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Germany - France tax treaty

A practical treaty page built around the official treaty text, key withholding categories, permanent-establishment rules, and article-level summaries.

Signed

1959-07-21

Effective

1961-10-04

Articles seeded

6

Withholding snapshot

Dividends

Individual rate: 15% · Corporate rate: 0%

The 2015 protocol provides for a zero rate for qualifying corporate shareholders with substantial direct ownership. EU Parent-Subsidiary Directive provides parallel relief in qualifying intra-EU fact patterns.

Interest

Rate: 0%

The treaty generally results in zero source-country withholding on qualifying interest.

Royalties

Rate: 0%

The treaty eliminates source-country royalty withholding across the major categories.

Permanent establishment

Construction threshold: more than 12 months

Dependent-agent analysis follows the OECD model wording as amended by protocol.

Other treaty flags

Pensions: split
Protocols: 1969-06-09, 1989-09-28, 2001-12-20, 2015-03-31
Exchange of information: Yes
Student article: Yes
Teacher article: No

Pension treatment is article-specific. The treaty includes detailed pension, government-service, and frontier-worker provisions.

Seeded article summaries

Article 4

Residence

Defines treaty residence under the 1959 wording as amended by multiple protocols.

Article 4 has been refined by multiple protocols. The 2015 protocol updated certain residence and anti-abuse provisions.

Article 5

Permanent Establishment

Sets the business-presence threshold with construction and service rules.

The treaty uses a 12-month construction-site threshold as amended by protocol. Cross-border worker rules are particularly relevant given the Franco-German border.

Article 7

Business Profits

Generally reserves business profits to the residence state in the absence of a PE.

Article 7 has been refined by protocol to align with OECD-aligned profit-attribution principles.

Article 10

Dividends

Caps source-country dividend withholding with a zero rate for qualifying substantial shareholders.

Article 10 provides zero treatment for qualifying corporate shareholders meeting the substantial-direct-ownership threshold under the 2015 protocol. EU Parent-Subsidiary Directive provides parallel relief in qualifying cases.

Article 11

Interest

Generally removes source-country withholding on qualifying interest.

Article 11 typically eliminates source-country withholding. The EU Interest and Royalties Directive provides parallel relief in qualifying cases.

Article 12

Royalties

Generally removes source-country withholding on qualifying royalties.

Article 12 eliminates source-country royalty withholding across the major categories.

Official text

Other treaties involving these jurisdictions

Computed from the cross-reference graph. Links open the related entity on this site.

Primary sources

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.