingly. 8 [ S.L.123.14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE ARTICLE 10* Dividends
a Contracting State to a resident
the other Contracting State may be taxed in that other State.
which the company paying the dividends is a resident, and according to the law
that State, but (a) where the dividends are paid by a company resident
France to a resident
Malta who is the beneficial owner thereof, the French tax so charged shall not exceed 15 per cent
the gross amount
the dividends. However, dividends paid by a company which is a resident
France and beneficially owned by a company which is a resident
Malta which holds directly at least 10 per cent
the capital
the company paying the dividends shall be taxable only in Malta; (b) where the dividends are paid by a company resident
Malta to a resident
France who is the beneficial owner thereof (i) Malta tax shall not exceed that chargeable on the company paying the dividends in respect
the profits so distributed; (ii) notwithstanding the provisions
sub-paragraph (i) Malta tax shall not exceed 15 per cent
the gross amount
the dividends if such dividends are paid out
gains or profits earned in any year in respect
receipt
tax benefits under the provisions regulating aids to industries in Malta, and the shareholder submits returns and accounts to the taxation authorities
Malta in respect
his income liable to Malta tax for the relative year
assessment. This paragraph shall not affect the taxation
the company in respect
the profits out
which the dividends are paid.
the Contracting State
which the company making the distribution is a resident.
paragraphs
the dividends, being a resident
a Contracting State, carries on business in the other Contracting State
which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein and the holding in respect
which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such a case the provisions
Malta who receives from a company which is a resident
France dividends which, if received by a resident
France, would entitle such resident to a fiscal credit (avoir fiscal), shall be entitled to a payment from the French Treasury equal to such credit (avoir fiscal) subject to the deduction
the tax provided for in sub-paragraph (a)
paragraph
this Article. *as amended by Protocol reproduced in Legal Notice 329
2010. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE [ S.L.123.14 9 (b) The provisions
sub-paragraph (a)
this paragraph shall apply only to a resident
Malta, being either (
this sub-paragraph, a company shall be deemed to control another company when, either alone or together with one or more associated companies it controls directly or indirectly at least 10 per cent
the voting power
the other company, and two companies shall be deemed to be associated if one is controlled directly or indirectly by the other or both are controlled directly or indirectly by a third company in the manner aforesaid. (c) The provisions
sub-paragraph (a)
this paragraph shall not apply if the recipient
the payment from the French Treasury provided for under sub-paragraph (a)
this paragraph is not subject to Malta tax in respect
that payment. (d) Payments from the French Treasury provided for under sub-paragraph (a)
this paragraph shall be deemed to be dividends for the purposes
this Agreement.
dividends paid by a company which is a resident
France to a resident
Malta who is not entitled to the payment from the French Treasury referred to in paragraph
this Article with respect to such dividends, that resident
Malta shall be entitled to the refund
the prepayment, subject to the deduction
tax with respect to the refunded amount in accordance with paragraph
this Article. (b) Amounts refunded under the provisions at sub-paragraph (a)
this paragraph shall be deemed to be dividends for the purposes
this Agreement.
Malta has in France a permanent establishment, the profits
this permanent establishment shall, after having borne the French corporation tax, be liable to a tax the rate
which shall not exceed 10 per cent, according to the law
France.
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or the assignment
the shares or other rights in respect
which the dividend is paid to take advantage
this Article by means
that creation or assignment. ARTICLE 11 * Interest
the other Contracting State may be taxed in that other State.
that State, but if the recipient is the beneficial owner
the interest, the tax so charged shall not exceed 5 per cent
the gross amount
the interest.
paragraph
which the beneficiary is a resident, if such interest is payable on loans granted or guaranteed by that State or a statutory body thereof.
