Inland Revenue (Double Taxation Relief and Prevention of Fiscal Evasion with respect to Taxes on Income and Capital) (French Republic) Order
(Enacting provision omitted—E.R. 4 of 2019)
[7 July 2011]
(Omitted as spent—E.R. 4 of 2019)
For the purposes of section 49(1A) of the Ordinance, it is declared—
that the arrangements specified in section 3(1) have been made with the Government of the French Republic with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the laws of the Republic; and
that it is expedient that those arrangements should have effect.
The arrangements specified for the purposes of section 2(a) are the arrangements in—
Articles 1 to 29 of the agreement titled “Agreement between the Government of the Hong Kong Special Administrative Region of the People’s Republic of China and the Government of the French Republic for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital and the Prevention of Fiscal Evasion” (which title is translated into Chinese as “《中華人民共和國香港特別行政區政府與法蘭西共和國政府避免就收入及資本稅項雙重課稅和防止逃稅協定》” in this Order), done in duplicate at Paris on 21 October 2010 in the English and French languages; and
Paragraphs 1 to 13 of the protocol to the agreement, done in duplicate at Paris on 21 October 2010 in the English and French languages.
The English text of the Articles is reproduced in Part 1 of the Schedule; a Chinese translation of the Articles is also set out in that Part.
The English text of the Paragraphs is reproduced in Part 2 of the Schedule; a Chinese translation of the Paragraphs is also set out in that Part.
This Agreement shall apply to persons who are residents of one or both of the Contracting Parties.
This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting Party or of its local authorities, irrespective of the manner in which they are levied.
There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises as well as taxes on capital appreciation.
The existing taxes to which the Agreement shall apply are in particular:
in the case of France:
the income tax (“l’impôt sur le revenu”);
the corporation tax (“l’impôt sur les sociétés”);
the contributions on corporation tax (“les contributions sur l’impôt sur les sociétés”);
the tax on salaries (“la taxe sur les salaires”);
widespread social security contributions (“contributions sociales généralisées”) and contributions for the reimbursement of the social debt (“contributions pour le remboursement de la dette sociale”);
the wealth tax (“l’impôt de solidarité sur la fortune”);
including any withholding tax, prepayment or advance payment with respect to the aforesaid taxes;
in the case of the Hong Kong Special Administrative Region:
profits tax;
salaries tax;
property tax;
whether or not charged under personal assessment.
For the purposes of this Agreement, unless the context otherwise requires:
As regards the application of the Agreement at any time by a Contracting Party, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the laws in force of that Party for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.
Where by reason of the provisions of paragraph 1, an individual is a resident of both Contracting Parties, then his status shall be determined as follows:
he shall be deemed to be a resident only of the Party in which he has a permanent home available to him; if he has a permanent home available to him in both Parties, he shall be deemed to be a resident only of the Party with which his personal and economic relations are closer (“centre of vital interests”);
if the Party in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Party, he shall be deemed to be a resident only of the Party in which he has an habitual abode;
if he has an habitual abode in both Parties, or in neither of them, he shall be deemed to be a resident only of the Contracting Party of which he is a national (in the case of France) or in which he has the right of abode (in the case of the Hong Kong Special Administrative Region);
if he is a national of France and has also the right of abode in the Hong Kong Special Administrative Region, or if he neither is a national of France nor has the right of abode in the Hong Kong Special Administrative Region, the competent authorities of the Contracting Parties shall settle the question by mutual agreement.
Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting Parties, then it shall be deemed to be a resident only of the Party in which its place of effective management is situated.
An enterprise shall be deemed to have a permanent establishment in a Contracting Party and to carry on business through that permanent establishment if:
it carries on supervisory activities in that Party for more than six months in connection with a building site, or a construction, assembly, dredging or installation project which is being undertaken in that Party; or
it furnishes services, including consultancy services, directly or through employees or other personnel engaged by it for such purpose, but only where activities of that nature continue within that Party for a period of more than six months.
Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 6 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting Party an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that Party in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
An enterprise shall not be deemed to have a permanent establishment in a Contracting Party merely because it carries on business in that Party through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph.
The fact that a company which is a resident of a Contracting Party controls or is controlled by a company which is a resident of the other Contracting Party, or which carries on business in that other Party (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
Income from immovable property (including income from agriculture or forestry) may be taxed in the Contracting Party in which such immovable property is situated.
For the purposes of this Agreement, the term “immovable property” shall have the meaning which it has under the law of the Contracting Party in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to explore for or work, mineral deposits, quarries, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.
The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise.
Where ownership of shares, interest or other rights in a company, trust or other institution entitles the owner to the enjoyment of immovable property situated in a Contracting Party and held by that company, trust or other institution, the income that the owner derives from the direct use, letting or use in any other form of his right of enjoyment may be taxed in that Party. The provisions of this paragraph shall apply notwithstanding the provisions of Article 7.
The profits of an enterprise of a Contracting Party shall be taxable only in that Party unless the enterprise carries on business in the other Contracting Party through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other Party but only so much of them as is attributable to that permanent establishment.
Subject to the provisions of paragraph 3, where an enterprise of a Contracting Party carries on business in the other Contracting Party through a permanent establishment situated therein, there shall in each Contracting Party be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and independent enterprise engaged in the same or similar activities under the same or similar conditions.
In determining the profits of a permanent establishment, there shall be allowed as deductions expenses of the enterprise which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the Contracting Party in which the permanent establishment is situated or elsewhere. No such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in respect of a financial institution, by way of interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in the determination of the profits of a permanent establishment, for amounts charged (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in respect of a financial institution, by way of interest on moneys lent to the head office of the enterprise or any of its other offices.
Insofar as it has been customary in a Contracting Party to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Party from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.
No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
Where profits include items of income which are dealt with separately in other Articles of this Agreement then the provisions of those Articles shall not be affected by the provisions of this Article.
For the purposes of the preceding paragraphs of this Article, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
Profits derived from the operation of ships or aircraft in international traffic by an enterprise of a Contracting Party shall be taxable only in that Party.
The provisions of paragraph 1 shall also apply to profits derived from the participation in a pool, a joint business or an international operating agency.
Where:
an enterprise of a Contracting Party participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting Party, or
the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting Party and an enterprise of the other Contracting Party,
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
Where a Contracting Party includes in the profits of an enterprise of that Party - and taxes accordingly - profits on which an enterprise of the other Contracting Party has been charged to tax in that other Party and the profits so included are profits which would have accrued to the enterprise of the first-mentioned Party if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other Party shall make an appropriate adjustment to the amount of the tax charged therein on those profits if that other Party considers the adjustment justified. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and for this purpose the competent authorities of the Contracting Parties shall if necessary consult each other.
Dividends paid by a company which is a resident of a Contracting Party to a resident of the other Contracting Party may be taxed in that other Party.
However, such dividends may also be taxed in the Contracting Party of which the company paying the dividends is a resident, and according to the laws of that Party, but if the beneficial owner of the dividends is a resident of the other Contracting Party, the tax so charged shall not exceed 10 per cent of the gross amount of the dividends.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting Party, carries on business in the other Contracting Party of which the company paying the dividends is a resident through a permanent establishment situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.
Where a company which is a resident of a Contracting Party derives profits or income from the other Contracting Party, that other Party may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other Party or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other Party, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other Party.
The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the shares or other rights, in respect of which the dividend is paid, to take advantage of this Article by means of that creation or assignment.
Interest arising in a Contracting Party and paid to a resident of the other Contracting Party may be taxed in that other Party.
