Summary pursuant to sections 52 to 55 of the Constitution, Act No. 2007-1814 December 24, 2007 authorizing approval of the agreement between the Government of the French Republic and the great Libyan Arab Jamahiriya popular Socialist for the avoidance of double taxation with respect to taxes on income and prevent tax evasion.
Keywords foreign and European Affairs, INTERNATIONAL agreement, BILATERAL agreement, FRANCE, Libya, CONVENTION, tax on income, IR, DOUBLE taxation, tax fraud, EVASION FISCALE JORF n ° 0219 of September 19, 2008 page 14522 text no. 26 Decree No. 2008-969 of 17 September 2008 on the publication of the agreement between the Government of the French Republic and the great Libyan Arab Jamahiriya Socialist People's for the avoidance of double taxation with respect to taxes on the income and prevent tax evasion signed at Paris on 22 December 2005 (1) NOR: MAEJ0820534D ELI: https://www.legifrance.gouv.fr/eli/decret/2008/9/17/MAEJ0820534D/jo/texte Alias: https://www.legifrance.gouv.fr/eli/decret/2008/9/17/2008-969/jo/texte the President of the Republic, on the report of the Prime Minister and the Minister of foreign and European Affairs, having regard to articles 52 to 55 of the Constitution;
Pursuant to law No. 2007-1814 24 December 2007 authorizing approval of the convention between the Government of the French Republic and the great Libyan Arab Jamahiriya Socialist People's for the avoidance of double taxation with respect to taxes on income and prevent tax evasion;
Having regard to Decree No. 53-192, 14 March 1953 as amended relating to the ratification and publication of international commitments entered into by France, enacts as follows: Article 1 the agreement between the Government of the French Republic and the great Libyan Arab popular Socialist Jamahiriya for the avoidance of double taxation with respect to taxes on income and prevent tax evasion signed at Paris on 22 December 2005, will be published in the Official Journal of the French Republic.


Article 2 the Prime Minister and the Minister of foreign and European Affairs are responsible, each in relation to the implementation of this Decree, which shall be published in the Official Journal of the French Republic.

Annex C O N V E N T I O N between the Government of the Republic French and the great Libyan Arabic Libyan popular Socialist for avoid the double charges for taxes on the income and of preventing the escape tax. the Government of the French Republic and the great Libyan Arab popular Socialist Jamahiriya, desiring to conclude a Convention for the avoidance of double taxation with respect to taxes on income and prevent tax evasion , have agreed upon the following provisions: Article 1 persons covered this Convention shall apply to persons who are residents of a Contracting State or both Contracting States.
Article 2 taxes covered 1. This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its local authorities, regardless of the collection system.
2 are considered as taxes on the income, all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of property movable or immovable property, taxes on the total amount of salaries paid by enterprises, as well as taxes on capital gains.
3. the existing taxes to which the Convention shall apply are: has) with respect to the France: i) the income tax;
(ii) the corporate income tax);
(iii) contributions on corporate income tax;
(iv) the tax on salaries);
v) the generalised social contributions and contributions for the repayment of the social debt;
including all source deductions, all prepayment and advances credit on these taxes, (hereinafter referred to as "french tax");
(b) with regard to Socialist People's great Libyan Arab Jamahiriya: i) the income tax on land;
(ii) the tax on agricultural incomes);
(iii) taxes on the commercial, industrial and professional benefits that include: a) taxes on the profits from commercial, industrial and professional;
(b) corporate income tax;
(iv) taxes on the income of the liberal professions;
v) taxes on salaries, wages and income assimilated;
(vi) the tax on income earned abroad;
(VII) the tax on the products of bank deposits and savings accounts);
VIII) defence tax ('Al Jihad Tax'), (hereinafter referred to as "Libyan tax").
4. the Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention and additional to existing taxes or place. The competent authorities of the Contracting States shall communicate to the significant changes made to their respective taxation laws.
Article 3 General Definitions 1. For the purposes of this Convention, unless the context otherwise requires: a) the terms "Contracting State" and "the other Contracting State" mean, depending on the circumstances, the France or the great Libyan Arab Jamahiriya Socialist People;
(b) the term "France" means the European departments and overseas of the French Republic, including the airspace, territorial sea, and beyond areas on which, in accordance with international law, the French Republic has sovereign rights for the purpose of exploration and exploitation of the natural resources of the seabed, its subsoil and the superjacent waters;
(c) the term "Grande Libyan Arabic Libyan popular Socialist" means the territory of the great Libyan Arab popular Socialist Jamahiriya including airspace, territorial sea, and beyond the areas on which, in accordance with international law, Socialist People's great Libyan Arab Jamahiriya has sovereign rights for the purpose of exploration and exploitation of the natural resources of the seabed subsoil and the superjacent waters;
(d) the term "person" includes natural persons, companies and any other body of persons;
(e) the term "company" means any legal person or any entity which is considered, for the purposes of taxation, as a legal person;
(f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on 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 which the place of effective management is situated in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; This means also any transport by container when this transport is that the complement of a transport in international traffic;
(h) the term "competent authority" means: i) in the case of France, the Minister in charge of the budget or his authorized representative;
(ii) in the case of the Great Jamahiriya Arabic Socialist People's Jamahiriya, the tax authority;
(i) the term "national" means: i) any natural person who possesses the nationality of a Contracting State;
(ii) any legal person established in accordance with the legislation in force in a Contracting State.
2. for the purposes of the Convention at any time by a Contracting State, any term or phrase that is not defined, unless the context requires a different interpretation, the meaning that he ascribes to this time the law of that State concerning the taxes covered by the Convention, the meaning given to this term or expression by the tax law of that State prevailing on the meaning attributed to it by the other branches of law of that State.
Article 4 place of taxation subject to provisions to the contrary contained in this agreement, the place of taxation of income is considered to be situated in the State originates this income.
Section 5 Resident 1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax in that State, due to his home, his residence, place of management or any other criterion of a similar nature and also applies to that State as well as its local authorities and legal entities of public law of that State , or its local authorities. However, this term does not include persons who are subject to tax in that State as the income from sources in that State.
2. where, under the provisions of paragraph 1 an individual is a resident of both Contracting States, his status is set as follows: a) this person is considered to be a resident only of the State where it has a permanent home; If it has a permanent home in the two States, it is considered as a resident only of the State with which his personal and economic relations are closer (centre of vital interests);

(b) if the State where he has his centre of vital interests cannot be determined, or if it has a permanent home in any of the States, it is considered to be a resident only of the State where she is staying in usual manner;
(c) whether he has habitual abode in both States or if it resides habitually in any of them, it is considered to be a resident only of the Contracting State in which it is a national;
(d) If this person is a national of both States or it possesses the nationality of any of them, the competent authorities of the Contracting States settle the question by mutual agreement.
3. where, under the provisions of paragraph 1, one person other than an individual is a resident of both Contracting States, it is considered to be a resident only of the State in which its place of effective management is situated.
4. the term "resident of a Contracting State" includes partnerships and groups of persons which the place of effective management is situated in a Contracting State and the holders of shares, shareholders or other members are personally subject to tax at the rate of their share in the profits of these companies or groups in accordance with the domestic laws of that Contracting State.
Article 6 establishment stable 1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which a company carries on all or part of its activity.
2. the term "permanent establishment" includes especially: a) a place of management, b) a branch, c) desks, d) a plant, e) workshop, f) a mine, a well of oil or gas, a quarry or any other place of extraction of natural resources, and g) a building site or construction or installation, only if its duration exceeds three months.
3. Notwithstanding the preceding provisions of this article, considering that it has not 'permanent establishment' if: has) it is made use of facilities for the sole purpose of storage, exposure or delivery of goods belonging to the enterprise;
(b) goods belonging to the company are stored for the sole purpose of storage, exposure or delivery;
(c) goods belonging to the company are stored for the sole purpose of processing by another enterprise;
(d) a fixed place of business is used solely to purchase merchandise or to gather information, for the enterprise;
(e) a fixed place of business is used for the sole purpose for the company, to advertising, to provide information, to conduct scientific research or to perform any other activity of a preparatory character or accessory.
4. a person acting in a Contracting State on behalf of one enterprise of the other State Contracting — other than an agent of an independent status to which subsection 5 ― applies is considered to constitute a permanent establishment in the first State if it has in this state of powers exercised by it are usually to conclude contracts on behalf of the company unless the activities of such person are limited to those mentioned in paragraph 3.
5. an enterprise of a Contracting State shall not be considered as having a permanent establishment in the other Contracting State merely that it carries on its business through a broker, general Commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary activity course.
6. the fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other State Contracting or which carries on business (whether through an establishment stable or not) does not, in itself, to make one any of these companies a permanent establishment of the other.
Article 7 property income 1. Income from immovable property may be taxed in the Contracting State where the immovable property is situated.
2. the term "immovable property" is defined in accordance with the law of the Contracting State where the property in question is situated. The term includes in any case accessories, livestock dead or alive's farms and forestry, rights to which the provisions of private law concerning land ownership, usufruct of real property and rights to variable or fixed payments for the exploitation or concession of exploitation of deposits minerals, sources and other natural resources; ships, boats and aircraft are not considered to be real property.