*as amended by Protocol reproduced in Legal Notice 329
2010. 10 [ S.L.123.14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE every kind, whether or not secured by mortgage, and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose
this Article.
paragraphs
the interest, being a resident
a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein, and the debt-claim in respect
which the interest is paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions
that State. Where, however, the person paying the interest, whether he is a resident
a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
them and some other person, the amount
the interest paid, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence
such relationship, the provisions
this Article shall apply only to the last-mentioned amount. In that case, the excess part
the payment shall remain taxable according to the law
each Contracting State, due regard being had to the other provisions
this Agreement.
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or the assignment
the debt-claim in respect
which the interest is paid to take advantage
this Article by means
that creation or assignment. ARTICLE 12 * Royalties
the other Contracting State may be taxed in that other State.
that State, but if the recipient is the beneficial owner
the royalties, the tax so charged shall not exceed 10 per cent
the amount
the royalties.
paragraph
any kind received as a consideration for the use
, or the right to use, any copyright
literary, artistic or scientific work, including works recorded for broadcasting or television, shall be taxable only in the Contracting State
which the beneficiary is a resident, if such resident is the beneficial owner
the payments.
any kind *as amended by Protocol reproduced in Legal Notice 329
2010. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE [ S.L.123.14 11 received as a consideration for the use
, or the right to use, any copyright
literary, artistic or scientific work including cinematographic films and works recorded for broadcasting or television, any patent, trade mark, design or model, plan, secret formula or process or for information concerning industrial, commercial or scientific experience.
paragraphs
the royalties, being a resident
a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein, and the right or property in respect
which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions
that State. Where, however, the person paying the royalties, whether he is a resident
a Contracting State or not, has in a Contracting State a permanent establishment with which the right or property in respect
which the royalties are paid is effectively connected, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
them and some other person, the amount
the royalties paid, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence
such relationship, the provisions
this Article shall apply only to the last-mentioned amount. In that case, the excess part
the payments shall remain taxable according to the law
each Contracting State, due regard being had to the other provisions
this Agreement.
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or the assignment
the rights in respect
which the royalty is paid to take advantage
this Article by means
that creation or assignment. ARTICLE 13 Capital Gains
immovable property, as defined in paragraph
or from the alienation
shares or comparable interest in a real property cooperative or in a company the assets
which consist directly or through one or more other companies or legal persons principally
immovable property, may be taxed in the Contracting State in which such property is situated.
movable property forming part
the business property
a permanent establishment which an enterprise
a Contracting State has in the other Contracting State or
movable property pertaining to a fixed base available to a resident
a Contracting State in the other Contracting State for the purpose
performing professional services, including such gains from the alienation
such a permanent establishment (alone or together with the whole enterprise) or
such a fixed base, may be taxed in the other State. However, gains from the alienation
movable property pertaining to the operation
ships and aircraft operated in international traffic shall be taxable only in the Contracting State in which the place
effective management
the enterprise is situated. 12 [ S.L.123.14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE
shares forming part
a substantial interest in the capital
a company which is a resident
a Contracting State may be taxed in that State and according to the law
that State. For the purposes
this paragraph, a substantial interest shall be deemed to exist when the alienator, alone or together with associated or related persons, holds directly or indirectly shares which together give right to 25 per cent or more
the company profits.
any property other than those mentioned in paragraphs
which the alienator is a resident. ARTICLE 14 Independent Personal Services
a Contracting State in respect
professional services or other independent activities
a similar character shall be taxable only in that State. However, such income may be taxed in the other Contracting State in the following circumstances: (a) if he has a fixed base regularly available to him in the other Contracting State for the purpose
performing his activities (in which case only so much
the income as is attributable to that fixed base may be taxed in that other Contracting State); or (b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days during any calendar year.
