American oorpora- tions in France. Ante, pp . 895-896. [59 STAT. the French Code on direct taxa- tion relative to the taxation of aliens domiciled or resident in France shall continue to be applied. ARTICLE 15. In derogation of Article 3 of the Decree of December 6, 1872, Amer- ican corporations which main- tain in France permanent estab- lishments shall be liable to the tax on income from securities on three-fourths of the profits actual- ly derived from such establish- ments, the industrial and com- mercial profits being determined in accordance with Articles 3 and 4 of this Convention. The remaining one-fourth shall, in all cases, be taken as the basis of the annual tax on undistributed profits applicable to the same cor- porations. ARTICLE 16. An American corporation shall not be subject to the obligations prescribed by Article 3 of the Decree of December 6, 1872, by reason of any participation in the management or in the capital of, or any other relations with, a French corporation. In such case, the tax on income from secu- rities continues to be levied, in conformity with French legisla- tion, on the dividends, interest and all other distributions made by the French enterprise; but it is moreover collectible, if the occa- sion arises, and subject to the measures of appeal applicable in the case of the tax on income from securities, with respect to the prof- its which the American corpora- tion derives from the French corporation under the conditions prescribed in Article 5. 902 TREATIES frangais des Imp6ts directs rela- tives A l'imposition des etrangers domicilies ou r6sidant en France continueront a etre appliquees. ARTICLE 15. Par derogation a l'article 3 du decret du 6 d6cembre 1872, les soci6t6s americaines qui possedent en France des etablissements stables acquitteront l'imp6t sur le revenu des valeurs mobiliSres sur les trois quarts des benefices effectivement retires de ces 6ta- blissements, les benefices indus- triels et commerciaux 6tant d6ter- mines en conformite des disposi- tions des articles 3 et 4 de la presente Convention. Le quart restant sera, dans tous les cas, pris pour base de la taxe annuelle sur les b6enfices non distribues applicables aux memes societes. ARTICLE 16. Une Societe americaine ne sera pas assujettie aux prescriptions de l'article 3 du decret du 6 d6cembre 1872 en raison d'une participation dans la gestion ou dans le capital ou a cause de toute autre relation avec une societe frangaise. Dans ce cas, l'imp6t sur le revenu des valeurs mobilieres continue a etre pergu conformement A la legisla- tion francaise sur les dividendes, interets et tous autres produits distribues par l'entreprise frangaise, mais il est, en outre, exigible, le cas echeant, et sous r6serve des recours applicables en matiere d'imp6t sur le revenu des valeurs mobilieres, sur les benefices que 1'entreprise americaine retire de l'entreprise franQaise dans les con- ditions prevues par l'article 5.
�
