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## Protocol At the signing of the Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital Gains, the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the French Republic have agreed that the following provisions shall form an integral part of the Convention. - 1. In relation to Article 2, it is understood that the tax on salaries referred to in sub-paragraph (b) of paragraph 1 of Article 2 is governed by the provisions of the Convention applicable to business profits. - 2. In relation to Article 3, it is understood that the term ‘United Kingdom’ as defined in paragraph 1 of Article 3 does not include the Channel Islands, the Isle of Man, Gibraltar, the Sovereign Base Areas of the United Kingdom in Cyprus or any other overseas country or territory having special relations with the United Kingdom. - 3. In relation to Article 5, it is understood that where a partnership which is not a resident of a Contracting State has a permanent establishment in a Contracting State, that permanent establishment shall be regarded as a permanent establishment in that State of each member of the partnership who is entitled to the benefits of the Convention. Income or gains attributable to a permanent establishment which a partnership which is not a resident of a Contracting State has in a Contracting State shall be regarded as attributable to a permanent establishment which each member of the partnership possesses in that State to the extent that each member of the partnership who is entitled to the benefits of the Convention shares in such income or gain. - 4. In relation to Article 6, it is understood that the term ‘immovable property’ as defined in Article 6 includes options and similar rights in connection with such property. - 5. In relation to Article 7, it is understood that where a resident of a Contracting State is a member of a partnership established under the laws of the other Contracting State, nothing in the Convention shall prevent the first-mentioned Contracting State from taxing that resident on his share of any income, profits or gains derived from or through that partnership; but any such income, profits or gains shall be treated for the purposes of Article 24 as income, profits or gains from sources in that other State. - 6. In relation to Article 11, it is understood that where a Contracting State applies the exemptions of its domestic regime applicable to investment vehicles as mentioned in paragraph 5 of Article 11 to the permanent establishment of an entity established in the other Contracting State, no provision of this Convention restricts the right of the first-mentioned Contracting State to tax, according to its domestic law, income from immovable property deemed to be distributed by that permanent establishment. - 7. In relation to Articles 11, 12, 13, it is understood that managers of investment companies or funds established in a Contracting State may submit a claim relating to the benefits afforded by the provisions of those Articles. In the case of investment companies or funds not falling within Article 1, managers may submit claims and the competent authorities shall agree the mode of application of the Convention to those claims. - 8. In relation to Articles 12, 13 and 23, it is understood that where, under the terms of paragraph 5 of Article 12, paragraph 5 of Article 13 or paragraph 4 of Article 23, the provisions of the Article do not apply to an item of income then that income may be taxed in both Contracting States in accordance with the domestic law of each State. In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Protocol. Done in duplicate at London this 19th day of June, 2008, in the English and French languages, both texts being equally authoritative. For the Government of the United Kingdom of Great Britain and Northern Ireland: For the Government of the French Republic: