The agreement applies to different taxes for the two territories. For France, the agreement covers income tax, corporation tax, corporation tax, payroll tax, social security tax and wealth tax. For Hong Kong, the agreement only covers income tax, payroll tax and property tax. The Bank deducted the withholding tax levied in Germany on payments made for participatory securities in order to reduce its French corporate tax debt, in accordance with Articles 9 and 20 of the double taxation agreement between France and Germany (the Fra Ger Treaty). The ESTV challenged the tax credit on the basis that participatory securities must be considered as debt securities (particularly on the basis of their terms and conditions) and therefore cannot benefit from Articles 9 to 6 and 20 of the Fra-Ger contract. France and China signed a new agreement (hereafter “Agreement”) and implementation protocol on 26 November 2013 in Beijing to avoid double taxation and to prevent tax evasion and evasion in the area of income tax impatements. France and China, for example, have entered into a Franco-Chinese tax agreement since 1984. This will alleviate the problem of double taxation. This convention was then re-educated on 28 December 2014 in response to the new problems encountered in the first part of the 21st century.
Here we will try to summarize and explain the fundamental points of this agreement and to recall the basics of taxation in China for French taxpayers. The 46-day agreement, signed on 21 October, describes procedures and guidelines for citizens of two states and multinationals to obtain tax credits from Hong Kong or France in order to avoid double taxation. The current French tax update will focus on (i) the main features of the new double taxation agreement signed by the People`s Republic of China (China) and France on 26 November 2013 (New DTT), (ii) on the new double taxation agreement signed by Singapore and France on 15 January 2015, (iii) some remarkable court decisions adopted in the last months of 2014. and (iv) the publication of an administrative list of fraudulent and abusive transactions. China has also signed with some counties (. B for example, Belgium, Chile, Denmark, Sweden, Usa) special agreements on international transport. Under other double taxation agreements recently signed by France, Article 10-6 of the New DTT refuses reduced withholding rates on dividends paid by real estate vehicles (for example. B SIICs and OPCI for France).