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PROTOCOL

PROTOCOL TO THE CONVENTION BETWEEN THE GOVERNMENT OF THE FRENCH REPUBLIC AND THE GOVERNMENT OF THE PRINCIPALITY OF ANDORRA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION AND FRAUD WITH RESPECT TO TAXES ON INCOME

At the time of the signing of the Convention between the Government of the French Republic and the Government of the Principality of Andorra to avoid double taxation with respect to taxes on income and the prevention of tax evasion and tax fraud, the Governments agree that the following provisions shall form an integral part of the Convention.

(1) With respect to Article 2, it is understood that the present Convention shall apply to any tax levied on income that could replace or supplement the personal taxation instruments in force on the date of signature of the Convention.

(2) With respect to paragraph (1) of Article 4, in the case of Andorra, the term "resident of a Contracting State" includes any individual who is present in Andorra for more than 183 days per calendar year and any individual who has his center of economic interests in Andorra or carries on business principally in Andorra.

Such term does not include individuals supposedly having their tax residence in Andorra, through the possession of Andorran nationality or residence permits granted by the Andorran authorities.

(3) With respect to Article 10, it is understood that where a Contracting State shall apply to the permanent establishment of an entity established in the other Contracting, any exemptions provided by its domestic law for investment vehicles referred to in paragraph (7) of Article 10, no provision of this Agreement shall limit the right of the first Contracting State to tax according to its domestic law, the immovable property deemed distributed by that permanent establishment.

(4) With regard to Articles 10 and 11, a fund or investment company, situated in a Contracting State where it is not subject to a tax referred to in sub-paragraphs (a) and (b) of paragraph (3) of Article 2, and which receives dividends or interest from the other Contracting State, may request for the overall tax reductions or exemptions provided under the Convention for the portion of income that corresponds to the rights held in the fund or the company by residents of the first mentioned state and that is taxable on behalf of such residents.

(5) As regards Article 24, the two Contracting States shall agree not to exercise the option available to the requested Party, by Article 9 of the Agreement on the Exchange of Information on tax Matters signed by the Government of the French Republic and the Government of the Principality of Andorra in Andorra la Vieille on September 22, 2009, to ask the requesting Party for the reimbursement of certain expenses.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed this Protocol.

DONE, in duplicate, at Paris, on the 2nd day of April of the year 2013, in the French and Catalan languages, both texts being equally authentic.

FOR THE GOVERNMENT OF THE FRENCH REPUBLIC: PIERRE MOSCOVICI

FOR THE GOVERNMENT OF THE PRINCIPALITY OF ANDORRA: JORDI CLNCA MATEOS

BERNARD CAZENEUVE