France’s Senate approves bill on the India tax-treaty protocol

The adopted text’s single article authorises approval of the protocol to the 29 September 1992 income-and-capital tax convention. The Senate dossier records adopted text No.20 and Assembly transmission No.3401. Those parliamentary steps do not themselves activate revised treaty relief.^[1][2]

Payment and business-presence conditions

The signed protocol would replace the treaty’s dividend article with 5% and 15% ceilings, subject to beneficial ownership and, for 5%, a qualifying company’s direct 10% capital holding throughout a 365-day period including payment. It also revises service permanent-establishment rules and royalty/technical-service treatment. Groups must establish the relevant payment, ownership and service facts; country presence alone does not establish relief.^[3]

Not yet operative

Protocol article15 links entry into force to the last diplomatic notification and contains different application rules for different amendments. Article13 adds a principal-purpose test. Neither Senate approval nor the protocol’s signature supplies a current entitlement or a single application date for every change. Groups should monitor completion of approval procedures before changing withholding treatment.^[3]