CONVENTION BETWEEN THE GOVERNMENT OF THE FRENCH REPUBLIC AND THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF ROMANIA FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL
Status: IN FORCE, applicable since 1 January 1975
Preamble
The Government of the French Republic and the Government of the Socialist Republic of Romania, desiring to conclude a Convention for the avoidance of double taxation with respect to taxes on income and on capital, and to promote and strengthen the economic relations between the two countries, based on respect of national sovereignty and independence, equal rights, mutual benefits and non-interference in internal affairs, have agreed as follows:
Article 1
Personal scope
This Convention shall apply to persons who are residents of one or both of the Contracting States.
Article 2
Taxes covered
This Convention shall apply to taxes on income and on capital imposed on behalf of each Contracting State or of its administrative sub-divisions or local authorities, irrespective of the manner in which they are levied.
There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the amount of salaries, as well as taxes on capital appreciation.
The existing taxes to which the Convention shall apply are:
in the case of Romania:
the tax on income from employment, from literary, artistic and scientific works, on income from collaborating on publications and public entertainments, and from expert advice as well as from other sources;
the tax on profits of mixed companies established by Romanian economic organisations in collaboration with foreign partners;
the tax on income realised by non-resident individuals and legal entities;
the tax on income from the renting out of buildings and land;
the tax on profits from productive activities, artisan enterprises, professional services as well as from enterprises other than State enterprises;
the tax on profits from agricultural activities;
(hereinafter referred to as “Romanian tax”);
in the case of France:
the tax on income (impot sur le revenu);
the tax on companies (impot sur les societes);
including any withholding tax, prepayment (precompte) or advance payment with respect to the aforesaid taxes;
(hereinafter referred to as “French tax”).
The Convention shall also apply to any identical or substantially similar taxes which are imposed subsequent to the date of signing of this Convention. The competent authorities of the Contracting States shall notify each other at the end of each year any substantial changes which have been made in their respective taxation laws.
Article 3
General definitions
In this Convention:
the terms “a Contracting State” and “the other Contracting State” mean France or Romania, as the context requires. The term “Contracting States” means France and Romania.
the term “person” comprises an individual, a company, a public body and any other body of persons;
the term “company” means any legal entity or any other entity which is treated as a legal entity for tax purposes;
the terms “enterprise of a Contracting State”and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
the term “competent authority” means:
in France: The Minister of Finance and Economic Affairs or his authorized representative;
in Romania: The Minister of Finance or his authorized representative.
For the purposes of the application of the Convention by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the law of that State relating to the taxes which are the subject of the Convention.
Article 4
Fiscal Domicile
For the purposes of this Convention, the term “resident of a Contracting State” means any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, seat, place of management or any other criterion of a similar nature.
Where, by reason of the provisions of paragraph 1, an individual is deemed to be a resident of both Contracting States, then this case shall be determined in accordance with the following rules:
he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closest (centre of vital interests);
if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode;
if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national;
if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
Where, by reason of the provisions of paragraph 1, a person other than an individual is deemed to be a resident of both Contracting States, it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated.
Article 5
Permanent establishment
For the purposes of this Convention, the term “permanent establishment” means a fixed place of business in which the business of the enterprise is wholly or partly carried on.
The term “permanent establishment” shall include especially:
a place of management;
a branch;
an office;
a factory;
a workshop;
a mine, quarry or other place of extraction of natural resources;
an assembly project which exists for more than twelve months or a building site or construction project which exists for more than eighteen months.
The term “permanent establishment” shall not be deemed to include:
the use of facilities solely for the purpose of storage, display or delivery of merchandise belonging to the enterprise;
the maintenance of a stock of merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
the maintenance of a stock of merchandise belonging to the enterprise solely for the purpose of processing by another enterprise.
the maintenance of a stock of merchandise belonging to the enterprise which is exhibited at a trade fair or exhibition, and which is sold by the enterprise at the end of such fair or exhibition-
the maintenance of a fixed place of business solely for the purpose of purchasing merchandise or for collecting information, for the enterprise;
the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character for the enterprise.
