SolvedDT7264 | Double Taxation Relief Manual: France: treaty summary
From HM Revenue & Customs · Double Taxation Relief Manual
The table summarises the provisions of the treaty in force. Where a percentage rate is shown, this rate is the ‘treaty rate’ and does not reflect taxes chargeable under the domestic law of either state before relief is given under the provisions of the treaty. The ‘treaty rate’ is the maximum rate at which the UK and France are permitted to tax income in the relevant categories under the treaty. Rates chargeable under the domestic law of either state may be higher or lower.
In all cases other conditions for relief (e.g. beneficial ownership) will have to be met before relief is due under the treaty. The text of the treaty itself should be consulted for the full details. The text of the treaty can be found on gov.uk.
| Subject | Comments | Article |
|---|---|---|
| Portfolio dividends | 15% (Note 1) | 11 |
| Dividends on direct investments | 0% (Note 2) | 11 |
| Conditions for lower rate on dividends on direct investments | The beneficial owner must be a company liable to corporation tax which holds, directly or indirectly, at least 10% of the capital of the payer | 11 |
| Property income dividends | 15% (Note 2) | 11 |
| Interest | 0% | 12 |
| Royalties | 0% | 13 |
| Government pensions | Taxable only in France unless the individual is a resident, and national of, the UK and not also a national of France (Note 3) | 18 |
| Other pensions/annuities | Taxable only in the UK (Note 3) | 17 and 23 |
| Arbitration | Yes | 26 |
Note 1: This rate is also available to pension funds that are not companies, notwithstanding that France does not consider such funds to be persons who are resident in the UK.
Note 2: REIT dividends are taxed at the rate provided for by the domestic law of the UK or France in which the dividends arise where the beneficial owner holds 10% or more of the capital of the distributing vehicle (see Article 11(5)).
Note 3: Some French pensions, those payable because of persecution and those payable for reasons of illness or injury following the termination of service in the armed forces, are exempt from tax in both countries (Article 19(4)).