However, such interest may also be taxed in the Contracting Party in which it arises, and according to the laws of that Contracting Party, but if the beneficial owner of the interest is a resident of the other Contracting Party, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
Notwithstanding the provisions of paragraph 2 of this Article, interest derived from a Contracting Party is exempt from tax in that Party, if it is paid:
in the case of France:
to the Government of the French Republic;
to the Bank of France;
in respect of a debt-claim or of a loan guaranteed or insured or subsidised by the Government of the French Republic or by one other person acting on behalf of the Government of the French Republic;
to a financial establishment appointed by the Government of the French Republic and mutually agreed upon by the competent authorities of the two Contracting Parties;
in the case of the Hong Kong Special Administrative Region:
to the Government of the Hong Kong Special Administrative Region;
to the Hong Kong Monetary Authority;
on a loan directly or indirectly financed or guaranteed by the Hong Kong Monetary Authority;
to a financial establishment appointed by the Government of the Hong Kong Special Administrative Region and mutually agreed upon by the competent authorities of the two Contracting Parties.
The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting Party, carries on business in the other Contracting Party in which the interest arises through a permanent establishment situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.
Interest shall be deemed to arise in a Contracting Party when the payer is a resident of that Party. Where, however, the person paying the interest, whether a resident of a Contracting Party or not, has in a Contracting Party a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Party in which the permanent establishment is situated.
Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, 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 beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting Party, due regard being had to the other provisions of this Agreement.
The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the debt-claims, in respect of which the interest is paid, to take advantage of this Article by means of that creation or assignment.
Royalties arising in a Contracting Party and paid to a resident of the other Contracting Party may be taxed in that other Contracting Party.
However, such royalties may also be taxed in the Contracting Party in which they arise and according to the laws of that Contracting Party, but if the beneficial owner of the royalties is a resident of the other Contracting Party, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties.
The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting Party, carries on business in the other Contracting Party in which the royalties arise through a permanent establishment situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.
Royalties shall be deemed to arise in a Contracting Party when the payer is a resident of that Party. Where, however, the person paying the royalties, whether a resident of a Contracting Party or not, has in a Contracting Party a permanent establishment in connection with which the obligation to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Party in which the permanent establishment is situated.
Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting Party, due regard being had to the other provisions of this Agreement.
The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the rights, in respect of which the royalties are paid, to take advantage of this Article by means of that creation or assignment.
Gains derived by a resident of a Contracting Party from the alienation of immovable property referred to in Article 6 and situated in the other Contracting Party may be taxed in that other Party.
Gains derived by a resident of a Contracting Party from the alienation of shares, interest or other rights in a company, trust or other institution deriving more than 50 per cent of their asset value, directly or indirectly, from immovable property referred to in Article 6 and situated in the other Contracting Party, or of rights connected with such immovable property, may be taxed in that other Party. However, this paragraph does not apply to gains derived from the alienation of shares, interest or other rights:
quoted on such stock exchange as may be agreed between the Parties;
alienated or exchanged in the framework of a reorganisation of a company, a merger, a scission or a similar operation; or
in a company more than 50 per cent of whose asset value is derived from immovable property in which it carries on its business.
Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting Party has in the other Contracting Party, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other Party.
Notwithstanding the provisions of paragraph 1, gains from the alienation of shares or rights forming part of a substantial participation in the capital of a company which is a resident of a Contracting Party may be taxed in that Party. It is considered that there is a substantial participation where the alienator, alone or with related persons, has, directly or indirectly, shares or rights, the whole of which entitles him to 25 per cent or more of the profits of the company.
Gains from the alienation of ships or aircraft operated in international traffic by an enterprise of a Contracting Party or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that Party.
Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting Party of which the alienator is a resident.
The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the alienation in respect of which the gain is realised, to take advantage of this Article by means of that alienation.
Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other similar remuneration derived by a resident of a Contracting Party in respect of an employment shall be taxable only in that Party unless the employment is exercised in the other Contracting Party. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Party.
Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting Party in respect of an employment exercised in the other Contracting Party shall be taxable only in the first-mentioned Party if:
the recipient is present in the other Party for a period or periods not exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the taxable period concerned; and
the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Party; and
the remuneration is not borne by a permanent establishment which the employer has in the other Party; and
the remuneration is taxable in the first-mentioned Party according to the laws of that Party.
Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting Party may be taxed in that Party.
Directors’ fees and other similar payments derived by a resident of a Contracting Party in the capacity of a member of the board of directors of a company which is a resident of the other Contracting Party may be taxed in that other Party.
Notwithstanding the provisions of Articles 7 and 14, income derived by a resident of a Contracting Party as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as an athlete, from his personal activities as such exercised in the other Contracting Party, may be taxed in that other Party.
Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, whether a resident of a Contracting Party or not, that income may, notwithstanding the provisions of Articles 7 and 14, be taxed in the Contracting Party in which the activities of the entertainer or athlete are exercised.
Subject to the provisions of paragraph 2 of Article 18, pensions and other similar remuneration paid in consideration of past employment to a resident of a Contracting Party may be taxed in the Contracting Party where they arise.
Pensions shall be deemed to arise in a Contracting Party if paid by or out of a pension fund or other similar institution providing pension schemes in which individuals may participate in order to secure retirement benefits, where such pension fund or institution is recognised for tax purposes or regulated in accordance with the laws of that Contracting Party.
Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting Party or a local authority thereof, or by one of their public law entities to an individual in respect of services rendered to that Party, local authority or public law entities shall be taxable only in that Party.
However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting Party if the services are rendered in that Party and the individual in question is a resident of that Party who:
in the case of the Hong Kong Special Administrative Region, has the right of abode therein and in the case of France, is a national thereof; or
did not become a resident of that Party solely for the purpose of performing the services.
Any pension paid by, or out of funds created by, a Contracting Party or a local authority thereof or by one of their public law entities, to an individual in respect of services rendered to that Party, local authority or public law entity shall be taxable only in that Party.
The provisions of Articles 14, 15, 16 and 17 shall, instead of paragraphs 1 and 2 of this Article, apply to salaries, wages and other similar remuneration, and to pensions in respect of services rendered in connection with a business carried on by a Contracting Party or a local authority thereof, or by one of their public law entities.
Payments which a student, trainee or business apprentice who is or was immediately before visiting a Contracting Party a resident of the other Contracting Party, and who is present in the first-mentioned Party solely for the purpose of his education or training, receives for the purpose of his maintenance, education or training, shall not be taxable in that Party, provided that such payments arise from sources outside that Party.
Items of income beneficially owned by a resident of a Contracting Party, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that Party.
The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the beneficial owner of such income, being a resident of a Contracting Party, carries on business in the other Contracting Party through a permanent establishment situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.
Notwithstanding the provisions of paragraphs 1 and 2, items of income not dealt with in the foregoing Articles of this Agreement derived by a resident of a Contracting Party from sources in the other Contracting Party may also be taxed in that other Party, and according to the laws of that Party.
Capital represented by immovable property referred to in Article 6 may be taxed in the Contracting Party in which such immovable property is situated.
Capital represented by shares or other rights in a company, a trust or a comparable institution, the assets or property of which consist more than 50 per cent of their value of, or derive from more than 50 per cent of their value, directly or indirectly through the interposition of one or more other companies, trusts or comparable institutions, immovable property referred to in Article 6 and situated in a Contracting Party or of rights connected with such immovable property may be taxed in that Party. For the purposes of this provision, immovable property directly used by an entity to carry on its own business shall not be taken into account.
Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting Party has in the other Contracting Party, may be taxed in that other Party.
Capital represented by property forming part of the business property of an enterprise of a Contracting Party and consisting of ships and aircraft operated by such enterprise in international traffic and of movable property pertaining to the operation of such ships and aircraft shall be taxable only in that Party.
