The 1995 France-Gabon tax treaty: withholding taxes and inheritances

The France-Gabon convention of September 20, 1995, caps withholding tax at 15% for dividends and 10% for interest and royalties. It also contains an article on inheritances.

A 1995 text, applied since 2008, which replaces the 1966 one

The convention was signed in Libreville on September 20, 1995. Law No. 98-120 of March 2, 1998, authorized its approval, and Decree No. 2008-277 of March 21, 2008, published it. It entered into force on March 1, 2008. Withholding taxes apply to taxable amounts from that date. Other income taxes apply to fiscal years beginning on or after January 1, 2009.

The convention of April 21, 1966 and its amendments ceased to have effect when that of 1995 began to apply (BOFiP).

The administrative list (BOI-ANNX-000306) includes the entries "IR – IF – S – DE". Gabon is not included in the list of conventions modified by the multilateral convention (BOI-ANNX-000511).

Maximum deductions and key rules

Inheritance: Article 23 according to the nature of the assets

The scope includes the estates of persons resident in one or both States at the time of death (Article 1(b)). Article 23 allocates taxation according to the nature of the assets:

• The buildings Property located in the other State is taxable in that other State (§ 1 a). Shares, units or rights in a company whose assets are primarily real estate are considered real estate (§ 1 b).
• The movable property of a permanent establishment or fixed base located in the other State are taxable in that other State (§ 2 a and b).
• Tangible movable property other than those in § 2, located in the other State, are taxable in that other State (§ 3).
• Receivables and securities Section 4 (debtors resident in the other State, securities issued by that State, a corporation or company having its registered office there) are taxable in that other State. The text also covers permanent establishments and public legal entities.
• Property not covered by paragraphs 1 to 4 are taxable only in the State of residence of the deceased (§ 5).

Resident of both States: the order of Article 4

Article 4 § 2 considers the permanent home, then the center of vital interests, the habitual residence, the nationality and the agreement of the competent authorities.

Salaries: twelve months spanning the fiscal year

Article 15 § 2 a) excludes taxation in the State of employment if the stay does not exceed a total of 183 days "during any period of twelve consecutive months beginning or ending in the tax year concerned." Two other conditions relate to the employer and the responsibility for the remuneration.

Eliminating double taxation (Article 24)

For France, Article 24 § 1 provides for a tax credit equal to the tax paid in Gabon (specifically Articles 10, 11 and 12), capped at the corresponding French tax. For an inheritance, France taxes the entire estate of a resident of France and deducts the tax paid in Gabon on the assets concerned, up to the limit of the portion of French tax, calculated before this deduction, corresponding to these assets (§ 1 d) i).

What this page does not cover

It does not address Article 22 on wealth beyond its title, nor the tax credit and withholding tax of Article 10, nor gains on substantial shareholdings (Article 13 § 2), nor debts (Article 23 § 6). It does not address Gabonese domestic law or the IFI (French wealth tax).

What changes depending on your situation

• The state of residence of the deceased at the time of death, which determines the scope of Article 23.
• The nature and location of the property, and the nature of the income for deductions.
• The schedule of your stays (article 15).