Key Benefits:
President of the Republic,
On the report of the Prime Minister and the Minister for Foreign Affairs,
Considering articles 52 to 55 of the Constitution;
Having regard to Act No. 2002-1036 of 6 August 2002 authorizing the approval of the agreement between the Government of the French Republic and the Government of the Algerian Democratic and People's Republic with a view to avoiding double taxation, preventing tax evasion and tax evasion and establishing rules of mutual assistance with respect to taxes on income, property and succession (a whole protocol), signed in Algiers on 17 October 1999;
In view of the amended Decree No. 53-192 of 14 March 1953 concerning the ratification and publication of the international commitments undertaken by France,
Decrete:
The agreement between the Government of the French Republic and the Government of the Algerian Democratic and People's Republic with a view to avoiding double taxation, preventing tax evasion and tax evasion, and establishing rules of mutual assistance with respect to taxes on income, property and estates (a whole protocol), signed in Algiers on 17 October 1999, will be published in the Official Journal of the French Republic.
The Prime Minister and the Minister for Foreign Affairs are responsible for the execution of this Order, which will be published in the Official Journal of the French Republic.
C O N V E N T I O N
THE GOVERNMENT OF THE FRANÇAISE REPUBLIC AND THE GOVERNMENT OF THE ALGERIAN REPUBLIC DEMOCRACY AND POPULAR REPUBLIC ON THE IMPOSITION DOUBLES, PREVENTION AND FISCAL FRAUDY
Le Gouvernement de la République française et le Gouvernement de la République algérienne démocratique et populaire,
wishing to conclude a convention to avoid double taxation, to prevent tax evasion and tax evasion and to establish rules of mutual assistance with respect to taxes on income, property and estates,
agreed that:
Article 1
Target persons
This Convention applies:
(a) With regard to taxes on income and on capital, persons who are residents of a Contracting State or two Contracting States;
(b) With regard to inheritance taxes, estates of persons who were at the time of their death of residents of a Contracting State or of the two Contracting States.
Article 2
Taxes targeted
1. This Convention applies to taxes on income, property and inheritance on behalf of a Contracting State or its local authorities, irrespective of the system of collection.
2. (a) The taxes on total income, total property, or income or property, including taxes on earnings from the alienation of movable or real estate property, taxes on the total amount of wages paid by companies, as well as taxes on surplus-values, are considered income and property taxes.
(b) The taxes collected as a result of death in the form of estate taxes, hereditary shares taxes, transfer fees or donation taxes are considered to be taxed on estates.
3. Current taxes to which the Convention applies include:
(a) With regard to France:
(i) Income tax;
(ii) Corporate tax;
(iii) The wage tax;
(iv) Solidarity tax on fortune;
(v) Transfer rights by death;
(hereinafter referred to as "French tax");
(b) Regarding Algeria:
(i) Global income tax;
(ii) Corporate profits tax;
(iii) Labour activity tax;
(iv) The lump sum payment;
(v) Royalty and tax on results for hydrocarbon exploration, research, exploitation and transportation activities;
(vi) Heritage tax;
(vii) Succession rights;
(hereinafter referred to as "Algerian tax").
4. The Convention also applies to taxes of an identical or similar nature that would be established after the date of signature of the Convention and that would be in addition to or replace existing taxes. The competent authorities of the Contracting States shall communicate the significant changes to their respective tax laws.
Article 3
General definitions
1. For the purposes of this Convention, unless the context requires a different interpretation:
(a) The terms "contracting State" and "other Contracting State" shall, as appropriate, designate France or Algeria;
(b) The term "France" refers to the European and overseas departments of the French Republic, including the territorial sea, and beyond that the zones on which, in accordance with international law, the French Republic has sovereign rights for the exploration and exploitation of the natural resources of the seabed, their basement and the underlying waters;
(c) The term "Algeria" means the Algerian Democratic and People's Republic and, employed in a geographical sense, it designates the territory of the Algerian Democratic and People's Republic, including the territorial sea, and beyond it the areas on which, in accordance with international law, the Algerian Democratic and People's Republic exercises its jurisdiction or sovereign rights for the exploration and exploitation of the natural resources of the seabed, their basement and the waters on the sea;
(d) The term "person" includes individuals, societies and all other groups of persons;
(e) The term "corporate" means any corporation or entity that is considered to be a corporation for taxation purposes;
(f) The terms "company of a Contracting State" and "company of the other Contracting State" mean respectively a business operated by a resident of a Contracting State and a business operated by a resident of the other Contracting State;
(g) The term "international traffic" means any transport by a ship or aircraft operated by an enterprise whose effective management seat is located in a Contracting State, except where the vessel or aircraft is operated only between points in the other Contracting State;
(h) The term "competent authority" means:
(i) With regard to France, the Budget Minister or his authorized representative;
(ii) With respect to Algeria, the Minister for Finance or his authorized representative.
2. For the purposes of the Convention by a Contracting State, any term or expression that is not defined in the Convention shall have the meaning assigned to it by the tax law of that State in respect of the taxes to which the Convention applies, unless the context requires a different interpretation.
Article 4
Resident
1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the law of that State, is subject to tax in that State, because of his domicile, residence, management seat, or any other similar criterion. However, this term does not include persons who are subject to tax in that State only for income from sources located in that State or for the property located therein.
2. Where, according to the provisions of paragraph 1, a natural person is a resident of the two Contracting States, his or her situation shall be settled as follows:
(a) This person is considered to be a resident of the State where it has a permanent home; if it has a permanent home in both states, it is considered to be a resident of the State with which its personal and economic ties are the narrowest (centre of vital interests) ;
(b) If the State where that person has the centre of its vital interests cannot be determined, or if it does not have a permanent home in any of the States, it is considered to be a resident of the State where it normally resides;
(c) If this person stays normally in both States or if he or she does not stay in any of them, he or she is considered to be a resident of the State of which he or she is a national;
(d) If the above criteria do not allow for the determination of the State of which the person is a resident, the competent authorities of the Contracting States shall decide the matter of mutual agreement.