All other elements of capital of a resident of a Contracting Party shall be taxable only in that Party.
Notwithstanding the provisions of paragraphs 3 and 4 of this Article, elements of capital which are taxable in a Contracting Party according to those paragraphs may also be taxed in the other Contracting Party if they are not taxed in the first-mentioned Contracting Party under the ordinary rules of its tax law.
In the case of France, double taxation shall be avoided as follows:
Notwithstanding any other provision of this Agreement, income which may be taxed or shall be taxable only in the Hong Kong Special Administrative Region in accordance with the provisions of the Agreement shall be taken into account for the computation of French tax where such income is not exempted from corporation tax according to French law. In that case, the Hong Kong Special Administrative Region tax shall not be deductible from such income, but the resident of France who is the beneficial owner shall, subject to the conditions and limits provided for in sub-paragraphs (i) and (ii), be entitled to a tax credit against French tax. Such tax credit shall be equal:
in the case of income other than that mentioned in sub-paragraph (ii), to the amount of French tax attributable to such income provided that the resident of France is subject to Hong Kong Special Administrative Region tax in respect of such income;
in the case of income subject to the corporation tax referred to in Article 7 and paragraph 2 of Article 13 and in the case of income referred to in Articles 10, 11 and 12, paragraphs 1 and 3 of Article 13, paragraph 3 of Article 14, Article 15, paragraphs 1 and 2 of Article 16 and paragraphs 1 and 3 of Article 20, to the amount of tax paid in the Hong Kong Special Administrative Region in accordance with the provisions of those Articles; however, such tax credit shall not exceed the amount of French tax attributable to such income.
A resident of France who owns capital which may be taxed in the Hong Kong Special Administrative Region according to paragraphs 1, 2 or 3 of Article 21 shall also be taxable in France in respect of such capital. The French tax shall be computed by allowing a tax credit equal to the amount of the tax paid in the Hong Kong Special Administrative Region on such capital. However, such tax credit shall not exceed the amount of French tax attributable to such capital.
In the case of the Hong Kong Special Administrative Region, double taxation shall be avoided as follows:
Subject to the provisions of the laws in force in the Hong Kong Special Administrative Region from time to time which relate to the allowance of a credit against the Hong Kong Special Administrative Region tax of tax paid in a jurisdiction outside the Hong Kong Special Administrative Region (which shall not affect the general principle of this Article), French tax paid under the law of France and in accordance with this Agreement, whether directly or by deduction, in respect of income, profits or gains derived by a person who is a resident of the Hong Kong Special Administrative Region from sources in France, shall be allowed as a credit against Hong Kong Special Administrative Region tax payable in respect of those income, profits or gains, provided that the credit so allowed does not exceed the amount of Hong Kong Special Administrative Region tax computed in respect of the same income, profits or gains in accordance with the tax laws of the Hong Kong Special Administrative Region.
Individuals who, in the case of France, are French nationals, and, in the case of the Hong Kong Special Administrative Region, have the right of abode, shall not be subjected in the other Contracting Party to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which individuals who are nationals (in the case of France), or have the right of abode (in the case of the Hong Kong Special Administrative Region) in the same circumstances, in particular with respect to residence, are or may be subjected.
The taxation of a permanent establishment that an enterprise of a Contracting Party has in the other Contracting Party shall not be less favourably levied in that other Party than the taxation levied on enterprises of that other Party carrying on the same activities. This provision shall not be construed as obliging a Contracting Party to grant to residents of the other Contracting Party any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.
Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12 apply, interest, royalties and other disbursements paid by an enterprise of a Contracting Party to a resident of the other Contracting Party shall be deductible, for the purpose of determining the taxable profits of that enterprise, under the same conditions as if they had been paid to a resident of the first-mentioned Party.
Enterprises of a Contracting Party, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting Party, shall not be subjected in the first-mentioned Party to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned Party are or may be subjected.
Contributions borne by an individual who renders employment services in a Contracting Party to a pension scheme recognised for tax purposes in the other Contracting Party shall be deductible, to the extent that they are not effectively allowed in the other Party, in determining the individual’s taxable income in the first-mentioned Party (“that Party”), in the same way and subject to the same conditions and limitations as contributions made to a pension scheme that is recognised for tax purposes in that Party, provided that:
the individual was not a resident of that Party and was participating in the pension scheme (or in another similar pension scheme for which the first-mentioned pension scheme was substituted) immediately before he began to render employment services in that Party; and
the pension scheme is accepted by the competent authority of that Party as generally corresponding to a pension scheme recognised as such for tax purposes by that Party.
For the purposes of sub-paragraph (a):
a pension scheme is “recognised for tax purposes” in a Party if the contributions to the scheme would qualify for tax relief in the Party concerned.
The exemptions and other advantages provided by the tax laws of a Contracting Party for the benefit of that Party or its local authorities or of their public law entities which carry on a non-business activity shall apply under the same conditions respectively to the other Contracting Party or its local authorities or to their public law entities which carry on the same or similar activity.
Where a person considers that the actions of one or both of the Contracting Parties result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the laws of those Parties, present his case to the competent authority of the Contracting Party of which he is a resident or, if his case comes under paragraph 1 of Article 23, to that of the Contracting Party of which he is a national (in the case of France) or in which he has the right of abode or is incorporated or otherwise constituted (in the case of the Hong Kong Special Administrative Region). The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement.
The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting Party, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement so reached shall be implemented notwithstanding any time limits in the laws of the Contracting Parties.
The competent authorities of the Contracting Parties shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. In particular, they may consult together to endeavour to agree to the same allocation of income between associated enterprises mentioned in Article 9. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement.
The competent authorities of the Contracting Parties may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs of this Article.
The competent authorities of the Contracting Parties shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting Parties, or of their political subdivisions or local or territorial authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Article 1.
Any information received under paragraph 1 by a Contracting Party shall be treated as secret in the same manner as information obtained under the domestic laws of that Party and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting Party the obligation:
to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting Party;
to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting Party;
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 (ordre public).
If information is requested by a Contracting Party in accordance with this Article, the other Contracting Party shall use its information gathering measures to obtain the requested information, even though that other Party may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting Party to decline to supply information solely because it has no domestic interest in such information.
In no case shall the provisions of paragraph 3 be construed to permit a Contracting Party to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.
Nothing in this Agreement shall affect the fiscal privileges of members of government missions, including consular posts, or of members of permanent missions to international organisations under the general rules of international law or under the provisions of special agreements.
Nothing in this Agreement shall prejudice the right of each Contracting Party to apply its domestic laws and measures concerning tax avoidance, whether or not described as such.
Each of the Contracting Parties shall notify to the other in writing the completion of the procedures required by its law for the bringing into force of this Agreement. The Agreement shall enter into force on the first day of the month following the day when the later of these notifications has been received.
The provisions of the Agreement shall thereupon have effect:
in France:
in respect of taxes on income withheld at source, for amounts taxable after the calendar year in which the Agreement enters into force;
in respect of taxes on income which are not withheld at source, for income relating, as the case may be, to any calendar year or accounting period beginning after the calendar year in which the Agreement enters into force;
in respect of the other taxes, for taxation the taxable event of which will occur after the calendar year in which the Agreement enters into force;
in the Hong Kong Special Administrative Region:
in respect of Hong Kong Special Administrative Region tax for any year of assessment beginning on or after 1 April in the calendar year next following that in which the Agreement enters into force.
This Agreement shall remain in force indefinitely. However, after a period of five calendar years from the date on which the Agreement enters into force, either Contracting Party may terminate it by giving written notice of termination at least six months before the end of any calendar year.
