Law n ° 2016-04 of 06 January 2016 authorising the President of the Republic to ratify the Convention between the Republic of Senegal and the Portuguese Republic with a view to the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on the Income, signed at Lisbon, June 13, 2014





EXPOSE REASONS


In order to strengthen their economic cooperation in the tax field, the Republic of Senegal and the Portuguese Republic signed the Convention in Lisbon on 13 June 2014 to avoid double taxation and to prevent tax evasion In terms of income taxes.

The purpose of this Convention is, on the one hand, to avoid the double tax contribution of the nationals of the two States and, on the other hand, to prevent international tax evasion and avoidance which are evolving, multifaceted and complex, and which threaten Preservation of the tax base.

Economic activities must, through the application of this Convention, benefit from reduced taxation and exemption on certain categories of income in order to promote financial flows. It will also contribute to the establishment of equity and security in trade between the two states.

The Convention shall apply to natural and legal persons resident in the Contracting States and to taxes on income received on behalf of a Contracting State or its dismemberments.

The following are regarded as taxes on income, taxes levied on total income or on items of income, including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital gains. For Portugal, this refers to income tax and, for Senegal, to:

-corporation tax;
-the flat-rate minimum tax on companies;
-personal income tax;
-the flat-rate contribution to the employer's expenses;
-the added value tax on built or unbuilt land, to which taxes of the same nature may be added subsequent to that Convention.

In addition, in order to prevent the evasion or the tax bill, the Convention provides for cooperation between the competent authorities of the two states in accordance with their domestic legislation.

This Convention shall enter into force thirty days after the date of receipt of the last notification, in writing and through diplomatic channels, of the completion of the internal procedures of the Contracting States required for that purpose.

Concled for an indefinite period, this Convention may be terminated at the latest, on 30 June of any calendar year following the period of five years from its entry into force.

By expressing its consent to be bound by this Convention, Senegal will contribute to increasing the flow of financial and trade flows with Portugal and thus will open a new era in business relations between the two countries.


This is the economy of this bill.

The National Assembly adopted, at its meeting on Monday 28 December 2015,
The President of the Republic enacts the following legislation:

Sole Article. -The President of the Republic is authorized to ratify the Convention between the Republic of Senegal and the Portuguese Republic in order to avoid double taxation and to prevent tax evasion with respect to taxes on income, signed in Lisbon, June 13, 2014.

This Law shall be enforced as the law of the State.

Done at Dakar, January 6, 2016

Macky SALL.
By the President of the Republic:

The Prime Minister,
Mahammed Boun Abdallah DIONNE

CONVENTION BETWEEN THE REPUBLIC OF PORTUGAL AND THE PORTUGUESE REPUBLIC IN ORDER TO AVOID DOUBLE TAXATION AND TO PREVENT TAX EVASION WITH RESPECT TO INCOME TAX


The Republic of Senegal and the Republic of Portugal.

Desiring to conclude a Convention to avoid double taxation and to prevent tax evasion with respect to taxes on income,

The following provisions have been agreed:

Chapter I. -Scope of the Convention


Article 1. -Target persons

(1) This Convention shall apply to persons who are residents of one or both of the Contracting States.


Article 2. -Taxes Covered

(2) This Convention shall apply to taxes on income received on behalf of a Contracting State, its political or administrative subdivisions or its local authorities, irrespective of the system of collection.

3. Income taxes levied on total income or on items of income, including taxes on gains from the alienation of movable or immovable property, taxes on the aggregate amount of Wages paid by businesses, as well as taxes on capital gains.

The current taxes to which the Convention applies include:

A ) With regard to Senegal:

(i) corporate income tax;
(ii) the corporate minimum tax on corporations;
(iii) personal income tax;
(iv) the lump-sum contribution to the employer's office;
(v) the added value tax on built and unbuilt land.
(hereinafter referred to " Senegalese tax).

