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Research Information

Service:   Terms and Connectors Search
Print Request: Current Document: 1
Source: U.S. Treaties on LEXIS
Search Terms: DATE-SIGNED IS (july 28, 1967)

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1 of 1 DOCUMENT

U.S. Treaties on LEXIS

FRANCE

Double Taxation: Taxes on Income and Property

TIAS 6518

19 U.S.T. 5280; 1967 U.S.T. LEXIS 692

July 28, 1967, Date-Signed

August 11, 1968, Date-In-Force

STATUS:
 [*1]  Convention signed at Paris July 28, 1967;
Ratification advised by the Senate of the United States of America, subject to a reservation June 6, 1968;
Ratified by the President of the United States of America, subject to the said reservation, June 19, 1968;
Ratified by France June 27, 1968;
Ratifications exchanged at Washington July 11, 1968;
Proclaimed by the President of the United States of America July 17, 1968;
Entered into force August 11, 1968.
With exchange of notes.

CONVENTION between the United States of America and the French Republic with respect to Taxes on Income and Property
CONVENTION entre les Etats-Unis d'Amerique et la Republique francaise en matiere d'impots sur le revenu et la fortune.

TEXT:
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
WHEREAS a convention between the United States of America and the French Republic with respect to taxes on income and property was signed at Paris on July 28, 1967, the original of which convention, in the English and French languages, is word for word as follows:
The President of the United States of America and the President of the French Republic, desiring to conclude a Convention for the avoidance of double taxation  [*2]  of income and the prevention of fiscal evasion, have appointed for that purpose as their respective Plenipotentiaries:
The President of the United States of America: The Honorable Charles E. BOHLEN, Ambassador of the United States of America in Paris, and
The President of the French Republic: Mr. Herve ALPHAND, Ambassador of France, Secretary General of the Ministry of Foreign Affairs, who, having communicated to each other their full powers, found in good and due form, have agreed upon the following Articles:
ARTICLE 1
TAXES COVERED
 
(1) The taxes which are the subject of the present Convention are:

(a) In the case of the United States, the Federal income tax, including surtax, imposed by the Internal Revenue Code and
(b) In the case of France:

(i) the income tax on the income of physical persons, the complementary tax, the corporation tax, including any withholding tax, prepayment (precompte) or advance payment with respect to the aforesaid taxes, and
(ii) the tax on Stock Exchange transactions.

(2) The Convention shall also apply to any documentary taxes on sales or transfers of shares or certificates of stock or bonds which are subsequently imposed.
(3) The Convention [*3]  shall also apply to any identical or substantially similar taxes which are subsequently imposed in addition to, or in place of, the existing taxes.
(4) For the purpose of Article 24 (Nondiscrimination), this Convention shall also apply to taxes of every kind and to those imposed at the national, State, and local level.
ARTICLE 2
GENERAL DEFINITIONS
 
(1) In this Convention, unless the context otherwise requires:

(a) The term "United States of America" means the United States of America and when used in the geographical sense means the States thereof and the District of Columbia. The term "France" when used in a geographical sense means Metropolitan France and the Overseas departments (Guadeloupe, Guyane, Martinique, and Reunion).
(b) The terms "a ContractingState" and "the other Contracting State" mean the United States or France, as the context requires.
(c) The term "person" comprises an individual or a corporation, or any other body of individuals or persons.
(d) (i) The term "United States corporation" or "corporation of the United States" means a corporation, or any entity treated as a corporation for United States tax purposes, which is created or organized under the [*4]  laws of the United States or any State thereof or the District of Columbia; and

(ii) The term "French corporation" or "corporation of France" means any body corporate or any entity which is treated as a body corporate under French tax law, which is resident within France for French tax purposes.

(e) The term "competent authority" means:

(i) In the case of the United States, the Secretary of the Treasury or his delegate, and
(ii) In the case of France, the Minister of Economy and Finance or his delegate.

(2) As regards the application of the Convention by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes which are the subject of the Convention.
ARTICLE 3
FISCAL DOMICILE
 
(1) The term "resident of France" means:

(a) A French corporation, and
(b) Any person (other than a body corporate or any entity which under French law is treated as a body corporate) who is resident in France for purposes of its tax.

(2) The term "resident of the United States" means:

(a) A United States corporation, and
(b) Any person (other than a corporation [*5]  or an entity treated under United States law as a corporation) who is resident in the United States for purposes of its tax, but in the case of a person acting as a partner or fiduciary only to the extent that the income derived by such person in that capacity is taxed as the income of a resident.

(3) An individual who is a resident in both Contracting States shall be deemed a resident of that Contracting State in which he maintains his permanent home. If he has a permanent home in both Contracting States or in neither of the Contracting States, he shall be deemed a resident of that Contracting State with which his personal and economic relations are closest (center of vital interests). If the Contracting State in which he has his center of vital interests cannot be determined, he shall be deemed a resident of that Contracting State in which he has an habitual abode. If he has an habitual abode in both Contracting States or in neither of the Contracting States, the competent authorities of the Contracting States shall settle the question by mutual agreement. For purposes of this Article, a permanent home is the place in which an individual dwells with his family. An individual who [*6]  is deemed to be a resident of one Contracting State and not a resident of the other Contracting State by reason of the provisions of this paragraph shall be deemed a resident only of the former State for all purposes of this Convention (including Article 22).
ARTICLE 4
PERMANENT ESTABLISHMENT
(1) For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which a resident of one of the Contracting States engages in industrial or commercial activity.
(2) The term "permanent establishment" shall include especially:

(a) A seat of management;
(b) A branch;
(c) An office;
(d) A factory;
(e) A workshop;
(f) A warehouse;
(g) A mine, quarry, or other place of extraction of natural resources;
(h) A building site or construction or assembly project which exists for more than twelve months.

(3) Notwithstanding paragraph (1) of this Article, a permanent establishment shall not include a fixed place of business used only for one or more of the following activities:

(a) The use of facilities for the purpose of storage, display, or delivery of goods or merchandise belonging to the resident;
(b) The maintenance of a stock of goods  [*7]  or merchandise belonging to the resident for the purpose of storage, display, or delivery;
(c) The maintenance of a stock of goods or merchandise belonging to the resident for the purpose of processing by another person;
(d) The maintenance of a fixed place of business for the purpose of purchasing goods or merchandise, or for collecting information, for the resident;
(e) The maintenance of a fixed place of business for the purpose of advertising, for the supply of information, for scientific research, or for similar activities which have a preparatory or auxiliary character, for the resident.

(4) A person acting in a Contracting State on behalf of a resident of the other Contracting State - other than an agent of an independent status to whom paragraph (5) applies - shall be deemed to be a permanent establishment in the first- mentioned State if such person:

(a) Has, and habitually exercises in that State, an authority to conclude contracts in the name of that resident, unless the exercise of such authority is limited to the purchase of goods or merchandise for that resident, or
(b) Maintains substantial equipment or machinery within the first-mentioned State for a period of twelve [*8]  months or more.

(5) A resident of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because such resident carries on business in that other State through a broker, general commission agent, or any other agent of an independent status, where such persons are acting in the ordinary course of their business.
(6) The fact that a resident of one of the Contracting States is a related person, as defined in Article 8 of this Convention, with respect to a resident of the other Contracting State or with respect to a person which engages in industrial or commercial activity in that other Contracting State (whether through a permanent establishment or otherwise) shall not be taken into account in determining whether that resident of the first Contracting State has a permanent establishment in the other Contracting State.
(7) An insurance company of one of the Contracting States shall be considered as having a permanent establishment in the other Contracting State if, through a representative other than one described in paragraph (5), such company receives premiums from or insures risks in the territory of that other Contracting  [*9]  State.
ARTICLE 5
INCOME FROM REAL PROPERTY
(1) Income from real property and royalties in respect of the operations of mines, quarries, or other natural resources (not including interest on debts secured by mortgages or other encumbrances on such real property or royalty interests but including gains derived from the sale or exchange of such property or the right giving rise to such royalties) shall be taxable by the Contracting State in which such property, mines, quarries, or other natural resources are situated.
(2) The provisions of paragraph (1) shall apply to income derived from the usufruct, direct use, letting, or use in any other form of real property.
(3) A resident of one of the Contracting States subject to tax in the other Contracting State on income from real property or on royalties referred to in this Article may elect for any taxable year to be subject to such other State's tax on such income as if such resident were engaged in business in the other Contracting State.
ARTICLE 6
BUSINESS PROFITS
(1) Industrial or commercial profits of a resident of one of the Contracting States shall be taxable only in that State unless such resident is engaged in industrial [*10]  or commercial activity in the other Contracting State through a permanent establishment situated therein. If such resident is so engaged, tax may be imposed by such other State on the industrial or commercial profits of such resident but only on so much of them as are attributable to the permanent establishment.
(2) Where a resident of 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 industrial or commercial profits which would be attributable to such permanent establishment if such permanent establishment were an independent entity engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the resident of which it is a permanent establishment.
(3) In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses which are reasonably connected with such profits including executive and general administrative expenses, whether incurred in the State in which the permanent establishment is situated or elsewhere.
(4) No profits shall [*11]  be attributed to a permanent establishment merely by reason of the purchase of goods or merchandise by that permanent establishment, or by the resident of which it is a permanent establishment, for the account of that resident.
(5) The term "industrial or commercial profits of a resident" includes income derived from manufacturing, mercantile, agricultural, fishing, or mining activities, from the operation of ships or aircraft, from the furnishing of personal services, from the rental of tangible personal property, and from insurance activities and rents or royalties derived from motion picture films, films or tapes of radio or television broadcasting. It also includes income derived from real property and natural resources and dividends, interest, royalties (as defined in paragraphs (3) and (4) of Article 11), and capital gains but only if the right or property giving rise to such income, dividends, interest, royalties, or capital gains is effectively connected with a permanent establishment which the recipient, being a resident of one Contracting State, has in the other Contracting State. It does not include income received by an individual as compensation for personal services  [*12]  either as an employee or in an independent capacity.
ARTICLE 7
SHIPPING AND AIR TRANSPORT
 
Notwithstanding Article 6, income which a resident of one of the Contracting States derives from the operation in international traffic of ships or aircraft registered in that Contracting State shall be taxable only in that Contracting State.
ARTICLE 8
RELATED PERSONS
(1) Where a resident of a Contracting State and a resident of the other Contracting State are related and where such related persons make arrangements or impose conditions between themselves which are different from those which would be made between independent persons, then any income which would, but for those arrangements or conditions, have accrued to the resident of the first Contracting State but, by reason of those arrangements or conditions, has not so accrued, may be included in the income of the resident of the first Contracting State for purposes of the present Convention and taxed accordingly.
(2) (a) A person other than a corporation is related to a corporation if such person participates directly or indirectly in the management, control, or capital of the corporation.

(b) A corporation is related [*13]  to another corporation if either participates directly or indirectly in the management, control, or capital of the other, or if any person or persons participate directly or indirectly in the management, control, or capital of both corporations.
ARTICLE 9
DIVIDENDS
(1) Dividends derived from sources within a Contracting State by a resident of the other Contracting State may be taxed in that other State.
(2) Dividends derived from sources within a Contracting State by a resident of the other Contracting State may also be taxed by the former Contracting State but the tax imposed on such dividends shall not exceed--

(a) 15 percent of the amount actually distributed; or
(b) When the recipient is a corporation, 5 percent of the amount actually distributed if--

(i) During the part of the paying corporation's taxable year which precedes the date of payment of the dividend and during the whole of its prior taxable year (if any), at least ten percent of the outstanding shares of the voting stock of the paying corporation was owned by the recipient corporation, and
(ii) Not more than 25 percent of the gross income of the paying corporation for such prior taxable year (if any)  [*14]  consisted of interest and dividends (other than interest derived in the conduct of a banking, insurance, or financing business and dividends or interest received from subsidiary corporations, 50 percent or more of the outstanding shares of the voting stock of which was owned by the paying corporation at the time such dividends or interest were received).

(3) Paragraph (2) of this Article and, in the case of dividends derived by a resident of France, paragraph (1) of this Article, shall not apply if the recipient of the dividends has a permanent establishment in the other Contracting State and the shares with respect to which the dividends are paid are effectively connected with the permanent establishment. In such a case, the provisions of Article 6 shall apply.
(4) (a) Except as provided in subparagraph (b), dividends paid by a corporation of one of the Contracting States shall be treated as income from sources within that Contracting State, and dividends paid by any other corporation shall be treated as income from sources outside that Contracting State.