3. the provisions of paragraph 1 shall apply to income derived from the direct use, letting or use, as well as any other form of immovable property.
4. the provisions of paragraphs 1 and 3 shall apply also to income from real property of an enterprise.
5. when actions, shares or other rights in a company, a trust, or a comparable institution give the enjoyment of immovable property situated in a Contracting State and held by that company, trust or comparable institution, the income from the direct use, rental or use in any other form of this right of enjoyment are taxable in that State notwithstanding the provisions of articles 8 and 15.
Article 8 profits of enterprises 1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the company operates in the other State Contracting through a permanent establishment situated therein. If the enterprise carries on business in such a way, the profits of the enterprise are taxable in the other State but only insofar as they are attributable to that permanent establishment.
2. where an enterprise of a Contracting State carries on business in the other State Contracting through a permanent establishment situated therein, there shall be charged, in each Contracting State, to that permanent establishment profits that he could achieve if it had been a separate business operating identical or analogous in identical or similar conditions and dealing independently with the enterprise of which it is a permanent establishment.
3. in determining the profits of a permanent establishment, are allowed as deductions operational expenditure incurred for the purposes of the permanent establishment, including a share of the costs of management and costs general administration thus exposed and supported by documentary evidence, these expenditures are exposed in the State where the permanent establishment is situated or elsewhere.
4. for the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment are determined each year by the same method, unless there is good and sufficient contrary reasons.
5. where profits include items of income which are dealt with separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.
Article 9 shipping and air transport 1. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State where the place of effective management of the enterprise is situated. These benefits include revenues that the undertaking of other activities, and in particular the use, maintenance or rental of containers for the transport of goods or merchandise in international traffic, provided that these activities are ancillary to the operation of ships or aircraft by the company in international traffic. If the seat of effective management of a shipping enterprise is aboard a ship or a boat, this seat is considered to be situated in the Contracting State where the homeport of this ship or this boat or, in the absence of home port, in the State Contracting including the operator of the ship or boat is a resident.
2. the provisions of paragraph 1 of this article shall also apply to profits from the participation in a group ("pool"), a joint operation or an international operating agency.
Article 10 associated enterprises 1. When: a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of one enterprise of the other Contracting State, or that b) the same persons participate directly or indirectly to the direction, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and that, in the other case the two companies are, in their commercial or financial, relationships bound by conditions agreed or imposed that differ from those that would be agreed between independent companies, profits which, without these conditions, allegedly made by one of the companies but could not be in fact because these conditions can be included in the profits of that enterprise and taxed accordingly.

2. where a Contracting State includes in the profits of an enterprise of that State — and impose accordingly — profits on which an enterprise of the other Contracting State has been imposed in that other State and the profits so included are profits which have been made by the company of the first State if the conditions agreed between the two companies had been those which would have been agreed between independent enterprises the other State is an appropriate adjustment of the amount of the tax that has been levied on those profits if he considers that this adjustment is justified. To determine this adjustment, account shall be taken of the other provisions of this Convention and, if necessary, the competent authorities of the Contracting States shall consult each other.
Article 11 dividends 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the current and future State legislation, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so established in the source State shall not exceed: a) 5% of the gross amount of the dividends if the beneficial owner of the dividends is a company that holds directly or indirectly at least 10 per cent of capital of the company paying the dividends;
(b) 10% of the gross amount of the dividends in all other cases.
This paragraph does not affect the taxation of the company in respect of the benefits that are used for the payment of dividends.
3. the term "dividends" as used in this article means income from shares, shares or dividend certificates, mining, founder shares or other rights with the exception of receivables, as well as income subjected to the regime of distributions by the taxation law of the Contracting State of which the company making the distribution is a resident. It is understood that the term "dividends" does not include income dealt with in article 17.
4. the provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the dividends, being a resident of a State Contracting, carries on in the other Contracting State of which the company paying the dividends is a resident, either industrial and commercial activity through a permanent establishment situated therein, or an independent profession through a fixed base which is located , and generating participation of dividends related actually. In this case, the provisions of article 8 or article 15, as the case may be, shall apply.
5. where a company which is a resident of a Contracting State derives profits or income from the other State Contracting, that other State may levy no tax on dividends paid by the company, except to the extent where such dividends are paid to a resident of that other State or insofar as where the dividends generating participation relates effectively to a permanent establishment or a fixed base situated in that other State , or impose any tax in respect of the taxation of retained earnings, retained earnings of the company, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income from that other State.