In such event, the Agreement shall cease to have effect:
in France:
in respect of taxes on income withheld at source, for amounts taxable after the calendar year in which the notice of termination is given;
in respect of taxes on income which are not withheld at source, for income relating, as the case may be, to any calendar year or accounting period beginning after the calendar year in which the notice of termination is given;
in respect of the other taxes, for taxation the taxable event of which occurs after the calendar year in which the notice of termination is given;
in the Hong Kong Special Administrative Region:
in respect of Hong Kong Special Administrative Region tax for any year of assessment beginning on or after 1 April in the calendar year next following that in which the notice is given.
本協定適用於屬締約一方的居民或同時屬締約雙方的居民的人。
本協定適用於代締約方或其地區主管當局課徵的收入及資本稅項，不論該等稅項以何種方式徵收。
對總收入、總資本或收入或資本的組成部分課徵的所有稅項，包括對自轉讓動產或不動產所得的收益、企業支付的工資或薪金總額以及資本增值所課徵的稅項，須視為收入及資本稅項。
以下稅項尤其屬本協定所適用的現有稅項：
就法國而言︰
所得稅(“l’impôt sur le revenu”)；
公司稅(“l’impôt sur les sociétés”)；
公司稅繳款(“les contributions sur l’impôt sur les sociétés”)；
薪俸稅(“la taxe sur les salaires”)；
普及社會保障繳款(“contributions sociales généralisées”)及償付社會債務的繳款(“contributions pour le remboursement de la dette sociale”)；
財富稅(“l’impôt de solidarité sur la fortune”)；
包括關於上述稅項的任何預扣稅、預扣款或預付款；
就香港特別行政區而言︰
利得稅；
薪俸稅；
物業稅；
不論是否按個人入息課稅徵收。
就本協定而言，除文意另有所指外：
在締約方於任何時候施行本協定時，凡有任何詞語在本協定中並無界定，則除文意另有所指外，該詞語須具有它當其時根據該方就本協定適用的稅項而施行的現行法律所具有的涵義，而在根據該方適用的稅務法律給予該詞語的任何涵義與根據該方的其他法律給予該詞語的涵義兩者中，以前者為準。
如任何個人因第1款的規定而同時屬締約雙方的居民，則該人的身分須按照下述規定斷定：
如該人在其中一方有可供他使用的永久性住所，則該人須當作只是該方的居民；如該人在雙方均有可供他使用的永久性住所，則該人須當作只是與其個人及經濟關係較為密切的一方(“重要利益中心”)的居民；
如無法斷定該人在哪一方有重要利益中心，或該人在任何一方均沒有可供他使用的永久性住所，則該人須當作只是他的慣常居所所在的一方的居民；
如該人在雙方均有或均沒有慣常居所，則該人須當作只是他屬其國民(就法國而言)的締約方或他擁有居留權(就香港特別行政區而言)的締約方的居民；
如該人既屬法國的國民亦擁有香港特別行政區的居留權，或該人既不屬法國的國民亦沒有香港特別行政區的居留權，則締約雙方的主管當局須透過共同協商解決該問題。
如並非個人的人因第1款的規定而同時屬締約雙方的居民，則該人須當作僅屬其實際管理工作地點所處的一方的居民。
在下述情況下，某企業須當作在某締約方設有常設機構，並透過該常設機構經營業務：
該企業在該方進行與建築工地或與在該方進行的建築、裝配、挖掘或安裝工程有關連的監督管理活動超過6個月；或
該企業直接提供服務(包括顧問服務)，或透過僱員或其他由該企業為提供服務(包括顧問服務)而聘用的人員提供該等服務，但屬該等性質的活動須在該方持續一段超過6個月的時間。
儘管有第1及2款的規定，如某人(第6款適用的具獨立地位的代理人除外)代表某企業行事，而該人在某締約方擁有以該企業名義訂立合約的權限，並慣常在該締約方行使該權限，則該企業須當作就該人為該企業所進行的任何活動在該締約方設有常設機構；但如該人的活動局限於第4款所述的活動(該等活動即使透過某固定營業場所進行也不會令該固定營業場所根據該款規定成為常設機構)，則屬例外。
凡某企業透過經紀、一般佣金代理人或任何其他具獨立地位的代理人在某締約方經營業務，則只要該等人士是在其業務的通常運作中行事的，該企業不得僅因它如此經營業務而被當作在該方設有常設機構。然而，如該代理人的活動全部或幾乎全部屬代表該企業而進行，則該代理人不會被視為本款所指的具獨立地位的代理人。
如屬某締約方的居民的某公司，控制屬另一締約方的居民的其他公司或在該另一締約方(不論是透過常設機構或以其他方式)經營業務的其他公司，或受該其他公司所控制，此項事實本身並不會令上述其中一間公司成為另一間公司的常設機構。
來自位於某締約方的不動產的收入(包括來自農業或林業的收入)可在該締約方徵稅。
第1款的規定適用於自直接使用、出租或以任何其他形式使用不動產而取得的收入。
第1及3款的規定亦適用於來自企業的不動產的收入。
凡擁有任何公司、信託或其他機構的股份、權益或其他權利的人因該項擁有權而有權享用該公司、信託或其他機構持有的位於某締約方的不動產，則該擁有人自直接使用、出租或以任何其他形式使用其享用權而取得的收入可在該方徵稅。儘管有第七條的規定，本款的規定仍然適用。
某締約方的企業的利潤只可在該方徵稅，但如該企業透過位於另一締約方的常設機構在該另一方經營業務則除外。如該企業如前述般經營業務，其利潤可在該另一方徵稅，但以該等利潤中可歸因於該常設機構的利潤為限。
在符合第3款的規定下，如某締約方的企業透過位於另一締約方的常設機構在該另一方經營業務，則須在每一締約方將該常設機構在某些情況下可預計獲得的利潤歸因於該機構，該等情況是指假設該常設機構是一間可區分且獨立的企業，在相同或類似的條件下從事相同或類似的活動。
在斷定某常設機構的利潤時，為該常設機構的目的而招致的企業開支(包括如此招致的行政和一般管理開支)須容許扣除，不論該等開支是在該常設機構所處的締約方或其他地方招致的。如該常設機構為得以使用專利或其他權利而向有關企業的總辦事處或該企業的任何其他辦事處支付特許權使用費、費用或其他類似款項，或就所提供的特定服務或為管理而向有關企業的總辦事處或該企業的任何其他辦事處支付佣金，或就借予該常設機構的款項而向有關企業的總辦事處或該企業的任何其他辦事處支付利息(金融機構除外)，則所支付的任何款額(作為實際開支的付還除外)，不准扣除。同樣地，如某常設機構以使用專利權或其他權利作交換而向有關企業的總辦事處或該企業的任何其他辦事處收取特許權使用費、費用或其他類似款項，或就所提供的特定服務或為管理而向有關企業的總辦事處或該企業的任何其他辦事處收取佣金，或(金融機構除外)就借予有關企業的總辦事處或該企業的任何其他辦事處而向該總辦事處或其他辦事處收取利息，則向該總辦事處或其他辦事處所收取的任何款額(作為實際開支的付還除外)，在斷定該常設機構的利潤時，不得被計算在內。
