Argentina–France tax treaty protocol enters into force

Argentina’s treaty registry records the French notification in diplomatic note 2026-0347664 and Argentina’s earlier notification on 9 September 2026. Under Article 10, the protocol entered into force on the thirtieth day after the later notification. Argentina approved it through Law 27,814, published on 17 July 2026. The underlying convention was signed on 4 April 1979; the protocol was signed on 6 December 2019.^[1][2][3]

Permanent establishments

The protocol replaces Article 5. A building site or construction, assembly or installation project, including related supervisory activity, now constitutes a permanent establishment when it lasts more than six months. An enterprise also has a service permanent establishment when services, including consultancy, are furnished in the other state for periods aggregating more than 183 days in any twelve-month period for the same or a connected project. The existing convention already used a six-month threshold for construction projects, but did not contain this service rule.^[2][3]

Payment limits

Dividends paid to a beneficial owner resident in the other state may be taxed at source at no more than 10% where a company has held at least 25% of the payer’s capital directly for a 365-day period that includes the payment date; qualifying reorganisations do not interrupt that test. The cap is 15% in other cases. Interest is generally capped at 12%, replacing the convention’s 20% ceiling, with residence-state-only treatment for specified public, guaranteed, equipment-credit and longer-term preferential institutional financing. Royalties are capped at 3% for news, 5% for copyright royalties and 10% for other covered royalties, subject to the protocol’s authorship and registration conditions.^[2][3]

Gains, property vehicles and future treaties

The revised gains article lets the source state tax disposals of interests deriving more than 50% of their value from local immovable property at any time during the preceding 365 days. Other share gains are capped at 10% for a 25% holding and 15% otherwise. The protocol also preserves source taxation for distributions by specified real-estate investment vehicles and permits Argentina’s branch-profits tax within the stated conditions. A most-favoured-nation clause can lower specified permanent-establishment periods or payment-tax rates if Argentina later agrees more favourable terms with another state.^[2]

Application from 2027

Entry into force does not make the revised rates immediately applicable. Article 10 applies the protocol to withholding taxes on amounts paid from 1 January 2027 and to other taxes for fiscal years beginning on or after that date. Groups should therefore distinguish the legal entry-into-force date from the first operative tax period, then test beneficial ownership, holding periods, related-party pricing and the relevant exemption conditions before applying a reduced rate.^[1][2]