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Avocat Fiscaliste Internationale à Paris

International Taxation

International taxation is a difficult subject which requires mastery of the taxation of domestic law and international tax law (mainly and more carefully, international tax conventions and European Union law).

The internationalization of transactions requires companies and individuals to understand the conditions of taxation of these various transactions which are carried out by a resident of a state in a territory of another state or by a resident of another state. in France.

An analysis of the domestic law of the various States is often necessary before the possible application of international tax conventions. Likewise, the analysis of European legislation and its transposition into the domestic law of States is also essential in this type of case.

Our international tax law firm offers you full assistance to help you resolve complex issues that companies or individuals are often confronted with.

Tax treaties

International taxation is a complex subject that requires mastery of the taxation of domestic law and international tax conventions. The internationalization of transactions requires businesses and individuals to understand the tax conditions of the various transactions that are carried out by a resident of one state in a territory of another state or with a resident of another state.


The analysis of the domestic law of the various States is a priority before the possible application of international tax conventions.

As a reminder, international conventions are bilateral treaties intended to regulate fiscal relations between the two signatory States in order to eliminate the risk of double taxation to which the nationals of each State could be victims in their relations with the other.


The taxes concerned are traditionally taxes on income and on capital but also inheritance and gift taxes, other registration fees and stamp duties.

It should be noted that the tax treaties also aim to fight against international tax evasion and fraud. They establish the basis for cooperation between States, providing in particular for an exchange of information and possibly assistance in tax collection.

In practice, international tax treaties have the following general characteristics:

First of all, under article 55 of the Constitution, they have authority superior to that of domestic laws. In other words, in the event of conflict between the provisions of the agreement and the domestic law, the provisions of the agreement must be applied. Your tax lawyer will assist you in analyzing these provisions which are not necessarily easy to read.

Second, tax treaties specify their field of application through the concept of residence and permanent establishment.

In this regard, the definition of the concept of "resident of a Contracting State" makes it possible to avoid double taxation linked to a conflict of dual tax domicile. In addition, this concept governs the taxation rules for the different categories of income because these rules attribute a right of taxation to the State of residence of the beneficiary or to the State of the source of the income, depending on the nature of this income. 


In practice, residence is first determined by reference to the tax legislation of each of the two States. It is only to the extent that the same person would be considered as domiciled in each of the States by application of each of the internal legislations that the criteria which make it possible to determine the country of residence in the conventional sense are used. These criteria are different depending on whether they are natural or legal persons.

For natural persons, the successive criteria are generally the following: permanent home, center of vital interests (personal and economic ties), usual stay and finally, sometimes, nationality.

For legal entities, the generally used subsidiary criterion is the place of effective management of the company.
 

The conventions provide that the profits of an enterprise of a Contracting State are taxable only in that State unless the enterprise carries on its activity in the other Contracting State through a permanent establishment there. is located. The definition of permanent establishment is therefore essential in determining the right of a Contracting State to tax the profits of an enterprise of the other Contracting State.

In practice, the expression “permanent establishment” designates a fixed place of business through which an enterprise carries out all or part of its activity. This general definition therefore includes the following criteria:


- the existence of a business installation, that is to say an installation such as premises, machines, tools, etc. ;
- this business installation must be fixed, that is to say established in a precise place with a certain degree of permanence;
- the exercise of the activities of the company through this fixed installation.

In addition, tax treaties establish a distribution of the right to tax between the Contracting States. Some taxes are allocated exclusively to one state and others are allocated to both states. In the latter case, a mechanism for eliminating double taxation is generally provided for either by the exemption method and the imputation method.

Our international tax law firm will allow you to resolve these interpretation difficulties and assist you in resolving your case.

Finally, for the record, we recall that tax treaties establish the principle of non-discrimination and provide for certain mechanisms to fight against international tax avoidance and fraud.

Our tax law firm located in Paris is competent in both international tax issues related to companies or individuals.

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