6. the provisions of this Convention shall apply only on condition that the beneficial owner of the dividends, a resident of a Contracting State, establish, whenever requested to do so by the tax authorities of the other Contracting State, generating dividends participation does not have as main purpose or as one of its main purposes to take advantage of the provisions of this article.
Article 12 interest 1. (a) interest arising in a Contracting State and paid to a resident of the other Contracting State are taxable only in that other State, if the resident is the beneficial owner and is subject to tax at the rate of such interest in that other State.
(b) the tax under a condition does not apply if the beneficial owner of the referred interests is a Contracting State, a local authority or one of their legal persons governed by public law.
2. the term «interest» as used in this article means income of claims of any nature, secured or not secured by mortgage or a right to participate in the debtor's profits, and including income on public funds and bonds of debentures, including premiums and prizes attaching to such securities. The penalties for late payment are not considered as interest within the meaning of this article. The term "interest" does not include items of income which are considered as dividends in accordance with the provisions of article 11.
3. the provisions of subsection 1 do not apply if the beneficial owner of the interest, being a resident of a State Contracting, carries on in the other Contracting State comes the interests, either an industrial and commercial activity through a permanent establishment situated therein, or independent through a fixed base is situated, and the generating of interest receivable related actually. In this case, the provisions of article 8 or article 15, as the case may be, shall apply.
4. the interests are considered as coming from a Contracting State when the payer is a resident of that State. However, when the debtor of interests, whether or not a resident of a Contracting State, has in a State Contracting a permanent establishment or a fixed base which the debt giving rise to the payment of interest was contracted and which supports the load of these interests, these are considered as coming from the State where the permanent establishment or fixed base is located.
5. when, due to special relationship between the payer and the beneficial owner or that one and the other have with third parties, the amount of interest, taking into account the debt for which they are paid, exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the payments is taxable according to the laws of each Contracting State and in light of the other provisions of this Convention.
6. the provisions of this Convention shall not apply if the generator claim of interest has been incorporated or assigned mainly for the purpose of taking advantage of the provisions of this article.
Article 13 royalties 1. The term "royalties" as used in this article means payments of any kind paid for the concession of the use of a copyright in a literary, artistic or scientific, of a patent work, or the use of a trade mark or a trade, a drawing or a model, a plan, a formula or secret process or for information relating to experience gained in the industrial field commercial or scientific. The term "Royalties" excludes rent or any other income received at the rate of motion picture films. Those rents or income are considered for the purposes of this Convention as from the profits of the business.
2. the royalties from a Contracting State and paid to a resident of the other Contracting State are taxable only in that other State, if the resident is the beneficial owner.
3. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10% of the gross amount of the royalties.
4. Notwithstanding the provisions of paragraph 3, the fees referred to in paragraph 1 shall be taxable only in the Contracting State of which the person who receives the royalties is a resident, if this person is the beneficial owner, and these charges consist of remuneration of any kind for the use or right of use of a copyright in a literary work artistic or scientific, including live broadcasts, films, tapes or other means of use or reproduction used for radio or television.
5. the provisions of paragraphs 2, 3 and 4 do not apply if the beneficial owner of the royalties, being a resident of a State Contracting, carries on in the other Contracting State comes royalties, either an industry or business through a permanent establishment situated therein, or independent through a fixed base is situated, and that well Builder charges related actually. In this case, the provisions of article 8 or article 15, as the case may be, shall apply.
6. royalties shall be deemed as coming from a Contracting State when the payer is a resident of that State. However, when the debtor's 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 the royalties was incurred and that supports the load of these charges, they are considered as coming from the State where the permanent establishment or fixed base is located.

7. when, due to special relationship between the payer and the beneficial owner or that one and the other have with third parties, the amount of fees, taking into account the provision for which they are paid, exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the payments is taxable according to the laws of each Contracting State and in light of the other provisions of this Convention.
8. the provisions of this Convention shall not apply if the right or well Builder charges has been made or affected primarily to take advantage of the provisions of this article.
Article 14 Gains capital 1. (a) gains from the alienation of immovable property referred to in article 7 may be taxed in the Contracting State where the immovable property is situated.
(b) gains from the alienation of shares, units or other rights in a company, trust, or a comparable institution, including the asset or property are made for more than 50 percent of their value or derive more than 50 percent of their value — directly or indirectly by the interposition of one or several other companies, trusts or institutions comparable ― of immovable property referred to in article 7 and located in a State Contracting or establishing rights on such property may be taxed in that State. For the purposes of this provision, are not supported considered real property affected by such a company its own industrial, commercial or agricultural operation or exercise it independent professional.
