French General Tax Code
In forceI. - Income from shares, corporate units or profit shares distributed by French companies, as well as income mentioned in article 118 which benefit international organisations, foreign sovereign States or the central banks of these States, are exempt from the withholding taxes provided for in 1 and 2 of l'article 119 bis et du prélèvement prévu au III de article 125 A.
These investments must not constitute a direct investment within the meaning of the loi n° 66-1008 du 28 décembre 1966 modified law relating to financial relations with foreign countries and the regulatory texts issued for its application. The securities must be in registered form or deposited with a credit institution established in France.
II. - With the approval of the Minister for the Economy and Finance, the withholding taxes provided for in 1 and 2 of Article 119 bis and the levy provided for in III of Article 125 A may be reduced or waived in respect of:
The products mentioned in I which benefit foreign public institutions;
The products mentioned in articles 124 and 1678 bis and those relating to investments constituting direct investments in France within the meaning of I which benefit international organisations, foreign sovereign States, the central banks of these States or foreign public financial institutions.
