ARTICLE 29
Miscellaneous Provisions
1. The Convention shall not restrict in any manner any exclusion, exemption, deduction,
credit, or other allowance now or hereafter accorded by
(a) the laws of:
(i) the United States;
(ii) France, in the case of a resident (within the meaning of Article 4
(Resident)) or citizen of the United States. However, notwithstanding the
preceding sentence, the provisions of paragraph 5 of Article 6 (Income from Real
Property), Article 19 (Public Remuneration), Article 20 (Teachers and
Researchers), and Article 24 (Relief from Double Taxation) shall apply, regardless
of any exclusion, exemption, deduction, credit, or other allowance accorded by the
laws of France; or
(b) by any other agreement between the Contracting States.
2. Notwithstanding any provision of the Convention except the provisions of paragraph 3, the
United States may tax its residents, as determined under Article 4 (Resident), and its citizens as if
the Convention had not come into effect. For this purpose, the term citizen” shall include a
former citizen whose loss of citizenship had as one of its principal purposes the avoidance of
income tax, but only for a period of 10 years following such loss.
3. The provisions of paragraph 2 shall not affect:
(a) the benefits conferred under paragraph 2 of Article 9 (Associated Enterprises),
under paragraph 1(b) of Article 18 (Pensions), and under Articles 24 (Relief From Double
Taxation), 25 (Non-Discrimination), and 26 (Mutual Agreement Procedure); and
(b) the benefits conferred under Articles 19 (Public Remuneration), 20 (Teachers
and Researchers), 21 (Students and Trainees) and 31 (Diplomatic and Consular Officers),
upon individuals who are neither citizens of; nor have immigrant status in, the United
States.
4. Notwithstanding the provisions of Article 2 (Taxes Covered), any transaction in which an
order for the purchase, sale, or exchange of stocks or securities originates in one Contracting
State and is executed through a stock exchange in the other Contracting State shall be exempt in
the first-mentioned State from stamp or like tax otherwise arising with respect to such
transaction.
5. A resident of a Contracting State that maintains one or several abodes in the other
Contracting State shall not be subject in that other State to an income tax according to an
"imputed income" based on the rental value of that or those abodes.
6. Nothing in this Convention shall affect the U.S. taxation of an excess inclusion with
respect to a residual interest in a real estate mortgage investment conduit under section 860G of
the Internal Revenue Code, as it may be amended from time to time without changing the general
principle thereof.
7. For purposes of the taxation by France of residents of France who are citizens of the
United States:
(a) benefits other than capital gain received by reason of the exercise of options
with respect to shares of companies resident in the United States shall be considered
income when and to the extent that the exercise of the option or disposition of the stock
gives rise to ordinary income for United States tax purposes;
(b) United States state and local income taxes on income from personal services
and any other business income (except income that is exempt under subparagraph 2(a) (i)
or (ii) of Article 24 (Relief from Double Taxation)) shall be allowed as business
expenses.
8. Notwithstanding the provisions of subparagraph 1(b):
(a) Notwithstanding any other agreement to which the Contracting States may be
parties, a dispute concerning whether a measure is within the scope of this Convention
shall be considered only by the competent authorities of the Contracting States, as defined
in subparagraph 1(h) of Article 3 (General Definitions) of this Convention, and the
procedures under this Convention exclusively shall apply to the dispute.
(b) Unless the competent authorities determine that a taxation measure is not
within the scope of this Convention, the non-discrimination obligations of this
Convention exclusively shall apply with respect to that measure, except for such national
treatment or most-favored-nation obligations as may apply to trade in goods under the
General Agreement on Tariffs and Trade. No national treatment or most-favored-nation
obligation under any other agreement shall apply with respect to that measure.
(c) For the purpose of this paragraph, a "measure" is a law, regulation, rule,
procedure, decision, administrative action, or any other form of measure.