PARIS -(Dow Jones)- France and the U.S. Tuesday signed an amendment to the tax convention between the two countries, lowering financial flows taxation, the French Finance Ministry said in a statement.
The amended convention puts an end to the pay-as-you go system for license fees and a partial end to corporate internal dividends, allowing for instance French companies operating in the U.S. to repatriate their funds to France without being taxed.
The amended convention also simplifies taxation processes for some investment structures such as investment funds, recently-created French real estate companies or U.S. partnership structures, the ministry outlined.
The modified convention stipulates mandatory arbitration thus avoiding double taxation for companies as well as individuals.
The amendment will be presented to the French parliament and the U.S. Congress for ratification "very soon," the ministry also said.