A person acting in a Contracting State on behalf of an enterprise of the other Contracting State — other than an agent of an independent status to whom paragraph 5 applies — shall be deemed to be a permanent establishment in the first-mentioned State if he has, and habitually exercises in that State, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of merchandise for the enterprise.
An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, where such persons are acting in the ordinary course of their business.
The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
Article 6
Income from immovable property
Income from immovable property including income from agricultural and forestry activities may be taxed in the Contracting State in which such property is situated.
The term “immovable property” shall be defined in accordance with the tax law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property, and rights to variable or fixed payments for the working of, or the right to work mineral deposits, sources and other natural resources. Ships, boats and aircraft shall not be regarded as immovable property.
The provisions of paragraph 1 shall apply to income derived from the direct use, letting, leasing, or use in any other form of immovable property.
The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of any enterprise and to income from immovable property used for the performance of professional services.
Article 7
Business profits
The profits f an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.
Where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
In the determination of the profits of a permanent establishment there shall be allowed as deductions expenses incurred for the purpose of the permanent establishment whether in the State in which the permanent establishment is situated or elsewhere. The executive and general administrative expenses relating to such permanent establishment shall be determined as is customary and in a just and reasonable manner.
Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles embodied in this Article.
No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of merchandise for the enterprise.
For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provision of those Articles shall not be affected by the provisions of this Article.
Article 8
Transport enterprises
Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
If the place of effective management of an international shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
Profits from the operation of rail or road vehicles in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
The provisions of paragraphs 1 and 3 shall likewise apply to the profits derived from participation in a pool, a joint business or an international operating agency.
Article 9
Associated enterprises
Where:
an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or
the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
Article 10
Dividends
Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
However, such dividends may be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the law of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed 10 percent of the gross amount of the dividends.
The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
The term “dividends” as used in this Article means income from shares, “jouissance” shares or “jouissance” rights, mining shares, founders’ shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights assimilated to income from shares by the taxation law of the State of which the company making the distribution is a resident.
Sums reimbursed with respect to the prepayment (precompte) referred to in paragraph 5 which relate to dividends paid by the distributing company shall likewise be considered to be dividends paid by a company which is a resident of France.
The provisions of paragraphs 1 and 2 shall not apply if the recipient of the dividends, being a resident of a Contracting State, has in the other Contracting State, of which the company paying the dividends is a resident, a permanent establishment with which the holding by virtue of which the dividends are paid is effectively connected. In such a case, the provisions of Article 7 shall apply.
Where the prepayment (precompte) is withheld from dividends distributed by a company which is a resident of France, to a resident of Romania, the latter may claim a refund of such prepayment, subject to deduction of tax at source — on the amount of the sums reimbursed — in accordance with the domestic law or paragraph 2 of this Article, as the case may be.
Where a company which is a resident of a Contracting State has a permanent establishment in the other Contracting State, the profits of that permanent establishment may, after being subjected to the income tax, be subjected to a tax not exceeding 10 percent, in accordance with the law of that other Contracting State.
Article 11
Interest
Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
However, such interest may be taxed in the Contracting State in which it arises, and according to the law of that State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 10 percent of the amount of the interest.
The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
Notwithstanding the provisions of paragraph 2, interest paid on loans, guaranteed, insured or directly or indirectly financed by a Contracting State or a public body thereof shall be exempt in the Contracting State from which it is derived.
The term “interest” as used in this Article means income from debt claims of every kind, whether or not secured by mortgage, and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to bonds or debentures.
The provisions of paragraphs 1 and 2 shall not apply if the recipient of the interest, being a resident of a Contracting State, has in the other Contracting State in which the interest arises a permanent establishment with which the debt-claim from which the interest arises is effectively connected. In such a case, the provisions of Article 7 shall apply.
