PROTOCOL 

AMENDING THE CONVENTION BETWEEN 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND 

THE GOVERNMENT OF THE FRENCH REPUBLIC 

FOR THE AVOIDANCE OF DOUBLE TAXATION 

AND THE PREVENTION OF FISCAL EVASION 

WITH RESPECT TO TAXES ON INCOME AND CAPITAL, 

SIGNED AT PARIS ON AUGUST 31, 1994 

The Government of the United States of America and the Government of the French 

Republic, desiring to amend the Convention Between the Government of the United States of 

America and the Government of the French Republic for the Avoidance of Double Taxation 

and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, signed at 

Paris on August 31, 1994, have agreed as follows: 
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ARTICLE I

1. Subparagraph (b) (iii) of paragraph 2 of Article 4 (Resident) of the Convention shall be 

deleted and replaced by the following: 

“(iii) in the case of the United States, a regulated investment company, a real 

estate investment trust, and a real estate mortgage investment conduit; in the case 

of France, a “société d’investissement à capital variable”; and any similar 

investment entities agreed upon by the competent authorities of both Contracting 

States;”. 

2. Subparagraph (b) (iv) of paragraph 2 of Article 4 (Resident) of the Convention shall be 

deleted and replaced, and new subparagraphs (b) (v) and (vi) of paragraph 2 of Article 4 are 

added as follows: 

“iv) a partnership or similar pass-through entity, an estate, and a trust (other 

than one referred to in subparagraph (ii) or (iii) above), whether or not organized 

or managed in one of the Contracting States, but only to the extent that the income 

derived by such partnership, similar entity, estate, or trust is treated for taxation 

purposes in that Contracting State as the income of a resident, either in the hands 

of such partnership, entity, estate or trust, or in the hands of its partners, 

beneficiaries or grantors, it being understood that a “société de personnes”, a 

“fonds commun de placement”, a “groupement d’intérêt économique” (economic 

interest group), or a “groupement européen d’intérêt économique” (European 

economic interest group) that is constituted in France and has its place of effective 

management in France and that is not subject to company tax therein shall be 

treated as a partnership for purposes of United States tax benefits under this 

Convention, provided that a partnership or similar pass-through entity, an estate 

and a trust which is not organized or managed in one of the Contracting States 

shall be entitled to the benefits of this convention with respect to the income or 

gains derived by such entity arising in France if the following additional 

conditions are satisfied: 

(aa) the absence of contrary provisions in a double taxation convention 
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between a Contracting State and the third State; 

(bb) the fact that the partnership or similar pass-through entity, estate or trust 

is not treated as a body corporate for tax purposes or otherwise liable to 

tax on French source income either in its own hands or in the hands of its 

partners, beneficiaries or grantors under the tax law of the third State; 

(cc) a partner's, beneficiary’s, or grantor’s share of the income or gain of the 

partnership or similar pass-through entity, estate or trust is taxed in the 

same manner, including the nature or source of that income or gain and 

the time when that income or gain is taxed, as would have been the case 

if the income or gain had been derived directly, except to the extent 

resulting from any difference in accounting methods, accounting periods, 

or other similar difference; and 

(dd) it is possible to exchange information concerning the partnership or 

similar pass-through entity, estate or trust or partners, beneficiaries or 

grantors under the terms of a double taxation convention between the 

Contracting State in which the income or gain arises and the third State; 

v) a partnership or similar pass-through entity, an estate, and a trust (other than 

one referred to in subparagraph (ii) or (iii) above), which is organized in the 

United States, shall be treated as a resident of the United States to the extent 

provided in subparagraph (iv) above, and as a resident of France to the extent that 

the income derived by such partnership, similar pass-through entity, estate or trust 

arises in France and corresponds to the share of the profits or losses of such entity 

which benefits a resident of France; 

vi) it is understood that, for the purposes of the subparagraphs (iv) and (v) 

above, the income derived by a partnership or similar pass-through entity, an 

estate and a trust (other than one referred to in subparagraph (ii) or (iii) above), is 

considered to be treated for taxation purposes in a Contracting State as the income 

of a resident to the extent of this income which benefits a partner, beneficiary, or 

grantor that is a pension trust, an other organization or a not-for-profit 
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organization referred to in subparagraph (ii) above, notwithstanding that all or part 

of this income of such trust, other organization, or not-for-profit organization is 

exempt from income taxation in that State.” 