2. gains from the alienation of movable property forming part of the assets of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property which belong to a fixed base available to a resident of a Contracting State in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of this establishment stable (alone or with the whole of the company) or the basic fixed may be taxed in that other State.
3. gains from the alienation of shares or shares forming part of a substantial interest in the capital of a company which is a resident of a Contracting State may be taxed in that State.
It considers that a substantial interest exists when the alienator, alone or with relatives, has directly or indirectly of shares or of shares which together gives rise to 25 per cent or more of the company's profits.
4. gains from the alienation of property forming part of the assets of a business and which consist of ships or aircraft operated in international traffic or movable property allocated to the operation of such ships or aircraft shall be taxable only in the Contracting State where the place of effective management of the enterprise is situated.
5. gains from the alienation of any property other than those referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in the Contracting State of which the alienator is a resident.
Article 15 independent personal services 1. Income derived by a resident of a Contracting State of a liberal profession or other activities of an independent character shall be taxable only in that State; However, such income may also be taxed in the other Contracting State in the following cases: a) if he has habitually in the other Contracting State of a fixed basis for the exercise of its activities; in this case, only the fraction of the revenue that is attributable to that fixed base may be taxed in the other Contracting State; or (b) if his stay in the other Contracting State extends over a period, or periods of a duration equal to or greater than 183 days commencing or ending in the fiscal year concerned; in this case, only the portion of revenues that is derived from activities carried on in that other State is taxable in that other State.
2. the term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 16 dependent personal services 1. Subject to the provisions of articles 17, 19, 20 and 21, salaries, wages and other similar remuneration that a resident of a Contracting State receives in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is exercised, the remuneration received for this may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first State if: a) the recipient is present in the other State for a period or periods exceeding not in total 183 days in any period of 12 consecutive months commencing or ending in the fiscal year concerned ((, and b) the remuneration is paid by an employer, or on behalf of an employer who is not a resident of the other State, and c) the remuneration is not borne by a permanent establishment which the employer has in the other State.
3. Notwithstanding the preceding provisions of this article, remuneration received in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State where the effective seat of management of the enterprise is situated.
Article 17 attendance tokens and other similar payments that a resident of a Contracting State in his capacity as member of the Board of Directors receives or of a company which is one resident of the other Contracting State may be taxed in that other State.
Article 18 artists and sportspersons 1. Notwithstanding the provisions of articles 15 and 16, income derived by a resident of a Contracting State from his personal activities exercised in the other Contracting State as an artist of the show, as an artist of theatre, film, radio or television, or a musician, or as a sportsperson, may be taxed in that other State.
2. where the income from activities exercised by an entertainer or a sportsperson personally and as such are attributed not to the entertainer or athlete himself but to another person, whether or not a resident of a Contracting State, such income are taxable, notwithstanding the provisions of articles 8, 15 and 16, in the Contracting State where the activities of the entertainer or athlete are exercised.
3. Notwithstanding the provisions of paragraph 1, income derived by a resident of a Contracting State from his personal activities exercised in the other State Contracting as a performing artist or sporting are taxable only in the first State where these activities in the other State are supported primarily by public funds of the first State, its local authorities, or their legal entities of public law , in the context of cultural exchanges.
4. Notwithstanding the provisions of paragraph 2, when the income from activities exercised by a resident of a State Contracting, performing artist or sporting, personally and in this capacity in the other Contracting State are attributed not to the entertainer or athlete himself but to another person, whether or not a resident of a Contracting State, such income is taxable, notwithstanding the provisions of articles 8 , 15 and 16, in the first State when in respect of these activities that other person is financed mainly by public funds of the first State, its local authorities, or their legal persons governed by public law, in the context of cultural exchanges.
Article 19 Pensions subject to the provisions of paragraph 2 of article 20, pensions and other similar remuneration paid to a resident of a Contracting State in respect of past employment shall be taxable only in that State.
Article 20 public functions 1. (a) salaries, wages and other remuneration, other than a pension, paid by a Contracting State or a local authority or by one of their legal persons governed by public law to an individual in respect of services rendered to that State, authority or person morality shall be taxable only in that State.
(b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of this State and has the nationality without at the same time possess the nationality of the first State.
2. a) pensions paid by a Contracting State or a local authority or by one of their legal persons governed by public law, either directly or by out of funds that they have established, to an individual in respect of services rendered to that State, local authority or corporation shall be taxable only in that State.
(b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of this State and has nationality without at the same time possess the nationality of the first State.

