The tax convention for the avoidance of double taxation and the prevention of tax evasion with respect to income taxes between the French government and the Canadian government was signed on May 2, 1975 and was amended in 1987, 1995 and 2010 (the " Convention ”) [1].
The objectives of this Convention are multiple. First, the two countries wish to promote their economic relations and cooperation in tax matters. Furthermore, they wish to eliminate double taxation with respect to certain taxes expressly covered by the Convention.
However, the Convention has provided a safeguard: the scheme or strategies put in place by taxpayers, whether individuals or legal entities, must not have the sole and exclusive aim of obtaining tax relief provided for by the Convention.
The French and Canadian taxes covered by the Convention are limited to:
- income tax including in the case of real estate sales;
- tax on companies registered in France or Canada; and
- tax on gift tax (only for France).
This article will help you better understand the tax implications of your income between the two countries if you are an individual. If you are a business, we have also written an article to guide you.