physicians, lawyers, engineers, architects, dentists and accountants. ARTICLE 15 Dependent Personal Services
Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident
a Contracting State in respect
an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
paragraph
a Contracting State in respect
an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if (
, an employer who is not a resident
the other State; and (c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
this Article, remuneration in respect
an employment exercised aboard a ship or aircraft in international traffic may be taxed in the Contracting State in which the place
effective management
DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE [ S.L.123.14 13 the enterprise is situated. ARTICLE 16 Directors’ Fees Directors’ fees and similar payments derived by a resident
a Contracting State in his capacity as a member
the board
directors or other similar organ
a company which is a resident
the other Contracting State may be taxed in that other State. ARTICLE 17 Artistes and Athletes
Articles 14 and 15, income derived by entertainers, such as theatre, motion picture, radio or television artistes, and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which these activities are exercised.
personal activities as such
an entertainer or athlete accrues not to that entertainer or athlete himself but to another person that income may, notwithstanding the provisions
Articles 7, 14 and 15, be taxed in the Contracting State in which the activities
the entertainer or athlete are exercised.
paragraph
that other Contracting State, one
its political subdivisions or local authorities or
a statutory body thereof.
paragraph
personal activities as such
entertainers and athletes in a Contracting State accrues not to that entertainer or athlete himself but to another person, notwithstanding the provisions
Articles 7, 14 and 15, that income shall be taxable only in the other Contracting State if this person is supported substantially from the public funds
that other Contracting State, one
its political subdivisions or local authorities or
a statutory body thereof, or if this person is a non-profit organisation
that other State. ARTICLE 18 Pensions
paragraph
, pensions and other similar remuneration, and annuities paid to a resident
a Contracting State in consideration
past employment shall be taxable only in that State.
paragraph
a Contracting State shall be taxable only in that State.
past employment, or by way
compensation for injuries received in connection with past employment; 14 [ S.L.123.14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE (b) the term "annuity" means a stated sum paid periodically during life, or during a specified or ascertained period
time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth. ARTICLE 19 Government Service
services rendered to that State or subdivision or local authority thereof shall be taxable only in that State. (b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the recipient is a resident
that other Contracting State who (i) is a national
that State; or (ii) did not become a resident
that State solely for the purpose
performing the services.
funds created by, a Contracting State or a political subdivision or a local authority thereof to any individual in respect
services rendered to that State or subdivision or local authority thereof shall be taxable only in that State. (b) However, such pension shall be taxable only in the other Contracting State if the recipient is a national
and a resident
that State.
Articles 15, 16 and 18 shall apply to remuneration and pensions in respect
services rendered in connection with any business carried on by one
the Contracting States or a political subdivision or a local authority thereof. ARTICLE 20 Students
the other Contracting State and who is present in the first-mentioned Contracting State solely for the purpose
his education or training receives for the purpose
his maintenance, education or training shall not be taxed in that State, provided that such payments are made to him from sources outside that State.
the other Contracting State and who is present in the first-mentioned Contracting State solely for the purpose
his education or training derives from services rendered in that State shall not be taxed in that State provided that such services are in connection with his education or training or that the remuneration
such services is necessary to supplement the resources available to him for the purpose
his maintenance. ARTICLE 21 Teachers and Researchers
FRANCE [ S.L.123.14 15 Contracting State a resident
the other Contracting State, and who is present in the first-mentioned Contracting State for the purpose
teaching or engaging in research shall be exempt from tax in that State for a period not exceeding two years on remuneration in respect
such activities.
a specific person or persons. ARTICLE 22 * Other Income
income beneficially owned by a resident
a Contracting State, wherever arising, not dealt with in the foregoing Articles
this Agreement shall be taxable only in that State if such resident is subject to tax in respect
those items
income in that State. If that requirement is not met, those items
income shall remain taxable in the other Contracting State and according to the laws
that other State.
paragraph
the income, being a resident
a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein, and the right or property in respect
which the income is paid is effectively connected with such permanent establishment or fixed base. In such a case the provisions
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or the assignment
the rights in respect
which the income is paid to take advantage
this Article by means
that creation or assignment. CHAPTER IV Taxation
Capital ARTICLE 23 Capital
Capital represented by shares or other rights in a company or legal person the assets
which consist principally, directly or through one or more other companies or legal person,
immovable property situated in a Contracting State or
rights connected with such immovable property may be taxed in that State.