3. the provisions of articles 16, 17, 18 and 19 shall apply to salaries, wages and other similar remuneration and to pensions paid in respect of services rendered in connection with a business carried on by a Contracting State or a local authority or by one of their corporations under public law.
Article 21 students 1. The sums as a student or a trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is staying in the first State sole purpose of pursuing his studies or training, receives to cover maintenance costs, for studies or training are not taxable in that State provided that they are derived from sources outside that State.
2. the provisions of this section apply also to the income that a student or trainee receives at the rate of an employment exercised in the other State, provided that this employment is in connection with his studies or internship and that these revenues are necessary to the student or intern to cover maintenance costs.
Article 22 other income 1. (a) items of income of a resident of a Contracting State as they come, this resident is the beneficial owner and who are not covered by the preceding articles of the present Convention are taxable only in that State if this resident is subject to tax at the rate of these items of income in that State. If this condition is not fulfilled, these items of income are taxable in the other Contracting State and according to its legislation.
(b) the tax under a condition does not apply if the beneficial owner of the items of income covered is a Contracting State, a local authority or one of their legal persons governed by public law.
2. the provisions of paragraph 1 shall not apply to income other than income from real property as defined in paragraph 2 of article 7, where the beneficial owner of such income, being a resident of a State Contracting, carries on in the other Contracting State, either an industrial or commercial activity through a permanent establishment situated therein, or an independent profession with a base fixed which is located , and that the right or the generator of income related actually. In this case, the provisions of article 8 or article 15, as the case may be, shall apply.
3. when, because of special relationships between the person referred to in paragraph 1 and another person, or that one and the other have with third parties, the amount of income referred to in the same paragraph exceeds it amount possible which they would be agreed upon in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the income remains taxable under the laws of each Contracting State and in light of the other provisions of this Convention.
Article 23 Elimination of double taxation 1. With respect to the France, double taxation is eliminated as follows.
The income which may be taxed or shall be taxable only in the Great Jamahiriya Arab popular Socialist Jamahiriya, in accordance with the provisions of the Convention, are taken into account in calculating the french tax when they are not exempt from the corporation tax under French internal legislation. (In this case, the Libyan tax is not deductible from the income, but the resident of France is entitled, subject to the conditions and limits laid down in a) and b), a french tax attributable tax credit. This tax credit is equal: a) for income not mentioned in b), the amount of french tax corresponding to such income provided that the beneficiary resident of France is subject to the Libyan tax at the rate of these revenues;
(b) for income referred to in paragraph 5 of article 7, article 11, article 13, paragraph 1 of article 14, paragraph 3 of article 16, article 17 and paragraphs 1 and 2 of article 18, in the amount of tax paid in the Great Jamahiriya Arabic Socialist People's Jamahiriya in accordance with the provisions of those articles; However, this tax credit cannot exceed the amount of french tax corresponding to such income.
2. as regards the Socialist great Libyan Arab Jamahiriya Populaire, double taxation is eliminated as follows.
Income that may be taxed or be taxed in France in accordance with the provisions of the Convention are taken into account for the calculation of the Libyan tax when they are not exempt from the corporation tax in accordance with the internal legislation of the great Libyan Arab Jamahiriya Socialist People's. (In this case, the french tax is not deductible from the income, but the resident of the great Libyan Arab Jamahiriya popular Socialist is entitled, subject to the conditions and limits laid down in a) and b), a Libyan tax attributable tax credit. This tax credit is equal: a) for income not mentioned in b), to the amount of the Libyan tax corresponding to such income provided that the beneficiary resident of Socialist people great Libyan Arab Jamahiriya is subject to the french tax at the rate of these revenues;
(b) for income referred to in paragraph 5 of article 7, article 11, article 13, paragraph 1 of article 14, paragraph 3 of article 16, article 17 and paragraphs 1 and 2 of article 18, in the amount of tax paid in France in accordance with the provisions of those articles; However, this tax credit cannot exceed the amount of the Libyan tax corresponding to such income.
Article 24 non-discrimination 1. (a) nationals of a Contracting State not be subjected in the other Contracting State to any taxation or obligation y, which is other or more heavy than those which are or may be subjected nationals of that other State who are in the same situation, including with regard to the residence.
(b) for greater certainty, that a natural or legal person, a partnership or an association which is a resident of a Contracting State is not in the same situation as a natural or legal person, a partnership or an association that is not a resident of this State; and this, regardless of the definition of nationality, even if legal persons, partnerships and associations are considered to be nationals of the Contracting State of which they are residents.