如某締約方習慣上是按照將某企業的總利潤分攤予其不同部分的基準，而斷定可歸因於有關常設機構的利潤，則第2款並不阻止該方按此習慣的分攤方法斷定該等應課稅的利潤；但採用的分攤方法，須令所得結果符合本條所載列的原則。
不得僅因為某常設機構為有關企業採購貨物或商品，而將利潤歸因於該常設機構。
如利潤包括在本協定其他條文另有規定的收入項目，該等條文的規定不受本條的規定影響。
就本條上述各款而言，除非有良好而充分的理由需要改變方法，否則每年須採用相同的方法斷定可歸因於有關常設機構的利潤。
某締約方的企業自營運船舶或航空器從事國際運輸而取得的利潤，只可在該方徵稅。
第1款的規定亦適用於自參與聯營、聯合業務或國際營運機構而取得的利潤。
凡：
某締約方的企業直接或間接參與另一締約方的企業的管理、控制或資本，或
相同的人直接或間接參與某締約方的企業的和另一締約方的企業的管理、控制或資本，
而在上述任何一種情況下，該兩間企業之間在商業或財務關係上訂立或施加的條件，是有別於互相獨立的企業之間所訂立的條件的，則若非因該等條件便本應會產生而歸於其中一間企業、但因該等條件而未有產生而歸於該企業的利潤，可計算在該企業的利潤之內，並據此徵稅。
凡某締約方將某些利潤計算在該方的某企業的利潤之內，並據此徵稅，而另一締約方的某企業已在該另一方就該等被計算在內的利潤課稅，如假設上述兩間企業之間訂立的條件正如互相獨立的企業之間所訂立的條件一樣，該等被計算在內的利潤是會產生而歸於首述一方的該企業的，則若該另一方認為有充份理由作出調整，該另一方須就其對該等利潤徵收的稅額，作出適當的調整。在釐定上述調整時，須充分顧及本協定的其他規定，而為此目的，締約雙方的主管當局在有必要的情況下須共同磋商。
由屬某締約方的居民的公司支付予另一締約方的居民的股息，可在該另一方徵稅。
然而，如支付股息的公司屬某締約方的居民，上述股息亦可在該締約方按照該方的法律徵稅，但如該等股息的實益擁有人是另一締約方的居民，則如此徵收的稅款，不得超過該等股息總額的百分之十。
如某公司從利潤中支付股息，本款並不影響就該等利潤對該公司徵稅。
凡就某股份支付的股息的實益擁有人是某締約方的居民，支付該股息的公司則是另一締約方的居民，而該擁有人在該另一締約方內透過位於該另一方的常設機構經營業務，且持有該股份是與該常設機構有實際關連的，則第1及2款的規定並不適用。在此情況下，第七條的規定適用。
如某公司是某締約方的居民，並自另一締約方取得利潤或收入，則該另一方不得對該公司就某股份支付的股息徵稅(但在有關股息是支付予該另一方的居民的範圍內，或在持有該股份是與位於該另一方的常設機構有實際關連的範圍內，則屬例外)，而即使支付的股息或未派發利潤的全部或部分，是在該另一方產生的利潤或收入，該另一方亦不得對該公司的未派發利潤徵收未派發利潤的稅項。
任何與產生或轉讓孳生股息的股份或其他權利有關的人，如其主要目的或其中一個主要目的是藉着產生或轉讓該股份或其他權利而利用本條，則本條的規定不適用。
產生於某締約方而支付予另一締約方的居民的利息，可在該另一方徵稅。
然而，在某締約方產生的上述利息，亦可在該締約方按照該締約方的法律徵稅，但如該等利息的實益擁有人是另一締約方的居民，則如此徵收的稅款不得超過該等利息總額的百分之十。
儘管有本條第2款的規定，在某締約方產生的利息如符合以下說明，則可在該方獲豁免繳稅：
就法國而言：
支付予法蘭西共和國政府；
支付予法蘭西銀行；
就由法蘭西共和國政府或代表法蘭西共和國政府行事的其他人擔保或投保或資助的債權或貸款而支付；
支付予經締約雙方的主管當局相互議定的由法蘭西共和國政府指定的財務機構；
就香港特別行政區而言：
支付予香港特別行政區政府；
支付予香港金融管理局；
就由香港金融管理局直接或間接提供資本或保證的貸款而支付；
支付予經締約雙方的主管當局相互議定的由香港特別行政區政府指定的財務機構。
凡就某項債權支付的利息的實益擁有人是某締約方的居民，並在該利息產生所在的另一締約方內，透過位於該另一方的常設機構經營業務，而該債權是與該常設機構有實際關連的，則第1及2款的規定並不適用。在此情況下，第七條的規定適用。
如就某項債務支付利息的人是某締約方的居民，則該利息須當作是在該方產生。但如支付利息的人(不論他是否某締約方的居民)在某締約方設有常設機構，而該債務是在與該機構有關連的情況下招致的，且該利息是由該機構負擔的，則該利息須當作是在該機構所在的一方產生。
凡因支付人與實益擁有人之間或他們兩人與某其他人之間的特殊關係，以致就有關債權所支付的利息的款額，在顧及該債權下，屬超出支付人與實益擁有人在沒有上述關係時會同意的款額，則本條的規定只適用於該會同意的款額。在此情況下，多付的部分仍須在充分顧及本協定的其他規定下，按照每一締約方的法律徵稅。
任何與產生或轉讓孳生利息的債權有關的人，如其主要目的或其中一個主要目的是藉着產生或轉讓該債權而利用本條，則本條的規定不適用。
產生於某締約方而支付予另一締約方的居民的特許權使用費，可在該另一方徵稅。
然而，在某締約方產生的上述特許權使用費亦可在該締約方按照該締約方的法律徵稅；但如該等特許權使用費的實益擁有人是另一締約方的居民，則如此徵收的稅款不得超過該等特許權使用費總額的百分之十。
凡就某權利或財產支付的特許權使用費的實益擁有人是某締約方的居民，並在該特許權使用費產生所在的另一締約方內，透過位於該另一方的常設機構經營業務，而該權利或財產是與該常設機構有實際關連的，則第1及2款的規定並不適用。在此情況下，第七條的規定適用。
如支付特許權使用費的人是某締約方的居民，則該特許權使用費須當作是在該方產生。但如支付特許權使用費的人(不論是否某締約方的居民)在某締約方設有常設機構，而支付該特許權使用費的法律責任，是在與該機構有關連的情況下招致的，且該特許權使用費是由該機構負擔的，則該特許權使用費須當作是在該機構所在的一方產生。
凡因支付人與實益擁有人之間或他們兩人與某其他人之間的特殊關係，以致就有關使用、權利或資料所支付的特許權使用費的款額，在顧及該使用、權利或資料下，屬超出支付人與實益擁有人在沒有上述關係時會同意的款額，則本條的規定只適用於該會同意的款額。在此情況下，多付的部分仍須在充分顧及本協定的其他規定下，按照每一締約方的法律徵稅。
如特許權使用費是就某權利而支付的，而與產生或轉讓該權利有關的任何人，如其主要目的或其中一個主要目的是藉着產生或轉讓該權利而利用本條，則本條的規定不適用。
某締約方的居民自轉讓位於另一締約方並屬第六條所提述的不動產而取得的收益，可在該另一締約方徵稅。
如某締約方的居民自轉讓某公司、信託或其他機構的股份、權益或其他權利而取得收益，而該公司、信託或機構超過百分之五十的資產值是直接或間接來自第六條提述且位於另一締約方的不動產的，或自轉讓與上述不動產有關連的權利而取得收益，則該收益可在該另一締約方徵稅。然而，本款不適用於自轉讓以下的股份、權益或其他權利而取得的收益：
在雙方議定的證券交易所上市的股份、權益或其他權利；
在一間公司重組、合併、分拆或類似行動的框架內轉讓或交換的股份、權益或其他權利；或
符合以下說明的公司的股份、權益或其他權利：該公司有超過百分之五十的資產值，是來自其經營業務所在的不動產。
如某動產屬某常設機構的業務財產的一部分，而該機構是某締約方的企業在另一締約方設立的，則自轉讓該動產而取得的收益，包括自轉讓該機構(單獨轉讓或隨同整個企業轉讓)而取得的收益，可在該另一方徵稅。