(b) Dividends paid by a corporation other than a United States corporation shall be treated as dividends from sources within [*15]  the United States if such corporation had a permanent establishment in the United States and more than 80 percent of its gross income was taxable to such permanent establishment for a three-year period ending with the close of its taxable year preceding the declaration of such dividends (or for such portion of that period as the corporation has been in existence).

(5) When the prepayment (precompte) is levied on dividends paid by a French corporation to a resident of the United States, such resident shall be entitled to the refund of that prepayment, subject to deduction of the withholding tax with respect to the refunded amount in accordance with paragraph (2) of this Article.
ARTICLE 10
INTEREST
(1) Interest derived from sources within one Contracting State by a resident of the other Contracting State may be taxed in that other State.
(2) Interest on bonds, notes, debentures, or any other form of indebtedness from sources within the United States and paid to a resident of France may also be taxed by the United States at a rate not in excess of 10 percent of the amount paid.
(3) Interest on bonds, notes, debentures, or any other form of indebtedness from sources within  [*16]  France and paid to a resident of the United States may also be taxed by France at a rate not in excess of 10 percent of the amount paid except that interest on bonds issued before January 1, 1965, may be taxed at a rate not in excess of 12 percent of the amount paid.
(4) Paragraphs (2) and (3) of this Article and, in the case of interest derived by a resident of France, paragraph (1) of this Article, shall not apply if the recipient of the interest, being a resident of one of the Contracting States, has a permanent establishment in the other Contracting State and the indebtedness giving rise to the interest is effectively connected to such permanent establishment. In such a case, the provisions of Article 6 shall apply.
(5) The term "interest" as used in this Article means income from Government securities, bonds, or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits, and debt-claims of every kind as well as all other income assimilated to income from money lent by the taxation law of the State in which the income has its source.
(6) Interest shall be deemed to be from sources within a Contracting State when the payer is that [*17]  State itself, a political subdivision, a local authority, or a resident of that State. Where, however, the person paying the interest, whether he is a resident of 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 be from sources within the Contracting State in which the permanent establishment is situated.
(7) Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of 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 of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
(8) Interest received by one of the Contracting States, or by an instrumentality of [*18]  that State not subject to income tax by such State, shall be exempt in the State in which such interest has its source.
ARTICLE 11
ROYALTIES
 
(1) Royalties derived from sources within one Contracting State by a resident of the other Contracting State may be taxed in that other State.
(2) Except as provided in paragraph (3), royalties derived from sources within a Contracting State by a resident of the other Contracting State may also be taxed by the former Contracting State but the tax imposed on such royalties shall not exceed 5 percent of the gross amount paid.
(3) Royalties derived from copyrights of literary, artistic, or scientific works (including gain from the sale or exchange of property giving rise to such royalties) by a resident of one Contracting State shall be taxable only in that Contracting State.
(4) The term "royalties" as used in paragraph (1) of this Article means--

(a) Any royalties, rentals, or other amounts paid as consideration for the use of, or the right to use, patents, designs or models, plans, secret processes or formulae, trademarks, or other like property or rights, or for knowledge, experience, or skill (know-how), and
(b) Gains derived from [*19]  the sale or exchange of any such right or property, if payment of the amounts realized on such sale or exchange is contingent, in whole or in part, on the productivity, use or disposition of such right or property. If the amounts derived from the sale or exchange of any such right or property are not so contingent, the provisions of Article 12 shall apply.

(5) Paragraphs (2) and (3) of this Article, and, in the case of royalties derived by a resident of France, paragraph (1) of this Article, shall not apply if the recipient of the royalty, being a resident of one of the Contracting States, has in the other Contracting State a permanent establishment and the right or property giving rise to the royalties is effectively connected with such permanent establishment. In such a case, the provisions of Article 6 shall apply.
(6) Royalties paid for the use of, or the right to use, property described in paragraph (4) in a State shall be treated as income from sources within that State.
(7) Where, owing to a special relationship between the payer and the recipient, or between both of them and some other person, the amount of the royalties paid exceeds the amount which would have been agreed [*20]  upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall only apply to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
ARTICLE 12
CAPITAL GAINS
 
(1) A resident of one of the Contracting States shall be taxable only in that State on gains from the sale or exchange of capital assets.
(2) Paragraph (1) of this Article shall not apply if--

(a) The gain is received by a resident of one of the Contracting States and arises out of the sale or exchange of property described in Article 5 (income from real property) located within the other Contracting State or of the sale or exchange of shares or comparable interests in a real property cooperative or of a corporation whose assets consist principally of such property.
(b) The recipient of the gain, being a resident of one of the Contracting States, has a permanent establishment in the other Contracting State and the property giving rise to the gain is effectively connected with such permanent establishment, or
(c) The recipient [*21]  of the gain, being an individual resident of one of the Contracting States--

(i) Maintains a fixed base in the other Contracting State and the property giving rise to such gain is effectively connected to such fixed base, or
(ii) Is present in the other Contracting State for a period or periods exceeding in the aggregate 183 days during the taxable year.

(3) In the case of gains described in paragraph (2)(b), the provisions of Article 6 shall apply.
ARTICLE 13
BRANCH PROFITS
 
(1) (a) Dividends paid by a French corporation to a person other than a citizen, resident, or corporation of the United States shall be exempt from tax by the United States unless such French corporation had a permanent establishment in the United States and more than 80 percent of its gross income was taxable to such permanent establishment for a 3-year period ending with the close of its taxable year preceding the declaration of such dividends (or for such portion of that period as the corporation has been in existence).

(b) The United States may impose its personal holding company tax and accumulated earnings tax as if this Convention had not come into effect.
However:

(i) A French corporation [*22]  shall be exempt from the United States personal holding company tax in any taxable year if all of its stock is owned by one or more individual residents of France in their individual capacities for that entire year.
(ii) A French corporation shall be exempt from the United States accumulated earnings tax in any taxable year unless such corporation is engaged in trade or business in the United States through a permanent establishment at any time during such year.

(2) (a) A United States corporation which maintains a permanent establishment in France shall remain subject therein to the withholding tax in accordance with provisions of French internal law but--

(i) The base on which such tax shall be levied will be reduced by 1/3 and
(ii) The rate of such tax shall not exceed 15 percent.

(b) Profits realized by a French permanent establishment of a United States corporation and incorporated in its capital shall not be subject in France to the "droit d'apport majore".
ARTICLE 14
INDEPENDENT PERSONAL SERVICES
(1) Income derived by a resident of a Contracting State in respect of independent activities shall be taxable only in that State unless such activities were performed [*23]  in the other Contracting State. Income in respect of independent activities performed within such other State may be taxed by such other State.
(2) Notwithstanding the provisions of paragraph (1), income derived by a resident of a Contracting State in respect of independent activities performed in the other Contracting State shall not be taxable in such other State if:

(a) The recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned, and
(b) The recipient does not maintain a fixed base in the other State for a period or periods exceeding in the aggregate 183 days in such year.

(3) The term "independent activities" means all the activities--other than commercial, industrial, or agricultural activities--carried on on his own account independently by a person who receives the proceeds or bears the losses arising from these activities.
ARTICLE 15
DEPENDENT PERSONAL SERVICES
(1) Salaries, wages, and other similar remuneration paid to a resident of a Contracting State for labor or personal services shall be taxable only in that State unless such labor or personal services were performed in the other  [*24]  Contracting State. Remuneration received for labor or personal services performed within such other State may be taxed by such other State.
(2) Notwithstanding the provisions of paragraph (1), remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall not be taxable in such other State if:

(a) The recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned,
(b) The remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
(c) The remuneration is not borne by a permanent establishment which the employer has in the other State.

(3) Remuneration received by an individual for personal services performed aboard ships or aircraft registered in one of the Contracting States and operated by a resident of that Contracting State shall be exempt from tax by the other Contracting State, if such individual is a member of the regular complement of the ship or aircraft.
ARTICLE 16
GOVERNMENTAL FUNCTIONS
(1) Remuneration, including pensions, paid by, or out of funds created by, a Contracting State or [*25]  a political subdivision or a local authority thereof to any individual who is national of that State in respect of services rendered to that State or a subdivision or local authority thereof in the discharge of functions of a governmental nature shall be taxable only in that Contracting State.
(2) The provisions of Articles 15, 19, and 20 shall apply to remuneration or pensions in respect of services rendered in connection with any industrial or commercial activity carried on by one of the Contracting States or a political subdivision or a local authority thereof.
(3) In the case of an individual who is a national of both Contracting States, the provisions of Article 22, paragraph (4), shall apply to remuneration described in paragraph (1) but such remuneration shall be treated as income from sources within the Contracting State from which such individual receives such remuneration.
ARTICLE 17
TEACHERS
 
(1) An individual who is a resident of one of the Contracting States at the beginning of his visit to the other Contracting State and who, at the invitation of the Government of the other Contracting State or of a university or other accredited educational institution situated [*26]  in the other Contracting State, visits the latter Contracting State for the primary purpose of teaching or engaging in research, or both, at a university or other accredited institution shall be exempt from tax by the latter Contracting State on his income from personal services for teaching or research at such educational institution, or at other such institutions, for a period not exceeding 2 years from the date of his arrival in the latter Contracting State.
 
(2) This Article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons.
ARTICLE 18
STUDENTS AND TRAINEES
 
(1) (a) An individual who is a resident of one of the Contracting States at the beginning of his visit to the other Contracting State and who is temporarily present in the other Contracting State for the primary purpose of--

(i) Studying at a university or other accredited educational institution in that other Contracting State, or
 
(ii) Securing training required to qualify him to practice a profession or professional speciality, or
 
(iii) Studying or doing research as a recipient of a grant,  [*27]  allowance, or award from a governmental, religious, charitable, scientific, literary, or educational organization,
 
shall be exempt from tax by that other Contracting State with respect to amounts described in subparagraph (b).

(b) The amounts referred to in subparagraph (a) include--

(i) Gifts from abroad for the purposes of his maintenance, education, study, research, or training;
 
(ii) The grant, allowance, or award; and
 
(iii) Income from personal services performed in the other Contracting State in an amount not in excess of $ 2,000 or its equivalent in francs for any taxable year.

(c) The benefits under this paragraph shall only extend for such period of time as may be reasonably or customarily required to effectuate the purpose of the visit, but in no event shall any individual have the benefits of this Article and Article 17 for more than a total of five taxable years.

(2) A resident of one of the Contracting States who is present in the other Contracting State as an employee of, or under contract with, a resident of the former State, for the primary purpose of--

(a) Acquiring technical, professional, or business experience from a person other than [*28]  that resident of the former State or a corporation 50 percent or more of the voting stock of which is owned by that resident of the former State, or
 
(b) Studying at a university or other accredited educational institution in that other Contracting State,

shall be exempt from tax by that other Contracting State for one taxable year with respect to his income from personal services in an amount not in excess of $ 5,000 or its equivalent in francs.
ARTICLE 19
PRIVATE PENSIONS AND ANNUITIES
 
(1) Except as provided in Article 16, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that Contracting State.
 
(2) Alimony and annuities paid to a resident of a Contracting State shall be taxable only in that Contracting State.
 
(3) The term "annuities," as used in this Article, means a stated sum paid periodically at stated times during life, or during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered).
 
(4) The term "pensions," as used in this Article, means periodic payments made after retirement [*29]  in consideration for, or by way of compensation for injuries received in connection with, past employment.
ARTICLE 20
SOCIAL SECURITY PAYMENTS
 
Social security payments (whether representing employee or employer contributions or accretions thereto) paid by one of the Contracting States to an individual who is a resident of the other Contracting State shall be taxable only in the former Contracting State.
ARTICLE 21
RULES APPLICABLE TO PERSONAL INCOME ARTICLES
 
(1) Articles 14 through 18 shall apply to reimbursed travel expenses, but such expenses shall not be taken into account in computing the maximum amount of exemptions specified in Article 18.
 
(2) An individual who qualifies for benefits under more than one of the provisions of Articles 14 through 18 may apply that provision most favorable to him, but shall not be entitled to the benefits of more than one provision in any taxable year.
ARTICLE 22
GENERAL RULES OF TAXATION
 
(1) Any income from sources within a Contracting State to which the provisions of the present Convention are not expressly applicable shall be taxable by such Contracting State in accordance with its own law.
 