2. the taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State is not established in that other State to less favourably than the taxation levied on enterprises of that other State carrying on the same activities. This provision cannot be interpreted as obliging a Contracting State to grant to residents of the other State contracting the personal allowances, reliefs and reductions for tax depending on the situation or family responsibilities which it grants to its own residents.
3. unless the provisions of article 10, paragraph 5 of article 12 or paragraph 7 of article 13 are applicable, interest, royalties and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State are deductible in determining taxable profits of the undertaking, under the same conditions as if they had been paid to a resident of the first State.
4. enterprises of a Contracting State, whose capital is wholly or in part, directly or indirectly owned or controlled by one or more residents of the other Contracting State, are subject in the first State to any taxation or obligation y, which is other or more heavy than those which are or may be subject other similar of the first State businesses.
5. has) when a natural person employed in a Contracting State, contributions to a pension plan established and recognised for the purposes of taxation in the other Contracting State that are supported by this person are deductible in the first State for the determination of the taxable income of that person, and are treated fiscally in the first State in the same manner as contributions to a pension plan recognized for the purposes of taxation in that other State and under reserve the same conditions and restrictions, provided that the pension plan is accepted by the competent authority of that State as a correspondent generally to a pension plan recognized for tax purposes in that State.
((b) for the purposes of the a: i) "pension plan" means a plan in which the individual participates in order to benefit from pension benefits payable in respect of employment referred to in the a, and ii) a pension plan is recognized for the purposes of taxation"in a Contracting State if the contributions to the plan are eligible for tax relief in that State.

6. exemptions from tax and other benefits provided by the taxation laws of a Contracting State for the benefit of that State, its local authorities or their legal entities public whose activity is not an industrial character or commercial shall apply under the same conditions respectively to the other Contracting State, its local authorities or their legal persons governed by public law whose activity is identical or substantially similar. Notwithstanding the provisions of paragraph 7, the provisions of this paragraph do not apply to taxes or taxes due as consideration for services rendered.
7. the provisions of this article shall apply notwithstanding the provisions of article 2, taxes of any nature or description.
8. If one treaty or bilateral agreement to which Contracting States are parties, other than the Convention, contains a non-discrimination clause or the most-favoured-nation clause, it is understood that such clauses are not applicable in tax matters.
Article 25 mutual agreement Procedure 1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States result or will result in taxation not in accordance with the provisions of this Convention for it, it may, irrespective of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which it is a resident or, if his case comes under paragraph 1 of article 24 , to that of the Contracting State in which it is a national. The case must be submitted within three years following the first notification of the action resulting 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 able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to avoidance of taxation not in accordance with the Convention. The agreement is 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 any difficulties or doubts arising as to which can lead the interpretation or application of the Convention. They may also consult 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 to reach an agreement as indicated in the preceding paragraphs. If oral discussions appear likely to facilitate this agreement, these exchanges of views may take place in a Committee of representatives of the competent authorities of the Contracting States.
Article 26 exchange of information 1. The competent authorities of the Contracting States shall exchange relevant information to apply the provisions of this Convention or of the domestic legislation of the Contracting States concerning taxes of any nature or description levied on behalf of Contracting States or of their local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by articles 1 and 2. Information received by a Contracting State are confidential in the same way that the information obtained pursuant to the legislation of that State and will be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the collection of taxes referred to in the first sentence, procedures or proceedings in respect of those taxes or the establishment , or by the decisions on appeals related to these taxes. These persons or authorities use this information for these purposes only. They can reveal such information public hearings of courts or in judgments.
2. the provisions of paragraph 1 shall not be interpreted as imposing a State Contracting obligation: has) to take administrative measures derogating from its legislation or administrative practice or those of the other Contracting State;
(b) to provide information that could be obtained on the basis of its legislation or of the other Contracting State;
(c) to provide information which reveal a commercial, industrial or professional secret or trade process, or information the disclosure of which would be contrary to public order.
Article 27 diplomatic and consular officials 1. The provisions of the present Convention shall affect the fiscal privileges enjoyed the members of diplomatic missions, members of the consular posts and members of permanent delegations to international organisations by virtue either of the General rules of international law or the provisions of special agreements.
2. Notwithstanding the provisions of article 5, any natural person who is a member of a diplomatic mission, a consular post or a delegation of permanent of a Contracting State situated in the other Contracting State or in a third State is considered, for the purposes of the Convention, as a resident of the sending State, provided that it is subject in the State sending the same obligations , tax on all his income as are residents of that State.
