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150 million kronor, France will receive 24 million kronor and the U.K. and the U.S. will each receive 63 million kronor.
3. It is understood that the U.K. Representative is addressing a similar note to you, and that this understanding is to be notified to the Inter-Allied Reparation Agency.
Very truly yours,
M. CHRISTIAN VALENSI
Chief of French Delegation
S. J. R.
Chief of Delegation of United States
The Chief of the French Delegation to the Chief of the United States
DEAR MR. RUBIN:
July 18, 1946
I have the honor to acknowledge receipt of your letter of today in the following terms:
[For text of U.S. note, see above.]
and to confirm to you the understanding expressed therein.
Very truly yours,
Mr. SEYMOUR J. RUBIN,
Department of State,
Chief of the French Delegation
DOUBLE TAXATION AND FISCAL ASSISTANCE
Convention signed at Paris October 18, 1946, modifying and supplementing convention and protocol of July 25, 1939
Modified by protocol of May 17, 1948 1
Senate advice and consent to ratification June 2, 1948
Ratified by the President of the United States June 18, 1948
Ratified by France September 5, 1949
Ratifications exchanged at Washington October 17, 1949
Entered into force October 17, 1949, and January 1, 1950, in accord-
Proclaimed by the President of the United States October 27, 1949
Provisions concerning taxes on income, capital, and stock exchange
64 Stat. (3) B3; Treaties and Other International Acts Series 1982
CONVENTION BETWEEN FRANCE AND THE UNITED STATES OF AMERICA ABOUT DOUBLE TAXATION AND FISCAL ASSISTANCE
The Government of the United States of America and the Provisional Government of the French Republic,
Desiring to conclude a Convention for the avoidance of double taxation and the prevention of evasion in the case of taxes on estates and inheritances, and for the purpose of modifying and supplementing certain provisions of the Convention between the two Governments relating to income taxation signed at Paris on July 25, 1939,*
Have designated for this purpose as their respective Plenipotentiaries:
The Government of the United States of America: Mr. Jefferson Caffery, Ambassador Extraordinary and Plenipotentiary of the United States of America in France,
The Provisional Government of the French Republic: Mr. Georges Bidault, President of the Provisional Government of the French Republic,
1TIAS 1982, post, p. 1251. 28 UST 843; TIAS 3844. 319 UST 5280; TIAS 6518. TS 988, ante, p. 1046.
Minister for Foreign Affairs who, after having exchanged their full powers found to be in good and due form, have agreed as follows:
Taxes on Estates and Inheritances
(1) The taxes which are the subject of this Title are:
(a) for the United States of America, the Federal estate tax, and (b) for France, the tax on inheritances.
(2) This Title shall also be applicable to all other taxes of a substantially similar character imposed by either Contracting State after the signing of the present Convention, or imposed by the government of any territory to which the present Convention applies under Article 17.
(3) The present Convention is concluded with reference to United States and French law in force on the day of its signature. Accordingly, if these laws are appreciably modified the competent authorities of the two States will consult together for the purposes of adapting the provisions of the present Convention to such changes.
(1) In this Title, unless the context otherwise requires:
(a) The term "United States" means the United States of America, and when used in a geographical sense means only the States, the Territories of Alaska and of Hawaii, and the District of Columbia.
(b) The term "France", when used in a geographical sense, means only metropolitan France, excluding Algeria and the Colonies.
(c) The term "tax" means the French tax on inheritances or the Federal estate tax of the United States, as the context requires.
(2) In the application, by one of the Contracting States, of the provisions of this Title, any term which is not otherwise defined shall have, unless the context requires a different interpretation, the meaning which it has under the laws of that Contracting State relating to the taxes which are the subject of this Title.
(1) For the For the purposes of this Title, the question whether a decedent was domiciled in the territory of one of the Contracting States at the time of his death shall be determined in conformity with the law in force in that territory.
