The France-Congo tax treaty: dividends at 15% or 20% of 13% of taxable income, including inheritances

The convention between France and the Republic of Congo (Brazzaville), signed in 1987, caps dividends at 15 or 20 13 TEUs and royalties at 15 13 TEUs. It generally reserves interest payments to the country of residence and also addresses inheritance. It does not, however, detail registration, stamp duty, or inheritance liabilities.

A 1987 convention: income and inheritance

Signed on November 27, 1987, including the protocol, it covers income and inheritance taxes, registration fees, and stamp duties. Entering into force on September 1, 1989, it contains no amendments to the administrative list, and the Congo is not included in the list of conventions modified by the MLI (BOI-ANNX-000511). Article 32 applies it to withholding taxes on payments made and to the estates of deceased persons, from that date.

Withholding limits and key rules

Inheritance: Article 22

Article 22 allocates the right to tax:

• buildings, in the state in which they are located; ;
• the assets of a permanent establishment or fixed base, wherever they are situated; ;
• tangible personal property, wherever it is located at the time of death, ships and aircraft wherever they are registered; ;
• all other assets, only in the state where the deceased was resident at the time of death.

The convention does not address gifts in the passages read.

Avoiding double taxation through a tax credit

Article 25 provides for the tax credit. In France, it is offset against French tax and cannot exceed the French tax corresponding to the same income (dividends and royalties) or the same assets (inheritances). The Congo applies a symmetrical mechanism.

For a person resident in both States, Article 4 considers in order the permanent home, the center of vital interests, the habitual residence, and then nationality.

What changes depending on your situation

• Your residence as defined in Article 4, and that of the deceased at the time of death.
• The nature and location of your property.
• Your shareholding and your stays.

No results are promised.