Ejerforeningen Æblehaven

Double Taxation Agreement Portugal France

The countries with which France has double taxation agreements (DBA) are listed below: International double taxation is an obstacle to trade relations and the free movement of goods, services, people and capital. The need to remove this obstacle has increased in the current context dominated by new technologies and the internet. By regulating the right of the countries concerned to collect taxes, it is possible to avoid transfers of income and capital to other countries solely for tax purposes and to strengthen relations (economic and otherwise) between the countries concerned. The information below describes the most common rules for double taxation agreements, in accordance with the OECD`s standard tax convention; Please check the details of the tax treaty that are relevant to your situation. Relations between Portugal and France date back to a distant time. To prevent people from living in one country but receiving income from the other, which must pay twice as much tax, there is a tax treaty between France and Portugal on double taxation. This tax agreement between France and Portugal dates back to 1971, but it was reformulated in 2017. In a circular of 13 March 2009 (No. 20137), the International Relations Division of the Directorate General of Taxes has again published the official list of all international double taxation conventions concluded by Portugal. The reason for this publication is that economic operators need up-to-date information on existing agreements and legal instruments that preceded their publication, the date on which they came into force and easy access to tax rates for situations where withholding tax is partially lifted. To apply for the double tax exemption, you may need to prove where you live and that you have already paid taxes on your income.

Check with tax authorities to find out what documents and documents you need to submit. The French courts have not yet ruled on the treatment of these “NHR” taxpayers. There is little doubt that the result will be challenged between the position of the French tax administration and that of the taxpayers. In any case, letters from tax authorities should not go unanswered. The answer to be presented and the arguments to be presented (the scope of the tax agreement, the existence of taxable income, unless it is fictitious, the effectiveness of the Portuguese domicile) must be adapted to each situation. Over the years, Portugal has signed fifty-two double taxation agreements aimed at avoiding double taxation of income tax, as a result of the OECD model convention, with some reservations mainly aimed at ensuring a broader approach to stable establishment and raising the level of taxation in the country of origin with regard to dividends , interest and royalties. As a general rule, the method used in past contracts is the regular tax credit, although it is indicated that some contracts provide a credit or tax credit.