the business property
a permanent establishment
an enterprise, or by movable property pertaining to a fixed base used for the performance
professional services may be taxed in the Contracting State in which the permanent establishment or fixed base is situated.
such ships and aircraft shall be taxable only in the *as amended by Protocol reproduced in Legal Notice 329
2010. 16 [ S.L.123.14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE Contracting State in which the place
effective management
the enterprise is situated.
capital
a resident
a Contracting State shall be taxable only in that State. CHAPTER V Elimination
Double Taxation ARTICLE 24 * Elimination
Double Taxation
France, double taxation shall be avoided in the following manner: (a) Income arising in Malta, which may be taxed or shall be taxable only in that State in accordance with the provisions
this Agreement, shall be taken into account for the computation
the French tax where the beneficiary
such income is a resident
France and where such income is not exempted from corporation tax according to French domestic law. In that case, the Malta tax shall not be deductible from such income, but the beneficiary shall be entitled to a tax credit against French tax. Such tax credit shall be equal (i) in the case
income which, according to the provisions
the Agreement, shall be taxable only in Malta, to the amount
French tax attributable to such income; (ii) in the case
income which, according to the provisions
the Agreement, may be taxed in Malta, to the amount
tax paid in Malta in accordance with the provisions
the Agreement; however, such tax credit shall not exceed the amount
French tax attributable to such income. (b) A resident
France who owns capital which may be taxed in Malta according to the provisions
the Agreement may also be taxed in France in respect
such capital. The French tax shall be computed by allowing a tax credit equal to the amount
the tax paid in Malta on such capital. However, such tax credit shall not exceed the amount
the French tax attributable to such capital. (c) It is understood that the term ''amount
French tax attributable to such income'' as used in sub-paragraph (
the net income concerned multiplied by the rate which actually applies to that income; (ii) where the tax on such income is computed by applying a progressive scale, the amount
the net income concerned multiplied by the rate resulting from the ratio
the tax actually payable on the total net income taxable in accordance with French law to the amount
that total net income. This interpretation shall apply by analogy to the term ''amount
French tax attributable to such capital'' as used in sub-paragraph (b). (d) (i) It is understood that the term ''amount
tax paid in Malta'' as used in *as amended by Protocol reproduced in Legal Notice 329
2010. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE [ S.L.123.14 17 sub-paragraphs (
Malta tax effectively and definitively borne in respect
the income or the items
capital in question, in accordance with the provisions
the Agreement, by the beneficiary or owner thereof who is a resident
France. (ii) Notwithstanding the provisions
sub-paragraph (i), in the case
income referred to in Articles 10, 11 and 12, arising in Malta and paid to a beneficiary who is a resident
France by a person to whom the Agreement applies, Malta tax shall be deemed to have been paid as follows: (aa) on dividends, at the rate
15 per cent as provided in paragraph 2(b)(ii)
; (bb) on interest, at the rate
5 per cent as provided in paragraph
, at the rate
10 per cent as provided in paragraph
the said Article. Relief from French tax by virtue
this sub-paragraph (ii) shall be given for a period
ten years only, beginning with the date on which the Protocol for the 8th
July, 1994, entered into force. This period may, however, be extended by agreement between the Contracting States.
Malta, double taxation shall be eliminated as follows: Subject to the provisions
the law
Malta regarding the allowance
a credit against Malta tax in respect
foreign tax, where, in accordance with the provisions
this Agreement, there is included in a Malta assessment income from sources within France, or elements
capital situated in France, the French tax on such income or elements
capital, as the case may be, shall be allowed as a credit against the relative Malta tax payable thereon.
the income as is remitted to or received in the other State. CHAPTER VI Special Provisions ARTICLE 25 Non-Discrimination
the Contracting State, whether or not they are residents
one
the Contracting States, shall not be subjected in the Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals
that other State in the same circumstances are or may be subjected. It is understood that an individual, legal person, partnership or association who is a resident
a Contracting State is not placed in the same circumstances as an individual, legal person, partnership or association who is not a resident
that State, even if, in the case
legal persons, partnerships or associations, those entities are considered, under sub- 18 [ S.L.123.14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE paragraph (f)
paragraph
, as nationals
the Contracting State
which they are residents.
a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises
that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents
the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account
civil status or family responsibilities which it grants to its own residents.