(2) A resident of  [*30]  one of the Contracting States shall be taxed by the other Contracting State only on--

(a) Commercial or industrial profits attributable to a permanent establishment located in that other Contracting State, and
 
(b) Income from sources within that other Contracting State,

in accordance with the limitations set forth in the present Convention.

(3) The provisions of the present Convention shall not be construed to restrict in any manner any exclusion, exemption, deduction, credit, or other allowance now or hereafter accorded--

(a) By the laws of one of the Contracting States in the determination of the tax imposed by that State, or
 
(b) By any other agreement between the Contracting States.

(4) (a) The United States may tax its citizens and residents as if the present Convention had not come into effect.

(i) This provision shall not affect the rules laid down in Article 20 (Social Security Payments), Article 23 (Relief from Double Taxation), and Article 24 (Nondiscrimination).

(ii) This provision shall not affect the rules laid down in Articles 17, 18, and 21 (Students, Teachers, Rules applicable thereto) when applicable to individuals who are not citizens [*31]  of the United States and who do not have immigrant status in the United States.
 
(iii) This provision shall not affect the rules laid down in Articles 16 and 21 (Governmental Functions, Rules applicable thereto) when they apply to:

- an individual who is not a citizen of the United States and who does not have immigrant status in the United States;
 
- an individual who, having immigrant status in the United States, has elected to claim the benefits of these articles; in that case, such person must agree that any calendar year or portion of a calendar year for which Articles 16 and 21 apply shall not be counted as a period during which he has resided or has been physically present in the United States in the calculation of periods of residence or presence in the United States required for naturalization pursuant to the immigration and nationality laws of the United States.

(b) Subject to the provisions of Article 23, France may tax its residents who are public entertainers, such as theatre, motion picture, radio or television artists, musicians and athletes, on income described in Articles 14 and 15 (Personal Service Income) which is derived from activities, or services performed,  [*32]  in the United States.
 
(5) Any transaction in which an order for the purchase, sale or exchange of stocks, securities or commodities originates in one of the Contracting States and is executed through a stock or commodities exchange in the other State shall be exempt by the former State from stamp or like tax otherwise arising with respect to such transaction.
ARTICLE 23
RELIEF FROM DOUBLE TAXATION
 
Double taxation of income shall be avoided in the following manner:
 
(1) The United States shall allow to a citizen, resident, or corporation of the United States as a credit against its tax specified in paragraph (1) of Article 1 the appropriate amount of income taxes paid to France. Such appropriate amount shall be based upon the amount of French tax paid but shall not exceed that portion of the United States tax which net income from sources within France bears to the entire net income.
 
(2) In the case of France:

(a) Income other than that mentioned in paragraph (b) below shall be exempt from the French taxes mentioned in paragraph (1) of Article 1 while the income is, by reason of the Convention, taxable in the United States.
 
(b) As regards income taxable in both [*33]  Contracting States in accordance with the provisions of this Convention, France shall allow to a resident of France receiving such income from United States sources a tax credit corresponding to the amount of tax levied in the United States. Such tax credit, not exceeding the amount of French tax levied on such income, shall be allowed against taxes mentioned in paragraph (1)(b)(i) of Article 1 of this Convention, in the bases of which such income is included.
 
(c) Notwithstanding the provisions of paragraphs (a) and (b), 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.

(3) A resident of a Contracting State who maintains one or several abodes in the territory of 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 that or those abodes.
ARTICLE 24
NONDISCRIMINATION
 
(1) A citizen of one of the Contracting States who is a resident of the other Contracting State shall not be subjected in that other Contracting State to more burdensome taxes than is [*34]  a citizen of that other Contracting State who is a resident thereof.
 
(2) The taxation on a permanent establishment which a resident of a Contracting State has in the other Contracting State shall not be less favorably levied in that other State than the taxation levied on a resident of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs, and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. The provisions of this paragraph shall not be construed to prevent the application of the provisions of Article 13 (Branch Profits) of the Convention nor to prevent the United States from imposing a comparable tax burden on the income of a permanent establishment maintained by a resident of France in the United States.
 
(3) A corporation of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned Contracting State to [*35]  any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which a corporation of that first-mentioned Contracting State carrying on the same activities, the capital of which is wholly owned by one or more residents of that first-mentioned State, is or may be subjected.
ARTICLE 25
MUTUAL AGREEMENT PROCEDURE
 
(1) Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the national laws of those States, present his case to the competent authority of the Contracting State of which he is a resident.
 
(2) The competent authorities of the Contracting States shall endeavor to resolve by mutual agreement any difficulties or doubts arising as to the application of the Convention. In particular, the competent authorities of the Contracting States may consult together to endeavor to agree:

(a) To the same attribution of industrial or commercial profits to a resident of one of the Contracting States and its permanent establishment [*36]  situated in the other Contracting State;
 
(b) To the same allocation of income between a resident of one of the Contracting States and any related person, provided for in Article 8; or
 
(c) To the same determination of the source of particular items of income.

(3) The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable for the purpose of reaching agreement, the competent authorities may meet together for an oral exchange of opinions.
 
(4) In the event that the competent authorities reach such an agreement, taxes shall be imposed on such income, and refund or credit of taxes shall be allowed, by the Contracting States in accordance with such agreement.
ARTICLE 26
EXCHANGE OF INFORMATION
 
(1) The competent authorities of the Contracting States shall exchange such information as is pertinent to carrying out the provisions of this Convention or preventing fraud or fiscal evasion in relation to the taxes which are the subject of this Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to [*37]  any persons other than those (including a court or administrative body) concerned with assessment, collection, enforcement, or prosecution in respect of the taxes which are the subject of the Convention.
 
(2) In no case shall the provisions of paragraph (1) be construed so as to impose on one of the Contracting States the obligation:

(a) To carry out administrative measures at variance with the laws or the administrative practice of that or the other Contracting State;
 
(b) To supply particulars which are not obtainable under the laws or in the normal course of the administration of that or of 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 of which would be contrary to public policy (order public).

(3) The exchange of information shall be either on a routine basis or on request with reference to particular cases. The competent authorities of the Contracting States shall agree on the list of information which shall be furnished on a routine basis.
ARTICLE 27
ASSISTANCE IN COLLECTION
 
(1) The two Contracting States undertake [*38]  to lend assistance and support to each other in the collection of the taxes to which the present Convention relates, together with interest, costs, and additions to the taxes and fines not being of a penal character according to the laws of the State requested, in the cases where the taxes are definitively due according to the laws of the State making the application.
 
(2) In the case of an application for enforcement of taxes, revenue claims of each of the Contracting States which have been finally determined will be accepted for enforcement by the State to which application is made and collected in that State in accordance with the laws applicable to the enforcement and collection of its own taxes.
 
(3) The application will be accompanied by such documents as are required by the laws of the State making the application to establish that the taxes have been finally determined.
 
(4) If the revenue claim has not been finally determined, the State to which application is made will take such measures of conservancy (including measures with respect to transfer of property of nonresident aliens) as are authorized by its laws for the enforcement of its own taxes.
 
(5) The assistance [*39]  provided for in this Article shall not be accorded with respect to citizens, corporations, or other entities of the State to which application is made.
ARTICLE 28
DIPLOMATIC AND CONSULAR OFFICERS
 
Nothing in the present Convention shall affect the fiscal privileges of diplomatic or consular officials under the general rules of international law or under the provisions of special agreements.
ARTICLE 29
TERRITORIAL EXTENSION
 
(1) This Convention may be extended, either in its entirety or with any necessary modifications, to the Overseas Territories of the French Republic which impose taxes substantially similar in character to those to which the Convention applies. Any such extension shall take effect from such date and subject to such modifications and conditions, 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 procedure.
 
(2) At any time after the expiration of a period of 1 year from the effective date of an extension made by virtue of paragraph (1) either of the Contracting States may by a written notice of termination given to the  [*40]  other Contracting State through diplomatic channels, terminate the application of the provisions in respect to any territory to which such application has been extended, in which case the provisions shall cease to be applicable to such territory on and after the first day of January following the date of such notice; provided, however, that this shall not affect the continued application of such provisions to the United States, to France, or to any other territory to which such provisions apply and which is not named in the notice of termination.
 
(3) Unless otherwise agreed by both Contracting States, the termination of the Convention by one of the Contracting States under Article 32 shall also terminate the application of the Convention to any territory to which it has been extended under this Article.
ARTICLE 30
EXCHANGE OF OFFICIAL INFORMATION
 
(1) The competent authorities of the Contracting States shall notify each other of any amendments of the tax laws referred to in Article 1 (1) and of the adoption of any taxes referred to in Article 1 (2) by transmitting the texts of any amendments or new statutes at least once a year.
 
(2) The competent authorities of the Contracting [*41]  States shall exchange the texts of all published material interpreting the present Convention under their respective laws, whether in the form of regulations, rulings, or judicial decisions.
 
(3) Where, by reason of any change made in the taxation laws of one of the Contracting States, it seems advisable to adjust some provisions of this Convention without affecting its general principles, the necessary adjustments may be agreed between the Contracting States by notes to be exchanged through diplomatic channels or in any other manner in accordance with their respective constitutional procedure.
ARTICLE 31
ENTRY INTO FORCE
 
(1) This Convention shall be ratified and instruments of ratification shall be exchanged at Washington. It shall enter into force one month after the date of exchange of the instruments of ratification. Its provisions shall for the first time have effect:

(a) In the case of France:

(i) As respects withholding taxes, to any proceeds payable and transactions completed on or after the date on which this Convention enters into force;
 
(ii) As respects other income taxes, to taxes which are levied for the assessment year 1967; and
 
(iii) As respects [*42]  the tax on stock exchange transactions, the date on which this Convention enters into force.

(b) In the case of the United States:

(i) As respects the rate of withholding tax, to amounts received on or after the date on which this Convention enters into force;
 
(ii) As respects other income taxes, to taxable years beginning on or after January 1, 1967.

(2) Upon the coming into effect of this Convention, there shall terminate:

(a) The Convention of July 25, 1939, n1 relating to income and other taxes
 
(b) The Convention of October 18, 1946, the supplementary Protocol of May 17, 1948, and the Convention of June 22, 1956, n2 insofar as they concern taxes on income, on capital and tax on stock exchange transactions.

n1 TS 988; 59 Stat. 893.
n2 TIAS 1982, 3844; 64 Stat. (3) B3, B28; 8 UST 843.

 
The provisions of those Conventions and of that Protocol will cease to have effect from the date on which the corresponding provisions of the present Convention shall for the first time have effect according [*43]  to the subparagraph (1) above-mentioned.
ARTICLE 32
TERMINATION
 
This Convention shall remain in force until denounced by one of the Contracting States. Either Contracting State may denounce the Convention, through diplomatic channels, by giving notice of termination at least 6 months before the end of any calendar year after the year 1969. In such event, the Convention shall cease to have effect:
 
(1) In the case of France:

(a) As respects withholding taxes, on January 1 of the year following the year in which notice is given.
 
(b) As respects other income taxes, for any year of assessment beginning on or after January 1 of the year next following the year in which notice is given; and
 
(c) As respects the tax on stock exchange transactions, for any transactions occurring on or after January 1 of the year following the year in which notice is given.

(2) In the case of the United States:

(a) As respects withholding taxes, on January 1 of the year following the year in which notice is given;
 
(b) As respects other income taxes, for any taxable year beginning on or after January 1 of the year following the year in which notice is given; and
 
(c) As respects [*44]  taxes referred to in paragraph (2) of Article 1, for any transactions occurring on or after January 1 of the year following the year in which notice is given.
In witness whereof, the respective plenipotentiaries have signed the present Convention.
Done at Paris in duplicate, in the English and French languages, each text being equally authentic, this 28th day of July, 1967.
Le President des Etats-Unis d'Amerique et le President de la Republique francaise desirant conclure une convention en vue d'eviter les doubles impositions en matiere d'impots sur le revenu et de prevenir l'evasion fiscale ont designe a cette fin comme plenipotentiaires:
Le President des Etats-Unis d'Amerique: L'Honorable Charles E. BOHLEN, Ambassadeur des Etats-Unis d'Amerique a Paris,
Le President de la Republique francaise: Monsieur Herve ALPHAND, Ambassadeur de France, Secretaire General du Ministere des Affaires Etrangeres, qui, apres s'etre communique leurs pleins pouvoirs, et les avoir reconnus en bonne et due forme, sont convenus des dispositions suivantes.
Article 1
IMPOTS VISES
 
(1) Les impots qui font l'objet de la presente Convention sont les suivants:

(a) Pour les Etats-Unis, l'impot  [*45]  federal sur le revenu prevu par l'Internal Revenue Code, y compris la surtaxe.
 
