The Tax Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income between the Government of France and the Government of Canada was signed on 2 May 1975 and amended in 1987, 1995 and 2010 (the "Convention"). [1]
The objectives of this Convention are manifold. First, the two countries want to promote their economic relations and cooperation in tax matters. In addition, they wish to eliminate double taxation in respect of certain taxes expressly covered by the Convention.
However, the Convention has provided a safeguard: the set-up or strategies put in place by taxpayers, whether natural or legal persons, must not have the sole purpose of obtaining tax relief provided for by the Convention.
The French and Canadian taxes concerned by the Convention are limited to:
- income tax, including in the case of a sale of immovable property;
- corporate tax registered in France or Canada; and
- tax on transfer duties free of charge (only in the case of France).
This article will help you better understand the tax impacts of your income between the two countries if you are an individual. If you are a company, we have also written an article to guide you.
