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France - Syria Tax Treaty (as amended by 2004 exchange of notes) — Orbitax Tax Hub

Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 21

Elimination of Double Taxation

(1) Insofar as France is concerned, double taxation shall be avoided as described below:

  • (a) Notwithstanding any other provision of this Convention, income that is taxable or only taxable in Syria in accordance with the provisions of this Convention shall be taken into account in calculating the French tax where it is not exempted from corporation tax under domestic French law. In this case, the Syrian tax shall not be deductible from such income, but the resident of France shall be entitled, subject to the conditions and limits set forth in (i) and (ii), to a tax credit against the French tax. This tax credit shall be equal to the following:
    • (i) for income not mentioned in (ii), to the amount of French tax corresponding to such income, provided that the resident of France is subject to tax in Syria for such income;
    • *(ii) For income subject to the corporation tax referred to under Articles 7 and paragraph (2) of Article 12 and for income referred to under paragraph (5) of Article 6, to Articles 10, 11 and 11A, paragraph (1) of Article 12, paragraph (3) of Article 14, Articles 15, 16 and 17, to the amount of the tax paid in Syria in accordance with the provisions of these Articles; this tax credit, however, can not exceed the amount of French tax pertaining to such income.
  • (b)
    • (i) If French domestic laws allow companies that are residents in France to determine their taxable profits based on a consolidation encompassing, in particular, the earnings of subsidiaries residing in Syria or of permanent establishments in Syria, the provisions of the Convention shall not preclude the application of this law.
    • (ii) If, in accordance with its domestic law, France determines the taxable profits for residents of France by deducting the losses of subsidiaries which are residents in Syria or of permanent establishments in Syria, by integrating/including the profits of these subsidiaries or of such permanent establishments up to the amount of losses deducted, the provisions of the Convention shall not preclude the application of this law.
  • (c)
    • (i) Please note that the term "amount of French tax pertaining to such income" used in letter (a) refers to the following:
    • where the tax owed on such income is calculated by applying a proportional rate, the amount of net income in question multiplied by the rate which it's actually applied thereto;
    • where the tax owed on such income is calculated by applying a progressive rate, the amount of net income in question multiplied by the rate resulting from the ratio between the tax actually owed for overall net income which is subject to tax in accordance with French laws and the amount of this overall net income.
    • (ii) Please note that the term "amount of tax paid in Syria" used in letter (a) refers to the amount of Syrian tax actually ultimately paid for the income in question, in accordance with the provisions of this Convention, by the resident of France who is taxed for such income as per French laws.

(2) Insofar as Syria is concerned, double taxation shall be eliminated as follows:

  • (a) Where a resident of Syria has income which, under the provisions of the Convention, is taxable in France, Syria shall grant a credit, deductible from the tax to which the resident is liable, for an amount equal to the tax paid in France, but this deduction shall, however, not exceed the portion of tax, calculated before the deduction is made, which refers, as appropriate, to income that is taxable in France.
  • (b) Where, in accordance with any provision of the Convention, income derived by a resident of Syria is exempt from tax in Syria, Syria may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.