(2) In the case of the death of a person domiciled in the territory of one of the Contracting States, the situs of any of the following property or property rights shall, for the purpose of the imposition of the tax and for the
purpose of the credit provided for in Article 5, be determined exclusively in accordance with the following rules:
(a) Real property shall be deemed to be situated at the place where the land involved is located. Real property includes leases of such property, unless such leases are of eighteen years' duration or less, but excludes mortgages and other liens on such property as security. The question whether any other property or right in property constitutes real property shall be determined in accordance with the law of the place where the land involved is located.
(b) Corporeal movable property, except as hereinafter prescribed, as well as bank notes and any other kind of money which is legal tender at the place of issuance, shall be deemed to be situated where it is physically located at the time of the decedent's death.
(c) Ships and aircraft shall be deemed to be situated at the place of registration or documentation of the ship or aircraft.
(d) The goodwill of a business firm (including for the purposes of this subparagraph rights in a lease other than one deemed to be real property under the provisions of subparagraph (a) of this Article) or the goodwill attached to the practice of one of the liberal professions shall be deemed to be situated where the business is carried on or the profession is practiced. (e) Patents, trademarks and designs shall be deemed to be situated at the place where they are registered.
(f) Copyrights and rights or licenses to use any copyrighted material, patent, trademark or design shall be deemed to be situated at the place where the rights arising therefrom are exercisable.
(g) Shares in a corporation (including shares held by a nominee for the benefit of the decedent) shall be deemed to be situated at the place in which, or under the laws of which, such corporation was created or organized.
(h) Bills of exchange and checks shall be deemed to be situated at the place of the drawee's residence, and negotiable promissory notes at the place of residence of the maker.
(i) All property other than hereinbefore mentioned shall be deemed to be situated in the State in which the deceased person was domiciled at the time of his death.
The Contracting State which imposes tax in the case of a decedent who, at the time of his death, was not domiciled in its territory but was domiciled in the territory of the other Contracting State:
a) shall allow every abatement, exemption, deduction, or credit, which would be applicable under its law if the decedent had been domiciled in its territory, in an amount not less than the proportion thereof which the value
of the property, situated according to Article 3 in such State and subject to the tax of such State, bears to the value of the property which would have been subject to the tax of such State if the decedent had been domiciled in its territory; and
b) shall (except for the purpose of subparagraph (a) of this Article and for the purpose of any other proportionate allowance otherwise provided) take no account of property situated according to Article 3 outside its territory in determining the amount of rate of tax.
However, the provisions of this Article shall not apply to the tax imposed by the United States in the case of a deceased citizen of the United States.
(1) The Contracting State imposing tax in the case of a deceased person, who, at the time of his death, was domiciled in such State (or was a citizen thereof if such State is in the United States), shall allow against its tax (as otherwise computed) a credit for the amount of the tax imposed by the other Contracting State with respect to property situated in the territory of such other Contracting State and included for tax purposes by both States, but the amount of credit shall not exceed the portion of the tax imposed by the former State which is attributable to such property. The provisions of this paragraph shall not apply with respect to any property referred to in paragraph (2) of this Article.
(2) If the decedent is regarded by each of the Contracting States as being domiciled in its own territory, each State shall, in addition to the credit authorized by paragraph (1) of this Article, allow against its tax (as otherwise computed) a credit for that part of the tax imposed by the other State with respect to property included for tax purposes by both States and situated or deemed to be situated
(a) in the territory of both Contracting States, or (b) outside of both territories.
The total of the credits authorized by this paragraph shall be equal to the amount of tax imposed with respect to such property by the State imposing the smaller tax, and shall be divided between the two States in proportion to the amount of tax imposed by each of the two Contracting States with respect to such property.
(3) For the purposes of this Article, the amount of the tax of each Contracting State attributable to any designated property shall be ascertained after taking into account any applicable abatement, credit, remittance, diminution, or increase, as provided by its law, other than any credit authorized by this Article.