儘管有第1款的規定，如轉讓人自轉讓股份或權利獲得收益，而該股份或權利是該轉讓人對屬締約一方居民的公司的資本的重大參與，則該收益可在該方徵稅。凡轉讓人(不論單獨或連同有關人士)直接或間接擁有股份或權利，而該等股份或權利的總和使該轉讓人有權享有有關公司百分之二十五或以上的利潤，轉讓人即屬對該公司的資本有重大參與。
某締約方的企業自轉讓被營運從事國際運輸的船舶或航空器而取得的收益，或自轉讓與上述船舶或航空器的營運有關的動產而取得的收益，只可在該方徵稅。
凡有第1、2、3及4款所提述的財產以外的任何財產被轉讓，而有關轉讓人是某締約方的居民，則自該項轉讓而取得的收益，只可在該方徵稅。
任何與將收益變現的轉讓有關的人，如其主要目的或其中一個主要目的是藉着該轉讓而利用本條，則本條的規定不適用。
除第十五、十七及十八條另有規定外，某締約方的居民自受僱工作而取得的薪金、工資及其他類似報酬，只可在該方徵稅，但如受僱工作是在另一締約方進行則除外。如受僱工作是在另一締約方進行，則自該受僱工作而取得的報酬可在該另一方徵稅。
儘管有第1款的規定，某締約方的居民自於另一締約方進行的受僱工作而取得的報酬如符合以下條件，則只可在首述一方徵稅：
收款人在於有關的課稅期內開始或結束的任何十二個月的期間中，在該另一方的逗留期間(如多於一段期間則可累計)不超過183天；及
該報酬由一名並非該另一方的居民的僱主支付，或由他人代該僱主支付；及
該報酬並非由該僱主在該另一方設有的常設機構所負擔；及
根據首述一方的法律，該報酬可在該方徵稅。
儘管有本條以上各款的規定，自於某締約方的企業所營運從事國際運輸的船舶或航空器上進行受僱工作而取得的報酬，可在該方徵稅。
某締約方的居民以其作為屬另一締約方的居民的公司的董事會的成員身分所取得的董事酬金及其他類似付款，可在該另一方徵稅。
儘管有第七及十四條的規定，某締約方的居民作為演藝人員(例如戲劇、電影、電台或電視藝人，或樂師)或作為運動員在另一締約方以上述身分進行其個人活動所取得的收入，可在該另一方徵稅。
演藝人員或運動員以其演藝人員或運動員的身分在某締約方進行個人活動所取得的收入，如並非歸於該演藝人員或運動員本人，而是歸於另一人(不論該人是否締約方的居民)，則儘管有第七及十四條的規定，該收入可在該締約方徵稅。
除第十八條第2款另有規定外，作為過往的受僱工作的代價而支付予某締約方的居民的退休金及其他類似報酬，可在該退休金及報酬產生所在的締約方徵稅。
如任何退休金是從或由某退休基金或其他提供可讓個人參與以確保取得退休福利的退休金計劃的類似機構支付的，而該退休基金或機構已按照某締約方的法律為稅務目的而獲認可或受規管，則該退休金須當作是在該締約方產生。
某締約方或其地區主管當局或它們的其中一個公法實體就提供予該方、地區主管當局或公法實體的服務而向任何個人支付的薪金、工資及其他類似報酬(退休金除外)，只可在該方徵稅。
然而，如該等服務是在另一締約方提供，而有關的個人屬該另一方的居民，並且：
就香港特別行政區而言，擁有香港特別行政區的居留權；而就法國而言，屬法國的國民；或
不是純粹為提供該等服務而成為該另一方的居民，
則該等薪金、工資及其他類似報酬只可在該另一方徵稅。
某締約方或其地區主管當局或它們的其中一個公法實體就提供予該方、地區主管當局或公法實體的服務而向任何個人支付的任何退休金，或就上述服務而從該方、地區主管當局或公法實體所設立的基金支付予任何個人的任何退休金，只可在該方徵稅。
第十四、十五、十六及十七條的規定，取替本條第1及2款而適用於就在與某締約方或其地區主管當局或它們的其中一個公法實體經營的業務有關連的情況下所提供的服務而取得的薪金、工資及其他類似報酬，以及退休金。
如學生、實習人員或業務學徒在緊接前往某締約方之前是或曾是另一締約方的居民，而他逗留在首述一方純粹是為了接受教育或培訓，則該學生、實習人員或業務學徒為了維持其生活、教育或培訓的目的而收取的款項，如是在首述一方以外的來源產生，則不可在該方徵稅。
由某締約方的居民實益擁有的各項收入，無論在何處產生，如在本協定位於本條之前的各條中未有規定，均只可在該方徵稅。
就某權利或財產支付的收入如非來自第六條第2款所界定的不動產的收入，而該收入的實益擁有人是某締約方的居民，並在另一締約方內透過位於該另一方的常設機構經營業務，且該權利或財產是與該機構有實際關連的，則第1款的規定不適用於該收入。在此情況下，第七條的規定適用。
儘管有第1及2款的規定，某締約方的居民自位於另一締約方的來源而取得的各項收入，如在本協定位於本條之前的各條中未有規定，則亦可按該另一締約方的法律在該方徵稅。
第六條所提述的不動產所代表的資本如位於某締約方，則可在該方徵稅。
如某公司、信託或相若的機構的資產或財產的價值，有超過百分之五十是由位於某締約方並屬第六條所提述的不動產或與該等不動產有關連的權利所組成的，或有超過百分之五十是直接或間接(通過在中間加入的一間或多於一間公司、信託或相若的機構)來自上述不動產或權利的，則該公司、信託或機構的股份或在該公司、信託或機構中的其他權利所代表的資本，可在該方徵稅。就本規定而言，直接由某實體用於經營其業務的不動產不須考慮。
如任何動產構成某常設機構的業務財產的一部分，而該常設機構是某締約方的企業在另一締約方設立的，則該動產所代表的資本，可在該另一方徵稅。
如任何財產構成某締約方的企業的業務財產的一部分，而該財產是由該企業營運從事國際運輸的船舶及航空器，以及關乎該等船舶及航空器的營運的動產所組成的，則該財產所代表的資本，只可在該方徵稅。
某締約方的居民的所有其他資本組成部分，只可在該方徵稅。
儘管有本條第3及4款的規定，如某資本組成部分按照本條第3及4款可在某締約方徵稅，但如根據該方的稅務法律的一般規則沒有在該方被徵稅，則該資本組成部分亦可在另一締約方徵稅。
就法國而言，雙重課稅須按以下方式避免：
儘管有本協定的任何其他規定，凡按照本協定的規定可在或只可在香港特別行政區徵稅的收入，如按照法國法律未被豁免繳付公司稅，則在計算法國稅項時，該收入須計算在內。在該情況下，香港特別行政區稅項不得從該收入中扣除，但作為實益擁有人的法國居民，在第(i)及(ii)節的條件及限制的規限下，有權對法國稅項享有稅收抵免：
就第(ii)節所述的收入以外的收入而言，該稅收抵免等同於可歸因於該收入的法國稅項的款額，但先決條件是該法國居民須就該收入繳付香港特別行政區稅項；
就須繳付第七條及第十三條第2款所提述的公司稅的收入而言，以及就第十、十一及十二條、第十三條第1及3款、第十四條第3款、第十五條、第十六條第1及2款及第二十條第1及3款所提述的收入而言，該稅收抵免等同於按照該等條文的規定在香港特別行政區支付的稅項的款額；然而，該稅收抵免不得超過可歸因於該收入的法國稅項的款額。
任何法國居民如擁有按照第二十一條第1、2或3款可在香港特別行政區徵稅的資本，該法國居民亦須就該資本在法國被徵稅。在計算法國稅項時，容許給予稅收抵免，該稅收抵免等同於在香港特別行政區就該資本繳付的稅項的款額。然而，該稅收抵免不得超過可歸因於該資本的法國稅項的款額。
就香港特別行政區而言，雙重課稅須按以下方式避免：
在不抵觸香港特別行政區不時有效的法律中關乎容許在香港特別行政區以外的管轄區繳付的稅項用作抵免香港特別行政區稅項的規定(該等規定並不影響本條的一般性原則)的情況下，如已根據法國法律和按照本協定，就屬香港特別行政區居民的人自法國的來源而取得收入、利潤或收益繳付法國稅項，則不論是直接繳付或以扣除的方式繳付，所繳付的法國稅項須容許用作抵免就該收入、利潤或收益而須繳付的香港特別行政區稅項，但如此獲容許抵免的款額，不得超過按照香港特別行政區的稅務法律就該等收入、利潤或收益計算所得的香港特別行政區稅項的款額。