3. the Convention does not apply to international organizations, their bodies or their officials, or persons are members of a diplomatic mission, a consular post or a permanent delegation of a third State, when they are located on the territory of a Contracting State which are not submitted in a Contracting State to the same obligations, income tax on all their income that the residents of that State.
Article 28 miscellaneous provisions 1. If an agreement or an agreement between the France and a Member State of the African Union comes into force after the date of entry into force of this Convention and provides that the France gives the State the right to tax industrial and commercial profits or business conducted on the territory of that State by a resident of France wider than that defined by articles 8 and 15 of the convention in favour of the Great Libyan Arab popular Socialist Jamahiriya (both generally as regards specific categories of benefits), these provisions will automatically apply to the profits (both generally as regards specific categories of benefits) on the territory of the great Libyan Arab Jamahiriya Socialist People's by a resident of France as well as the profits made in France by a resident of the great Libyan Arab Jamahiriya Socialist People's in the same manner as if This scheme was specified in these articles. The French competent authority shall inform without delay the competent authority of the great Libyan Arab popular Socialist Jamahiriya that the conditions for the application of this paragraph have been met.
2. If an agreement or an agreement between the great Libyan Arab Jamahiriya Socialist People's and a State member of the Organization for Cooperation and economic development comes into force after the date of entry into force of this Convention and provides that Socialist people great Libyan Arab Jamahiriya exempts dividends or royalties (both generally as regards specific categories of dividends or royalties) from the great Libyan Arab Jamahiriya Socialist People's Jamahiriya, or limit the tax by the great Libyan Arab Jamahiriya popular Socialist on these dividends or royalties (both in General as regards the specific categories of dividends or royalties) at a lower rate than that provided for in paragraph 2 of article 11 or paragraph 3 of article 13 of the Convention such exemption or lower rate will automatically apply to dividends or royalties (both in General and with regard to specific categories of dividends or royalties referred) from the great Libyan Arab Jamahiriya popular Socialist whose resident in France is the beneficial as well as dividends or royalties from France including a resident of the great Libyan Arab Jamahiriya popular Socialist is the beneficial owner of the same way as if This disclaimer or this lower rate was specified in those paragraphs. The competent authority of Socialist people great Libyan Arab Jamahiriya shall inform without delay the French competent authority that the conditions for the application of this paragraph have been met.
Article 29 entry into force 1. This Convention is subject to ratification or approval in the context of the procedures required by the domestic law of each Contracting State. The Convention shall enter into force the first day of the second month following the date of receipt of the second instrument of approval or the second notification.
2. the provisions of the Convention apply: has) with respect to taxes on income levied by deduction at source, for amounts taxable after the calendar year in which the Convention has entered into force;

(b) with respect to taxes on income which are not collected by deduction at source, to income derived, depending on the case, in any calendar year or any fiscal year beginning after the calendar year in which the Convention has entered into force;
(c) with regard to other taxes, charges which the operative will take place after the calendar year in which the Convention has entered into force.
Article 30 implementing rules 1. The competent authorities of the Contracting States may jointly or separately regulate the procedures for implementation of the Convention.
2. in particular, to get in a State contracting the benefits provided for in articles 11, 12 and 13, residents of the other Contracting State shall, unless otherwise provided by the competent authorities, submit a certificate of residence indicating, in particular, the nature and the amount or value of the relevant income, and with the certification of tax services in that other State.
Article 31 denunciation 1. This Convention shall remain in force for an indeterminate period. Nevertheless, after a period of five calendar years from the date of entry into force of the Convention, each of the Contracting States may denounce notice notified through diplomatic channels at least six months before the end of any calendar year.
2. in this case, the Convention will be more applicable: has) with respect to taxes on income levied by deduction at source, for amounts taxable after the calendar year in which the information has been notified;
(b) with respect to taxes on income which are not collected by deduction at source, related income, as the case may be, any calendar year or any fiscal year beginning after the calendar year in which the withdrawal has been notified;
(c) with regard to other taxes, charges which the operative will take place after the calendar year in which the information has been notified.
In faith whereof the undersigned, duly authorized thereto, have signed this Convention.
Done at Paris, December 22, 2005, in duplicate, in Arabic and French languages both texts being equally authentic.
For the Government of the French Republic: Christine Lagarde Minister delegated to external trade for Socialist people great Libyan Arab Jamahiriya: Mohamed Ali El Huwej Secretary of the popular General of Finance Committee done at Paris, on September 17, 2008.
Nicolas Sarkozy by the President of the Republic: Prime Minister François Fillon Minister of foreign and European Affairs, Bernard Kouchner (1) the present convention came into force on July 1, 2008.