Interest shall be deemed to arise in a Contracting State when the payer is that State itself, an administrative subdivision, a local authority, or a resident of that State. Where, however, the person paying the interest, whether or not he is a resident of a Contracting State, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the interest paid, having regard to the debt claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount. In that case, the excess part of the payments shall remain taxable in accordance with the law of each Contracting State, due regard being had to the other provisions of this Convention.
Article 12
Royalties
Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
However, such royalties may be taxed in the Contracting State in which they arise, and according to the law of that State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 10 percent of the amount of the royalties.
The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
The term “royalties” as used in this Article means payments of any kind received as consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial, or scientific equipment and for information concerning industrial, commercial or scientific experience.
The provisions of paragraphs 1 and 2 shall not apply if the recipient of the royalties, being a resident of a Contracting State, has in the other Contracting State in which the royalties arise a permanent establishment with which the right or property giving rise to the royalties is effectively connected. In such a case, the provisions of Article 7 shall apply.
Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, an administrative subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties, whether or not he is a resident of a Contracting State, has in a Contracting State a permanent establishment in connection with which the obligation to pay the royalties was incurred, and the royalties are borne by such permanent establishment, then the royalties shall be deemed to arise in the Contracting State in which that permanent establishment is situated.
Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the royalties paid, having regard to the reason why they are paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable in accordance with the law of each Contracting State, due regard being had to the other provisions of this Convention.
Article 13
Capital gains
Gains from the alienation of immovable property, as defined in paragraph 2 of Article 6 or gains from the alienation of shares or similar rights in an immovable property company (societe immobiliere de copropriete) or in a company whose assets consist mainly of immovable property may be taxed in the Contracting State in which such immovable property is situated.
Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing professional services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in that other State. However, gains from the alienation of movable property of the kind referred to in paragraph 3 of Article 23, shall be taxable only in the Contracting State in which such movable property is taxable according to the said Article.
Gains from the alienation of any property, other than that mentioned in paragraphs 1 and 2, shall be taxable only in the Contracting State of which the alienator is a resident.
Article 14
Professional services and independent personal services
Income derived by a resident of a Contracting State in respect of professional services performed for his own account or other independent activities of a similar character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributable to that fixed base.
The term “professional services” includes, especially, independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Employees
Subject to the provisions of Articles 16, 18 and 19. salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
the recipient is present in the other State for a period or periods not exceeding in the aggregate 18 months within three consecutive years;
the remuneration is paid by, or on behalf of, a person who is not a resident of the other State, and
the remuneration is not borne by a permanent establishment or a fixed base which the person has in the other State.
Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft or rail or road vehicle in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.
Article 16
Directors’ fees
Directors’ fees, attendance fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or supervisory board of a company which is a resident of the other Contracting State may be taxed in that other State.
Article 17
Artistes and athletes
Notwithstanding the provisions of Articles 14 and 15, income derived by public entertainers, such as theatre, motion picture, radio or television artists, and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which these activities are exercised.
Where income of personal activities as such of an entertainer or athlete accrues not to that entertainer or athlete himself but to another person that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised.
This provision shall not apply if the entertainer or the athlete proves that neither he himself nor any person who is related or associated with him participates directly or indirectly in the profits of the person to whom the income is attributed.
Article 18
Pensions
Pensions, including social security pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment, shall be taxable only in that State.
Notwithstanding the provisions of paragraph 1, pensions paid directly by or out of funds created by a Contracting State, an administrative subdivision, a local authority or a public legal entity thereof in respect of past services of a governmental nature, shall be taxable only in that Contracting State;
Article 19
Governmental functions
Remuneration, paid directly by or out of funds created by a Contracting State, an administrative sub-division, a local authority or a public legal entity thereof to any individual in respect of services rendered to that State, or subdivision, a local authority or a public legal entity thereof in the discharge of functions of a governmental nature shall be taxable only in that State.