B ) In relation to Portugal:

(i) Income tax on natural persons (Imposto sobre o Rendimento das Pessoas Singulares-IRS);
(ii) the corporate income tax (Imposte sobre o Rendimento das Pesscas Colectivas-1RC);
(iii) additional taxes on corporate income (Derramas):
(hereinafter referred to " Portuguese tax ").

(5) The Convention shall also apply to taxes of an identical or similar nature which would have entered into force after the date of signature of this Convention in addition to, or in place of, existing taxes. The competent authorities of the Contracting States shall communicate the significant changes made to their respective tax laws.


Chapter II. -Definitions


Article 3. -General Definitions

1. Within the meaning of this Convention, unless the context requires a different interpretation:

A) the term " Portugal " Refers to the Portuguese Republic and, geographically and in accordance with international law, means the national territory, the territorial waters and the maritime areas on which Portugal exercises its sovereignty Or its jurisdiction;

(b) " Senegal " Means the Republic of Senegal and, geographically and in accordance with international law, means the national territory, the territorial waters and the maritime areas on which Senegal exercises its sovereignty rights or Its jurisdiction;

(c) expressions " A Contracting State " And " The other Contracting State " Designate, according to the context, Senegal or Portugal;

D) the term " Tax " Following the context, the Senegalese tax or the Portuguese tax;

E) the term " Person " Includes natural persons, corporations and other groups of persons;

(f) the term Company " Means any corporation or entity that is considered to be a corporation for taxation purposes;

(g) expressions " Enterprise of a Contracting State " And " Enterprise of the other Contracting State " Designate respectively a business carried on by a resident of a Contracting State and a business carried on by a resident of the other Contracting State;

(h) expression " International traffic " Means any transport by a ship or aircraft operated by a company whose actual head office is located in a Contracting State, except where the vessel is operated only between points in the other Contracting State;

(i) expression " Competent authority " Means:

(i) in the case of Senegal, the Minister responsible for finance or his authorized representative;

(ii) in the case of Portugal, the Minister of Finance, the Director-General of the Fiscale Authority and Customs or their authorized representatives;

(j) " National " Means:

(i) any natural person possessing the nationality of a Contracting State;

(ii) any legal person, partnership or association established in accordance with the law in force in a Contracting State.


(2) For the purposes of the application of the Convention at any time by a Contracting State, any term or expression which is not defined therein shall, unless the context requires a different interpretation, the meaning assigned to it by that State at that time In respect of the taxes to which the Convention applies, the meaning attributed to that term or expression by the tax law of that State prevailing on the meaning assigned to it by the other branches of the law of that State.

Article 4. -Resident

1. For the purposes of this Convention, the expression " Resident of a Contracting State " Means any person who, under the law of that State, is liable to tax in that State because of his domicile, residence, place of management or any other criterion of a similar nature and also applies to that State And to all its political or administrative subdivisions or to its local authorities. However, this term does not include persons who are subject to tax in that State only for income from sources in that State.

(2) Where, according to the provisions of paragraph 1, a natural person is considered to be a resident of both Contracting States, his situation shall be determined as follows:

(a) that person is considered to be a resident only of the Contracting State in which it has a permanent home. When it has a permanent home in both Contracting States, it shall be considered to be a resident only of the State with which its personal and economic ties are the closest (centre of vital interests);

(b) if the Contracting State in which that person has the centre of its vital interests cannot be determined, or if it does not have a permanent home in any of the Contracting States, it shall be deemed to be a resident only of the State The contractor in which she habitually resides;

(c) if that person is habitually resident in both Contracting States or is not habitually resident in any of the Contracting States, that person shall be considered to be a resident only of the Contracting State of which the person is a national;

(d) if that person has the nationality of both Contracting States or does not have the nationality of any of them, the competent authorities of the Contracting States shall settle the matter by mutual agreement.

Where, according to the provisions of paragraph 1, a person other than a natural person is a resident of both Contracting States, it shall be considered to be a resident only of the State in which its place of effective management is situated.