任何個人如就法國而言屬法國國民，而就香港特別行政區而言享有居留權，則該人在另一締約方不得受符合以下說明的任何課稅或與之有關連的任何規定所規限：有別於(就法國而言)屬國民的個人，或有別於(就香港特別行政區而言)享有居留權的個人，在相同情況下(尤其是在居住方面)須接受或可接受的課稅及與之有關連的規定，或較之為嚴苛。
某締約方的企業設於另一締約方的常設機構在該另一方的課稅待遇，不得遜於進行相同活動的該另一方的企業的課稅待遇。凡某締約方以公民身分或家庭責任的理由，而為課稅的目的授予其本身的居民任何個人免稅額、稅務寬免及扣減，本條的規定不得解釋為使該締約方有責任將該免稅額、稅務寬免及扣減授予另一締約方的居民。
除第九條第1款、第十一條第7款或第十二條第6款的規定適用的情況外，某締約方的企業支付予另一締約方的居民的利息、特許權使用費及其他支出，為斷定該企業的須課稅利潤的目的，須根據相同的條件而可予扣除，猶如該等款項是支付予首述一方的居民一樣。
如某締約方的企業的資本的全部或部分，是由另一締約方的一名或多於一名居民直接或間接擁有或控制，則該企業在首述一方不得受符合以下說明的任何課稅或與之有關連的任何規定所規限：有別於首述一方的其他類似企業須接受或可接受的課稅及與之有關連的規定，或較之為嚴苛。
在符合下列條件的前提下，凡某名個人在某締約方(“該方”)提供受僱服務，在斷定該人在該方的須課稅收入時，該人所負擔的向在另一締約方為稅務目的而獲認可的退休金計劃作出的供款，在該供款在該另一方實質上不容許扣除的範圍內，可予扣除；扣除的方法及須遵守的條件和限制，與向在該方為稅務目的而獲認可的退休金計劃作出的供款一樣：
該人並非該方的居民，而他在緊接開始在該方提供受僱服務之前，正參與該退休金計劃(或被該退休金計劃所取代的類似的另一退休金計劃)；及
該退休金計劃獲該方的主管當局接納為一個大致上相當於為稅務目的而獲該方認可的退休金計劃的退休金計劃。
就(a)段而言：
如向退休金計劃作出的供款在某方符合資格獲得稅務寬免，則該計劃屬在該方“為稅務目的而獲認可”。
某締約方的稅務法律為該方或其地區主管當局或它們的進行非業務活動的公法實體而提供的豁免及其他利益，亦根據相同的條件分別適用於另一締約方或其地區主管當局或它們的進行相同或類似活動的公法實體。
如任何人認為任何締約方或締約雙方的行動導致或將導致對他作出不符合本協定規定的課稅時，則無論該等締約方的法律的補救辦法如何，該人如屬某締約方的居民，可將其案件呈交該締約方的主管當局；如其案件屬第二十三條第1款的情況，而他屬某締約方的國民(就法國而言)，或享有某締約方的居留權或在某締約方成立為法團或以其他方式組成(就香港特別行政區而言)，則他可將其案件呈交該締約方的主管當局。該案件必須於就導致不符合本協定規定課稅的行動發出首次通知之時起計的三年內呈交。
如有關主管當局覺得所提反對屬有理可據，而它不能獨力達致令人滿意的解決方案，它須致力與另一締約方的主管當局共同協商解決該個案，以避免不符合本協定的課稅。任何如此達成的協議均須予以執行，不論締約雙方的法律所設的時限為何。
締約雙方的主管當局須致力共同協商，解決就本協定的詮釋或適用而產生的任何困難或疑問。尤其是，締約雙方的主管當局可致力就第九條提述的有關收入在相聯企業之間的一致分配達成協議。締約雙方的主管當局亦可共同磋商，以消除在本協定沒有訂明的情況下的雙重課稅。
締約雙方的主管當局可為達成本條以上各款所述的協議而直接與對方聯絡。
凡資料屬可預見攸關實施本協定的規定的資料，或可預見攸關施行或強制執行關於代締約雙方或其政治分部或地區或區域主管當局課徵的所有種類和名目的稅項的當地法律(但以根據該等法律作出的課稅不違反本協定者為限)的資料，締約雙方的主管當局須交換該等資料。該等資料交換不受第一條的規定所限制。
某締約方根據第1款收到的任何資料均須保密處理，其方式須等同於處理根據該方的當地法律而取得的資料，該資料只可向以下人員或當局披露：與第1款所提述的稅項的評估或徵收、執行或檢控有關，或與關乎該等稅項的上訴的裁決有關的人員或當局(包括法院及行政機關)。該等人員或當局只可為該等目的使用該資料。他們可在公眾法庭的法律程序中或在司法裁定中披露該資料。
在任何情況下，第1及2款的規定均不得解釋為向某締約方施加作出以下作為的責任：
實施有異於該締約方或另一締約方的法律及行政慣例的行政措施；
提供根據該締約方或另一締約方的法律或在該締約方或另一締約方的正常行政運作過程中不能獲取的資料；
提供會披露任何貿易、業務、工業、商業或專業秘密或貿易程序的資料，或提供若遭披露即屬違反公共政策的資料。
如某締約方按照本條請求提供資料，則另一締約方即使未必為其本身的稅務目的而需要該資料，仍須以其收集資料措施取得所請求的資料。前述句子所載的責任，受第3款的限制所規限，但在任何情況下，該等限制不得解釋為容許某締約方純粹因資料無關其本土利益而拒絕提供該資料。
在任何情況下，第3款的規定均不得解釋為容許某締約方純粹因以下理由而拒絕提供該資料：該資料是由某銀行、其他金融機構、代名人或以代理人或受信人身分行事的人所持有，或該資料關乎某人的擁有權權益。
本協定並不影響政府代表團(包括領館)成員或國際組織的常駐代表團成員根據國際法的一般規則或特別協定的規定享有的財政特權。
本協定並不損害每一締約方應用其關於規避繳稅(不論是否稱為規避繳稅)的當地法律及措施的權利。
每一締約方均須以書面通知另一締約方已完成其法律規定的使本協定生效的程序。本協定自收到上述通知的較後一份當日之後的下個月份的第一天起生效。
本協定的條文一旦生效，隨即︰
在法國︰
就在來源預扣的收入稅項而言，對在本協定生效的公曆年後的須課稅款額具有效力；
就並非在來源預扣的收入稅項而言，對關乎在本協定生效的公曆年後開始的任何公曆年或會計年度收入(視屬何情況而定)具有效力；
就其他稅項而言，對須課稅事件是在本協定生效的公曆年後發生的課稅具有效力；
在香港特別行政區︰
就香港特別行政區稅項而言，對在本協定生效的公曆年的翌年4月1日或之後開始的任何課稅年度具有效力。
本協定無限期有效，但任何締約方均可在本協定生效日期起5個公曆年後，藉在任何公曆年結束前最少六個月前發出書面終止通知，終止本協定。
在該情況下，本協定：
在法國︰
就在來源預扣的收入稅項而言，不再對在該終止通知發出的公曆年後的須課稅款額具有效力；
就並非在來源預扣的收入稅項而言，不再對關乎在該終止通知發出的公曆年後開始的任何公曆年或會計年度收入(視屬何情況而定)具有效力；
就其他稅項而言，不再對須課稅事件是在該終止通知發出的公曆年後發生的課稅具有效力；
在香港特別行政區︰
就香港特別行政區稅項而言，不再對在有關通知發出的公曆年的翌年4月1日或之後開始的任何課稅年度具有效力。
Notwithstanding the provisions of Article 1, a resident of a Contracting Party may not benefit from the provisions of the Agreement to the extent that he carries on business in a tax free zone situated in that Party or enjoys in that Party an offshore tax treatment. It is understood that this does not preclude a resident of a Contracting Party from benefiting from the provisions of the Agreement by reason of the adoption of a territorial source principle in the taxation system of that Party.