(b) Pour la France:

(i) l'impot sur le revenu des personnes physiques, la taxe complementaire, l'impot sur les societes, y compris toute retenue a la source, tout precompte ou tout versement anticipe afferents aux impots vises cidessus, et
 
(ii) l'impot sur les operations de bourse.

(2) La Convention vise egalement les taxes frappant les ventes ou les transferts, soit d'actions ou de certificats d'actions, soit d'obligations (documentary taxes) qui seraient etablies ulterieurement.
 
(3) La Convention s'appliquera egalement aux impots futurs de nature identique ou analogue qui s'ajouteraient aux impots actuels ou qui les rempla-ceraient.
 
(4) En ce qui concerne l'article 24 (non-discrimination), cette Convention s'applique egalement aux impots de toute nature, qu'ils soient percus pour le compte de l'Etat ou des collectivites locales.
Article 2
DEFINITIONS GENERALES
 
(1) Au sens de la presente Convention, a moins que le contexte n'exige une interpretation differente:

(a) L'expression "Etats-Unis d'Amerique" designe les Etats-Unis d'Amerique; lorsqu'elle est utilisee dans le sens [*46]  geographique, cette expression vise les Etats membres et le district de Columbia. Le terme "France", lorsqu'il est utilise dans le sens geographique, designe la France metropolitaine et les departements d'outre-mer (Guadeloupe, Guyane, Martinique et Reunion)
 
(b) Les expressions "un Etat contractant" et "l'autre Etat contractant" designent, suivant le contexte les Etats-Unis ou la France.
 
(c) Le terme "personne" designe une personne physique ou une societe ou tout autre groupement de personnes physiques ou morales.
 
(d) (i) L'expression "societe americaine" ou "societe des Etats-Unis" designe une societe ou toute entite juridique consideree comme une societe pour l'application de l'impot americain, et qui a ete creee ou organisee d'apres la legislation des Etats-Unis ou d'un Etat membre ou du district de Columbia;

(ii) L'expression "societe francaise", ou "societe de France" designe toute personne morale ou toute entite juridique qui est consideree comme une personne morale au regard de la legislation fiscale francaise et qui est residente de France pour l'application de l'impot francais.

(e) L'expression "autorite competente" designe:

(i) Dans le cas des Etats-Unis,  [*47]  le Secretaire au Tresor ou son representant;
 
(ii) Dans le cas de la France, le Ministre de l'Economie et des Finances ou son representant.

(2) Pour l'application de la Convention par un Etat contractant, toute expression qui n'est pas autrement definie a le sens qui lui est attribue par la legislation dudit Etat regissant les impots faisant l'objet de la Convention, a moins que le contexte n'exige une interpretation differente.
Article 3
DOMICILE FISCAL
 
(1) L'expression "resident de France" designe:

(a) une societe francaise, et.
 
(b) toute personne (autre qu'une personne morale ou une entite juridique consideree com me personne morale au regard de la legislation francaise) qui est consideree comme residente de France pour son imposition.

(2) L'expression "resident des Etats-Unis" designe:

(a) une societe des Etats-Unis, et
 
(b) toute personne (autre qu'une societe ou une entite juridique consideree comme une societe au regard de la legislation des Etats-Unis) qui est consideree comme residente des Etats-Unis pour son imposition, mais dans le cas d'une personne qui est membre d'une societe de personnes (partnership) ou qui agit a titre de representant [*48]  (fiduciary), seulement dans la mesure ou le revenu detenu par une telle personne en cette qualite est impose comme le revenu d'un resident.

(3) Une personne physique qui est resident de chacun des Etats contractants est consideree comme resident de l'Etat contractant ou elle dispose d'un foyer d'habitation permanent. Lorsqu'elle dispose d'un foyer d'habitation permanent dans chacun des Etats contractants ou ne dispose d'un tel foyer dans aucun de ces Etats, elle est consideree comme resident de l'Etat contractant avec lequel ses liens personnels et economiques sont les plus etroits (centre des interets vitaux). Si l'Etat contractant dans lequel cette personne a le centre de ses interets vitaux ne peut pas etre determine, elle est consideree comme resident de l'Etat contractant ou elle sejourne de facon habituelle. Si cette personne sejourne de facon habituelle dans chacun des Etats ou qu'elle ne sejourne de facon habituelle dans aucun d'eux, les autorites competentes des Etats contractants tranchent la question d'un commun accord. Pour l'application de cet article, un foyer d'habitation permanent est le lieu ou une personne physique demeure avec sa famille. Une personne physique [*49]  qui est consideree comme resident d'un Etat contractant et comme n'etant pas resident de l'autre Etat contractant en vertu des dispositions de ce paragraphe sera consideree seulement comme resident du premier Etat pour l'application de toute la presente Convention, y compris l'article 22.
Article 4
ETABLISSEMENT STABLE
 
(1) Au sens de la presente Convention, l'expression "etablissement stable" designe une installation fixe d'affaires par l'intermediaire de laquelle un resident de l'un des Etats contractants exerce une activite industrielle ou commerciale.
 
(2) L'expression "etablissement stable" comprend notamment:

(a) un siege de direction,
 
(b) une succursale,
 
(c) un bureau,
 
(d) une usine,
 
(e) un atelier,
 
(f) un entrepot,
 
(g) une mine, une carriere ou tout autre lieu d'extraction de ressources naturelles,
 
(h) un chantier de construction ou de montage dont la duree depasse douze mois.

(3) Nonobstant les dispositions du paragraphe 1 du present article, on ne considere pas qu'il y a etablissement stable lorsqu'une installation fixe d'affaires sert uniquement a l'exercice de l'une ou de plusieurs des activites suivantes:

(a) usage d'installations pour [*50]  le stockage, l'exposition ou la livraison de marchandises appartenant au resident;
 
(b) depot de marchandises appartenant au resident pour le stockage, l'exposition ou la livraison;
 
(c) depot de marchandises appartenant au resident pour leur transformation par une autre personne;
 
(d) utilisation d'installations fixes d'affaires pour l'achat de marchandises ou la collecte d'informations pour le resident;
 
(e) utilisation d'installations fixes d'affaires pour la publicite, la fourniture de renseignements, des recherches scientifiques ou pour des activites analogues qui presentent pour le resident un caractere preparatoire ou auxiliaire.

(4) Une personne agissant dans un Etat contractant pour le compte d'un resident de l'autre Etat contractant - autre qu'un agent jouissant d'un statut independant, vise au paragraphe 5 - est consideree comme un etablissement stable dans le premier Etat si elle:

(a) dispose dans cet Etat de pouvoirs qu'elle y exerce habituellement lui permettant de conclure des contrats au nom du resident, a moins que l'exercice de tels pouvoirs ne soit limite a l'achat de marchandises pour ce resident, ou
 
(b) maintient un outillage important dans le premier [*51]  Etat pendant une periode egale ou superieure a douze mois.

(5) On ne considere pas qu'un resident d'un Etat contractant a un etablissement stable dans l'autre Etat contractant du seul fait qu'il y exerce son activite par l'entremise d'un courtier, d'un commissionnaire general ou de tout autre intermediaire jouissant d'un statut independant, a condition que ces personnes agissent dans le cadre ordinaire de leur activite.
 
(6) Le fait qu'un resident d'un Etat contractant soit associe, dans les conditions definies a l'article 8 de la presente Convention, a un resident de l'autre Etat contractant ou a une personne qui exerce une activite industrielle ou commerciale dans cet autre Etat (que ce soit par l'intermediaire d'un etablissement stable ou d'une autre maniere) n'est pas pris en consideration pour determiner si le resident du premier Etat contractant a un etablissement stable dans l'autre Etat contractant.
 
(7) Une compagnie d'assurances de l'un des Etats contractants est reputee avoir un etablissement stable dans l'autre Etat contractant si elle recoit des primes provenant de l'autre Etat contractant ou assure des risques sur le territoire de cet Etat, par l'intermediaire  [*52]  d'un representant autre que ceux vises au paragraphe 5.
Article 5
REVENUS IMMOBILIERS
 
(1) Les revenus provenant de biens immobiliers et les redevances afferents a l'exploitation de mines, carrieres ou autres ressources naturelles (a l'exclusion des interets d'emprunts garantis par des hypotheques ou autres suretes portant sur les biens immobiliers ou les redevances en cause, mais y compris les gains provenant de la cession ou de l'echange de ces biens ou des droits generateurs de ces redevances) sont imposables dans l'Etat contractant ou sont situes les immeubles, mines, carrieres, ou autres ressources naturelles.
 
(2) Les dispositions du paragraphe 1 s'appliquent aux revenus provenant de l'usufruit, de l'exploitation directe, de la location ou de l'affermage, ainsi que de toute autre forme d'exploitation de biens immobiliers.
 
(3) Un resident d'un Etat contractant passible de l'impot dans l'autre Etat contractant a raison de revenus immobiliers ou de redevances vises par le present article peut, pour toute annee d'imposition, choisir d'etre assujetti a l'impot dans cet autre Etat a raison desdits revenus comme s'il y exercait une activite commerciale.
Article 6
BENEFICES  [*53]   DES ENTREPRISES
 
(1) Les benefices industriels ou commerciaux d'un resident d'un Etat contractant ne sont imposables que dans cet Etat, a moins que le resident n'exerce son activite dans l'autre Etat contractant par l'intermediaire d'un etablissement stable qui y est situe. Si le resident exerce son activite d'une telle facon, ses benefices industriels ou commerciaux sont imposables dans l'autre Etat mais uniquement dans la mesure ou ils sont imputables audit etablissement stable.
 
(2) Lorsqu'un resident d'un Etat contractant exerce son activite dans l'autre Etat contractant par l'intermediaire d'un etablissement stable qui y est situe, on attribue dans chaque Etat contractant a cet etablissement stable les benefices industriels et commerciaux qui lui auraient ete imputables s'il avait constitue une entite juridique independante exercant des activites identiques ou analogues dans des conditions identiques ou analogues et traitant dans des conditions normales avec le resident dont il constitue un etablissement stable.
 
(3) Dans le calcul des benefices d'un etablissement stable, sont admises en deduction les depenses qui ont un lien raisonnable avec ces benefices, y compris les [*54]  depenses de direction et les frais generaux d'administration, qu'ils soient exposes dans l'Etat ou est situe l'etablissement stable ou ailleurs.
 
(4) Aucun benefice n'est impute a un etablissement stable du simple fait que des marchandises ont ete achetees par cet etablissement stable ou par le resident dont il constitue un etablissement stable, pour le compte dudit resident.
 
(5) L'expression "benefices industriels ou commerciaux d'un resident" designe les revenus provenant d'une activite industrielle, commerciale, agricole ou miniere, de la peche, de l'exploitation de navires ou d'aeronefs, de la fourniture de services personnels, de la location de biens mobiliers, d'activites d'assurances, ainsi que les redevances afferentes aux films cinematographiques et aux films ou bandes de radiodiffusion ou de television. Elle designe egalement les revenus provenant de biens immobiliers et de ressources naturelles, les dividendes, les interets, les redevances (telles qu'elles sont definies aux paragraphes (3) et (4) de l'article 11), et les gains en capital, mais seulement dans la mesure ou le droit ou le bien generateurs de ces revenus, de ces dividendes, interets, redevances ou gains  [*55]  en capital a effectivement un lien avec l'etablissement stable que le beneficiaire, resident d'un Etat contractant, a dans l'autre Etat contractant. Elle ne comprend pas les revenus percus par une personne physique en remuneration de services rendus en tant qu'employe ou dans l'exercice d'une profession independante.
Article 7
NAVIGATION MARITIME ET AERIENNE
Nonobstant les dispositions de l'article 6, les revenus qu'un resident d'un Etat contractant retire de l'exploitation, en trafic international, de navires ou d'aeronefs immatricules dans cet Etat contractant ne sont imposables que dans ledit Etat.
Article 8
PERSONNES ASSOCIEES
 
(1) Lorsqu'un resident d'un Etat contractant et un resident de l'autre Etat contractant sont en relation et que ces personnes sont liees par des conditions acceptees ou imposees qui different de celles qui seraient conclues entre des personnes independantes, les revenus qui, sans ces conditions, auraient ete obtenus par le resident du premier Etat contractant, mais n'ont pu l'etre a cause de ces conditions, peuvent, pour l'application de la presente Convention, etre inclus dans les revenus du resident du premier Etat contractant et etre  [*56]  imposes en consequence.
 