Article 5 . - Permanent establishment

1. For the purposes of this Convention, the expression " Permanent establishment " Means a fixed place of business through which a business of a Contracting State carries out all or part of its activity.

2. The expression " Permanent establishment " Includes:

(a) a seat of management;
(b) a branch;
(c) an office;
(d) a plant;
(e) a workshop;
(f) a mine, oil or gas well, quarry or other place of extraction of natural resources.

3. The expression " Permanent establishment " Also includes:

(a) a construction or assembly site or monitoring activity, but only when that site or activities have a duration of more than nine months;

(b) the provision of services, including consultancy services, by a company acting through employees or other staff engaged by the undertaking for that purpose, but only when such activities continue (for the same project or a related project) in the territory of a Contracting State during one or more periods representing a total of more than 183 days within the limits of any period of twelve months.


Notwithstanding the preceding provisions of this Article, it is considered that there is no permanent establishment if:

(a) the use of facilities solely for the storage or exhibition of goods belonging to the enterprise;

(b) goods belonging to the enterprise are stored for storage or exhibition purposes only;

(c) goods belonging to the enterprise are stored for the sole purpose of processing by another enterprise;

(d) a fixed place of business is used solely for the purpose of purchasing goods or collecting information for the enterprise;

(e) a fixed place of business shall be used solely for the purpose of exercising, for the enterprise, any other preparatory or auxiliary activity;

(f) a fixed place of business shall be used solely for the purposes of the cumulative exercise of activities referred to in paragraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from that cumulation keeps a character Preparatory or auxiliary.

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person-other than an agent of an independent status referred to in paragraph 7-acts in a Contracting State on behalf of a business of the other Contracting State, that Enterprise shall be deemed to have a permanent establishment in the first-mentioned Contracting State for all the activities of that person if that person:

(a) has in that State the power to enter into contracts on behalf of the enterprise, unless the activities of that person are limited to those listed in paragraph 4 and exercised in a Fixed place of business shall not make this fixed place of business a permanent establishment within the meaning of that paragraph or

(b) does not have such power, it usually retains in the first State a stock of goods on which it regularly collects goods for delivery on behalf of the undertaking.


6. Notwithstanding the preceding provisions of this Article, an insurance undertaking of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State, except in respect of reinsurance, at the moment that, by The intermediary of a person, other than an agent of an independent status referred to in paragraph 7, shall collect premiums in the territory of that State or insure risks in that territory.

7. It is not considered that a business of a Contracting State has a permanent establishment in the other Contracting State solely because it carries on business in that other State through a broker, general commission agent or any other person Other intermediary with an independent status, provided that such persons act in the ordinary course of their activities.

8. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of or carries on business in the other Contracting State (whether through a permanent establishment or not) Is not sufficient in itself to make any of these companies a permanent establishment of the other.


Chapter III. -Taxation of income


Article 6 . - Real Estate Revenue

The income of a resident of a Contracting State from immovable property (including income from agricultural or forestry holdings) situated in the other Contracting State may be taxed in that other State.

2. The expression " Real estate " Has the meaning assigned by the law of the Contracting State in which the property in question is situated. The term includes in any case the accessories, the dead or alive stock of the agricultural and forestry holdings, the rights to which the provisions of private law relating to land ownership apply, the usufruct of immovable property and The rights to variable or fixed payments for the operation or concession of the operation of the dc deposits mmeraux, sources and other natural resources; ships and aircraft are not considered to be immovable property.

3. The provisions of paragraph 1 above shall apply to income derived from the direct exploitation of the rental or the leasing, as well as any other form of exploitation of immovable property.

4. The provisions of paragraphs 1 and 3 above shall also apply to income from immovable property of a business and to income from immovable property used for the performance of an independent profession.

Notwithstanding the provisions of Article 7, the preceding provisions of this Article shall also apply to income from movable property or income derived from services relating to the use or grant of the use of property Property which, in accordance with the tax law of the Contracting State in which the property in question is situated, is assimilated to income from immovable property.


