France Administrative Court of Appeal Clarifies Withholding Tax Treatment of Nonresident Under DTA With Israel

The French Administrative Court of Appeal of Paris May 18 issued Decision No. 24PA04140, clarifying the withholding tax treatment of remuneration paid to a nonresident under the 1995 DTA with Israel. The taxpayer, an Israeli resident, sought a refund of withholding taxes on payments received from a French company for design and consulting services, arguing that the income was taxable only in Israel as independent services under the DTA after the lower court denied the claim. On appeal, the Administrative Court of Appeal of Paris found that: 1) the taxpayer’s activities constituted independent services, not employment, given that there was ...