(2) (a) Une personne autre qu'une societe est liee a une societe si elle participe directement ou indirectement a la direction, au controle ou au capital de la societe.

(b) Une societe est liee a une autre societe si elle participe directement ou indirectement a la direction, au controle ou au capital de l'autre ou si une ou plusieurs personnes participent directement ou indirectement a la direction, au controle ou au capital des deux societes.
Article 9
DIVIDENDES
 
(1) Les dividendes provenant de sources situees dans un Etat contractant et percus par un resident de l'autre Etat contractant sont imposables dans cet autre Etat.
 
(2) Les dividendes provenant de sources situees sur le territoire d'un Etat contractant et percus par un resident de l'autre Etat contractant peuvent egalement etre imposes dans le premier Etat, mais l'impot etabli a raison de ces dividendes ne peut exceder:

(a) 15 pour cent du montant effectivement distribue; ou
 
(b) lorsque le beneficiaire est une societe, 5 pour cent du montant effectivement distribue, si:

(i) la societe beneficiaire a detenu au cours de la partie de l'annee d'imposition de la societe distributrice [*57]  precedant la date de paiement des dividendes et au cours de la totalite de la precedente annee d'imposition (dans le cas ou il y en aurait eu une) au moins 10 pour cent des actions avec droit de vote de la societe distributrice, et
 
(ii) au cours de la precedente annee d'imposition de la societe distributrice (dans le cas ou il y en aurait eu une) le revenu brut de ladite societe n'a pas ete constitue a concurrence de plus de 25 pour cent de son montant d'interets ou de dividendes (autres que les interets afferents a des activites bancaires ou financieres, ou d'operations d'assurance, et que les interets ou dividendes recus de filiales dont au moins 50 pour cent des actions avec droit de vote etait detenu par la societe distributrice au moment ou ces dividendes ou interets ont ete percus).

(3) Le paragraphe (2) du present article et, pour les dividendes revenant a un resident de France le paragraphe (1) de cet article, ne s'appliquent pas si le beneficiaire des dividendes a dans l'autre Etat contractant un etablissement stable auquel se rattachent effectivement les actions a raison desquelles les dividendes sont payes. Dans ce cas, les dispositions de l'article 6 sont applicables.
 [*58]   
(4) (a) Sous reserve des dispositions de l'alinea (b), les dividendes payes par une societe d'un Etat contractant sont consideres comme des revenus ayant leur source dans cet Etat contractant, et les dividendes payes par toute autre societe sont consideres comme des revenus ayant leur source en dehors dudit Etat contractant.

(b) Les dividendes payes par une societe autre qu'une societe americaine sont reputes avoir leur source aux Etats-Unis si ladite societe a aux Etats-Unis un etablissement stable auquel a ete rattache, sur le plan fiscal, plus de 80 pour cent du revenu brut de ladite societe pendant une periode de trois ans se terminant a la cloture de l'annee d'imposition precedant la mise en distribution des dividendes (ou pendant la fraction de cette periode au cours de laquelle la societe a existe).

(5) Lorsque le precompte est preleve sur les dividendes payes par une societe francaise a un resident des Etats-Unis, ce resident peut demander le remboursement du precompte, defalcation faite de la retenue a la source afferente au montant rembourse, percue conformement au paragraphe (2) du present article.
Article 10
INTERETS
 
(1) Les interets provenant de sources [*59]  situees sur le territoire d'un etat contractant et percues par un resident de l'autre Etat contractant sont imposables dans cet autre Etat.
 
(2) Les interets d'obligations ou de toute autre forme d'emprunt ayant leur source aux Etats-Unis et payes a un resident de France sont egalement imposables aux Etats-Unis a un taux qui ne pourra excoder 10 pour cent du montant verse.
 
(3) Les interets d'obligations ou de toute autre forme d'emprunt ayant leur source en France et payes a un resident des Etats-Unis sont egalement imposables en France a un taux qui ne pourra exceder 10 pour cent du montant verse, a l'exception des interets d'obligations emises avant le ler janvier 1965 qui sont taxables a un taux ne pouvant exceder 12 pour cent du montant verse.
(4) Les paragraphes (2) et (3) du present article et, pour les interets revenant a un resident de France le paragraphe (1) de cet article, ne s'appliquent pas si le beneficiaire des interets, resident d'un Etat contractant a dans l'autre Etat contractant un etablissement stable auquel se rattache effectivement la creance generatrice des interets. Dans ce cas, les dispositions de l'article 6 sont applicables.
(5) Le terme "interets" employe [*60]  dans le present article designe les revenus des fonds publics, des obligations d'emprunts, assorties ou non de garanties hypothecaires ou d'une clause de participation aux benefices, et des creances de toute nature, ainsi que tous autres produits assimiles aux revenus de sommes pretees par la legislation fiscale de l'Etat ou les revenus ont leur source.
(6) Les interets sont consideres comme ayant leur source dans un Etat contractant lorsque le debiteur est cet Etat lui-meme, une subdivision politique, une collectivite locale ou un resident de cet Etat. Toutefois, lorsque le debiteur des interets, qu'il soit ou non resident d'un Etat contractant, a dans un Etat contractant un etablissement stable pour lequel l'emprunt generateur des interets a ete contracte et qui supporte la charge de ces interets, lesdits interets sont reputes avoir leur source dans l'Etat contractant ou l'etablissement stable est situe.
(7) Si, par suite de relations speciales existant entre le debiteur et le creancier ou que l'un et l'autre entretiennent avec de tierces personnes, le montant des interets payes, compte tenu de la creance pour laquelle ils sont verses, excede celui dont seraient convenus le debiteur [*61]  et le creancier en l'absence de pareilles relations, les dispositions du present article ne s'appliquent qu'a ce dernier montant. En ce cas, la partie excedentaire des paiements reste imposable conformement a la legislation de chaque Etat contractant et compte tenu des autres dispositions de la presente Convention.
(8) Sont exoneres dans l'Etat ou ils ont leur source, les interets recus par l'autre Etat ou un etablissement public de cet autre Etat non soumis a l'impot sur le revenu.
Article 11
REDEVANCES
 
(1) Les redevances provenant de sources situees sur le territoire d'un Etat contractant et percues par un resident de l'autre Etat contractant sont imposables dans cet autre Etat.
(2) Sous reserve des dispositions du paragraphe (3), les redevances provenant de sources situees sur le territoire d'un Etat contractant et percues par un resident de l'autre Etat contractant sont egalement imposables dans le premier Etat contractant mais l'impot preleve sur ces redevances ne peut exceder 5 pour cent du montant brut verse.
(3) Les redevances provenant de droits d'auteur sur des oeuvres litteraires, artistiques ou scientifiques (y compris les gains realises lors de la vente ou de [*62]  l'echange des biens generateurs de ces redevances) et percues par un resident d'un Etat contractant ne sont imposables que dans cet Etat contractant.
(4) Le terme "redevances" utilise au paragraphe (1) du present article designe:

(a) toutes les redevances ou autres remunerations payees pour l'usage ou la concession de l'usage de brevets, dessins, modeles, plans, formules ou procedes secrets, marques de fabrique ou d'autres biens ou droits analogues, ou pour des connaissances, de l'experience acquise ou des procedes techniques (know-how), et
(b) les gains provenant de la vente ou de l'echange de tels droits ou biens, si la realisation de ces gains depend d'une maniere totale ou partielle de la productivite, de l'utilisation ou de l'alienation desdits droits ou biens. Dans le cas contraire, les dispositions de l'article 12 sont applicables.

(5) Les paragraphes (2) et (3) du present article et, pour les redevances revenant a un resident de France, le paragraphe (1) de cet article, ne s'appliquent pas si le beneficiaire des redevances, resident d'un Etat contractant, a dans l'autre Etat contractant un etablissement stable [ILLEGIBLE WORD] se rattache effectivement le droit ou le  [*63]  bl generateurs des redevances. Dans ce cas, es [ILLEGIBLE WORD]-positions de l'article 6 sont applicables.
(6) Les redevances payees dans un Etat pour l'usage ou la concession de l'usage de biens decrits au paragraphe (4) sont considerees comme des revenus ayant leur source dans cet Etat.
(7) Si par suite de relations speciales existant entre le debiteur et le creancier ou que l'un et l'autre entretiennent avec de tierces personnes, le montant des redevances payees excede celui sont seraient convenus le debiteur et le creancier en l'absence de pareilles relations, les dispositions du present article ne s'appliquent qu'a ce dernier montant. En ce cas, la partie excedentaire des paiements reste imposable conformement a la legislation de chaque Etat contractant et compte tenu des autres dispositions de la presente Convention.
Article 12
GAINS EN CAPITAL
(1) Un resident d'un Etat contractant n'est imposable que dans cet Etat a raison des gains provenant de la vente ou de l'echange d'elements de biens en capital.
(2) Le paragraphe (1) du present article ne s'applique pas:

(a) si le gain percu par un resident d'un Etat contractant provient de la vente ou de l'echange de biens  [*64]  vises a l'article 5 (revenus immobiliers) situes sur le territoire de l'autre Etat contractant ou de la vente ou de l'echange d'actions ou de parts d'une nature comparable d'une societe immobiliere ou d'une societe dont l'actif est constitue essentiellement par des biens immobiliers;
(b) si le beneficiaire du gain, resident d'un Etat contractant, a, dans l'autre Etat contractant, un etablissement stable auquel se rattache effectivement le bien generateur du gain;
(c) ou si le beneficiaire du gain, resident d'un Etat contractant,

(i) dispose dans l'autre Etat contractant d'une base fixe a laquelle le bien generateur du gain se rattache effectivement, ou
(ii) sejourne dans l'autre Etat contractant pendant une periode ou des periodes excedant au total 183 jours au cours de l'annee d'imposition.

(3) Dans le cas des gains vises au paragraphe (2), (b), les dispositions de l'article 6 s'appliquent.
Article 13
BENEFICES REALISES PAR LES SUCCURSALES
(1) (a) Les dividendes payes par une societe francaise a une personne autre qu'un citoyen, un resident ou une societe des Etats-Unis sont exoneres d'impot aux Etats-Unis a moins que la societe francaise n'ait dans ce pays un etablissement [*65]  stable auquel a ete rattache, sur le plan fiscal, plus de 80 pour cent de son revenu brut pendant une periode de trois ans se terminant a la cloture de l'annee d'imposition precedant la mise en distribution des dividendes (ou pendant la partie de cette periode depuis la creation de la societe).

(b) Les Etats-Unis peuvent percevoir l'impot sur les societe holdings personnelles (personal holding company tax) et l'impot sur les reserves accumulees (accumulated earnings tax) comme sila presente Convention n'existait pas. Toutefois:

(i) Une societe francaise est exoneree aux Etats-Unis de l'impot sur les societes holdings personnelles (personal holding company tax) si toutes les actions de ladite societe ont ete detenues pendant la totalite de l'annee d'imposition par une ou plusieurs personnes physiques residents de France agissant en leur propre qualite.
(ii) Une societe francaise est exoneree de l'impot americain sur les reserves accumulees (accumulated earnings tax) a moins qu'au cours de l'annee d'imposition elle n'ait exerce son activite aux Etats-Unis par l'intermediaire d'un etablissement stable.

(2) (a) Une societe des Etats-Unis qui dispose d'un etablissement stable en [*66]  France demeure assujettie a la retenue a la source conformement aux dispositions de la legislation francaise, mais etant entendu que

(i) la base sur laquelle cette retenue est percue est reduite d'un tiers,
(ii) et que le taux de ladite retenue n'excede pas 15 pour cent.