The provisions of Articles 15, 16 and 18 shall apply to remuneration in respect of services rendered in connection with any industrial or commercial activities carried on by one of the Contracting States or an administrative subdivision or a legal public entity thereof.
Article 20
Students, business apprentices and persons undergoing professional training
Payments which a student or business apprentice including a person undergoing further training who is or was formerly a resident of a Contracting State and who is present in the other Contracting State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxable in that other State, provided that such payments are made to him from sources outside that other State.
Where a person referred to in paragraph 1 takes up employment in the other Contracting State with a view to obtaining practical training in connection with his studies, he shall not be subject to tax in the last-mentioned State in respect of remuneration paid in connection with such employment, provided that the said employment does not last for more than 183 days in any calendar year.
A person referred to in paragraph 1 who takes up an employment in the other Contracting State in order to supplement the amounts necessary for his maintenance, shall not be taxable in that last-mentioned State in respect of remuneration paid in connection with such employment.
Article 21
Professors and research workers
A professor or research worker who is a resident of a Contracting State and visits the other Contracting State for the purpose of teaching or engaging in research for a period not exceeding two years shall be exempted from tax in that other State in respect of any remuneration derived from such activities.
This Article shall not apply to income from research if such research is undertaken primarily for the benefit of a specific person or persons.
Article 22
Income not expressly mentioned
Items of income of a resident of a Contracting State which are not expressly mentioned in the foregoing Articles of this Convention shall be taxable only in that State.
Article 23
Capital
Capital represented by immovable property, as defined in paragraph 2 of Article 6, may be taxed in the Contracting State in which such property is situated.
Capital represented by movable property forming part of the business property of a permanent establishment of an enterprise, or by movable property pertaining to a fixed base used for the performance of professional services, may be taxed in the Contracting State in which the permanent establishment or fixed base is situated.
Ships, aircraft and rail and road vehicles operated in international traffic and movable property pertaining to the operation of such ships, aircraft and rail and road vehicles, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
All other elements of capital of a resident of a Contracting State shall be taxable only in that State.
Article 24
Methods for the elimination of double taxation
Double taxation shall be avoided in the following manner:
In the case of Romania:
The French tax paid by a resident of Romania on income which is taxable in France, by reason of this Convention, may be deducted from the amount of Romanian tax which may be levied under Romanian tax law. Such deduction may not, however, exceed the amount of Romanian tax appropriate to such income.
In the case of France:
Income other than that mentioned in subparagraph b. below shall be exempt from the French taxes mentioned in sub-paragraph b. of paragraph 3 of Article 2 when such income is, by reason of this Convention, taxable in Romania.
As regards income referred to in Articles 10, 11, 12, 16 and 17 which has borne Romanian tax in accordance with the provisions of these Articles, France shall allow to a resident of France receiving such income from Romanian sources a tax credit corresponding to the amount of tax levied in Romania. This tax credit, which may not exceed the amount of the tax levied in France on the income involved, shall be allowed against the taxes referred to in sub-paragraph b. of paragraph 3 of Article 2, in the bases of which the said income is included.
Notwithstanding the provisions of sub-paragraphs a. and b. the French tax on income taxable in France by virtue of this Convention may be calculated at a rate corresponding to the total income which would be taxable under French law.
Article 25
Non-discrimination
The nationals of a Contracting State, whether or not they are residents of either State, shall not be subjected in the other State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected.
The term “nationals” means:
all individuals possessing the nationality of a Contracting State;
all legal entities, partnerships and associations constituted in accordance with the law in force in a Contracting State.
Stateless persons who are residents of one of the Contracting States shall not be subjected in either Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of the State concerned in the same circumstances are or may be subjected.
The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.
This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs, and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.
Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of that first-mentioned State are or may be subjected.
In this Article the term “taxation” means taxes of every kind and description.