, apply interest, royalties and other disbursements paid by an enterprise
a Contracting State to a resident
the other Contracting State shall, for the purpose
determining the taxable profits
such enterprise, be deductible under the same condition as if they had been paid to a resident
the first-mentioned State. Similarly, any debts
an enterprise
a Contracting State to a resident
the other Contracting State shall, for the purpose
determining the taxable capital
such enterprise, be deductible as if they had been contracted to a resident
the firstmentioned State.
a Contracting State, the capital
which is wholly or partly owned or controlled, directly or indirectly by one or more residents
the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises
that first-mentioned State are or may be subjected.
every kind and description. ARTICLE 26 Mutual Agreement Procedure
a Contracting State considers that the actions
one or both
the Contracting States result or will result for him in taxation not in accordance with this Agreement, he may, notwithstanding the remedies provided by the national laws
those States, present his case to the competent authority
the Contracting State
which he is resident or, if his case comes under paragraph
, to that
the Contracting State
which he is a national. This case must be presented within three years
the first notification
the action giving rise to taxation not in accordance wish the Agreement.
the other Contracting State, with a view to the avoidance
double taxation not in accordance with the Agreement; any agreement reached shall be implemented notwithstanding any time limits in the national laws
the Contracting State.
the Contracting States shall endeavour to resolve by mutual agreement any difficulties arising as to the application
the Agreement. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE [ S.L.123.14 19 In particular, the competent authorities
the Contracting States may consult together to endeavour to agree (a) to the same attribution in both Contracting States
the profits attributable to a permanent establishment situated in a Contracting State
an enterprise
the other Contracting State; (b) to the same allocation
income between a resident
a Contracting State and any associated person referred to in Article 9. They may also consult together for the elimination
double taxation in cases not provided for in the Agreement.
the Contracting States may communicate with each other directly for the purpose
reaching an agreement in the sense
the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange
opinions, such exchange may take place through a Commission consisting
representatives
the competent authorities
the Contracting State.
the Contracting States may by mutual agreement settle the mode
application
this Agreement and, especially, the requirements to which the residents
a Contracting State shall be subjected in order to obtain the tax reliefs or exemptions provided for by this Agreement. ARTICLE 27 * Exchange
Information
the Contracting States shall exchange such information as is forseeably relevant for carrying out the provisions
this Agreement or to the administration or enforcement
the domestic laws concerning taxes
every kind and description imposed on behalf
the Contracting States, or
their political subdivisions or territorial authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange
information is not restricted by Article
that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection
, the enforcement or prosecution in respect
, the determination
appeals in relation to, the taxes referred to in paragraph 1, or the oversight
the above. Such persons or authorities shall use information only for such purposes. They may disclose the information in public court proceeding or in judicial decisions. 3. In no case shall the provisions
paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:
that or the other Contracting State; to supply information which is not obtainable under the laws or in the normal course
the administration
that or
the other Contracting State; to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure
which would be contrary to public policy *as substituted by Protocol reproduced in Legal Notice 329
2010. 20 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE [ S.L.123.14 (ordre public). 4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations
paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information. 5. In no case shall the provisions
paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or fiduciary capacity or because it relates to ownership interests in a person. ARTICLE 28 Diplomatic and Consular
ficials
members
diplomatic missions and their personal domestics,
members
consular missions, or
members
permanent missions to international organisations under the general rules
international law or under the provisions
special agreements.