(b) Les benefices realises par un etablissement stable francais d'une societe des Etats-Unis et incorpores a son capital ne sont pas assujettis en France au droit d'apport majore.
Article 14
PROFESSIONS INDEPENDANTES
(1) Les revenus qu'un resident d'un Etat contractant retire d'activites independantes ne sont imposables que dans cet Etat a moins que lesdites activites n'aient ete exercees dans l'autre Etat contractant. Les revenus provenant d'activites independantes exercees dans l'autre Etat contractant sont imposables dans cet autre Etat.
(2) Nonobstant les dispositions du paragraphe (1), les revenus qu'un resident d'un Etat contractant retire d'activites independantes exercees dans l'autre Etat contractant ne sont pas imposables dans cet autre Etat:

(a) si le beneficiaire sejourne dans l'autre Etat contractant pendant une periode ou des periodes n'excedant pas au total 183 jours au cours de l'annee [*67]  fiscale consideree, et
(b) si le beneficiaire ne dispose pas d'une base fixe dans l'autre Etat pendant une periode ou des periodes excedant au total 183 jours au cours de ladite annee.

(3) L'expression "activites independantes" designe toutes les activites - autres que les activites commerciales, industrielles ou agricoles - exercees pour son propre compte, d'une maniere independante, par une personne qui recoit les profits ou supporte les pertes provenant de ces activites.
Article 15
PROFESSIONS DEPENDANTES
(1) Les salaires, traitements et autres remunerations similaires payes a un resident d'un Etat contractant en consideration d'un travail ou de services personnels ne sont imposables que dans cet Etat a moins que ce travail ou ces services n'aient ete accomplis dans l'autre Etat contractant. Les remunerations recues en consideration d'un travail ou de services personnels accomplis dans l'autre Etat sont imposables dans ledit Etat.
(2) Nonobstant les dispositions du paragraphe (1), les remunerations qu'un resident d'un Etat contractant recoit au titre d'un emploi salarie exerce dans l'autre Etat contractant ne sont pas imposables dans cet autre Etat si:

(a) le beneficiaire [*68]  sejourne dans l'autre Etat pendant une periode ou des periodes n'excedant pas au total 183 jours au cours de l'annee fiscale consideree;
(b) les remunerations sont payees par un employeur ou au nom d'un employeur qui n'est pas resident de l'autre Etat;
(c) la charge des remunerations n'est pas supportee par un etablissement stable que l'employeur a dans l'autre Etat.

(3) La remuneration qu'une personne physique recoit pour les services personnels qu'elle rend a bord de navires ou d'aeronefs enregistres dans l'un des Etats contractants et exploites par un resident de cet Etat contractant n'est pas imposable dans l'autre Etat contractant si cette personne est un membre de l'equipage regulier du navire ou de l'aeronef.
Article 16
FONCTIONS PUBLIQUES
(1) Les remunerations, y compris les pensions, versees par un Etat contractant ou l'une de ses subdivisions politiques ou collectivites locales, soit directement soit par prelevement sur des fonds qu'ils ont constitues, a une personne physique qui est un ressortissant de cet Etat au titre de services rendus audit Etat ou a ses subdivisions ou collectivites locales dans l'exercice de fonctions a caractere public ne sont imposables [*69]  que dans cet Etat contractant.
(2) Les dispositions des articles 15, 19 et 20 s'appliquent aux remunerations ou pensions versees au titre de services rendus dans le cadre d'une activite industrielle ou commerciale exercee par un Etat contractant ou l'une de ses subdivisions politiques ou collectivites locales.
(3) Lorsqu'une personne physique est un ressortissant de chacun des Etats contractants, les dispositions du paragraphe (4) de l'article 22 sont applicables aux remunerations visees au paragraphe (1) mais ces remunerations sont considerees comme des revenus ayant leur source sur le territoire de l'Etat contractant qui les verse.
Article 17
ENSEIGNANTS
(1) Une personne physique qui est un resident d'un Etat contractant au debut de son sejour dans l'autre Etat contractant et qui, a l'invitation du Gouvernement de l'autre Etat contractant ou d'une universite ou d'un autre etablissement d'enseignement agree situe dans cet autre Etat contractant, sejourne dans ce dernier Etat principalement dans le but d'enseigner ou de se livrer a des travaux de recherche, ou dans l'un et l'autre de ces buts, aupres d'une universite ou d'un autre etablissement d'enseignement agree, est exoneree [*70]  d'impot dans ce dernier Etat contractant, pendant une periode n'excedant pas deux annees a compter de la date de son arrivee dans ledit Etat, a raison de ses revenus qui proviennent de services personnels rendus aux fins d'enseignement ou de recherche dans cet etablissement d'enseignement ou dans d'autres etablissements analogues.
(2) Le present article n'est pas applicable aux revenus provenant de travaux de recherche si ces travaux ne sont pas entrepris dans l'interet public mais principalement en vue de la realisation d'un avantage particulier beneficiant a une ou a des personnes determinees.
Article 18
ETUDIANTS ET STAGIAIRES
(1) (a) Une personne physique qui est un resident d'un Etat contractant au debut de son sejour dans l'autre Etat contractant et qui sejourne temporairement dans cet autre Etat dans le but principal

(i) de poursuivre des etudes aupres d'une universite ou d'un autre etablissement d'enseignement agree situe dans cet autre Etat contractant, ou
(ii) d'effectuer un stage destine a assurer la formation necessaire a l'exercice d'une profession ou d'une specialite professionnelle, ou
(iii) d'etudier ou d'effectuer des recherches en tant que beneficiaire  [*71]  d'une bourse, d'une allocation ou d'une recompense recue d'une organisation gouvernementale, religieuse, charitable, scientifique, litteraire ou educative,

est exoneree d'impot dans cet autre Etat contractant a raison des sommes visees a l'alinea (b).

(b) Les sommes auxquelles se refere l'alinea (a) comprennent:

(i) les subsides recus de l'etranger en vue de l'entretien, de l'education, des etudes, des recherches, ou de la formation;
(ii) la bourse, l'allocation ou la recompense;
(iii) les revenus provenant de services personnels rendus dans l'autre Etat contractant et n'excedant par un montant de 2.000 dollars ou leur equivalent en francs au cours de l'annee d'imposition.

(c) Les avantages prevus par le present paragraphe sont limites a la periode de temps qui est raisonnablement ou habituellement requise pour realiser l'objet du sejour, mais une personne physique ne peut en aucun cas beneficier des avantages de cet article et de l'article 17 pendant plus de cinq annees d'imposition au total.

(2) Un resident d'un Etat contractant, employe d'un resident de cet Etat ou sous contrat avec ledit resident, qui sejourne dans l'autre Etat contractant, dans le but principal

(a)  [*72]  d'acquerir une experience technique, professionnelle ou commerciale aupres d'une personne autre que le resident du premier Etat, ou autre qu'une societe dont la moitie au moins des droits de vote appartient a ce resident du premier Etat,
(b) de poursuivre des etudes aupres d'une universite ou d'un autre etablissement d'enseignement agree situe dans cet autre Etat contractant,

est exonere d'impot dans cet autre Etat contractant pendant une annee d'imposition a raison de ses revenus provenant de services personnels n'excedant pas 5.000 dollars ou leur equivalent en francs.
Article 19
PENSIONS PRIVEES ET RENTES
(1) Sous reserve des dispositions de l'article 16, les pensions et autres remunerations analogues versees a un resident d'un Etat contractant en consideration d'un emploi anterieur ne sont imposables que dans cet Etat contractant.
(2) Les pensions alimentaires versees en cas de divorce et les rentes payees a un resident d'un Etat contractant ne sont imposables que dans cet Etat contractant.
(3) Le terme "rentes" employe dans le present article designe une somme determinee payee periodiquement a echeances fixes pendant la vie ou un nombre d'annees determine, en vertu [*73]  d'un engagement d'effectuer les paiements en echange d'une pleine et adequate contre-valeur (autre que des services rendus).
(4) Le terme "pensions" employe dans le present article designe les paiements periodiques effectues apres la retraite en consideration d'un emploi anterieur ou a titre de compensation de dommages subis dans le cadre de cet emploi anterieur.
Article 20
PRESTATIONS DE SECURITE SOCIALE
Les prestations de securite sociale (qu'elles correspondent a la cotisation mise a la charge du salarie ou a la cotisation patronale ou a des augmentations de celles-ci) versees par un Etat contractant a une personne physique qui est un resident de l'autre Etat contractant ne sont imposables que dans le premier Etat contractant.
Article 21
REGLES D'APPLICATION DES ARTICLES RELATIFS
AU REVENU DES PERSONNES PHYSIQUES
(1) Les articles 14 a 18 sont applicables au remboursesement des frais de deplacement, mais les depenses ainsi remboursees ne sont pas prises en compte pour la determination des montants maxima d'exoneration prevus a l'article 18.
(2) Une personne physique qui remplit les conditions necessaires pour beneficier de plusieurs dispositions des articles  [*74]  14 a 18 peut se prevaloir de la disposition qui lui est la plus favorable, mais n'a pas le droit de beneficier de plus d'une de ces dispositions au cours d'une annee d'imposition.
Article 22
REGLES GENERALES D'IMPOSITION
(1) Tous les revenus provenant d'un Etat contractant auxquels les dispositions de la presente Convention ne sont pas expressement applicables sont imposables dans cet Etat contractant conformement a sa propre legislation.
(2) Un resident d'un Etat contractant n'est imposable dans l'autre Etat contractant qu'a raison

(a) de benefices industriels ou commerciaux imputables a un etablissement stable situe dans cet autre Etat contractant et
(b) de revenus ayant leur source dans cet autre Etat contractant conformement aux limitations prevues par la presente Convention.

(3) Les dispositions de la presente Convention ne peuvent etre interpretees comme reduisant d'une maniere quelconque les exonerations, abattements, credits ou autres deductions qui sont ou seront accordes

(a) par la legislation d'un Etat contractant pour la determination de l'impot preleve par cet Etat
(b) par tout autre accord intervenu entre les Etats contractants.

(4) (a) Les Etats-Unis  [*75]  peuvent proceder a l'imposition de leurs ressortissants et residents comme si la presente Convention n'existait pas.

(i) La presente disposition ne concerne pas les regles prevues par l'article 20 (Prestations de securite sociale), l'article 23 (suppression de la double imposition) et l'article 24 (non-discrimination).
(ii) La presente disposition ne concerne pas non plus les regles prevues par les articles 17, 18 et 21 (Etudiants, Enseignants, Regles d'application en ce qui les concerne) quand elles sont applicables a des personnes physiques qui ne sont pas citoyens des Etats-Unis et qui n'ont pas, aux Etats-Unis, le statut d'immigrant.
(iii) La presente disposition ne concerne pas les regles prevues par les articles 16 et 21 (Fonctions publiques, Regles d'application en ce qui les concerne) quand elles s'appliquent
- a une personne physique qui n'est pas citoyen des Etats-Unis et qui n'a pas aux Etats-Unis un statut d'immigrant;
- a une personne physique qui, ayant aux Etats-Unis un statut d'immigrant, a opte pour l'application de ces articles; dans ce cas, cette personne devra accepter que toute annee civile ou portion d'annee civile pour lesquelles s'appliquent les articles [*76]  16 et 21 ne comptera pas comme periode pendant laquelle elle a reside ou ete physiquement presente aux Etats-Unis dans le calcul des periodes de residence ou de presence aux Etats-Unis qui sont requises pour la naturalisation selon la legislation des Etats-Unis concernant l'immigration et la nationalite.

(b) Sous reserve des dispositions de l'article 23, la France peut proceder a l'imposition de ceux de ses residents qui sont des professionnels du spectacle, tels que les artistes de theatre, de cinema, de radio ou de television, les musiciens et les athletes, a raison des revenus vises aux articles 14 et 15 (revenus de services personnels) qui proviennent d'activites exercees ou de services rendus aux Etats-Unis.