3. Where, according to the provisions of paragraph 1, a person other than a natural person is a resident of the two Contracting States, it is considered to be a resident of the State where its effective management seat is located.
4. The term "resident of a Contracting State" includes, where that State is France, the partnership, and other groupings of persons subject to a similar tax regime, who have their effective management seat in France and whose shareholders, associates or other members are personally subject to tax on their share of profits under French domestic legislation.
Article 5
Stable establishment
1. For the purposes of this Convention, the term "stable establishment" means a fixed business facility through which a company operates all or part of its business.
2. The term "stable establishment" includes:
(a) A steering seat;
(b) A branch;
(c) An office;
(d) A factory;
(e) A workshop;
(f) A store of sale;
(g) A mine, oil or gas well, a career or any other place of extraction of natural resources.
3. A construction or construction site is a permanent establishment only if its duration exceeds three months.
4. Notwithstanding the preceding provisions of this Article, it is considered that there is no "stable establishment" if:
(a) Installations are used for the sole purpose of storage, exposure or delivery of goods owned by the company;
(b) Goods belonging to the company are stored for storage, exposure or delivery purposes only;
(c) Goods belonging to the company are stored for the sole purpose of processing by another company;
(d) A fixed business facility is used for the sole purpose of purchasing goods or gathering information for the company;
(e) A fixed business facility is used for the sole purpose of carrying out any other preparatory or auxiliary activity for the enterprise;
(f) A fixed business facility shall be used for the purposes of the cumulative year of activities referred to in subparagraphs (a) to (e), provided that the overall activity of the fixed business facility resulting from this cumulative operation shall be preparatory or auxiliary.
5. Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent enjoying an independent status to which paragraph 6 applies - shall act on behalf of a business and shall have in a Contracting State powers that it normally exercise to enter into contracts on behalf of the enterprise, that undertaking shall be deemed to have a permanent establishment in that State for all activities that that that person exercises for the enterprise, unless
6. A business is not considered to have a permanent establishment in a Contracting State solely because it operates in it through a broker, a general commissioner or any other agent with an independent status, provided that such persons act within the ordinary framework of their business.
7. The fact that a corporation that is a resident of a Contracting State controls or is controlled by a corporation that is a resident of the other Contracting State or carries on an activity therein (either through a permanent establishment or otherwise) is not sufficient in itself to make any of these companies a permanent establishment of the other.
Article 6
Real estate income
1. Income from real property (including income from farms or forestry) is taxable in the Contracting State where such real property is located.
2. The term "real property" has the meaning assigned to it by the law of the Contracting State in which the property is located. The term includes, in any case, accessories, dead or alive livestock of farms and forests, the rights to which the provisions of private law apply in respect of land ownership, the usufruct of real property and the rights to variable or fixed payments for the exploitation or concession of the exploitation of mineral deposits, sources and other natural resources; ships, ships and aircraft are not considered real property.
3. The provisions of paragraph 1 shall apply to revenues derived from direct exploitation, rental or charter, as well as any other form of exploitation of real property.
4. The provisions of paragraphs 1 and 3 also apply to income from real property of a business as well as to income from real property used in the exercise of an independent profession.
5. Where the ownership of shares, shares or other rights in a corporation or legal entity gives the owner the enjoyment of real property located in a Contracting State and held by that corporation or legal entity, the income derived by the owner from the direct use, lease or use in any other form of its right of enjoyment shall be taxable in that State notwithstanding the provisions of Articles 7 and 14.
Article 7
Business benefits
1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located therein. If the company operates in such a way, the profits of the company are taxable in the other State but only to the extent that they are attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where a business of a Contracting State carries on business in the other Contracting State through a permanent establishment located therein, it shall be charged, in each Contracting State, to that permanent establishment the profits that it could have realized if it had constituted a separate undertaking carrying out identical or similar activities under identical or similar conditions and dealing independently with the enterprise of which it constitutes a permanent establishment.
3. In order to determine the benefits of a permanent establishment, deductions are allowed for the expenses incurred for the purposes of this permanent establishment, including the executive expenses and general administrative expenses so exposed, either in the State where the permanent establishment is located or elsewhere. However, no deduction is allowed for amounts that would, if any, be paid (other than the reimbursement of costs incurred) by the permanent establishment at the company's central office or at any of its establishments as royalties, fees or other similar payments, for the use of patents or other fees, or as a commission for specific services rendered or for a bank activity, or, unless Similarly, in the calculation of the profits of a permanent establishment, there shall be no account of the amounts (other than the reimbursement of costs incurred by the permanent establishment at the rate of the central office of the enterprise or of any of its establishments, such as royalties, fees or other similar payments, for the use of patents or other fees, or as a board for specific services rendered or for any management activity, except that
4. If it is customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of a distribution of the total profits of the enterprise between its various parties, no provision in paragraph 2 shall prevent that State from determining the taxable profits according to the distribution in use; However, the method of distribution adopted must be such that the result obtained is consistent with the principles contained in this article.
5. No profit is charged to a permanent establishment because it simply purchased goods for the company.
6. For the purposes of the preceding paragraphs of this article, the benefits to be attributed to the permanent establishment shall be determined annually on the same basis, unless there are valid and sufficient grounds to proceed otherwise.
7. Where profits include income elements treated separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.
Article 8
Maritime and air navigation
1. The profits derived from the operation, in international traffic, of ships or aircraft shall be taxable only in the Contracting State where the effective management seat of the enterprise is located. These benefits also include income incidental to this operation, including by-products derived by this company from the use of containers for the international traffic of goods or goods.