, an individual who is a member
a diplomatic or consular or permanent mission
a Contracting State which is situated in the other Contracting State or in a third State shall be deemed for the purposes
this Agreement to be a resident
the sending State if (
that sending State.
ficials thereof and to persons who are members
a diplomatic or consular or permanent mission
a third State, being preset in a Contracting State and not treated in either Contracting State as residents in respect
taxes on income and capital. ARTICLE 29 Territorial Extension
the French Republic which imposes taxes substantially similar in character to those to which the Agreement applies. Any such extension shall take effect from such date and subject to such modifications and conditions, including conditions as to termination, as may be specified and agreed between the Contracting States in notes to be exchanged through diplomatic channels or in any other manner in accordance with their constitutional procedures.
the Agreement by one
them under Article 31 shall also terminate, in the manner provided for in that Article, the application
the Agreement to any territory to which it has been extended under this Article. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE [ S.L.123.14 21 CHAPTER VII Final Provisions ARTICLE 30 Entry into Force
the procedure required by its law for the bringing into force
this Agreement. This Agreement shall enter into force on the first day
the second month following the month in which the later
these notifications has been given.
entry into force
this Agreement; (b) as regards other taxes on income, to income derived during the calendar year in which the Agreement entered into force, or relating to the accounting period ending during this year. ARTICLE 31 Termination
the calendar year during which the termination has been notified; (b) as regards other taxes on income, to income derived during the calendar year during which the termination has been notified or relating to the accounting period ending during such year. IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Agreement. DONE at Valletta this twenty fifth day
July 1977, in duplicate, in the French and English languages, both texts being equally authentic. For the Government
the French Republic For the Government
the Republic
Malta SERGE GELADE JOSEPH ABELA 22 [ S.L.123.14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE PROTOCOL * At the time
signature
the Agreement between the Government
the Republic
Malta and the Government
the French Republic for the Avoidance
Double Taxation and the Prevention
Fiscal Evasion with respect to Taxes on Income, the undersigned have agreed upon the following provisions. I. In respect
, an insurance enterprise
a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if it collects premiums and insures risks therein. II. In respect
paragraphs
, where an enterprise
a Contracting State sells goods or merchandise or carries on business in the other Contracting State through a permanent establishment situated therein, the profits
this permanent establishment are not determined on the basis
the total amount received by the enterprise, but are determined only on the basis
the remuneration which is attributable to the actual activity
the permanent establishment for such sales or business. In the case
contracts for the survey, supply, installation or construction
industrial, commercial or scientific equipment or premises, or
public works, when the enterprise has a permanent establishment the profits
such permanent establishment are not determined on the basis
the total amount
the contract, but are determined only on the basis
that part
the contract which is effectively carried out by the permanent establishment in the Contracting State where the permanent establishment is situated. The profits related to that part
the contract which is carried out by the head
fice
the enterprise shall be taxable only in the Contracting State
which the enterprise is a resident. III. In respect
paragraph
, payments
any kind received as a consideration for the use
, or the right to use, industrial, commercial or scientific equipment shall be deemed to be profits
an enterprise to which the provisions
Similarly, payments received as a consideration for studies or surveys
a scientific, geological or technical nature, or for consultant or supervisory services shall be deemed to be payments to which the provisions
IV. In respect
: (a) where profits derived from the operation
a ship in international traffic by an enterprise whose place
effective management is situated in Malta are exempt from tax under the provisions
article 86
the Merchant Shipping Act, or under any identical or similar provisions, such profits may be taxed in France unless it is proved to the satisfaction
the competent authority
France that not more than 25 per cent
the capital
the company owning the relative ship is controlled, directly or indirectly, by persons not residents
