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HP-1350
Washington - The Treasury Department today announced that United States Ambassador to France Craig Roberts Stapleton and French Minister of Finance Christine Lagarde signed a protocol updating the current income tax treaty between the United States and France.
The Treasury Department today announced that United States Ambassador to France Craig Roberts Stapleton and French Minister of Finance Christine Lagarde signed a protocol updating the current income tax treaty between the United States and France.In a ceremony held in Paris, the two officials signed a Protocol that makes several significant changes to the existing U.S.-France income tax treaty. The agreement provides for the elimination of source-country taxation of certain direct dividends as well as the elimination of source-country taxation of cross-border royalty payments.
The Protocol also provides for mandatory arbitration of certain cases that cannot be resolved by the competent authorities within a specified period of time, strengthens the treaty's provisions preventing so-called treaty shopping (the inappropriate use of a tax treaty by third-country residents), and updates the rules for the exchange of taxpayer information between the tax authorities of each country.
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