2. If the effective management seat of a marine navigation company is on board a vessel, that seat shall be considered to be located in the Contracting State where the vessel's port of attachment is located or, if the vessel is not carrying the vessel, in the Contracting State of which the vessel operator is a resident.
3. The provisions of paragraph 1 also apply to benefits derived from participation in a pool, a joint operation or an international operating organization.
Article 9
Associated companies
1. When:
(a) A company of a Contracting State shall participate directly or indirectly in the direction, control or capital of a business of the other Contracting State, or
(b) The same persons directly or indirectly participate in the direction, control or capital of a business of a Contracting State and a business of the other Contracting State,
and that, in both cases, both companies are, in their commercial or financial relations, bound by agreed or imposed conditions, that differ from those that would be agreed between independent companies, the profits that, without these conditions, would have been realized by one of the companies but could not be in fact because of these conditions, may be included in the profits of that undertaking and imposed accordingly.
2. Where a Contracting State includes in the profits of a business of that State - and therefore imposes - profits on which a business of the other Contracting State has been imposed in that other State, and that the profits thus included are profits that would have been realized by the enterprise of the first State if the conditions agreed between the two enterprises had been those that would have been agreed between independent enterprises, the other State shall make an appropriate adjustment to the amount of the tax it considers To determine this adjustment, the other provisions of this Convention shall be taken into account and, if necessary, the competent authorities of the Contracting States shall consult.
Article 10
Dividends
1. Dividends paid by a corporation that is a resident of a Contracting State to a resident of the other Contracting State shall be taxable in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the corporation paying the dividends is a resident, and according to the law of that State, but if the person receiving the dividends is the beneficial owner, the tax so charged shall not exceed:
(a) 5% of the gross amount of the dividends if the beneficial owner is a corporation that holds directly or indirectly at least 10% of the capital of the corporation that pays the dividends;
(b) 15% of the gross amount of dividends in all other cases.
The provisions of this subsection do not affect the taxation of the corporation on profits that are used for the payment of dividends.
3. A resident of Algeria who receives dividends paid by a corporation that is a resident of France may obtain the refund of the pre-payment as the pre-payment was actually paid by the corporation on the basis of these dividends. The gross amount of the deposit refunded is considered a dividend for the application of the agreement. It is taxable in France in accordance with the provisions of paragraph 2.
4. The term "dividend" used in this article refers to income derived from shares, shares or benefits, shares of mine, share of founder or other share of beneficiaries with the exception of receivables, as well as income subject to the distribution regime by the tax legislation of the Contracting State whose distribution company is a resident. It is understood that the term "dividend" does not include the revenues referred to in section 16.
5. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the dividends, a resident of a Contracting State, exercises in the other Contracting State whose dividend paying company is a resident, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the dividend-generating interest is effectively connected to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
6. Where a corporation that is a resident of a Contracting State derives from the profits or income of the other Contracting State, that other State may not collect any tax on the dividends paid by the corporation, except to the extent that such dividends are paid to a resident of that other State or to the extent that the dividend-generating interest is effectively connected to a permanent establishment or to a fixed base located in that other State, or prelever any
Article 11
Interest
1. Interest arising from a Contracting State and paid to a resident of the other Contracting State shall be taxable in that other State.
2. However, these interests are also taxable in the Contracting State in which they arise and according to the law of that State, but if the person receiving the interest is the beneficial owner of the interest, the tax so charged shall not exceed 10% of the gross amount of the interest when it comes from France and 12% of the gross amount of the interest when it comes from Algeria.
3. Notwithstanding the provisions of paragraph 2, the interest referred to in paragraph 1 shall be taxable only in the Contracting State whose beneficial owner of the interest is a resident, if the interest is paid:
(a) In connection with the sale of industrial, commercial or scientific equipment, or
(b) In connection with the sale of goods or the provision of services by a company to another company, or
(c) On a loan of any kind made by a credit institution.
4. Notwithstanding the provisions of paragraph 2, interest arising from a Contracting State shall be exempt from tax in that State if:
(a) The debtor of interest is that state or one of its local authorities, or
(b) Interest shall be paid to the other Contracting State or any of its local authorities or to institutions or organizations (including financial institutions) wholly owned by that other State or any of its local authorities, or
(c) Interest shall be paid to other institutions or organizations (including financial institutions) on the basis of funding granted by them in the framework of agreements between the Contracting States.
5. The term "interest" used in this section refers to income from receivables of any kind, whether or not accompanied by mortgage guarantees or an interest clause in the debtor's profits, including income from public funds and borrowing obligations, including premiums and lots attached to these securities. Penalizations for late payment are not considered interest within the meaning of this article.
6. The provisions of paragraphs 1, 2, 3 and 4 shall not apply where the beneficial owner of the interests, a resident of a Contracting State, carries on in the other Contracting State in which the interests arise either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein and the interest-generating debt is effectively connected to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
7. Interest shall be deemed to arise from a Contracting State where the debtor is that State itself, a local community or another resident of that State. However, where the debtor of interest, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the debt giving rise to the payment of interest has been contracted and which bears the burden of such interests, these shall be deemed to arise from the State where the permanent establishment or fixed base is located.
8. Where, because of special relations between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of interest, taking into account the debt for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this Article shall apply only to the latter amount. In such cases, the surplus portion of the payments shall be taxable in accordance with the laws of each Contracting State and taking into account the other provisions of this Convention.
Article 12
Claims
1. Royalties from a Contracting State and paid to a resident of the other Contracting State shall be taxable in that other State.
2. However, these royalties are also taxable in the Contracting State from which they arise and according to the law of that State, but the tax so charged cannot exceed:
(a) 5% of the gross amount of royalties paid for the use or concession of the use of a copyright on a literary, artistic or scientific work, excluding film films and works recorded for radio and television broadcasts;
(b) In all other cases, 10% of the gross amount of royalties when they come from France and 12% of the gross amount of royalties when they come from Algeria.