Malta; (b) where a person who is a resident
France participates directly or indirectly in the management, control or capital
such an enterprise, such person shall be taxable in France in respect
that part
the profits, derived by such enterprise and exempt from tax in Malta as aforesaid, which is appropriate to the participating
such person in the enterprise. V. In respect
Articles 11 and 12, where any interest or royalties derived from Malta are received by a resident
France, tax in Malta is charged on the amount
the interest or royalties as reduced by all expenses properly attributable thereto. If *as amended by Protocol reproduced in Legal Notice 329
2010. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE [ S.L.123.14 23 the tax so charged is in excess
10 per cent
the gross amount
the interests or royalties (that is before the deduction
the aforesaid expense), the tax is reduced so as not to exceed 10 per cent
the gross interests or royalties. VI. In respect
the exemption
the gains derived from the alienation
immovable property or parts
immovable property constituting the residence in France
French persons who are not residents
France, as provided in Article 6 - 11
the law no. 76.660
July 19, 1976; and (b) Nothing in paragraph
the "Code General des Impots" as regards interest paid by a French Company to a foreign mother Company. VII Where, under any provision
the Agreement, income or gains is or are wholly or partly relieved from tax in a State and, under the laws in force in the other State, an individual, in respect
the said income or gains, is subject to tax by reference to the amount thereof which is remitted to or received in that other State, and not by reference to the full amount thereof, then the relief to be allowed under this Agreement in the first-mentioned State shall apply only to so much
the income or gains as is remitted to or received in that other State. VIII. (a) The provisions
the Agreement and
this Protocol - other than the provisions
this paragraph - shall not apply to persons entitled to any special tax benefit under: (i) a law
either one
the Contracting States which has been identified in an exchange
letters between the Contracting States; or (
sub-paragraph (a), the provisions
the Agreement and
this Protocol - other than the provisions
this paragraph shall not apply to: (
income derived from persons referred to in sub-paragraph (a) by associated enterprises as defined in sub-paragraph (a)
(b)
IN WITNESS WHEREOF the undersigned have signed the present Protocol which shall have the same force and validity as if it were inserted word by word in the Agreement. DONE at Valletta this twenty fifth day
July 1977, in duplicate, in the French and English languages, both texts being equally authentic. For the Government
the French Republic For the Government
the Republic
Malta SERGE GELADE JOSEPH ABELA 24 [ S.L.123.14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE Legal Notice 329
2010: PROTOCOL AMENDING THE AGREEMENT BETWEEN THE GOVERNMENT
MALTA AND THE GOVERNMENT
THE FRENCH REPUBLIC FOR THE AVOIDANCE
DOUBLE TAXATION AND THE PREVENTION
FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL SIGNED IN VALLETTA ON 25TH JULY 1977 AND AMENDED BY THE PROTOCOL SIGNED IN VALLETTA ON 8TH JULY 1994 AND EXCHANGE
LETTERS
8TH JULY 1994 The Government
Malta and The Government
the French Republic, desiring to amend the Agreement between the Government
the Republic
Malta and the Government
the French Republic for the Avoidance
Double Taxation and the Prevention
Fiscal Evasion with respect to Taxes on Income and on Capital, signed on 25th July 1977 and amended on 8th July 1994 (hereinafter referred to as "the Agreement"), have agreed as follows: Article 1 Article 2
the Agreement is amended as follows: 1. A subparagraph 3
the social debt (contributions pour le remboursement de la dette sociale);". 3. In subparagraph 3 b), the words “and surtax including prepayments
tax whether made by deduction at source or otherwise” are deleted. Article 2 Article 10
the Agreement is amended as follows: 1. The subparagraph 2
France to a resident
Malta who is the beneficial owner thereof, the French tax so charged shall not exceed 15 per cent
the gross amount
the dividends. However, dividends paid by a company which is a resident
France and beneficially owned by a company which is a resident
Malta which holds directly at least 10 per cent
the capital
the company paying the dividends shall be taxable only in Malta.". 2. In paragraph 3, the words "income from other corporate rights which is subjected to the same taxation treatment as income from shares by the taxation law
the State
which the company making the distribution is a resident" are deleted DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE [ S.L.123.14 25 and replaced by the following words "income treated as a distribution by the taxation laws
the Contracting State
which the company making the distribution is a resident".
