EXCHANGE OF NOTES
(I)
Ministry of Foreign Affairs
Paris, 21 July 1959
Sir,
On proceeding to sign the Convention negotiated between our two countries for the avoidance of double taxation and the establishment of principles for reciprocal administrative and legal assistance with respect to taxes on income and fortune, business taxes and land taxes, I have the honour, with reference to article 2, paragraph (1), sub-paragraph 7(d) of the Convention, to inform you that the High Contracting Parties have agreed that on the following interpretation of this provision:
It is understood that an insurance enterprise of one of the Contracting States having a representative approved by the authorities of the other State shall not be deemed to have a permanent establishment in the latter State if such representative confines his activities to administrative functions or if, independently of such administrative activities, he acts only as a commission agent, broker or other independent representative covered by the provisions of article 2, paragraph (1), sub-paragraph 7(e).
I should be grateful if you would signify your agreement to the above interpretation.
I have the honour to be, etc.
Louis Joxe
Dr. Gerhard Josef Jansen
Charge d'Affaires of the Federal Republic of Germany
Paris
(II)
Embassy of the Federal Republic of Germany
Paris, 21 July 1959
Sir,
By letter of today's date, you were good enough to inform me as follows:
On proceeding to sign the Convention negotiated between our two countries for the avoidance of double taxation and the establishment of principles for reciprocal administrative and legal assistance with respect to taxes on income and fortune, business taxes and land taxes, I have the honour, with reference to article 2, paragraph (1), sub-paragraph 7(d) of the Convention, to inform you that the High Contracting Parties have agreed that on the following interpretation of this provision:
It is understood that an insurance enterprise of one of the Contracting States having a representative approved by the authorities of the other State shall not be deemed to have a permanent establishment in the latter State if such representative confines his activities to administrative functions or if, independently of such administrative activities, he acts only as a commission agent, broker or other independent representative covered by the provisions of article 2, paragraph (1), sub-paragraph 7(e).
I should be grateful if you would signify your agreement to the above interpretation.
I have the honour to inform you that I am in agreement with the above communication.
I have the honour to be, etc.
Gerhard Josef Jansen
Charge d'Affaires of the Federal Republic of Germany
His Excellency Mr. Louis Joxe
Ambassador of France
General Secretary of the Ministry of Foreign Affairs
(III)
Ministry of Foreign Affairs
Paris, 21 July 1959
Sir,
On proceeding to sign the Convention between the French Republic and the Federal Republic of Germany for the
avoidance of double taxation and the establishment of principles for reciprocal administrative and legal assistance with respect to taxes on income and fortune, business taxes and land taxes, I feel it necessary to clarify the following point:
Under article 27, paragraph 1, of the Convention of today's date, the provisions of the Convention may, in the conditions laid down in that article, be extended to any territory "for the international relations of which France is responsible". In order to avoid any difficulty in the interpretation of this provision, it should be made clear that it does not imply any intention on the part of the High Contracting Parties to exclude the possibility of extending the application of the Convention to French Departments which are not mentioned in article 2, to the overseas territories of the French Republic and to the States Members of the Community.
I should be grateful if you would confirm your agreement on this point.
I have the honour to be, etc.
Louis Joxe
Dr. Gerhard Josef Jansen,
Charge d'Affaires of the Federal Republic of Germany
Paris
(IV)
Embassy of the Federal Republic of Germany
Paris, 21 July 1959
Sir,
You have this day sent me the following letter:
On proceeding to sign the Convention between the French Republic and the Federal Republic of Germany for the avoidance of double taxation and the establishment of principles for reciprocal administrative and legal assistance with respect to taxes on income and fortune, business taxes and land taxes, I feel it necessary to clarify the following point:
Under article 27, paragraph 1, of the Convention of today's date, the provisions of the Convention may, in the conditions laid down in that article, be extended to any territory "for the international relations of which France is responsible". In order to avoid any difficulty in the interpretation of this provision, it should be made clear that it does not imply any intention on the part of the High Contracting Parties to exclude the possibility of extending the application of the Convention to French Departments which are not mentioned in article 2, to the overseas territories of the French Republic and to the States Members of the Community.
I should be grateful if you would confirm your agreement on this point.
I have the honour to confirm my agreement with the foregoing.
I have the honour to be, etc.
Gerhard Josef Jansen
Mr. Louis Joxe
Ambassador of France
Paris