3. The term " royalties" used in this article means the remuneration of any kind paid for the use or concession of the use of a copyright on a literary, artistic or scientific work, including film films and works recorded for radio and television broadcasts, a patent, a trademark or trade, a drawing or a model, a process of a plan,
4. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the royalties, a resident of a Contracting State, exercises in the other Contracting State in which the royalties arise, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the right or property that generates royalties is effectively connected to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
5. The royalties shall be deemed to arise from a Contracting State where the debtor is that State itself, a local community or another resident of that State. However, where the debtor of royalties, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the obligation giving rise to the payment of royalties has been contracted and which bears the charge of such royalties, such royalties are considered to be from the State where the permanent establishment, or the fixed base, is located.
6. Where, because of special relations between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of royalties, taking into account the benefit for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this section apply only to the latter amount. In such cases, the surplus portion of the payments shall be taxable in accordance with the laws of each Contracting State and taking into account the other provisions of this Convention.
Article 13
Capital gains
1. (a) The gains from the alienation of real property referred to in Article 6 shall be taxed in the Contracting State where such real property is located.
(b) Gains derived from the alienation of shares, shares or other rights in a corporation or legal entity whose assets are principally constituted, directly or by the interposition of one or more other corporations or legal persons, property situated in a Contracting State or rights relating to such property shall be taxable in that State. For the purposes of this provision, real property affected by this corporation or legal entity shall not be taken into account in its own industrial, commercial or agricultural operation or in the exercise by it of an independent profession.
2. The gains from the alienation of movable property that are part of the assets of a permanent establishment that a business of a Contracting State has in the other Contracting State, or of movable property that belong to a fixed base of which a resident of a Contracting State disposes in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of that permanent establishment (ully or with
3. The gains from the alienation of property that are part of the assets of a business and that consist of vessels or aircraft operated by it in international traffic or in movable property assigned to the operation of such ships or aircraft shall be taxable only in the Contracting State where the effective management seat of the business is located.
4. Gains derived from the alienation of any property other than those referred to in paragraph 1, 2 and 3 shall be taxable only in the Contracting State of which the assignor is a resident.
Article 14
Independent occupations
1. The income derived by a resident of a Contracting State from a liberal profession or other independent activities shall be taxable only in that State; However, such income is also taxable in the other Contracting State in the following cases:
(a) If the resident has, in that other State, a fixed basis for the exercise of his activities; in that case, only the fraction of the income attributable to that fixed base is taxable in that other State; or
(b) If his or her stay in that other State extends over a period or periods of a total period of 183 days during the fiscal year under review; in that case, only the fraction of the income derived from the activities carried out in that other State is taxable.
2. The term "liberal profession" includes independent scientific, literary, artistic, educational or educational activities, as well as independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent professions
1. Subject to the provisions of Articles 16, 18 and 19, wages, salaries and other similar remuneration that a resident of a Contracting State receives under an employee employment shall be taxable only in that State, unless employment is exercised in the other Contracting State. If the employment is exercised, the remuneration received as such is taxable in that other State.
2. Notwithstanding the provisions of paragraph 1, the remuneration that a resident of a Contracting State receives for an employee employed in the other Contracting State shall be taxable only in the first State, if:
(a) The beneficiary stays in the other State for a period or periods not exceeding a total of 183 days in the fiscal year under review, and
(b) Compensation is paid by an employer, or on behalf of an employer, who is not a resident of the other State, and
(c) The pay charge is not borne by a permanent establishment or a fixed basis that the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration received for an employee employed on board a ship, or an aircraft operated in international traffic shall be taxable in the Contracting State where the effective management seat of the enterprise is located.
Article 16
Jetons of presence
The attendance tokens, fortieth and other similar remuneration that a resident of a Contracting State receives as a member of the board of directors or supervision of a corporation that is a resident of the other Contracting State may be taxed in that other State.
Article 17
Artists and athletes
1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State from his or her personal activities in the other Contracting State as an artist of the spectacle, such as a theatre, cinema, radio or television artist, or a musician, or as a sportsman, may be taxed in that other State.
2. Where the income of activities that an entertainer or a sportsperson exercises personally and in this capacity is attributed not to the artist or to the athlete himself but to another person, such income shall be taxable, notwithstanding the provisions of Articles 7, 14 and 15, in the Contracting State where the activities of the artist or athlete are carried out.
3. Notwithstanding the provisions of paragraph 1, the income of a performance artist or a sportsman, a resident of a Contracting State, derived from his or her personal activities in the other Contracting State and in that capacity, shall be taxable only in the first State when such activities in the other State are financed mainly by public funds of the first State, its local authorities, or their legal persons of public law.
4. Notwithstanding the provisions of paragraph 2, where the income of activities that an entertainer or a sportsman exercises personally and in that capacity in a constracting State is attributed not to the artist or to the athlete himself but to another person, such income shall not be taxable, notwithstanding the provisions of Articles 7, 14 and 15, except in the other State where that other person is financed primarily by public funds of that other State,
Article 18
Pensions
Subject to the provisions of paragraph 1 of Article 19, pensions and other similar remuneration, paid to a resident of a Contracting State for an earlier employment, shall be taxable only in that State.
Article 19
Remuneration and public pensions
1. (a) Compensation and pensions paid by a Contracting State or one of its local authorities or by one of their legal persons of public law, either directly or by drawing from funds they have constituted, shall be taxable only in that State.
(b) However, such remuneration and pensions shall be taxable only in the other Contracting State if the natural person who receives them is a resident of that State and has the nationality of that State without at the same time having the nationality of the first State.
