Key Benefits:
President of the Republic,
On the report of the Prime Minister and the Minister of State, Minister for Foreign and European Affairs,
Considering the Constitution, in particular articles 52 to 55;
Vu la Act No. 2011-1279 of 13 October 2011 authorizing the approval of the agreement between the Government of the French Republic and the Government of the Isle of Man with a view to avoiding the double taxation of companies operating, in international traffic, ships or aircraft;
Vu le Decree No. 53-192 of 14 March 1953 amended on the ratification and publication of international commitments undertaken by France,
Decrete:
The agreement between the Government of the French Republic and the Government of the Isle of Man to avoid double taxation of companies operating, in international traffic, ships or aircraft, signed at Douglas on 26 March 2009, will be published in the Official Journal of the French Republic.
The Prime Minister and the Minister of State, Minister for Foreign and European Affairs, are responsible, each with regard to him, for the execution of this decree, which will be published in the Official Journal of the French Republic.
A C C O R D
ENTER THE GOVERNMENT OF THE FRANÇAISE REPUBLIC AND THE GOVERNMENT OF THE ISLAND OF MAN TO SEE THE DOUBLE IMPOSITION OF THE ENTREPRESENTATIVE, IN INTERNATIONAL TRAFFIC, NAVIRES or ERONEFS, SIGNED TO DOUGLAS ON 26 MARCH 2009
The Government of the French Republic and the Government of Man Island,
Desirous of entering into an agreement to avoid double taxation of companies operating, in international traffic, ships or aircraft,
The following provisions were agreed:
Article 1
Scope of the agreement
This Agreement applies to companies operating, in international traffic, vessels or aircraft, that are resident of a Party or both Parties.
Article 2
Taxes targeted
1. This Agreement applies to the following taxes established by the Parties:
(a) With regard to France:
income tax;
- corporate tax;
– social contribution on corporate tax;
– wage taxes;
and any deduction from the source, any advance payment or deposit relating to such taxes;
(b) For 1 island of Man:
tax on income or profits (taxes on income profits).
2. This Agreement also applies to taxes of an identical or similar nature that would be established after the date of signing of the Agreement and that would add to or replace existing taxes. The competent authority of each Party shall notify the other of any substantial amendments to its legislation that may affect the obligations to which the Party is subject under this Agreement.
Article 3
Definitions
1. For the purposes of this Agreement, unless the context requires a different interpretation:
(a) the term "Party" means, as appropriate, the French Republic or the Isle of Man; the term "Parties" means the French Republic and the Island of Man;
(b) the term "Island of Man" means the island of the same name;
(c) the term "France" means 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;
(d) the term "person" means a natural person, a society and any other grouping of persons;
(e) the term "corporate" means any corporation, or entity that is considered, for taxation purposes, to be a corporation;
(f) the term "competent authority" means;
(i) in the case of France, the Minister of Finance or its authorized representative;
(ii) in the case of Man Island, the Director of the Income Tax Division (Assessor of income tax) or his representative;
(g) the term "resident of a Party" means any person who, under the legislation of that Party, is subject to tax in that Party on the basis of his domicile, residence, effective management seat or any other similar criteria;
(h) the term "business of a Party" means a business operated by a resident of a Party;
(i) the term "international traffic" means any transport by a ship or aircraft operated by a company whose effective steering seat is located in one of the Parties, except where the vessel or aircraft is operated only between points in the other Party.
2. For the purposes of this Agreement at any time by a Party, any term or expression that is not defined therein shall, unless the context requires a different interpretation, the meaning assigned to it at that time by that Party in respect of the taxes to which this Agreement applies, the meaning assigned to that term or expression by the tax law of that Party in respect of the meaning assigned to it by the other branches of the law of that Party.
Article 4
Benefits and gains from maritime transport
and Air
1. The profits derived by a company of a Party from the operation, in international traffic, of ships or aircraft shall be taxable only in the Party where the effective management seat of the enterprise is located.
2. The gains that a company of a Party derives from the alienation of ships or aircraft operated in international traffic or of movable property assigned to the operation of such vessels or aircraft shall be taxable only in the Party where the effective management seat of the undertaking is located.
3. The provisions of paragraphs 1 and 2 also apply to benefits and gains derived by a company of a Party in respect of its participation in a grouping (pool), a joint operation or an international operating organization.
4. If it is necessary to clarify the meaning of the term "benefits derived by a company of a Party from the operation, in international traffic, of ships or aircraft", the Parties agree to refer to Article 8 (maritime, domestic and air navigation) and to comments on Article 8 of the Model Tax Convention concerning the Income and Capital of the Organisation for Economic Cooperation and Development.
Article 5
Friendly procedure
1. Where a person considers that the measures taken by a Party or both Parties shall result in or result in taxation not in accordance with the provisions of this Agreement, the person may, irrespective of the remedies provided by the domestic law of those Parties, submit his case to the competent authority of the Party of which the person is a resident. The case shall be submitted within three years after the first notification of the measure that results in taxation not in accordance with the provisions of this Agreement.
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 mutual agreement with the competent authority of the other Party, with a view to avoiding taxation not in accordance with this Agreement. The agreement eventually entered into shall be applied regardless of the time limits provided by the domestic law of the Parties.
3. The competent authorities of the Parties shall endeavour, by mutual agreement, to resolve the difficulties or to dispel the doubts that may arise from the interpretation or application of this Agreement.
4. The competent authorities of the Parties may communicate directly with each other in order to reach an agreement as indicated in the preceding paragraphs.
Article 6
Entry into force
1. This Agreement shall be subject to ratification, acceptance or approval by the Parties in accordance with their respective rights.
Instruments of ratification, acceptance or approval shall be exchanged as soon as possible.
2. This Agreement shall enter into force on the thirtieth day after the last date of notification by each Party in written form of the performance of the procedures required by its law. This Agreement shall apply with respect to taxes payable for any fiscal year beginning on January 1 (first) or after January 1 (first) of the year immediately following that in which the Agreement entered into force.
3. Notwithstanding paragraphs 1 and 2 of this Article, the Agreement shall enter into force only when the Agreement between the Government of the French Republic and the Government of Man Island on the exchange of information in tax matters shall take effect.
Article 7
Denunciation
1. Each Party may denounce this Agreement by notifying this denunciation by mail to the competent authority of the other Party.
2. The Agreement will end on the 1st (first) January of the calendar year following the calendar year in which the denunciation has been notified.
3. Notwithstanding paragraphs 1 and 2 of this Article, the Agreement shall be denounced, without notification, on the date of the denunciation of the Agreement between the Government of the French Republic and the Government of Man Island on the exchange of information in tax matters.
IN WITNESS WHEREOF the undersigned, duly authorized by the Parties, have signed this Agreement.
DONE in duplicate in French and English, both texts being equally authentic at Douglas on March 26, 2009.
Done on January 18, 2012.
Nicolas Sarkozy
By the President of the Republic:
The Prime Minister,
François Fillon
The Minister of State,
Minister for Foreign Affairs
and European,
Alain Juppé
For the Government
of the French Republic:
Eric Woerth,
Minister of Budget,
Public Accounts
Civil Service
For the Government
of Man Island:
Allan Robert Bell,
Minister of Treasury