Article 7. -Business profits

The profits of 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. Where the business carries on business in such a way, the profits of the enterprise may be taxed in the other State but only to the extent that they are attributable to that permanent establishment.

(2) Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, it shall be charged, in each Contracting State, to That permanent establishment the profits which it could have made if it had constituted a separate and separate undertaking carrying on identical or similar activities under identical or similar conditions and dealing independently with The business of which it is a permanent establishment.

3. In order to determine the profits of a permanent establishment, the expenses incurred for the purposes of that permanent establishment shall be allowed, including management and general administrative expenses so incurred, or In the State in which the permanent establishment is situated, or elsewhere.

However, no deduction is allowed for amounts that, if any, would be paid (other than the reimbursement of expenses incurred) by the permanent establishment at the head office of the enterprise or any of its offices, As royalties, fees or other similar payments, for the use of patents or other rights, or as a commission, for specific services rendered or for a management activity or, except in the case of a banking business, as interest On amounts lent to the permanent establishment.

Similarly, in calculating the profits of a permanent establishment, account shall not be taken of the sums (other than the reimbursement of costs incurred) by the permanent establishment at the rate of the head office of the undertaking or of any of the Its other offices, such as royalties, fees or other similar payments, for the use of patents or other rights, or as a commission for specific services rendered or for a management activity or, except in the case of a business As interest on amounts lent to the head office of the business or to any of the Other offices.


4. If it is customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of a distribution of the total profits of the undertaking between its various parties, no provision of the paragraph


2 shall not prevent that Contracting State from determining the taxable profits, according to the distribution in use: the method of allocation adopted shall be such that the result obtained is in accordance with the principles contained in this Article.


5. No profit shall be charged to a permanent establishment because it has merely purchased goods for the business,


6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined each year according to the same method, unless there are valid and sufficient grounds for doing otherwise.


Where profits include items of income dealt with separately in other Articles of this Convention, the provisions of those Articles shall not be affected by the provisions of this Article.



Article 8. -Marine and Air Navigation


(1) Profits arising 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 undertaking is situated.


2. If the place of effective management of a shipping company is on board a ship, that seat shall be considered to be situated in the Contracting State in which the home port of that ship is located or, in the absence of a home port, in the State Contractor for whom the operator of the ship is a resident.


The provisions of paragraph 1 shall also apply to profits derived from participation in a pool, a joint operation or an international body



Article 9. -Associated Enterprises


1. When:

(a) a business of a Contracting State is directly or indirectly involved in the management, control or capital of a business of the other Contracting State, or

(b) the same persons participate directly or indirectly in the management, control or capital of a business of a Contracting State and of a business of the other Contracting State, and that, in either case, the two undertakings are, In their commercial or financial relations linked by accepted or imposed conditions, which differ from those agreed between independent undertakings, profits which, without these conditions, would have been obtained by one of the Enterprises but could not be, because of these conditions, can be included In the profits of that company and taxed accordingly.

(2) Where a Contracting State includes in the profits of a business of that State and imposes as a consequence profits on which a business of the other Contracting State has been taxed in that other State and the profits thus included are The profits that would have been made by the enterprise of the first State if the conditions agreed between the two undertakings had been those which would have been agreed between independent undertakings, the other State shall make an adjustment Appropriate to the amount of the tax that was collected on those profits if that adjustment is considered to be In principle, as well as in its amount. By that other State.

In order to determine this adjustment, account shall be taken of the other provisions of this Convention and, if necessary, the competent authorities of the Contracting States shall consult each other.

(3) The provisions of paragraph 2 shall not apply where, following a judicial, administrative or other legal procedure, a final decision has been made to the effect of actions resulting in an adjustment of profits pursuant to paragraph 1, One of the undertakings in question is liable to a penalty for fraud, gross negligence or wilful failure.



Article 10. -Dividends

1. 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.

2. However, such dividends may also 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 beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:

(a) 5 per cent of the gross amount of the dividends if the beneficial owner is a corporation (other than a partnership) that directly holds at least 25 per cent of the capital of the corporation paying the dividends;

(b) 10 per cent of the gross amount of the dividends in all other cases.

The competent authorities of the Contracting States shall, by mutual agreement, regulate the application of these limitations.

The provisions of this paragraph shall not affect the taxation of the company in respect of profits for the payment of dividends.


3. The term " Dividends " Used in this Article means income from shares, shares or jouissance rights, mine shares, founders' shares or other beneficiaries except for claims, as well as income from other shares subject to the Same tax system as income from shares by the laws of the State of which the distributing corporation is a resident. With regard to Portugal, the term " Dividends " Also means the profits attributed or paid under a participating association.


(1) The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the dividends, being a resident of a Contracting State, carries on in the other Contracting State of which the company paying the dividends is a resident, or Business activity through a permanent establishment situated therein, or an independent profession by means of a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with it. In such cases, the provisions of Article 7 or Article 15 of this Convention, as the case may be, shall apply.


5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other Contracting State may not levy any tax on dividends paid by the company, except to the extent that those Dividends shall be paid to a resident of that other Contracting State or to the extent that the holding of the dividends is effectively connected with a permanent establishment or fixed base situated in that other Contracting State, or No tax, for the taxation of undistributed profits of the corporation, even if the dividends Paid or undistributed profits consist wholly or partly in profits or income from that other Contracting State.


Article 11. -Interest

(1) Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such interest may also be taxed in the Contracting State in which it arises and according to the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so established shall not Exceed 10 per cent of the gross amount of interest. The competent authorities of the Contracting States shall, by mutual agreement, regulate the application of this limitation.

Notwithstanding the provisions of paragraphs 1 and 2, interest arising in a Contracting State shall be taxable only in the other Contracting State if the beneficial owner of the interest is the other Contracting State, its political subdivisions or Administrative, its local authorities or the central bank of that other Contracting State.

4. The term " Interest " Used in this Article means income from claims of all kinds, whether or not accompanied by mortgage guarantees or a clause on participation in the profits of the debtor, including income from public funds and bonds Borrowings, including premiums and prizes attached to such securities. Late payment penalties shall not be considered as interest within the meaning of this Article.

5. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the resident interest of a Contracting State carries on business in the other Contracting State from where the interest arises as a business by The intermediary of a permanent establishment situated therein, or an independent profession by means of a fixed base situated therein, and that the debt-claim of interest is actually attached to that permanent establishment or to that fixed base. In this case, the provisions of Article 7 or Article 15, as the case may be, shall apply.


6. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that Contracting State. However, where the debtor of the interest, whether or not he is a resident of a Contracting State, has, in a Contracting State a permanent establishment or a fixed base for which the debt giving rise to the interest payment has been incurred and which Shall bear the burden of such interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.


7. Where, because of the special relationship between the payer and the beneficial owner or both of the debtor and the other person, the amount of the interest, taking into account the claim for which they are paid, exceeds The agreement between the debtor and the beneficial owner in the absence of such relationships, the provisions of this Article shall apply only to the latter amount. In such case, the excess part of the payments shall remain taxable in accordance with the laws of each Contracting State and taking into account the other provisions of this Convention,


Article 12. -Royalties

(1) Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the law of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so established Shall not exceed 10 per cent of their gross amount. The competent authorities of the Contracting States shall, by mutual agreement, regulate the application of this limitation.

3. The term " Royalties " In this Article means remuneration of any kind paid for the use or grant of the use of a copyright in a literary, artistic or scientific work, including cinematographic films, a patent, a Trade mark, a design, a plan, a secret form or process, and information relating to industrial, commercial or scientific experience,

(4) The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, i.e. The intermediary of a permanent establishment situated therein, or an independent profession by means of a fixed base situated therein, and that the right or property in respect of the royalties actually relate to that permanent establishment or that Fixed base, In this case, the provisions of section 7 or section 15 as the case may be Applicable.