2. The provisions of Articles 15, 16 and 18 apply to remuneration and pensions paid for services rendered in an industrial or commercial activity carried out by a Contracting State or one of its local authorities or by one of their legal persons of public law.
Rule 20
Students and trainees
1. The sums that a student or trainee who is, or who was immediately before going to a Contracting State, a resident of the other Contracting State and who resides in the first State for the sole purpose of pursuing his or her studies or training shall be paid to cover his or her maintenance, education or training expenses shall not be taxable in that State, provided that they arise from sources outside that State.
2. With respect to the scholarships and remuneration of an employee whose wage does not apply Paragapha 1, a student or an intern within the meaning of paragraph 1 has in addition, for the duration of his or her education, the right to benefit from the same exemptions, discounts or tax reductions as residents of the Contracting State in which he or she resides.
Article 21
Other income
1. The income elements of a resident of a Contracting State, wherever they arise, which are not dealt with in the preceding articles of this Convention shall be taxable only in that State.
2. The provisions of paragraph 1 shall not apply to income other than income derived from real property as defined in paragraph 2 of Article 6, where the beneficiary of such income, a resident of a Contracting State, exercises in the other Contracting State, either an industrial or commercial activity through a permanent establishment situated therein or an independent occupation by means of a fixed base located therein, and that the right of ownership or right of ownership shall In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
Article 22
Fortune
1. (a) The property constituted by real property referred to in Article 6, which is owned by a resident of a Contracting State and situated in the other Contracting State, is taxable in that other State;
(b) The property constituted by shares, shares or other rights in a corporation or legal entity whose assets are principally constituted, directly or by the interposition of one or more other corporations or legal entities, of real property situated in a Contracting State or of rights relating to such property shall be taxable in that State. For the purposes of this provision, real property affected by this corporation or legal entity shall not be taken into account in its own industrial, commercial or agricultural operation or in the exercise by it of an independent profession.
2. The property constituted by movable property that is part of the asset of a permanent establishment that a business of a Contracting State has in the other Contracting State, or by movable property that is owned by a fixed base of which a resident of a Contracting State has in the other Contracting State for the exercise of an independent profession, is taxable in that other State.
3. The assets of a company that consist of ships and aircraft operated by it in international traffic and of movable property assigned to the operation of such ships or aircraft shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
4. All other assets of a resident of a Contracting State shall be taxable only in that State.
Article 23
Successions
1. (a) The real property referred to in Article 6 and b of this paragraph, which is part of the succession of a resident of a Contracting State and is situated in the other Contracting State, shall be taxable in that other State;
(b) For the purposes of the provisions of this Article, shares, shares or other rights in a corporation or legal entity whose assets are principally constituted, directly or by the interposition of one or more other corporations or legal persons, real property located in a Contracting State or rights relating to such property shall be deemed to be real property located in that State.
2. (a) The movable property of a business that is part of the succession of a resident of a Contracting State, which is owned by a permanent establishment in the other Contracting State, shall be taxable in that other State;
(b) The movable property that is part of the succession of a resident of a Contracting State and is used for the exercise of a liberal profession or other independent activities, which belong to a fixed base located in the other Contracting State, may be taxed in that other State.
3. Tangible movable property, other than movable property referred to in paragraph 2, which is part of the succession of a resident of a Contracting State and is situated in the other Contracting State, may be taxed in that other State.
4. The movable property, other than the movable property referred to in paragraph 2, which is part of the succession of a resident of a Contracting State and which consists of receivables on a debtor that is a resident of the other Contracting State or a permanent establishment located in that other State, or that consists of securities issued by that other State or one of its local authorities, or by one of their legal persons of public law, or by another corporation that has
5. Assets, regardless of the situation, which are part of the succession of a resident of a Contracting State and which are not referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in that State.
6. (a) Debts that have their counterparty in the acquisition, construction, processing, improvement, repair or maintenance of goods referred to in section 6 are deducted from the value of such assets;
(b) Subject to the provisions of a, debts relating to a permanent establishment or fixed base shall be deducted, as the case may be, from the value of the permanent establishment or fixed base;
(c) Debts relating to tangible property referred to in paragraph 3 shall be deducted from the value of such property;
(d) Debts relating to movable property referred to in paragraph 4 shall be deducted from the value of such property;
(e) Other debts deduct the value of the property to which the provisions of paragraph 5 apply;
(f) If a debt exceeds the value of the property deductible in a Contracting State in accordance with the provisions of a, b, c or d, the balance shall be deducted from the value of other taxable property in that State;
(g) If the deductions referred to in e or f leave a balance not covered in a Contracting State, that balance shall be deducted from the value of the property subject to tax in the other Contracting State.
Article 24
Elimination of double taxation
1. With regard to France, double taxation is avoided as follows.
(a) Revenues derived from Algeria, which are taxable or taxable only in that State in accordance with the provisions of this Convention, shall be taken into account in computing the French tax when their beneficiary is a resident of France and that they are not exempted from the corporate tax under French domestic law. In this case, Algerian tax is not deductible from these revenues, but the beneficiary is entitled to a tax credit attributable to French tax. This tax credit is equal to:
(i) For revenues not mentioned in the ii, the amount of the French tax corresponding to these revenues;
(ii) For income referred to in sections 10, 11, 12, paragraph 1 (b) of section 14, paragraph 3 of Article 15, section 16 and paragraphs 1 and 2 of Article 17, to the amount of tax paid in Algeria in accordance with the provisions of these sections; however, this tax credit cannot exceed the amount of the French tax corresponding to these revenues.