(5) Toute transaction dans laquelle un ordre d'achat, de vente ou d'echange de valeurs mobilieres ou de marchandises provenant d'un Etat contractant est execute dans l'autre Etat, par l'intermediaire d'une bourse de valeurs ou de marchandises, est exoneree dans le premier Etat des droits de timbre ou des droits de meme nature qui auraient autrement ete exigibles.
Article 23
SUPPRESSION DE LA DOUBLE IMPOSITION
La double imposition des revenus est evitee de la maniere [*77]  suivante:
(1) Les citoyens, les residents ou les societes des Etats-Unis sont autorises a deduire de l'impot des Etats-Unis prevu au paragraphe (1) de l'article l le montant approprie des impots sur le revenu qu'ils ont acquittes en France. Ce montant est base sur l'impot francais qui a ete acquitte mais ne peut exceder la fraction de l'impot des Etats-Unis correspondant au rapport existant entre le revenu net de source francaise et le revenu net total.
(2) Dans le cas de la France:

(a) Les revenus autres que ceux vises au paragraphe (b) ci-dessous sont exoneres des impots francais prevus au paragraphe (1) de l'article 1, pour autant que ces revenus sont, du fait de la Convention, imposables aux Etats-Unis.
(b) En ce qui concerne les revenus imposables dans les deux Etats contractants en vertu des dispositions de la presente Convention, la France accorde aux residents francais qui recoivent de tels revenus des Etats-Unis un credit d'impot correspondant au montant de l'impot preleve aux Etats-Unis. Ce credit, qui ne peut exceder le montant de l'impot francais percu sur lesdits revenus, est imputable sur les impots vises au paragraphe (1) (b) (i) de l'article 1 de la presente Convention [*78]  dans les bases d'imposition desquels les revenus en cause sont compris.
(c) Nonobstant les dispositions des paragraphes (a) et (b), l'impot francais est calcule sur les revenus imposables en France en vertu de la presente Convention en appliquant le taux correspondant au total des revenus imposables d'apres la legislation francaise.

(3) Un resident d'un Etat contractant qui dispose d'une ou plusieurs residences sur le territoire de l'autre Etat contractant ne peut etre soumis dans cet autre Etat a un impot sur le revenu selon une base forfaitaire determinee d'apres la valeur locative de cette ou de ces residences.
Article 24
NON-DISCRIMINATION
(1) Un ressortissant d'un Etat contractant qui est un resident de l'autre Etat contractant n'est pas soumis dans cet autre Etat contractant a des impots plus lourds que ceux que supporte un ressortissant de cet autre Etat contractant qui est un resident dudit Etat.
(2) L'imposition d'un etablissement stable qu'un resident d'un Etat contractant a dans l'autre Etat contractant n'est pas etablie dans cet autre Etat d'une facon moins favorable que l'imposition d'un resident de cet autre Etat exercant la meme activite. Cette disposition [*79]  ne peut etre interpretee comme obligeant un Etat contractant a accorder aux residents de l'autre Etat contractant les deductions personnelles, abattements et reductions d'impot en fonction de la situation ou des charges de famille qu'il accorde a ses propres residents. Les dispositions du present paragraphe ne peuvent etre interpretees en vue de faire obstacle a l'application des dispositions de l'article 13 de la Convention (benefices realises par les succursales) ni d'empecher les Etats-Unis de prelever une charge fiscale comparable sur les revenus d'un etablissement stable possede aux Etats-Unis par un resident francais.
(3) Une societe d'un Etat contractant, dont le capital est en totalite ou en partie, directement ou indirectement, detenu ou controle par un ou plusieurs residents de l'autre Etat contractant, n'est soumise dans le premier Etat contractant a aucune imposition ou obligation y relative qui est autre ou plus lourde que celle a laquelle est ou peut etre assujettie une societe du premier Etat contractant qui a les memes activites et dont le capital appartient entierement a un ou plusieurs residents de ce premier Etat contractant.
Article 25
PROCEDURE AMIABLE
 [*80]  (1) Lorsqu'un resident d'un Etat contractant estime que les mesures prises par un Etat contractant ou par chacun des deux Etats entrainent ou entraineront pour lui une imposition non conforme a la presente Convention, il peut, independamment des recours prevus par la legislation nationale de ces Etats, soumettre son cas a l'autorite competente de l'Etat contractant dont il est resident.
(2) Les autorites competentes des Etats contractants s'efforceront par voie d'accord amiable, de resoudre les difficultes ou de dissiper les doutes auxquels peut donner lieu l'application de la Convention. En particulier, les autorites competentes des Etats contractants peuvent se consulter en vue de parvenir a un accord

(a) pour que les benefices industriels et commerciaux revenant a un resident d'un Etat contractant et a son etablissement stable situe dans l'autre Etat contractant soient imputes d'une maniere identique;
(b) pour que les revenus revenant a un resident d'un Etat contractant et a toute personne associee visee a l'article 8 soient attribues d'une maniere identique;
(c) ou pour que la source d'elements determines du revenu soit determinee d'une maniere identique.

(3) Les autorites  [*81]  competentes des Etats contractants peuvent communiquer directement entre elles en vue de parvenir a un accord comme il est indique aux paragraphes precedents. Les autorites competentes peuvent se rencontrer pour proceder a des echanges de vue oraux si elles jugent qu'ils faciliteront cet accord.
(4) Lorsque les autorites competentes parviennent a un accord, les Etats contractants etablissent les impositions et octroient le remboursement ou le credit d'impot conformement a cet accord.
Article 26
ECHANGE DE RENSEIGNEMENTS
(1) Les autorites competentes des Etats contractants echangeront les renseignements necessaires pour l'application des dispositions de la presente Convention ou pour prevenir la fraude ou l'evasion fiscale en ce qui concerne les impots qui font l'objet de cette Convention. Tout renseignement ainsi echange est tenu secret et ne peut etre communique qu'aux personnes (y compris les tribunaux et les organismes administratifs) qui sont chargees de l'assiette, du recouvrement et de la perception des impots faisant l'objet de la presente Convention ainsi que des poursuites afferentes a ces impots.
(2) Les dispositions du paragraphe (1) ne peuvent en aucun cas etre  [*82]  interpretees comme imposant a l'un des Etats contractants l'obligation:

(a) de prendre des dispositions administratives derogeant a sa propre legislation ou a sa pratique administrative ou a celle de l'autre Etat contractant;
(b) de fournir des renseignements qui ne pour-raient etre obtenus sur la base de sa propre legislation ou dans le cadre de sa pratique administrative normale ou de celle de l'autre Etat contractant;
(c) de transmettre des renseignements qui reveleraient un secret commercial, industriel, professionnel ou un procede commercial ou des renseignements dont la communication serait contraire a l'ordre public.

(3) L'echange de renseignements sera effectue, soit d'office, soit sur demande en ce qui concerne des cas concrets. Les autorites competentes des Etats contractants etabliront d'un commun accord la liste des renseignements qui seront communiques d'office.
Article 27
ASSISTANCE EN MATIERE DE RECOUVREMENT
(1) Les deux Etats contractants conviennent de se preter mutuellement assistance et appui pour le recouvrement des impots vises par la presente Convention ainsi que des interets, frais, supplements ou majorations d'impots et amendes ne presentant pas  [*83]  un caractere penal au regard de la legislation de l'Etat requis, lorsque lesdits impots sont definitivement dus en application des lois de l'Etat demandeur.
(2) Dans le cas d'une demande de recouvrement d'impot, les creances fiscales de chacun des Etats contractants qui ont ete definitivement determinees, seront acceptees, aux fins de recouvrement, par l'autre Etat contractant et percues dans cet Etat conformement aux lois applicables pour le recouvrement et la perception de ses propres impots.
(3) La demande sera accompagnee des documents exiges par les lois de l'Etat requerant pour etablir que les impots sont definitivement dus.
(4) Si la oreance fiscale n'a pas un caractere definitif, l'Etat requis prendra les mesures conservatoires autorisees par sa propre legislation fiscale, pour le recouvrement de ses propres impots, y compris les mesures concernant les transferts de biens par des etrangers non residents.
(5) L'assistance prevue au present article ne sera pas accordee lorsqu'il s'agit de nationaux, societes ou autres personnes morales de l'Etat auquel elle est demandee.
Article 28
FONCTIONNAIRES DIPLOMATIQUES ET CONSULAIRES
Les dispositions de la presente Convention  [*84]  ne portent pas atteinte aux privileges fiscaux dont beneficient les fonctionnaires diplomatiques ou consulaires en vertu soit des regles generales du droit des gens, soit des dispositions d'accords particuliers.
Article 29
EXTENSION TERRITORIALE
(1) La presente Convention peut etre etendue, telle quelle ou avec les modifications necessaires aux Territoires d'Outre-Mer de la Republique francaise qui percoivent des impots de caractere analogue a ceux auxquels s'applique la Convention. Une telle extension prend effet a partir de la date, avec les modifications et dans les conditions qui sont fixees d'un commun accord entre les Etats contractants par echange de notes diplomatiques ou selon toute autre procedure conforme a leurs dispositions constitutionnelles.
(2) A tout moment apres l'expiration d'une periode d'une annee a compter de la date effective d'une extension accordee en vertu du paragraphe (1), l'un ou l'autre des Etats contractants pourra, par une note ecrite de denonciation donnee a l'autre Etat contractant par la voie diplomatique, mettre fin a l'application des dispositions concernant l'un quelconque des territoires auquel elles auraient ete etendues; dans ce cas,  [*85]  les dispositions cesseront d'etre applicables a ce territoire a compter inclusivement du ler janvier suivant la date de la note, sans toutefois qu'en soit affectee l'application desdites dispositions aux Etats-Unis, a la France ou a tout autre territoire auquel elles auraient ete etendues et qui ne serait pas mentionne dans la note de denonciation.
(3) A moins que les deux Etats contractants n'en soient convenus autrement, lorsque la Convention sera denoncee par l'un d'eux en vertu de l'article 32, elle cessera de s'appliquer a tout territoire auquel elle a ete etendue conformement au present article.
Article 30
ECHANGE DE RENSEIGNEMENTS OFFICIELS
(1) Les autorites competentes des Etats contractants s'aviseront mutuellement des modifications apportees a la legislation fiscale visee a l'article 1 (1) et de l'adoption de tous impots vises a l'article 1 (2) en se transmettant le texte de toutes les modifications ou mesures nouvelles, au moins une fois par an.
(2) Les autorites competentes des Etats contractants se transmettront mutuellement le texte de tous les documents publies au sujet de l'interpretation de la presente Convention d'apres leur legislation respective, qu'il  [*86]  s'agisse de reglements, de circulaires ou de decisions judiciaires.
(3) S'il paraft opportun, en raison de changements intervenus dans la legislation fiscale de l'un des Etats contractants, d'adapter certaines dispositions de la presente Convention sans que ses principes generaux en soient affectes, les adaptations necessaires seront fixees d'un commun accord entre les Etats contractants par echange de notes diplomatiques ou selon toute autre procedure conforme a leurs dispositions constitutionnelles respectives.
Article 31
ENTREE EN VIGUEUR
(1) Cette Convention sera ratifiee et les instruments de ratification seront echanges a Washington. Elle entrera en vigueur un mois apres la date de l'echange des instruments de ratification. Ses dispositions s'appliqueront pour la premiere fois:

(a) en ce qui concerne la France:

(i) pour les impots percus par voie de retenue a la source, aux produits mis en paiement et aux transactions effectuees a compter de la date d'entree en vigueur de la presente Convention;
(ii) pour les autres impots sur le revenu, aux impots etablis au cours de l'annee d'imposition 1967; et
(iii) pour l'impot sur les operations de bourse, a la date d'entree [*87]  en vigueur de la presente Convention.

(b) en ce qui concerne les Etats-Unis:

(i) pour le taux de l'impot retenu a la source, aux sommes percues a compter de la date d'entree en vigueur de la presente Convention;
(ii) pour les autres impots sur le revenu, aux annees d'imposition commencant a compter du ler janvier 1967.

(2) L'entree en vigueur de la presente Convention mettra fin:

(a) a la Convention du 25 juillet 1939 en matiere d'impots sur le revenu et autres taxes,
(b) a la Convention du 18 octobre 1946, au Protocole additionnel du 17 mai 1948 et a la Convention du 22 juin 1956, dans la mesure ou ils concernent les impots sur le revenu et le capital et l'impot sur les operations de bourse.
Les dispositions de ces Conventions et de ce Protocole cesseront de s'appliquer a compter de la date a laquelle les dispositions correspondantes de la presente Convention entreront en vigueur pour la premiere fois conformement a l'alinea (1) ci-dessus.
Article 32
DENONCIATION
La presente Convention demeurera en vigueur tant qu'elle n'aura pas ete denoncee par l'un des Etats contractants. Chacun des Etats contractants peut denoncer la Convention par voie diplomatique avec un [*88]  preavis minimum de six mois avant la fin de chaque annee civile et a partir de l'annee 1970. Dans ce cas, la Convention cessera d'etre applicable:
(1) Pour la France:

(a) en ce qui concerne les impots percus par voie de retenue a la source, le ler janvier de l'annee suivant celle au cours de laquelle le preavis a ete notifie;
(b) en ce qui concerne les autres impots sur le revenu, pour toute annee d'imposition commencant a compter du ler janvier de l'annee suivant celle au cours de laquelle le preavis a ete notifie;
(c) en ce qui concerne l'impot sur les operations de bourse, pour toutes les transactions intervenues a compter du ler janvier de l'annee suivant celle au cours de laquelle le preavis a ete notifie.