In respect of sub-paragraph (a) of paragraph 3 of Article 2, the tax on salaries is regulated by the provisions of the Agreement applicable to business profits.
The term “Hong Kong Special Administrative Region tax” as defined in paragraph 4 of Article 2 does not include any sum added to Hong Kong Special Administrative Region tax by reason of default and recovered therewith, and “additional tax” under section 82A of the Inland Revenue Ordinance.
In respect of Article 7:
where an enterprise of a Contracting Party sells goods or merchandise or carries on business in the other Contracting Party through a permanent establishment situated therein, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise but only on the basis of the remuneration which is attributable to the actual activity of the permanent establishment for such sales or business;
in the case of contracts, in particular for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, where the enterprise has a permanent establishment, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the Contracting Party where it is situated. The profits related to the part of the contract which is carried out in the Contracting Party where the place of effective management of the enterprise is situated shall be taxable only in that Party.
It is understood that, in respect of Article 12, payments received as a consideration for technical services, including studies or surveys of a scientific, geological or technical nature, or for engineering services including preparation of blueprints, or for consultant or supervisory services, are not payments received as a consideration for information concerning industrial, commercial or scientific experience. It is also understood that payments received as a consideration for the right to distribute software do not represent a royalty as long as they do not include the right to reproduce this software. Such payments would be dealt with as commercial income in accordance with Article 7.
In respect of paragraph 1 of Article 13:
The following stock exchanges have been agreed between the Contracting Parties for the purposes of sub-paragraph (b)(i):
- regulated stock exchanges of members of the European Union
- The Stock Exchange of Hong Kong Limited
In the case of France, the operations referred to in sub-paragraph (b)(ii) are limited to those of similar nature as the ones defined in the 90/434/CEE directive adopted by the Council of Ministers of the European Union on 23 July 1990.
It is understood that Article 25 does not create obligations as regards automatic or spontaneous exchanges of information between the Contracting Parties. In respect of the same Article, it is also understood that information requested shall not be disclosed to a third jurisdiction. In the case of the Hong Kong Special Administrative Region, the judicial decisions in which information may be disclosed include the decisions of the Board of Review.
Where under any provision of the Agreement any income is relieved from tax in a Contracting Party and, under the domestic law in force in the other Contracting Party, a person, in respect of that income, is subject to tax by reference to the amount thereof which is remitted to or received in that other Party and not by reference to the full amount thereof, then the relief to be allowed under the Agreement in the first-mentioned Party shall apply only to so much of the income as is taxed in the other Party.
Each of the Contracting Parties shall keep the right of taxing in accordance with its domestic law any income of its residents, the exclusive taxing right of which is allocated to the other Contracting Party under the Agreement, but which is not taken into account in the tax base in that other Party, in cases where such double exemption results from a divergent classification of the income concerned.
The competent authorities of the Contracting Parties may settle jointly or separately administrative measures necessary to carry out the provisions of the Agreement.
儘管有第一條的規定，任何締約方的居民在他於位處該方的免稅區經營業務或在該方享有離岸稅務待遇的範圍內，不可受惠於本協定的規定。按締約雙方理解，此規定並不阻止任何締約方的居民因該方的稅務制度採納了地域來源原則而受惠於本協定的規定。
就第二條第3款(a)段而言，薪俸稅受本協定中適用於營業利潤的規定所規管。
在第二條第4款界定的“香港特別行政區稅項” 一詞不包括任何因拖欠香港特別行政區稅項而加收並連同欠款一併追討的款項及《稅務條例》第82A條所指的“補加稅”。
就第七條而言：
凡某締約方的企業透過位於另一締約方的常設機構在該另一締約方出售貨物或商品或經營業務，該常設機構的利潤不得以該企業所收取的總額為基準而斷定，而須只以可歸因於該常設機構為該等出售或業務而進行的實際活動的報酬為基準而斷定；
就合約而言，尤其是工業、商業或科學設備或處所或公共工程的測量、供應、安裝或建築的合約，凡企業在某締約方設有常設機構，該常設機構的利潤不得以該合約的總額為基準而斷定，而須只以該合約中實際由該常設機構在該締約方執行的部分為基準而斷定。凡企業的實際管理工作地點位於某締約方，則該合約中在該方所執行的部分所涉及的利潤，只可在該方徵稅。
按締約雙方理解，就第十二條而言，作為技術服務(包括屬科學、地質或技術性質的研究或測量)或工程服務(包括準備藍圖)或顧問或監督服務的代價而收取的付款，並非作為關於工業、商業或科學經驗的資料的代價而收取的付款。締約雙方亦理解，作為分發電腦軟件的權利的代價而收取的付款，只要不包括複製該軟件的權利，則不屬特許權使用費。該等付款會按照第七條作為商業收入處理。 (E.R. 4 of 2019)
就第十三條第1款而言：
締約雙方就(b)(i)段而議定的證券交易所如下︰
- 受歐洲聯盟成員規管的證券交易所
- 香港聯合交易所有限公司
就法國而言，(b)(ii)段所提述的行動，局限於性質與在歐洲聯盟部長理事會於1990年7月23日採納的90/434/CEE指令中所界定行動類似的行動。
按締約雙方理解，第二十五條並不訂立締約雙方之間自動或自發交換資料的責任。就同一條而言，締約雙方亦理解，被要求提供的資料不得向第三司法管轄區披露。就香港特別行政區而言，可在當中披露資料的司法裁定包括稅務上訴委員會的決定。
凡根據本協定的任何規定，某收入在締約一方獲寬免繳稅，而根據另一締約方當地的現行法律，某人須就該收入中滙寄至該另一方或在該另一方收到的款額(而非該收入的全數)課稅，則根據本協定容許在首述一方享有的寬免，僅適用於該筆收入中在該另一方被徵稅的部分。
就締約一方的居民的收入而言，若根據本協定對該收入的專有徵稅權利被分配予另一締約方，但該收入並沒有被納入該另一方的稅基之內，因而出現因對有關收入的不同分類而導致雙重豁免的情況，則在此情況下，每一締約方均保留按照其當地法律對其居民的收入徵稅的權利。
締約雙方的主管當局可共同或各自決定，執行本協定的規定所須的行政措施。