(5) Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. However, where the payer of the royalties, whether or not he is a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the obligation giving rise to the payment of the royalties has been concluded and Such charges shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.

6. Where, by reason of the special relationship between the payer and the beneficial owner or between one and the other with third parties, the amount of the royalties, taking into account the benefit for which they are paid Exceeds the one agreed upon by the payer and the beneficial owner in the absence of such relationships, the provisions of this section apply only to the latter amount. In this case, the excess part of the payments shall remain taxable under the laws of each Contracting State, taking into account the other provisions of this Convention.


Article 13. -Salaries for technical services

1. Remuneration for technical services arising in a Contracting State for which the beneficial owner is a resident of the other Contracting State may be taxed in that other State.

2. However, such remuneration for technical services may also be taxed in the Contracting State in which they arise and according to the law of that State, but if the beneficial owner of such remuneration is a resident of the other State The tax so charged shall not exceed 8 per cent of the gross amount of remuneration. The competent authorities of the Contracting States shall, by mutual agreement, regulate the application of this limitation.

3. The term " Remuneration for technical services " Used in this Article means all payments to any person, other than those referred to in Articles 7, 12, 15 and 16 of this Convention, in consideration of management, technical or consultancy services, including the supply Services by technical staff or other personnel.

4, The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the remuneration for technical services, a resident of a Contracting State, carries on in the other Contracting State in which the remuneration is derived for Technical services an undertaking by the intermediary of a permanent establishment situated therein, or carries on in that other Contracting State an independent profession through a fixed base and the right or the right generator Remuneration for technical services is effectively connected with that establishment Stable or fixed base. In that case, the provisions of Articles 7 and 15, as the case may be, shall apply,

5. Remuneration for technical services shall be deemed to arise in a Contracting State when the payer is a resident of that State. However, where the person paying the remuneration for technical services whether or not he is a resident of a Contracting State has in a Contracting State a permanent establishment or a fixed base, for which the undertaking giving rise to the Remuneration for technical services has been incurred and which bear the burden of such remuneration for technical services shall be deemed to arise in the Contracting State in which the permanent establishment is situated, or the fixed base.

6. Where, by reason of the special relationship between the payer and the beneficial owner or between one and the other with third parties, the amount of remuneration for technical services, taking into account the benefit for In respect of which they have been paid, in excess of that agreed upon by the payer and the beneficial owner in the absence of such relationships, the provisions of this Article shall apply only to the latter amount. In this case, the excess part of the payments shall remain taxable according to the laws of each Contracting State and taking into account the other provisions of this Convention.


Article 14. -Capital Gains

Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

Gains from the alienation of movable property which form part of the assets of a permanent establishment that a business of a Contracting State has in the other Contracting State, or movable property that belong to a fixed base of which Resident of a Contracting State has in the other Contracting State for the performance of an independent profession, including such gains from the alienation of that permanent establishment (alone or with the whole of the enterprise) or that fixed base, May be taxed in that other State.

Gains from the alienation of ships or aircraft operated in international traffic by an enterprise of a Contracting State and movable property pertaining to the operation of such ships or aircraft shall be taxable only in The Contracting State in which the place of effective management of the undertaking is situated.

Gains derived by a resident of a Contracting State from the alienation of shares or similar rights which derive directly or indirectly more than 50 per cent of their value of immovable property situated in the other Contracting State may be taxed In that other State.

5, Gains from the transfer of social rights representing an interest of more than 50 per cent in a company resident in a Contracting State may be taxed in that State but the tax so charged shall not exceed 20 per cent of the Gains,

6. Gains from the alienation of any property other than those referred to in paragraphs 1 to 5 shall be taxable only in the Contracting State of which the alienator is a resident.


Article 15. -Independent professions

(1) Income derived by a resident of a Contracting State from a professional profession or other activities of an independent character shall be taxable only in that State unless it has at its disposal in the other Contracting State a fixed base for The exercise of his or her activities or if he or she stays in that other State for one or more periods of more than 183 days in a twelve-month period. If it has a fixed base or is present in that other State during the period or periods mentioned above, the income may be taxed in that other State only to the extent that it is attributable to that fixed base or originates in that other State During the above-mentioned period (s).