ARTICLE II 

The last sentence in the final paragraph of paragraph 2 of Article 10 (Dividends) of the 

Convention shall be deleted and replaced by the following new sentence: 

“In the case of dividends paid by a United States real estate investment trust, the 

provisions of subparagraph (b) shall apply only if: 

(i) the beneficial owner of the dividends is an individual holding an interest 

of not more than 10 percent in such real estate investment trust; 

(ii) the dividends are paid with respect to a class of stock that is publicly 

traded and the beneficial owner of the dividends is a person holding an 

interest of not more than 5 percent of any class of the real estate 

investment trust’s stock; or 

(iii) the beneficial owner of the dividends is a person holding an interest of 

not more than 10 percent in the real estate investment trust and the value 

of no single interest in the real estate investment trust’s real property 

exceeds 10 percent of the real estate investment trust’s total interests in 

real property.” 

ARTICLE III 

Article 18 (Pensions) of the Convention shall be deleted and replaced by the following: 

“ARTICLE 18 - Pensions 

1. Payments under the social security legislation or similar legislation of a Contracting 

State to a resident of the other Contracting State, and pension distributions and other similar 

remuneration arising in one of the Contracting States in consideration of past employment paid 

to a resident of the other contracting State, whether paid periodically or in a lump sum, shall be 

taxable only in the first-mentioned State. For purposes of this paragraph, pension distributions 
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and other similar remuneration shall be deemed to arise in a Contracting State only if paid by a 

pension or other retirement arrangement established in that State. 

2. (a) Where an individual renders personal services and is a resident of a Contracting 

State but not a national of that State, and that individual is a participant in a pension 

or other retirement arrangement that is established, maintained, and recognized for tax 

purposes in the other Contracting State: 

(i) contributions paid by, or on behalf of, such individual to such pension or 

retirement arrangement shall be deductible from the income taxable in the 

first-mentioned State as if the contributions had been paid to a pension or 

other retirement arrangement that is established, maintained, and 

recognized for tax purposes in that State, subject to the same monetary 

limits provided for by the law of that State; and 

(ii) in the case of dependent personal services, any benefits accrued under 

such arrangement or payments made to such an arrangement by or on 

behalf of the individual’s employer shall be excluded from the 

individual’s income taxable in the first-mentioned State and shall be 

allowed as a deduction in computing the profits of the employer in that 

State as if the contributions had been paid to a pension or other 

retirement arrangement that is established, maintained, and recognized 

for tax purposes in that State, subject to the same monetary limits 

provided for by the law of that State. 

(b) The provisions of this paragraph shall not apply unless: 

(i) contributions by or on behalf of the individual to the pension or other 

retirement arrangement (or to another similar arrangement for which this 

arrangement was substituted) were made before he arrived in the firstmentioned State; and 

(ii) the competent authority of the first-mentioned State agrees that the 

arrangement generally corresponds to a pension or other retirement 

arrangement established, maintained, and recognized for tax purposes in 
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the first-mentioned State. 

(c) For purposes of this paragraph: 

(i) in the case of the United States, it is understood that a French pension or 

other retirement arrangement organized under the French social security 

legislation shall be considered to generally correspond to a pension or 

other retirement arrangement established, maintained, and recognized for 

tax purposes in the United States; and 

(ii) in the case of France, it is understood that the social security or similar 

legislation of the United States, qualified plans under section 401(a) of 

the Internal Revenue Code, individual retirement plans (including 

individual retirement plans that are part of a simplified employee pension 

plan that satisfies section 408(k), individual retirement accounts, 

individual retirement annuities, and section 408(p) accounts), section 

403(a) qualified annuity plans, and section 403(b) plans shall be 

considered to generally correspond to a pension or other retirement 

arrangement established, maintained, and recognized for tax purposes in 

France; and 

(iii) a pension or other retirement arrangement is recognized for tax purposes 

in a Contracting State if the contributions to the arrangement would 

qualify for tax relief in that State.” 

ARTICLE IV 

1. Paragraphs 2 and 3 of Article 19 (Public Remuneration) of the Convention shall be 

deleted. 

