tax

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.

Germany announced last February that it had purchased tax data of millions of people living in Dubai.

Questioned by The Echoes, the General Directorate of Public Finances has also confirmed that the sharing of this data with the French tax authorities has already taken place.

The French authorities are now seeking to identify potential fraudsters in this data and the presence of "undeclared income" and "unknown assets" of people wanting to evade tax in their country. This will include verifying whether French entrepreneurs who have gone to Dubai have paid the "exit tax" which applies to unrealized capital gains made in France and abroad (1).

This article will outline the concept of Exit Tax in order to inform French expatriates residing in Dubai about their compliance or not with French tax law due to their change of tax residence from France to the Emirates.

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