The France-Trinidad and Tobago tax treaty: a 1987 text without an article on capital gains

The convention between France and Trinidad and Tobago was signed in Port of Spain on August 5, 1987, and entered into force on April 1, 1989. It covers only income and corporate taxes. Its main peculiarity: none of the headings in its 31 articles address capital gains. Other points to note: dividends are taxed at 10 or 15 percent, interest and royalties at 10 percent, and, on the French side, most income is exempt and dividends, interest, royalties, and some other income are taxed.

A 1987 text without an addendum

The administrative list (BOI-ANNX-000306, April 29, 2026) gives the line "Trinidad and Tobago, August 5, 1987, IR": no amendment, no note. The BOFiP (BOI-INT-CVB-TTO, version of September 12, 2012) mentions Law No. 88-804 of July 12, 1988, and Decree No. 89-226 of April 12, 1989 (Official Journal of April 18, 1989). Article 30 applies the convention to withholding taxes from January 1, 1990, and to other income taxes for tax years beginning on or after January 1, 1990, according to the BOFiP.

Trinidad and Tobago is not included in the list of conventions modified by the multilateral convention (BOI-ANNX-000511, April 29, 2026). Article 2 concerns, for France, income tax and corporate tax, and for Trinidad and Tobago, income tax, corporate tax, the unemployment levy, and petroleum taxes. Article 2 does not mention inheritance tax, gifts, or wealth tax.

Maximum deductions and key rules

Capital gains: no dedicated article

Articles 1 to 31 follow this sequence: persons covered, taxes covered, definitions, resident, permanent establishment, income from immovable property, business profits, shipping, associated enterprises, dividends, interest, royalties, investment or holding companies, management fees, self-employed professions, salaried professions, directors' fees, artists and athletes, pensions, public functions, students, teachers, other income, elimination of double taxation, non-discrimination, mutual agreement procedure, exchange of information, diplomatic agents, territorial extension, entry into force, denunciation. None of these sections addresses capital gains or the alienation of property.

Article 23 («Other Income») stipulates that elements of a resident's income not covered in the preceding articles are taxable by each State in accordance with its domestic law. Paragraph 1 of the Protocol, relating to Article 6, provides that income from shares, units, or interests in a company or legal entity owning immovable property located in France, which is subject under French law to the same tax regime as income from immovable property, is taxable in France. Neither of these two texts mentions capital gains. The possibility of a capital gain on disposal must be examined before any disposal.

Dividends: 10 % for the company, 15 % for others

The 10% tax rate under Article 10, paragraph 2(a) assumes that the beneficial owner is a company, other than a partnership, that directly or indirectly holds at least 10% of the distributing company's capital. The 15% tax rate applies in all other cases.

Article 13 sets a limit: a company of one State that receives dividends, interest, or royalties from the other State cannot benefit from Articles 10 to 12 if two conditions are met. The tax levied on it in its State must be substantially lower than that applied to ordinary companies, through measures targeting investment or holding companies. And 25% or more of its capital must be held by non-residents of that State. Paragraph 3 of the Protocol clarifies that the normal treatment of dividends received from a subsidiary by a parent company does not constitute such a measure.

Self-employed professions: a threshold of 9,000 ECU

Article 15 is atypical due to its monetary threshold. A resident's income from a liberal profession or other self-employment is taxable only in their own country of residence. It is also taxable in the other country of residence if the remuneration received in that country exceeds, for a given tax year, a gross amount equivalent to 9,000 European units of account (ECU), or if the resident's stay there reaches a total duration of 183 days or more during the tax year in question. Only the portion derived from activities carried out in that other country is taxable there. The text defines a liberal profession by providing examples: scientific, technical, literary, artistic, educational, or pedagogical activities; doctors; lawyers; engineers; architects; dentists; and accountants.

France: exemption, with a credit for seven items

Article 24 § 2 establishes two regimes.

• Paragraph a: Income other than that referred to in paragraph b is exempt from French tax when it is taxable in Trinidad and Tobago under the convention. No exemption is granted if this income is not taxable in Trinidad and Tobago under its domestic law.
• Paragraph b: Income from Trinidad and Tobago under Articles 10 (dividends), 11 (interest), 12 (royalties), 14 (management fees), 17 (profit-sharing bonuses), 18 (artists and athletes), and 23 (other income) is taxable in France on its gross amount. The Trinidad and Tobago tax paid entitles the taxpayer to a tax credit, capped at the amount of French tax due on this income.
• Paragraph d: French tax is calculated, on income taxable in France, at the rate corresponding to the total of taxable income according to French legislation.

For Articles 10, 11, and 12, Trinidad and Tobago's tax liability also includes tax that would have been payable but has been exempted or reduced under incentive laws mentioned in paragraph (c) (Tax Incentives Act, Hotel Development Act, interest exemption for certain public establishments) or a subsequent provision recognized by the competent authorities. The text makes this rule conditional: the laws in question must not have been amended after the date of signature, except for minor points that do not affect their general characteristics.

Dividends of €100,000: 10 % or 15 %, numerical example (fictitious profile)

Situation. Hélène's holding company (fictitious profile) directly owns 12,% of the capital of a company in Trinidad and Tobago. It receives €100,000 gross in dividends.

Issue. Hélène wants to know the applicable withholding tax ceiling, and what it would be if the same amount went to a person who does not meet the holding requirement.

Strategy. She reads Article 10 § 2: paragraph a for a company which holds at least 10 % of the capital, paragraph b in other cases.

Result. The ceiling in paragraph a is €10,000. The ceiling in paragraph b would be €15,000, a difference of €5,000. For €20,000 of interest, the ceiling in Article 11 § 2 would be €2,000. These amounts are ceilings stipulated in the convention; the actual rate applied locally, as well as the company's tax treatment in France, are not addressed here.

Amicable procedure and exchange of information

A person who believes they are being taxed in a manner inconsistent with the convention must submit their case within three years of the first notification of the measure (Article 26, paragraph 1). Article 27, paragraph 1, provides for the exchange of information necessary for the application of the convention or domestic legislation relating to the taxes in question.

What this page does not cover

It does not detail Articles 6 to 9, 17, 18 and 20 to 22, nor Articles 25, 28 and 29. It does not describe Trinidad and Tobago's tax law or the rates it applies: validation by a local professional is necessary. It does not address social security.

What changes depending on your situation

• Your residence as defined in Article 4: permanent home, centre of vital interests, habitual residence, nationality.
• The nature of the income and the article that refers to it.
• Your status as an individual or a company, and your share of the capital.
• For a capital gain: the nature of the asset, particularly real estate, and the examination of the case before any transfer.
• The amount received in Trinidad and Tobago during the year if you are self-employed.

The rule depends on your situation. No results are guaranteed.