[Code of Federal Regulations]
[Title 26, Volume 18, Parts 500 to 599]
[Revised as of April 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR514.111]

[Page 97-98]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY 
                               (Continued)
 
PART 514--FRANCE--Table of Contents
 
                       Subpart--General Income Tax
 
Sec. 514.111  Compensation for labor or personal services.

    (a) General. In general and subject to the provisions of Article 8 
and Article 10 of the convention and paragraph (b) of this section, 
compensation for labor or personal services derived from sources within 
the United States by a nonresident alien who is a resident of France, is 
subject to tax in accordance with the provisions of the Internal Revenue 
Code applicable generally to nonresident aliens. The provisions of 
Article 9 do not disturb either the provisions of section 119(a)(3) of 
the Internal Revenue Code, relating to source of compensation for labor 
or personal services, or the provisions of the Internal Revenue Code 
relating to the taxation of such compensation in the hands of a 
nonresident individual who is a resident of France.
    (b) Professional earnings. Article 10 of the convention provides a 
special rule of taxation with respect to professional fees constituting 
income derived from sources within the United States by a resident of 
France who is a nonresident alien. Under such rule, such nonresident 
alien rendering professional services, such as medical, legal, 
engineering, and scientific services, is not subject to United States 
tax with respect to such compensation unless he has an office or other 
fixed place situated in the United States during the taxable year. Thus, 
such alien present in the United States during any part of the taxable 
year and rendering professional advice as a medical doctor or as a 
lawyer or as an engineer, is not subject to Federal income tax on fees 
derived by him in such taxable year by reason of such services unless he 
maintains at some time during such taxable year an office or other fixed 
place in the United States incident to the practice of his profession. 
The exemption applies regardless of the length of time

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spent within the United States during the taxable year and regardless of 
the amount of the fees or professional charges resulting to such alien 
from such services. As to when an alien is regarded as a resident of the 
United States and hence outside the scope of the exemption, see 
Sec. 29.211-2 of Regulations 111 (26 CFR 1949 ed. Supps. 29.211-2) [and 
Sec. 39.211-2 of Regulations 118 (26 CFR, Rev. 1953, Parts 1-79, and 
Supps.)].