(b) For the purposes of the application to the revenues referred to in sections 11 and 12, where the amount of the tax paid in Algeria in accordance with the provisions of these articles exceeds the amount of the French tax corresponding to these revenues, the resident of France beneficiary of these revenues may submit his case to the competent French authority. If it appears to it that this situation has as a consequence an imposition that is not comparable to a net income tax, this competent authority may, under the conditions it determines, admit the unsubscribed amount of the tax paid in Algeria as a deduction of the French tax on the other foreign source income of that resident.
(c) A resident of France who has a taxable fortune in Algeria in accordance with the provisions of paragraphs 1 or 2 of Article 22 is also taxable in France on account of that fortune. The French tax is calculated under deduction of a tax credit equal to the amount of tax paid in Algeria on that fortune. However, this tax credit may not exceed the amount of the French tax corresponding to that fortune.
(d)
(i) When a deceased was at the time of death a resident of France, France imposes all property that is part of the estate, including property that is taxable in Algeria in accordance with the provisions of the Convention, and grants, on that tax, a deduction of an amount equal to the amount of tax paid in Algeria for property that, on the occasion of death and in accordance with the provisions of the Convention, is taxable in Algeria. This deduction may not, however, exceed the share of French tax, calculated before that deduction, corresponding to the property for which the deduction is to be granted;
(ii) When a deceased was not at the time of death a resident of France, the French tax on property that is taxable in France in accordance with the Convention shall be calculated at the rate corresponding to all taxable property under French domestic law.
2. Regarding Algeria, double taxation is avoided as follows.
(a) When a resident of Algeria receives income or owns property that, in accordance with the provisions of the Convention, is taxable in France, Algeria deducts:
(i) From the tax it collects on the income of that resident, an amount equal to the income tax paid in France;
(ii) From her tax on the fortune of this resident, an amount equal to the tax on fortune paid in France.
However, the amount deducted in one or the other case may not exceed the portion of the income tax or capital tax, calculated before the deduction, corresponding to the taxable income or fortune in France.
(b)
(i) When a deceased was at the time of death a resident of Algeria, Algeria imposes all property that is part of the estate, including property that is taxable in France in accordance with the provisions of the Convention, and grants, on that tax, a deduction of an amount equal to the amount of tax paid in France for property that, on the occasion of death and in accordance with the provisions of the Convention, is taxable in France. However, this deduction may not exceed the Algerian tax share, calculated before that deduction, corresponding to the property to which the deduction is to be granted;
(ii) When a deceased was not at the time of death a resident of Algeria, Algerian tax on property that is taxable in Algeria in accordance with the Convention shall be calculated at the rate corresponding to all taxable property under Algerian domestic law.
Rule 25
Non-discrimination
1. Individuals possessing the nationality of a Contracting State shall not be subject in the other Contracting State to any taxation or obligation relating thereto, which is other or heavier than those to which or may be subject the natural persons possessing the nationality of that other State who are in the same situation, particularly in respect of the residence.
2. The imposition of a permanent establishment that a business of a Contracting State has in the other Contracting State is not established in that other State in a less favourable manner than the taxation of the enterprises of that other State that exercise the same activity. This provision shall not be construed as requiring a Contracting State to grant personal deductions, deductions and tax reductions to the residents of the other Contracting State on the basis of the situation or family expenses that it grants to its own residents.
3. Unless the provisions of paragraph 1 of Article 9, paragraph 8 of Article 11 or paragraph 6 of Article 12 are applicable, interest, royalties and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable profits of that undertaking, on the same terms as if they had been paid to a resident of the first Contracting State. Similarly, the debts of an enterprise of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable fortune of that undertaking, on the same basis as if they had been contracted to a resident of the first Contracting State.
4. The undertakings of a Contracting State, whose capital is wholly or partly, directly or indirectly, held or controlled by one or more residents of the other Contracting State, shall not be subject in the first State to any taxation or obligation relating thereto, which is other or heavier than those to which the other similar enterprises of the first State are or may be subject.
5. The provisions of this section shall apply, notwithstanding the provisions of section 2, to taxes of any kind and denomination.
Rule 26
Friendly procedure
1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States shall result in or result in taxation not in accordance with the provisions of this Convention, the person may, independently of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which the person is a resident or, if the case falls under paragraph 1 of Article 25, to that of the Contracting State of which the person is a national. The case shall be submitted within three years from the first notification of the measure that results in taxation not in accordance with the provisions of the Convention.
2. The competent authority shall endeavour, if the claim appears to it to be justified and if it is not itself in a position to provide a satisfactory solution, to resolve the case by amicable agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in conformity with the Convention. The agreement shall be applied irrespective of the time limits provided by the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall endeavour, by mutual agreement, to resolve the difficulties or to dispel the doubts to which the interpretation or application of the Convention may take place. They may also work together to eliminate double taxation in cases not provided for in the Convention.
4. The competent authorities of the Contracting States may communicate directly with each other in order to reach an agreement as indicated in the preceding paragraphs. If oral exchanges seem to have to facilitate this agreement, these exchanges of views may take place within a commission composed of representatives of the competent authorities of the Contracting States.
Rule 27
Exchange of information
1. The competent authorities of the Contracting States shall exchange the information necessary to implement the provisions of this Convention, or those of the domestic legislation of the Contracting States relating to the taxes covered by the Convention, to the extent that the taxation it provides is not contrary to the Convention. The exchange of information is not restricted by section 1. The information received by a Contracting State shall be kept secret in the same manner as the information obtained under the domestic legislation of that State and shall only be communicated to the persons or authorities (including the courts and administrative bodies) concerned by the establishment or collection of the taxes referred to in the Convention, by the procedures or prosecutions relating to such taxes, or by the decisions on remedies relating to such taxes. These individuals or authorities only use this information for these purposes. They may report this information at public court hearings or in judgments.