2. The expression " Liberal profession " Includes independent scientific, literary, artistic, educational or educational activities, as well as the independent activities of doctors, engineers, lawyers, dentists, architects and accountants.


Article 16. -Dependent Personal Services

Subject to the provisions of Articles 17, 19, 20, 21 and 22, 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 not exercised in the other Contracting State. If the employment is exercised, the remuneration received as such may be taxed in that other State.

2. 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:

(a) the beneficiary stays in the other State for a period or periods not exceeding a total of 183 days in a twelve-month period beginning or ending in the relevant fiscal year; and

(b) the remuneration is paid by an employer or on behalf of an employer who is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishment or fixed base that the employer has in the other State.

3. Notwithstanding previous provisions of the
Remuneration received in respect of an employment exercised on board a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the undertaking is situated.


Article 17. - Tantiths

Directors' 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 of another similar body of a company which is a resident of The other Contracting State may be taxed in that other State.


Article 18. -Artists and athletes

Notwithstanding the provisions of Articles 15 and 16, income derived by a resident of a Contracting State from his personal activities exercised in the other Contracting State as an entertainer, such as a theatre, film, Radio or television, or a musician, or as an athlete, may be taxed in that other State.

2. Where income from activities performed by an entertainer or an athlete personally and in this capacity is attributed not to the artist or athlete himself but to another person, such income may be taxed, notwithstanding the Provisions of Articles 7, 15 and 16, in the Contracting State in which the activities of the artist or sportsman are exercised.

Notwithstanding the provisions of paragraphs 1 and 2, income received by a resident of a Contracting State in respect of the activities referred to in paragraph 1 in the context of cultural exchange agreements between the two Contracting States shall be exempt Of taxes in the Contracting State in which the activities are exercised if the stay in that State is wholly or substantially financed by one of the Contracting States or by the two Contracting States their political or administrative subdivisions, Local authorities or public institutions.


Article 19. -Pensions and Annuities

Subject to the provisions of paragraph 2 of Article 20, pensions, annuities and other similar remuneration arising in a Contracting State and paid to a resident of the other Contracting State in respect of prior employment shall not be taxable In that other Contracting State.


Article 20. -Public service

1. Salaries, wages and other similar remuneration paid by a Contracting State or a political or administrative subdivision or a local authority thereof to a natural person in respect of services rendered to that State or Subdivision or community is taxable only in that State. However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the natural person is a resident of that State which:

(a) has the nationality of that State; or
(b) ......................................................

2. Notwithstanding, the provisions of paragruphal 1 pensions and other similar remuneration paid by a Contracting State or any political or administrative subdivision or local authority thereof, either directly or by means of levy on Funds which they have constituted, to a person who is phvic, in respect of services rendered to that State or subdivision or community, shall be taxable only in that State. However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the natural person is a resident of that State and has nationality.

3. The provisions of Articles 16, 17, 18 and 19 shall apply to salaries and other similar remuneration and to pensions paid in respect of services rendered in connection with an enterprise carried on by a Contracting State in one of its Political or administrative subdivisions or local authorities.


Article 21. -Teachers and researchers

A person who is, or has been, a resident of a Contracting State immediately before travelling to the other Contracting State for the sole purpose of teaching or conducting scientific research at a university, school college or A similar institution of scientific education or research recognized by the government of that other State as being non-profit, or within the framework of a formal cultural exchange programme for a period not exceeding 2 years from the date of the First visit to that other State, shall be exempt from tax in that other State on remuneration Received for this teaching or research.


Article 22. -Students

The amounts that a student or trainee who is, or was immediately before travelling to a Contracting State, a resident of the other Contracting State and who stays in the first mentioned State for the sole purpose of continuing his or her studies or Training, shall be paid to cover its costs of study or training shall not be taxable in that Contracting State, provided that they come from sources outside that State.

