The France-New Caledonia tax treaty: ceilings of 15 %, 5 % and 10 %

The 1983 convention caps withholding tax at 15% on dividends paid by an individual or partnership, at 5% for a company other than a partnership, and at 10% on royalties. Pensions and, subject to the permanent establishment, excess portion, and protocol provisions (not detailed here), interest are taxable only in the beneficiary's country of residence. This information sheet is based on the BOFiP commentary (version of 24/02/2021), not on the signed text.

A 1983 agreement with a territory that sets its taxes

Signed in Nouméa on March 31, 1983 and in Paris on May 5, 1983 with a protocol, the convention was approved by the law of July 26, 1983. New Caledonia has fiscal competence (organic law of March 19, 1999, article 22).

List BOI-ANNX-000306 (April 29, 2026) classifies it among the conventions relating to income, inheritance, gifts, and registration duties. The commentary specifies that it also applies to inheritance and gift taxes, without detailing the rules.

Maximum deductions and key rules

Capital gains: four cases to distinguish

• Buildings and similar shares or rights : the territory where the property is located.
• Assets of a permanent establishment or fixed base : the location of this establishment.
• Substantial participation from an individual (more than 25 % of social benefits): the territory of residence of the company.
• Other earnings : exclusively the territory of residence of the transferor.

Salaries, freelance professions, pensions: the location of the activity determines

For private remuneration, Article 14 generally considers the territory of the personal activity. Public remuneration is taxable only in the territory of residence of the beneficiary, excluding remuneration for services of an industrial and commercial nature (Article 14 § 4).

Liberal professions fall under the sole jurisdiction of the territory of residence, except for a fixed base in the other (Article 13). Attendance fees follow the company that pays them (Article 15); those from a metropolitan company to a resident of New Caledonia remain subject to the withholding tax of Article 117 bis of the French General Tax Code.

Buildings and construction sites

Income from real estate is taxed where it is located (Article 6). A construction or assembly site constitutes a permanent establishment only if it lasts for more than twelve months (Article 5 § 3).

Dividends of €40,000: a numerical example (fictitious profile)

Situation. A private individual residing in New Caledonia, a fictitious profile, receives €40,000 in gross dividends from a French company.

Issue. What is the maximum amount of restraint France can impose?

Strategy. Ceiling of article 9 § 2 b; residence justified by certificate 5000-SD and annex 5001-SD.

Result. The limit is €6,000 (15 % of €40,000), meaning at least €34,000 before any tax in its country of residence. For a company other than a partnership, it would be €2,000 (5 %). This is a maximum allowed by the treaty, not the tax due.

Eliminating double taxation in France

Income taxable solely within the territory of New Caledonia remains outside the French tax base but counts towards the effective tax rate (Article 22 § 2 a and c). For dividends and royalties, a credit equal to the New Caledonian tax is applied, capped at the corresponding French tax (§ 2 b).

What this sheet does not cover

Caledonian taxes and their rates, temporary missions (without number of days in the comment), inheritance and donation rules and developments after 2021 are not covered.

What changes depending on your situation

• Your residence as defined in the agreement.
• The nature of the income and the existence of a permanent establishment or fixed base.
• The type of beneficiary: individual, partnership or other company.

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