2. A new paragraph 2 of Article 19 (Public Remuneration) of the Convention shall be 

added as follows: 

“2. The provisions of Articles 14 (Independent Personal Services), 15 (Dependent 

Personal Services), 16 (Directors’ Fees), and 17 (Artistes and Sportsmen) shall apply to 

remuneration paid in respect of services rendered in connection with a business carried on 
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by a Contracting State, a political subdivision (in the case of the United States) or local 

authority thereof, or an agency or instrumentality of that State, subdivision, or authority.” 

ARTICLE V 

1. Subparagraph (b) (iv) of paragraph 2 [Paragraph 1 in French language] of Article 24 

(Relief From Double Taxation) of the Convention shall be deleted. 

2. Subparagraphs (b) (v) and (b) (vi) of paragraph 2 [Paragraph 1 in French language] of 

Article 24 (Relief From Double Taxation) of the Convention shall be renumbered as 

subparagraphs (b) (iv) and (b) (v), respectively. 

3. Subparagraph (c) of paragraph 1 [Paragraph 2 in French language] of Article 24 

(Relief From Double Taxation) of the Convention shall be deleted and replaced by the 

following: 

“(c) In the case of an individual who is both a resident and citizen of the United 

States and a national of France, the provisions of paragraph 2 of Article 29 

(Miscellaneous Provisions) shall apply to remuneration described in paragraph 1 of 

Article 19 (Public Remuneration), but such remuneration shall be treated by the United 

States as income from sources within France.” 

ARTICLE VI 

1. The last sentence of Paragraph 2 of Article 29 (Miscellaneous Provisions) of the 

Convention shall be deleted and replaced by the following: 

“For this purpose, the term “citizen” shall include a former citizen or long-term resident 

whose loss of such status had as one of its principal purposes the avoidance of tax (as 

defined under the laws of the United States), but only for a period of ten years following 

such loss.” 

2. Paragraph 3 of Article 29 (Miscellaneous Provisions) of the Convention shall be deleted 

and replaced by the following: 

“ 3. The provisions of paragraph 2 shall not affect: 

(a) the benefits conferred under paragraph 2 of Article 9 (Associated 
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Enterprises), under paragraph 3 (a) of Article 13 (Capital Gains), under paragraph 1 of 

Article 18 (Pensions), and under Articles 24 (Relief From Double Taxation), 25 

(Non-Discrimination), and 26 (Mutual Agreement Procedure); and 

(b) the benefits conferred under paragraph 2 of Article 18 (Pensions), and under 

Articles 19 (Public Remuneration), 20 (Teachers and Researchers), 21 (Students and 

Trainees), and 31 (Diplomatic and Consular Officers), upon individuals who are neither 

citizens of, nor have immigrant status in, the United States.” 

ARTICLE VII 

1. The Contracting States shall notify each other when their respective constitutional and 

statutory requirements for the entry into force of this Protocol have been satisfied. The 

Protocol shall enter into force on the date of receipt of the later of such notifications. 

2. Except as provided in paragraph 3, the provisions of this Protocol shall have effect: 

(a) in respect of taxes withheld at source, for any amount paid or credited on or after the 

first day of the second month next following the date on which the Protocol enters into force; 

and 

(b) in respect of other taxes, for taxable periods beginning on or after the first day of 

January next following the date on which the Protocol enters into force. 

3. The provisions of Article I, paragraph 2, of this Protocol, except to the extent such 

paragraph treats a “fonds commun de placement” as a partnership for purposes of United States 

tax benefits under this Convention, shall have effect: 

(a) in respect of taxes withheld at source, for any amount paid or credited on or after 

February 1, 1996; and 

(b) in respect of other taxes, for taxable periods beginning on or after January 1, 1996. 
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IN W I TNESS W H EREOF, the undersigned, bein g duly authorized thereto, have signed 

this Protocol. 

Done at W a shington, this ei ghth day of Dece mbe r , 2004, in duplicate, in the English 

and French languages, each text being equally authentic. 

FOR THE GOVERNMENT FOR THE GOVERNMENT 

OF THE UNITED STATES OF AMERICA OF THE FRENCH REPUBLIC