59 STAT.] FRANCE-DOUBLE TAXATION-JULY 25, 1939 Section 131 of the United States Internal Revenue Code relating to credit for foreign taxes. B - As regards France: a) Schedular taxes. Income from securities, debts and trusts having its source in the United States of America shall be subject in France to the tax on in- come from securities; but this tax shall be reduced by the amount of the tax already paid in the United States of America on the same income. In consideration of the fiscal regime to which the legis- lation of the United States of America subjects the income of non-resident aliens and foreign corporations or other entities, the deduction of the tax paid in the United States of America shall be effected in a lump sum through a reduction of 12 in the rate of the tax established by the French law. The income other than that in- dicated in the preceding paragraph shall not be subject to any sched- ular tax in France when, accord- ing to this Convention, it is tax- able in the United States of America. b) General tax on revenue. Notwithstanding any other pro- vision of the present Convention, the general income tax can be determined according to all the elements of taxable income as im- posed by French fiscal legislation. However, the provisions of the first paragraph of Article 114 of par les dispositions favorables ou restrictives de la section 131 du Code americain des imp6ts sur le revenu relatives au credit pour les imp8ts etrangers. B - En ce qui concerne la France: a) Imp6ts cedulaires. Les revenus des valeurs mo- bilieres, des creances et des trusts ayant leur source aux Etats-Unis d'Amerique demeureront passibles en France de l'imp6t sur le revenu des valeurs mobilieres; mais, cet imp6t sera diminu6 du montant de l'imp6t deja acquitte aux Etats-Unis d'Amerique pour les m6mes revenus. Eu egard au regime fiscal auquel la legislation des Etats-Unis d'Amerique soumet les revenus pergus par des etran- gers non residents et par des societ6s ou autres collectivites etrangeres, la deduction de l'imp6t acquitt6 aux Etats-Unis d'Ame- rique sera effectuee a forfait au moyen d'une diminution de 12 du taux de l'imp6t fixe par la loi francaise. Les revenus autres que ceux vises Al'alinea precedent ne seront soumis en France a aucun imp6t cedulaire lorsque, d'apres la Con- vention, ils seront imposables aux Etats-Unis d'Am6rique. b) Imp6t general sur le re- venu. Nonobstant toute autre disposi- tion de la pr6sente Convention, l'imp6t general sur le revenu pourra etre determine d'apres tous les elements de revenu im- posable selon la legislation fiscale frangaise. Toutefois, les dispositions du ler alinea de l'article 114 du Code 53 Stat. 56 . 26U.S.C.§131; Supp. IV , §131. Ante, p. 570. Deduction for tax paid other country. 901
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