The France-Australia tax treaty, article by article

The treaty between France and Australia was signed in Paris on June 20, 2006, and has been in force since June 1, 2009. It caps withholding tax on dividends at 0, 5, or 15 times the applicable rate, on interest at 10 times the applicable rate, and on royalties at 5 times the applicable rate. It also includes Article 28, which exempts certain Australian citizens' assets located outside France from the French wealth tax (Impôt de Solidarité sur la Fortune) for five years. This page reads the official text and explains what it does not cover.

A text from 2006, modified by the MLI since 2019

The convention. Signed in Paris on June 20, 2006, it entered into force on June 1, 2009, approved by Law No. 2009-227 of February 26, 2009, and published by Decree No. 2009-732 of June 18, 2009. The administrative list of conventions (BOI-ANNX-000306, dated April 29, 2026) classifies it under "IR," income tax, without mention of inheritance or gifts. It replaces the 1976 convention, amended in 1989, and the 1969 agreement on international air transport.

The application dates. Withholding taxes apply from 1 January 2010 in both countries, with other Australian taxes on income years beginning on 1 July 2010. The exchange of information (Article 25) has been in effect since 1 June 2009.

The MLI. The multilateral convention signed in Paris on June 7, 2017, is incorporated into the consolidated text, which entered into force on January 1, 2019, for both countries. List BOI-ANNX-000511 (April 29, 2026) specifies January 1, 2019, for Australia regarding taxes withheld at source and July 1, 2019, for other taxes. The consolidated text places the "Entitlement to Benefits" clause at the beginning of the convention.

Maximum deductions and key rules

Who is a resident?

For France, a resident is a person "domiciled in France for the application of French tax" (Article 4 § 1 b).

For an individual resident in both States, paragraph 3 determines, in order: (a) the State in which they have a permanent home available to them, and, if they have one in both States or in neither, the State with which their personal and economic ties are closest (centre of vital interests); (b) if this centre cannot be determined, the State of which they are a national or citizen. The full text of the article should be consulted at the source before any conclusions are drawn.

Dividends: three levels, 0 %, 5 % and 15 %

Article 10 sets out three ceilings for the tax of the State of source, applied to the gross amount.

• 0% when dividends are paid by deduction from profits subject to the normal rate of corporation tax, and the beneficial owner is a company which directly holds at least 10 % of the voting rights (Australian company) or capital (French company) for a period of 365 days including the day of payment.
• 5% for other dividends where the beneficial owner is a company which, in the case of Australia, holds at least 10 % of the voting rights and, in the case of France, directly holds at least 10 % of the capital. The other conditions of Article 10 § 2 b) are not detailed here.
• 15% in all other cases.

Interest and royalties: 10 % and 5 %

Article 11 caps the withholding tax at 10 % of the gross amount of interest. Paragraph 3(b) exempts from withholding tax interest received by an independently acting financial institution, under conditions not detailed on this page. Paragraph 4 maintains the 10 % cap for interest paid in consideration of an agreement involving a reciprocal loan.

Article 12 caps the withholding tax at 5 % of the gross amount of royalties.

Capital gains: buildings, real estate securities, other assets

Gains from the sale of real estate located in another State are taxable in that State (Article 13, paragraph 1). The same applies to gains on shares or similar rights of an entity whose value consists primarily of real estate located in that State at some time during the 365 days preceding the sale (paragraph 4). Gains on other property are taxable only in the State of which the seller is a resident (paragraph 6).

Salaries over a twelve-month period, pensions in the state of residence

Wages are taxable only in the State of residence, unless the employment is exercised in the other State (Article 14, paragraph 1). The exception in paragraph 2(a) applies to a stay not exceeding 183 days in total during any twelve-month period beginning or ending in the fiscal year of that other State, i.e., the State where the employment is exercised. It also requires that the employer is not a resident of the other State (b) and that the remuneration is not borne by a permanent establishment (c).

Pensions and annuities paid to a resident are taxable only in his State of residence, subject to civil service pensions (Article 17 § 1 and Article 18 § 2).

Eliminating double taxation: the tax credit under Article 23

French side (§ 2). The French resident remains taxed on this Australian income, as Australian tax is not deductible. They are entitled to a tax credit against French tax. Australian income is only taken into account when it is not exempt from corporation tax under French domestic law. For dividends, interest, and royalties, and for income under Articles 14 § 3, 15, 16, and 20, the credit is equal to the Australian tax paid, but cannot exceed the corresponding French tax on this income. For profits under Article 7 and certain gains under Article 13 § 2, the same applies only when they are subject to corporation tax. For other income, the credit is equal to the corresponding French tax if the resident is subject to Australian tax on this income. The corresponding French tax is calculated on the net income multiplied by the effective tax rate: the proportional rate applied, or the average rate for a progressive tax scale.

Australian side (§ 1). French tax paid on French-source income of an Australian resident entitles them to a credit against Australian tax, subject to Australian legislation.

Article 28: five years outside the scope of the wealth tax

It concerns the wealth tax of an individual resident in France, an Australian citizen, and not a French national. Assets located outside France that they own on January 1st of each of the five calendar years following the year they become a resident of France are not included in the tax base for those five years. If they cease to be a resident of France for at least three years and then become one again, a new five-year period begins. The text refers to the wealth tax. The application of this clause to the real estate wealth tax is not established and is therefore not addressed here.

What this page does not cover

Business profits, students, other income (section 20), the mutual agreement procedure, and the exchange of information are not detailed. Australian domestic law is not addressed. The administrative list does not mention any succession or gift agreements with Australia; this page derives no rules from them.

Australian dividends and interest: a numerical example (fictitious profile)

Situation. A fictitious individual, resident in France, receives in one year €8,000 of gross dividends from an Australian company in which he holds a minimal share, €4,000 of gross interest, being an individual who is not a financial institution (the exemption in § 3 b) concerns interest received by a financial institution: it therefore does not apply to him), and €2,000 of gross royalties.

Issue. He wants to know the maximum amount of withholding that Australia can apply, and what remains chargeable in France.

Strategy. He applies the convention's ceilings to each gross income: 15 % for dividends, 10 % for interest, and 5 % for royalties. He then calculates the corresponding French tax on each income to determine the tax credit.

Result. The maximum withholding taxes are €1,200 on dividends, €400 on interest, and €100 on royalties, totaling €1,700. If the French tax due on the dividends is €1,000 (a hypothetical scenario), the tax credit is €1,000, and the €200 withholding tax is not deductible. The amounts and tax profile are hypothetical.

What changes depending on your situation

• Your residence as defined in the agreement, and the date on which it changes.
• The nature of the income: dividend, interest, royalty, pension, salary, capital gain.
• The level and duration of your holding, if you receive dividends from a company.
• The number of days spent in each state over each twelve-month period, with respect to the fiscal year of the state where the employment is performed.
• Your nationality, for the clause in article 28.
• Australian law, to be validated with a local professional.

An article should be read in light of the facts in your case, and no result is guaranteed in advance.