The Senate Votes in Favor of Ratification of the French Tax Protocol

The National French-American Chamber of Commerce supports the ratification of the 2009 Protocol (the "Protocol") to the France and US Income and Capital Tax Treaty of August 31, 1994

December 4, 2009 update from Serge Bellanger, National President French-American Chamber of Commerce

On December 3rd, the Senate voted in favor of ratification of the French Tax Protocol.   You will find hereafter the official text:

"EXECUTIVE SESSION -- (Senate - December 03, 2009) --- PROTOCOL AMENDING TAX CONVENTION WITH FRANCE

Mr. CASEY. Mr. President, I ask unanimous consent that the Senate proceed to executive session to consider Executive Calendar No. 1, Treaty Document No. 11-4, Protocol Amending Tax Convention with France; that the treaty be considered as having advanced through the various parliamentary stages, up to and including the presentation of the resolution of ratification; that any committee understanding, declaration, or condition be agreed to as applicable; that any statements be printed in the Record; further, that when the vote on the resolution of ratification is taken, the motion to reconsider be considered made and laid upon the table, and the President be immediately notified of the Senate's action. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. CASEY. Mr. President, I ask for a division vote on the resolution of ratification. The PRESIDING OFFICER. A division vote has been requested. Senators in favor of the resolution of ratification will rise and stand until counted. Those opposed will rise and stand until counted. On a division, two-thirds of the Senators present and voting having voted in the affirmative, the resolution of ratification is agreed to."

November 17, 2009 update from Serge Bellanger, National President French-American Chamber of Commerce

The French Tax Protocol was voted out of the Senate Foreign Relations Committee in November 17 business meeting. This means it will be now submitted to the full Senate.

November 13, 2009 update from Serge Bellanger, National President French-American Chamber of Commerce

Following the November 10 Senate Foreign Relations Committee Treaties hearing, the Committee is scheduled to take up the protocol with France during the Committee's next business meeting on November 17. Indeed, the withholding provisions of the French treaty are effective as of January 1st of the year in which the Protocol is ratified. Therefore, it has a higher priorities than other treaties (Malta and New Zealand), which carry prospective effective dates.

Background

The United States and France have signed the Protocol on January 13, 2009. And to become effective it must be ratified by both countries. On June 3, 2009, the Protocol was submitted to the French Parliament for ratification. On September 9, 2009, the Obama Administration transmitted the Protocol to the US Senate for ratification.

It is important, for many international companies doing business in the United States, that ratification be completed prior to year end. Many organizations such as the Organization for International Investment (OFII), the National Assocation of Manufacturers, the National Foreign Trade Council, the Business Roundtable and the US Chamber of Commerce have supported this Protocol.

We, at the National French-American Chamber of Commerce in the United States, have been approached by member companies, both in New York and Washington DC, and we have decided to support this effort. For your information, you will find attached our letter of support dated November 6 sent to Senators John Kerry and Richard Lugar, Chairman and Ranking Member of the Committee on Foreign Relations, as well as to the other members of the Committee. We are also attaching a background information sheet on the ratification process and its benefits for international companies.

The Senate Foreign Relations Committee held a hearing on the Protocol on Tuesday November 10, at 9 am. The proceedings are available online at http://foreign.senate.gov/hearing.html

Attachments: Tax Treaties Background; Ratification of the 2009 Protocol