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or the assignment
the shares or other rights in respect
which the dividend is paid to take advantage
this Article by means
that creation or assignment.". Article 3 Article 11
the Agreement is amended as follows:
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or the assignment
the debt-claim in respect
which the interest is paid to take advantage
this Article by means
that creation or assignment.". Article 4 In Article 12
the Agreement, a new paragraph worded as follows is added: "8. The provisions
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or the assignment
the rights in respect
which the royalty is paid to take advantage
this Article by means
that creation or assignment.". Article 5 Article 22
the Agreement is amended as follows:
income beneficially owned by a resident
a Contracting State, wherever arising, not dealt with in the foregoing Articles
this Agreement shall be taxable only in that State if such resident is subject to tax in respect
those items
income in that State. If that requirement is not met, those items
income shall remain taxable in the other Contracting State and according to the laws
that other State.".
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or the assignment
the rights in respect
which the income is paid to take advantage
this Article by means
that creation or assignment.". Article 6 In subparagraph 1 d) ii) bb)
the Agreement, "10%" is replaced by "5%". 26 [ S.L.123.14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
FRANCE Article 7 The provisions
the Agreement are deleted and replaced by the following provisions: "1. The competent authorities
the Contracting States shall exchange such information as is forseeably relevant for carrying out the provisions
this Agreement or to the administration or enforcement
the domestic laws concerning taxes
every kind and description imposed on behalf
the Contracting States, or
their political subdivisions or territorial authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange
information is not restricted by Article
that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection
, the enforcement or prosecution in respect
, the determination
appeals in relation to, the taxes referred to in paragraph 1, or the oversight
the above. Such persons or authorities shall use information only for such purposes. They may disclose the information in public court proceeding or in judicial decisions. 3. In no case shall the provisions
paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: a) to carry out administrative measures at variance with the laws and administrative practice
that or the other Contracting State; b) to supply information which is not obtainable under the laws or in the normal course
the administration
that or
the other Contracting State; c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure
which would be contrary to public policy (ordre public). 4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations
paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information. 5. In no case shall the provisions
paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or fiduciary capacity or because it relates to ownership interests in a person.". Article 8 The Protocol
the Agreement is amended as follows:
FRANCE [ S.L.123.14 27 "VII. Where, under any provision
the Agreement, income or gains is or are wholly or partly relieved from tax in a State and, under the laws in force in the other State, an individual, in respect
the said income or gains, is subject to tax by reference to the amount thereof which is remitted to or received in that other State, and not by reference to the full amount thereof, then the relief to be allowed under this Agreement in the firstmentioned State shall apply only to so much
the income or gains as is remitted to or received in that other State.". Article 9 1. Each
the Contracting States shall notify to the other the completion
the procedures required as far as it is concerned for the bringing into force
this Protocol. This Protocol shall enter into force on the first day
the second month following the day when the latter
these notifications has been received. 2. The provisions
the Protocol shall apply for the first time: a) b) c) in respect
taxes withheld at source, to amounts taxable on or after the date
entry into force
the Protocol; in respect
taxes on income which are not withheld at source, to income relating to the calendar year or accounting period, as the case may be, during which the Protocol enters into force*; in respect
the other taxes, to taxation the taxable event
which will occur on or after the date
entry into force
the Protocol. 3. The provisions
the Protocol shall remain in force as long as the Agreement shall remain in force. In witness whereof, the undersigned, duly authorised thereto, have signed this Protocol. Done at Valletta, this 29th day
August, 2008, in duplicate, in the English and French languages, both texts being equally authentic. Tonio Fenech For the Government
Malta *1st June 2010 - see Legal Notice 329
2010. Eric Woerth For the Government
French Republic
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.