(2) Pour les Etats-Unis:

(a) en ce qui concerne les impots percus par voie de retenue a la source, le ler janvier de l'annee suivant celle au cours de laquelle le preavis a ete notifie;
(b) en ce qui concerne les autres impots sur le revenu, pour toute annee d'imposition commencant a compter du ler janvier de l'annee suivant celle au cours de laquelle le preavis a ete notifie
(c) en ce qui concerne les impots vises au paragraphe (2) de l'article 1, pour toutes les transactions [*89]  intervenues a compter du ler janvier de l'annee suivant celle au cours de laquelle le preavis a ete notifie.
En foi de quoi les plenipotentiaires respectifs ont signe la presente Convention.
Fait a Paris, en double exemplaire, en langues anglaise et francaise, les deux textes faisant egalement foi, le vingt-huit juillet mil neuf cent soixante sept.
WHEREAS the Senate of the United States of America by its resolution of June 6, 1968, two-thirds of the Senators present concurring therein, did advise and consent to the ratification of the aforesaid convention subject to the following reservation:
"The extension of this convention to the Overseas Territories of the French Republic, referred to in Article 29, and the adjustments in the provisions of this convention, referred to in Article 30(3), shall become effective for the United States only in accordance with the procedure set forth in Article II, Section 2, of the Constitution of the United States.";
WHEREAS the aforesaid convention was duly ratified by the President of the United States of America on June 19, 1968, in pursuance of the aforesaid advice and consent of the Senate and subject to the aforesaid reservation, and the [*90]  aforesaid convention was duly ratified on the part of the French Republic;
WHEREAS it is provided in Article 31 of the aforesaid convention that it shall enter into force one month after the date of exchange of the instruments of ratification, the provisions thereof to be effective as prescribed in Article 31;
WHEREAS the respective instruments of ratification of the aforesaid convention were duly exchanged at Washington on July 11, 1968;
AND WHEREAS, in accordance with Article 31 of the aforesaid convention, the convention enters into force on August 11, 1968, one month after the date of exchange of the instruments of ratification;
NOW, THEREFORE, be it known that I, Lyndon B. Johnson, President of the United States of America, do hereby proclaim and make public the aforesaid convention, to the end that the same and every article and clause thereof may be observed and fulfilled in good faith on and after August 11, 1968, by the United States of America and by the citizens of the United States of America and all other persons subject to the jurisdiction thereof, subject to the aforesaid reservation.
IN TESTIMONY WHEREOF, I have hereunto set my hand and caused the Seal of the United [*91]  States of America to be affixed.
DONE at the city of Washington this seventeenth day of July in the year of our Lord one thousand nine hundred sixty-eight and of the Independence of the United States of America the one hundred ninety-third.
[SEAL]
[EXCHANGE OF NOTES]
MINISTERE DES AFFAIRES ETRANGERES
LIBERTE - EGALITE - FRATERNITE
REPUBLIQUE FRANCAISE
PARIS, le 28 Juillet 1967
 
MONSIEUR L'AMBASSADEUR,
A l'occasion de la recente negociation de la Convention entre la France et les Etats-Unis en matiere d'impot sur le revenu, a la signature de laquelle il a ete procede ce jour, il a paru souhaitable, pour certaines questions, de consigner par un echange de lettres l'accord auquel sont parvenues les delegations de nos deux pays.
1. Il est entendu que les notes, proces-verbaux et arrangements qui sont intervenus en matiere d'impots sur le revenu entre le gouvernement francais et le gouvernement des Etats-Unis a propos des precedentes conventions fiscales et de leurs protocoles sont consideres comme abroges, y compris notamment ceux de 1955 relatifs aux societes cinematographiques americaines. En reponse a une question posee par la delegation des Etats-Unis sur le point de savoir [*92]  si cette abrogation modifierait le regime fiscal actuellement applicable en France aux societes cinematographiques americaines, notamment en ce qui concerne les operations presentement effectuees par l'intermediaire d'un mandataire, la delegation francaise a repondu que les societes cinematographiques seraient imposees conformement a la legislation fiscale francaise et aux regles fixees par la convention, et que l'abrogation des arrangements n'entrainerait aucune consequence fiscale importante.
2. La delegation francaise a note que la convention en matiere d'impots sur le revenu s'applique uniquement aux impots etablis par les gouvernements nationaux. Elle a, en consequence, pose la question de savoir si les dispositions relatives a l'exoneration reciproque des entreprises de navigation maritime et aerienne ne devaient pas prevoir une exemption totale dont les deux Parties conviendraient qu'elle s'appliquerait en matiere de navigation maritime et aerienne. Les Etats des Etats-Unis possedent, en effet, des systemes fiscaux independants et l'un d'eux pourrait decider d'assujettir a l'impot sur le revenu les entreprises francaise de navigation maritime et aerienne. La delegation des  [*93]  Etats-Unis a fait ressortir que cela ne s'etait pas produit malgre la longue histoire des conventions fiscales conclues par les Etats-Unis. Il semble qu'il y ait eu une ou deux tentatives de la part d'un gouvernement d'Etat en vue d'imposer des entreprises de navigation maritime protegees par une convention, mais le gouvernement des Etats-Unis est intervenu aupres des autorites fiscales de l'Etat et aucun impot n'a ete reclame. La delegation des Etats-Unis a donne l'assurance que si le gouvernement d'un Etat cherchait a percevoir un impot sur les benefices des entreprises francaises de navigation maritime et aerienne, le gouvernement des Etats-Unis ferait de son mieux pour persuader l'Etat interesse de ne pas reclamer d'impot. Il a ete convenu que la patente qui est en France percue pour le compte des collectivites locales ne s'appliquerait pas aux compagnies de navigation maritime et aerienne des Etats-Unis si les compagnies francaises de navigation maritime et aerienne n'etaient pas assujetties aux Etats-Unis a des impots sur le revenu preleves par les Etats.
3. La convention en matiere d'impot sur le revenu entre la France et les Etats-Unis est basee sur le principe qu'aucune disposition [*94]  de la convention ne peut etre interpretee comme privant un resident de l'un des pays signataires des exonerations, credits ou autres avantages qui lui ont ete conferes par la loi. Il est entendu que, conformement a la legislation francaise, lorsqu'une convention en matiere d'impot sur le revenu attribue a la France le droit d'etablir un impot qui n'est pas preleve en vertu de la legislation francaise, les dispositions du traite priment la loi interne. Toutefois, la delegation francaise a declare qu'il n'etait pas dans l'intention du gouvernement francais d'imposer les residents des Etats-Unis ou de France qui n'auraient pas ete taxes en l'absence de convention fiscale.
4. Il est entendu que lorsqu'une compagnie d'assurances de l'un des Etats contractants a un etablissement permanent dans l'autre Etat contractant les primes de reassurance percues ne seront prises en compte, pour la determination des benefices imposables, que dans l'Etat contractant dont la compagnie est un resident.
5. La delegation francaise a appele l'attention sur une instruction de l'Internal Revenue Service (en date du 23 mars 1964) qui a decide que les enseignants ne seraient pas exoneres d'impot aux Etats-Unien [*95]  vertu de l'article 10 de la convention de 1939, afin de rendre l'ins terpretation qui a ete faite de cet article aux Etats-Unis conforme a l'interpretation francaise. La delegation francaise a declare que, conformement a l'interpretation que la France donne actuellement a l'article 10, les enseignants americains en France sont exoneres de l'impot francais. La delegation des Etats-Unis a, en consequence, donne son accord pour que l'instruction visee ci-dessus soit, dans la mesure ou elle s'applique aux enseignants, annulee a compter du 23 mars 1964 sur la base de la reciprocite.
J'ai l'honneur de vous proposer que la presente lettre et la reponse de Votre Excellence constituent l'accord de nos deux Gouvernements sur ces differents points.
Veuillez agreer, Monsieur l'Ambassadeur, l'assurance de ma tres haute consideration.
PARIS, July 28, 1967.
 
DEAR MR. AMBASSADOR:
I have the honor to refer to your Note of today's date, which reads as follows:
In connection with the recently negotiated Income Tax Convention between the United States and France, which has been signed today, certain questions arose with respect to which it was deemed appropriate that there be an exchange of Notes [*96]  recording the agreement reached by the delegations from our two countries.
1. It is understood that the notes, minutes and arrangements relating to income taxes which were entered into between the French Government and the United States Government in connection with the prior tax Conventions and their Protocols are considered abrogated, including in particular those of 1955 relating to American motion picture companies. In response to a question raised by the United States delegation as to whether this abrogation would change the present French tax treatment of American motion picture companies, particularly with respect to the operations presently effected through an authorized agent, the French delegation replied that the motion picture companies would be taxed in accordance with French tax law and the rules laid down by the Convention, and that the abrogation of the arrangements would not entail any important tax consequences.
2. The French delegation noted that the Income Tax Convention applies only to taxes imposed by the national governments. Consequently, it raised the question of whether the provisions relating to the reciprocal exemption of airlines and shipping companies [*97]  should not provide for complete exemption from tax which both sides would agree would apply with respect to airlines and shipping companies. Individual States in the United States have independent tax systems and one of them may decide to levy an income tax on French airlines or shipping companies. The United States delegation pointed out that this has not occurred despite the long history of tax conventions concluded by the United States. It seems that there were one or two attempts by a State government to tax shipping companies covered by a convention, but the United States Government intervened with the State tax authorities and no tax was levied. The United States delegation gave its assurance that if a State government should seek to levy a tax on the profits of French shipping and airline companies the United States Government would do its best to persuade the State involved not to levy any tax. It was agreed that the license tax ("patente") levied in France on behalf of local authorities would not apply to United States airlines and shipping companies if French airlines and shipping companies are not subject to State income taxes in the United States.
3. The Income Tax Convention [*98]  between France and the United States is based on the principle that no provision of the Convention may be construed so as to deprive a resident of one of the signatory countries of any of the exemptions, credits, or other benefits conferred upon him by law. It is understood that, in accordance with French law, when an income tax convention recognizes the right of France to establish a tax which is not levied pursuant to French laws, the treaty provisions take precedence over the domestic law. However, the French delegation stated that it is not the intent of the French Government to levy taxes on residents of the United States or of France which would not have been levied in the absence of a tax convention.
4. It is understood that when an insurance company of one of the Contracting States has a permanent establishment in the other Contracting State, the reinsurance premiums received shall be taken into account for the determination of taxable profits only in the Contracting State of which the company is a resident.
5. The French delegation called attention to a ruling of the Internal Revenue Service (published March 23, 1964), to the effect that professors and teachers would not  [*99]  be exempt from tax in the United States under Article 10 of the 1939 Convention, in order to bring the United States interpretation of that Article into conformity with the interpretation placed upon it by France. The French delegation stated that, under the interpretation that France now gives to Article 10, American teachers and professors in France are exempt from the French tax. Accordingly, the United States delegation has agreed that the ruling referred to above, to the extent that it applied to professors and teachers, will be cancelled as of March 23, 1964, on the basis of reciprocity.
I have the honor to propose to you that the present Note and Your Excellency's reply thereto constitute the agreement of our two Governments on these various points.
I have the honor to confirm to you that my Government is in agreement with the statements in Your Excellency's Note.
Please accept, dear Mr. Ambassador, the assurances of my highest consideration.

SIGNATORIES:
For the President of the United States of America:
[SEAL]
For the President of the French Republic:
Pour le President des Etats-Unis d'Amerique,
Pour le President de la Republique francaise,
LYNDON B. JOHNSON
By the President:
DEAN RUSK [*100] 
Secretary of State
HERVE ALPHAND
Son Excellence Monsieur CHARLES E. BOHLEN
Ambassadeur des Etats-Unis d'Amerique a Paris
CHARLES E BOHLEN
His Excellency,
HERVE ALPHAND,
Ambassador of France, Secretary General of the Ministry of Foreign Affairs, Paris.

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