- Sep 11, 2021
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3. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State may not be levied in that other State at a price lower than that applied to enterprises of that other State carrying on the same activities; unless this paragraph prevents a State Party from collecting the tax referred to in Article 10. 2. If the objection appears to them to be justified and if they themselves are not in a position to find an appropriate solution, the competent authorities shall endeavour to resolve the matter by mutual agreement with the competent authorities of the other Contracting State with a view to circumventing taxes which are not in conformity with the Agreement. (7) In this section, « taxation » means taxes of any kind and description. France and Luxembourg have each chosen a different method to eliminate double taxation. France has adopted the tax credit method for all types of income (subject to certain adjustments resulting from changes in labour income), while Luxembourg continues to use a combination of the exemption method for certain types of income (e.g. B income from work, immovable property, capital gains) and the tax credit method for other types of income. 1. If a State established in a Contracting State considers that the acts of one or both States Parties will result or will entail taxation which is not in conformity with this Convention, it may, notwithstanding the remedies provided for by the national laws of those States, submit its case to the competent authorities of one of the two Contracting States. 3. The competent authorities of the States Parties shall endeavour to resolve by mutual agreement any difficulties in the application of the Convention.
In particular, the competent authorities may endeavour to resolve disputes arising from the application of Article 6(2) or Article 8 or from the determination of the origin of certain items of income. BulgariaThe Bulgarian tax treaty and international agreements Agreements provide in principle for the taxation of real estate income from immovable property located abroad in the country where the property is located. Income is exempt from tax in France, but must be reported according to the effective tax rate method for the taxation of income from French sources. However, some conventions provide for the taxation of such income in France and the elimination of double taxation by the application of a tax credit generally equivalent to French tax. 2. This Convention shall also apply to all future taxes which are identical or substantially similar to which are levied by a Contracting State or by the Government of a territory to which this Convention is extended by virtue of Article 29, in addition to or in place of existing taxes. The competent authorities of the States Parties shall notify each other of any changes to their respective tax legislation. 4. The competent authorities of the Contracting States may communicate directly with each other with a view to reaching an agreement within the meaning of the preceding paragraphs or to implementing the provisions of the Convention and to resolving any difficulty in the application of the Convention.
However, an exception was made in respect of dividends distributed by REIV to certain UCI. Indeed, a UCI established in a Contracting State and treated as the UCI of the other State Party under its own law benefits from the advantages of the New Tax Convention with regard to the share of dividends corresponding to the rights which reside in one of the Contracting States or in another State, with which the Contracting State from which the dividends originate: concluded a mutual assistance agreement. with a view to combating tax evasion and prevention. . . .