ARTICLE XIII
1. Paragraph 2 of Article 29 (Miscellaneous Provisions) of the Convention shall
be deleted and replaced by the following:
“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, and France may tax entities which have their
place of effective management and which are subject to tax in France as if
paragraph 3 of Article 4 of the Convention had not come into effect.
Notwithstanding the other provisions of this Convention, a former citizen
or former long-term resident of a Contracting State may, for the period of
ten years following the loss of such status, be taxed in accordance with the
laws of that Contracting State, with respect to its income from, or treated
as from, sources within that Contracting State. For this purpose, the term
“long term resident” means, with respect to a Contracting State, any
individual (other than a citizen of that Contracting State) who is a lawful
permanent resident of that Contracting State in at least eight taxable years
during the preceding fifteen taxable years.”
2. Subparagraph b) of paragraph 3 of Article 29 (Miscellaneous Provisions) of
the Convention shall be deleted and replaced by the following:
“b) the benefits conferred under paragraph 2 of Article 18 (Pensions), and
under Articles 19 (Public Remuneration), 20 (Teachers and Researchers),
21 (Students and Trainees), and 31 (Diplomatic and Consular Officers),
upon individuals resident in a Contracting State who are neither citizens
of, nor have immigrant status in, that Contracting State.”
3. In view of the amendment of Article 24 (Relief from Double Taxation) of the
Convention by paragraph 1 of Article VIII of this Protocol, Subparagraph (b) of
paragraph 7 of Article 29 (Miscellaneous Provisions) of the Convention, as
incorporated in the alternat of the United States, in both the English and French
version of such alternat, shall be deleted and replaced by the following:
“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 1 a) (i) or (ii) of Article 24 (Relief from Double
Taxation) shall be allowed as business expenses.”
4. A new paragraph 9 of Article 29 (Miscellaneous Provisions) of the
Convention shall be added as follows:
“9. Notwithstanding the provisions of Article 19 (Public Remuneration),
remuneration, other than a pension, paid by France or a local authority
thereof, or an agency or instrumentality of France or that authority, to an
individual in respect of services rendered to France, or to that authority,
agency or instrumentality shall be taxable only in the United States if the
services are rendered in the United States and the individual is a resident
and a national of the United States or an alien admitted to the United
States for permanent residence (a “green card holder”).”