2. The provisions of this Article shall in no case be construed as imposing on a Contracting State the obligation:
(a) To take administrative measures derogating from its legislation and administrative practice or those of the other Contracting State;
(b) To provide information that could not be obtained on the basis of its legislation or in the course of its normal administrative practice or those of the other Contracting State;
(c) To provide information that would reveal a commercial, industrial, professional or commercial secret or information that would be contrary to public order.
3. (a) The exchange of information takes place either ex officio or upon request for concrete cases. The competent authorities of the Contracting States agree to determine the list of information that is provided ex officio;
(b) Where a Contracting State requests information in accordance with the provisions of this Article, the other Contracting State shall endeavour to obtain the information relating to that request in the same manner as if its own taxes were at stake even if it does not require that information at the same time.
Rule 28
Recovery assistance
1. The Contracting States shall provide mutual assistance and support to recover their tax claims, in accordance with the rules specific to their respective laws or regulations. The term "tax debt" means for the purposes of this section the taxes referred to in Article 2 as well as the increases in fees, in additions, late allowances, interest and costs associated with these taxes when these amounts are permanently due under the laws or regulations of the requesting State.
2. At the request of the requesting State, the requested State shall collect the tax claims of the first State in accordance with the law and administrative practice applicable to the collection of its own tax claims, unless this Convention otherwise provides.
3. The provisions of paragraph 2 apply only to tax claims that are the subject of a title to continue the recovery in the requesting State and which cannot be contested.
4. The requested State is not obliged to respond to the request:
(a) If the requesting State has not exhausted all means of recovering its tax debt available to it on its own territory, unless its use results in disproportionate difficulties;
(b) If and to the extent that it considers that tax debt is incompatible with the provisions of the Convention or with those of any other convention to which both Contracting States are a party.
5. The assistance granted for the recovery of tax claims relating to a deceased person or his estate is limited to the value of the estate or the share received by each beneficiary of the estate, as the debt is to be recovered from the estate or from the beneficiaries of the estate.
6. The request for assistance for the recovery of a tax debt is accompanied by:
(a) A proof that tax debt is a tax subject to the Convention and cannot be contested;
(b) An official copy of the title allowing execution in the requesting State;
(c) any other document required for recovery; and,
(d) If applicable, a certified copy of any decision in respect of an administrative body or tribunal.
7. The title allowing the execution in the requesting State is, if applicable, and in accordance with the provisions in force in the requested State, admitted, approved, completed or replaced as soon as possible after the date of receipt of the request for assistance by a title allowing the execution in the requested State.
8. Issues relating to the limitation period of tax debt are governed exclusively by the legislation of the requesting State. The request for assistance contains information on this deadline.
9. The acts of recovery carried out by the requested State following a request for assistance and which, according to the law of that State, would have the effect of suspending or interrupting the limitation period, have the same effect under the law of the requesting State. The requested State shall inform the requesting State of the measures taken to that end.
10. The tax debt for the recovery of which assistance is granted enjoys in the requested State the same guarantees and privileges as the claims of the same nature of that State.
11. Where a tax debt of a Contracting State is subject to or is still subject to appeal and the guarantees provided for in the legislation of that Contracting State could not be obtained, the competent authority of that State may request the competent authority of the other Contracting State to take the precautionary measures authorized by the law or regulation of that Contracting State. The provisions of the preceding paragraphs of this article shall apply mutatis mutandis to these measures.
12. In no case shall the provisions of this article be construed as imposing on the requested State the obligation:
(a) Take measures that derogate from the legislation or administrative practice of either of the Contracting States;
(b) To take measures that it considers to be contrary to public order.
Rule 29
Diplomatic agents
and consular officials
1. The provisions of this Convention shall not affect the tax privileges enjoyed by diplomatic agents or consular officials under either the general rules of international law or the provisions of special agreements.
2. Notwithstanding the provisions of Article 4, any natural person who is a member of a diplomatic mission, a consular post or a permanent delegation of a Contracting State, located in the other Contracting State or in a third State, shall be considered, for the purposes of the Convention, as a resident of the State accrediting, if it is subject in that State accrediting to the same obligations, in respect of taxation on the property
3. The Convention shall not apply to international organizations, their organs or officials, or to persons who are members of a diplomatic mission, a consular post or a permanent delegation of a third State, where they are located in the territory of a Contracting State and are not subject to the same obligations in a Contracting State in respect of taxes on the whole of their income and property, as the residents of that Contracting State,
Rule 30
Entry into force
1. Each Contracting State shall notify the other of the procedures required by its legislation for the implementation of this Convention. The latter will enter into force on the first day of the second month following the day on which the last notification was received.
2. The provisions of the Convention shall apply for the first time:
(a) With respect to taxes collected by way of deduction at the source, amounts paid from the date of entry into force of the Convention;
(b) With respect to other income taxes, income for the calendar year in which the Convention entered into force or the year in which it opened in that year;
(c) With respect to other taxes, taxations of which the fact-generating act will take place from the date of entry into force of the Convention.
3. The provisions of the Convention of 17 May 1982 between the Government of the French Republic and the Government of the Algerian Democratic and People's Republic with a view to avoiding double taxation and establishing rules of mutual assistance in respect of income tax, inheritance tax, registration and stamp rights, as well as the provisions of treaties or special agreements relating to the incomes referred to in Article 19, shall cease to apply
Rule 31
Denunciation
1. This Convention shall remain in force without limitation of time. However, after a period of five calendar years following the date of its entry into force, each Contracting State may, on a minimum notice of six months notified by the diplomatic channel, denounce it for the end of a calendar year.
2. In this case, the provisions of the Convention will last apply:
(a) In respect of taxes collected by way of deduction to the source, amounts paid by December 31 of the calendar year for the purpose of which the denunciation has been notified;
(b) With respect to other income taxes, revenues for the calendar year for the purpose of which the denunciation has been notified or the year of account that is open during that year;
(c) With respect to other taxes, taxations that will be imposed by December 31 of the calendar year for which the denunciation has been notified.
In faith, the undersigned, duly authorized to do so, have signed this Convention.
Done in Algiers on 17 October 1999, in duplicate, in French and Arabic, both texts being equally authentic.
For the Government
of the French Republic:
François Huwart,
Secretary of State
Trade
For the Government
of the Algerian Republic
democratic and popular:
Abdelkrim Harchaoui,
Minister of Finance
PROTOCOLE
At the time of the signing of the Convention between the Government of the French Republic and the Government of the People's Democratic Republic of Algeria with a view to avoiding double taxation, preventing tax evasion and fraud, and establishing rules of mutual assistance with respect to taxes on income, property and estate, the undersigned have agreed on the following provisions which are an integral part of the Convention.
1. With respect to section 2, paragraph 3, it is understood that the tax on wages and lump sum payments is governed by the applicable rules, as appropriate, to the profits of enterprises or to the income of independent professions.
2. With respect to Article 4, where a shareholder, partner or other member of a partnership or group of persons referred to in paragraph 4 of this Article is considered to be a resident of Algeria pursuant to the provisions of paragraphs 1, 2 or 3 of the same Article, its status as a resident of Algeria is not affected by the provisions of paragraph 4 above.
33. With regard to paragraph 4 of Article 5, it is understood that the term "delivery" does not cover sales, but refers to the case of goods imported from a Contracting State whose price was determined prior to their storage in the other Contracting State, so that the installation or warehouse does not constitute a place of sale.
4. With respect to Article 7:
(a) Where a business of a Contracting State sells goods or carries on an activity in the other Contracting State through a permanent establishment located therein, the profits of that permanent establishment are not calculated on the basis of the total amount received by the undertaking, but on the sole basis of revenues attributable to the actual activity of the permanent establishment for such sales or for that activity;
(b) In the case of contracts, including contracts for the study, supply, installation or construction of industrial, commercial or scientific equipment or establishments, or public works, where the enterprise has a permanent establishment, the profits of this permanent establishment are not determined on the basis of the total amount of the contract, but only on the basis of the share of the contract which is actually executed by this permanent establishment in the Contracting State in which it is located. The profits relating to the share of the contract which is executed in the Contracting State where the effective management seat of the enterprise is located shall be taxable only in that State;
(c) Notwithstanding the provisions of Article 7, French companies carrying on business in Algeria through a permanent establishment located therein may benefit from the flat-rate tax regime (retained at source) provided for in Algerian legislation under the same conditions as third-party enterprises subject to this legislation. In practice, they notify their choice of the lump-sum tax regime to the Algerian tax administration prior to the commencement of the activity by attaching a copy of the contract.
5. With respect to paragraph 1 of Article 24:
(a) It is understood that the French domestic legislation referred to in this paragraph includes the provisions of Article 209 I of the General Code of French Taxes, according to which the profits subject to corporate tax are determined taking into account only the profits realized in the enterprises operated in France;
(b) It is understood that the term "the amount of French tax corresponding to these revenues" means:
(i) When the tax due to these revenues is calculated by applying a proportional rate, the proceeds of the amount of the net income considered by the rate that is actually applied to them;
(ii) When the tax due to these revenues is calculated by applying a progressive scale, the proceeds of the amount of the net income considered by the rate resulting from the ratio of the tax actually due to the taxable aggregate net income under French law and the amount of that aggregate net income.
This interpretation shall apply by analogy to the expression "the amount of the French tax corresponding to that fortune" and to the expression "the share of the French tax calculated before deduction, corresponding to the property to which the deduction must be granted";
(c) It is understood that the term "tax amount paid in Algeria" refers to the amount of the Algerian tax actually borne on a final basis on the basis of the income or assets considered, in accordance with the provisions of the Convention, by the resident of France who is entitled to such income or has such assets, or because of the property considered to be part of the succession of the resident of France.
6. With respect to Article 26, the competent authorities of the Contracting States may agree on the terms and conditions of application of the Convention, including the formalities to be performed by the residents of a Contracting State in order to obtain, in the other Contracting State, the tax benefits provided for in the Convention. Such formalities may include, if agreed by the competent authorities, the submission of a residence certificate form, which includes, in particular, the nature and amount or value of the income, assets or estates concerned and which includes the certification of the tax services of the first State.
7. Notwithstanding the provisions of the Convention, France may apply the provisions of articles 209 quinquies, 209 B and 212 of its general tax code or similar provisions that would fine or replace those of those articles.
8. If, in accordance with its domestic legislation, France determines the taxable profits of residents of France by deducting the deficits of subsidiaries that are residents of Algeria or of stable establishments located in Algeria, and by integrating the profits of such subsidiaries or permanent establishments up to the amount of the deducted deficits, the provisions of the Convention do not oppose the application of this legislation.
9. If a treaty, agreement or Convention between the Contracting States, other than this Convention, contains a non-discrimination clause or a clause of the most favoured nation, it is understood that only the provisions of this Convention, excluding such clauses, are applicable in tax matters.
10. Nationals of a Contracting State shall not be subject, when they leave the territory of the other Contracting State provisionally or definitively, to the formality of the tax quitus.
In faith, the undersigned, duly authorized to do so, have signed this protocol.
Done in Algiers on 17 October 1999, in duplicate, in French and Arabic, both texts being equally authentic.
For the Government
of the French Republic:
François Huwart,
Secretary of State
Trade
For the Government
of the Algerian Republic
democratic and popular:
Abdelkrim Harchaoui,
Minister of Finance
Done in Paris, 20 December 2002.
Jacques Chirac
By the President of the Republic:
The Prime Minister,
Jean-Pierre Raffarin
Minister of Foreign Affairs,
Dominique de Villepin