Article 26
Mutual agreement procedure
Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the national laws of those States, present his case to the competent authority of the Contracting State of which he is a resident.
The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State with a view to the avoidance of taxation not in accordance with the Convention.
Any agreement reached shall be implemented notwithstanding any time limits in the national laws of the Contracting States.
The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties arising as to the application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.
The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States.
The competent authorities shall determine the way in which this Convention shall be applied.
Article 27
Exchange of information
The competent authorities of the Contracting States shall exchange such information as is necessary for the carrying out of this Convention and of the domestic laws of the Contracting States concerning taxes covered by this Convention insofar as the taxation thereunder is in accordance with this Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons or authorities, including courts, other than those concerned with the assessment or collection of the taxes which are the subject of this Convention.
In no case shall the provisions of paragraph 1 be construed so as to impose on one of the Contracting States the obligation:
to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State;
to supply particulars which are not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
to supply information which would disclose any commercial, industrial or professional secret, or information, the disclosure of which would be contrary to public policy (ordre public).
Article 28
Diplomatic and consular officials and officials of international organizations
The provisions of this Convention shall not affect the fiscal privileges of members of diplomatic missions and their private domestic personnel as well as members of consular missions under the general rules of international law or under the provisions of special agreements.
Where, by reason of fiscal privileges granted to members of diplomatic missions and their private domestic personnel as well as members of consular missions, under the general rules of international law or under the provisions of special agreements, income or capital is not subject to tax in the receiving State, the sending shall have the right to levy taxation.
For the purposes of this Convention, the members of diplomatic missions and their private domestic personnel as well as members of consular missions of a Contracting State which are situated in the other Contracting or in a third State and who have the nationality of the sending State, shall be deemed to be residents of the sending State, if they are subject to the same obligations with respect to taxes on income and capital as residents of that State.
The Convention shall not apply to international organisations, the organs or officials thereof nor to members of diplomatic missions and their private domestic personnel or to members of consular missions of a third State, who are present in a Contracting State and who are not deemed to be resident in either Contracting State for the purpose of income and capital taxes.
Article 29
Territorial scope
The territorial scope of this Convention is:
as respects Romania, the territory of the Socialist Republic of Romania and the areas outside the territorial waters of Romania which are, in accordance with international law, areas over which Romania may exercise rights with respect to the sea bed and sub-soil with a view to the exploration and exploitation of the natural resources thereof, but only to the extent that any person, property or activity falling under the provisions of the Convention relates to the exploration or exploitation of such resources;
as respects France, the Departments of the French Republic and the areas outside the territorial waters adjacent to these departments which are, in accordance with international law, areas over which France may exercise rights with respect to the sea bed and sub-soil with a view to the exploration and exploitation of the natural resources thereof, but only to the extent that any person, property or activity falling under the provisions of the Convention relates to the exploration or exploitation of such resources.
Article 30
Entry into force
Each Contracting State shall notify the other that all procedures required by its law for the entry into force of this Convention have been complied with. It shall enter into force thirty days after the date on which the last of such notifications has been given.
Its provisions shall apply for the first time:
in the case of taxes withheld at source, as respects income paid after the entry into force of the Convention;
in respect of other taxes on income, to income realised during the calendar year in which the Convention entered into force or attributable to financial years ending in the course of that year.
Article 31
Termination
This Convention shall remain in force indefinitely. However, as from 1979, either Contracting State may denounce it through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year.
In such event, the Convention shall apply for the last time:
in the case of taxes withheld at the source, as respects income paid not later than December 31 of the calendar year at the end of which notice of termination is to take effect;
in respect of other taxes on income, to income realised in the calendar year at the end of which notice of termination is to take effect or attributable to financial years ending in the course of that year.
In witness whereof, the undersigned, being duly authorized thereto by their respective Governments, have signed this Convention.
Done at Bucharest, in duplicate, in the French and Romanian languages, both texts being equally authentic, this twenty seventh day of September 1974.