Article 23. - Other income

(1) Items of income of a resident of a Contracting State, from where they arise which are not dealt with in the preceding Articles of this Convention, shall be taxable only in that State.

(2) The provisions of paragraph 1 shall not apply to income other than income derived from immovable property as defined in paragraph 2 of Article 6, where the beneficiary of such income, being a resident of a Contracting State, carries on a Business activity in the other Contracting State through a permanent establishment situated therein or an independent profession from a fixed base situated therein, and whether the right or the general property of the income is connected with it Indeed. In this case, the provisions of Article 7 or Article 15 as applicable shall apply.

3. Where, by reason of the special relationship between the person referred to in paragraph 1 and another person, or between the person and the other person, the amount of income referred to in paragraph 1 exceeds the amount of the income referred to in paragraph 1 Where such persons have been agreed in the absence of such relations, the provisions of this Article shall apply only to the latter amount. In such case, the excess part of the income shall remain taxable under the laws of each Contracting State and taking into account the other provisions of this Convention.


Chapter IV. -Methods of eliminating double taxation


Article 24. -Elimination of double taxation

(1) Where a resident of a Contracting State receives income which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first State shall grant tax on the income of that resident, A deduction of an amount equal to the income tax paid in that other State. This deduction shall not, however, exceed the fraction of the income tax, calculated before deduction, corresponding to the income taxed in that other State.

(2) Where, in accordance with any provision of this Convention, income derived by a resident of a Contracting State is exempt from tax in that State, the latter may nevertheless, in calculating the amount of tax on the remainder of the Resident's income, account for exempt income.


Chapter V. -Special provisions


Article 25. -Non-discrimination

(1) The nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any obligation thereon, which is other or more burdensome than that which is or may be subject to the nationals of that other State which Find in the same situation, especially with regard to the residence. This provision shall also apply, notwithstanding the provisions of Article 1, to persons who are not residents of a Contracting State or both Contracting States.

(2) Stateless persons who are residents of a Contracting State shall not be subjected in the other Contracting State to any taxation or any obligation thereon, which is more or more burdensome than those to which nationals of The State concerned in the same situation.

(3) The importation of a permanent establishment which a business of a Contracting State has in the other Contracting State shall not be established in that other State in a less favourable manner than the taxation of undertakings in that other State which exercise the same Activity. This provision cannot be interpreted as obliging a Contracting State to grant to residents of the other Contracting State personal deductions, allowances and reductions in taxes on the basis of civil status or family charges. Grants to its own residents.

4. Unless the provisions of article 9, paragraph 7, paragraph 7, of article 11, paragraph 6, of article 12. Paragraph 6 of Article 13 or paragraph 3 of Article 23 shall apply, interest, royalties and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State shall be deductible for the purposes of Determination of the taxable profits of that business under the same conditions as if they had been paid to a resident of the first mentioned State.

5. The undertakings of a Contracting State, of which the capital is wholly or wholly, directly or indirectly, owned or controlled by one or more residents of the other Contracting State, shall not be subject in the first-mentioned State to any taxation Or any obligation relating thereto, which is more or more burdensome than those to which the other similar undertakings of the first mentioned State are or may be subject.

6. The provisions of this Article shall apply notwithstanding the provisions of Article 2 to taxes of any kind or denomination.

Article 26. -Mutual Agreement Procedure

(1) Where a person considers that the measures taken by either Contracting State or both Contracting States cause or will result in taxation not in accordance with the provisions of this Convention, the person may, independently The actions provided for by the national law of those States, to refer to the competent authority of the Contracting State of which it is a resident or, if its case is covered by paragraph 1 of Article 25, to that of the Contracting State of which it has Nationality. The case must be submitted within three years of the first notification of the measure resulting in taxation not in accordance with the provisions of the Convention.

2. The competent authority shall endeavour, if the complaint appears to it to be justified and if it is not itself able to provide a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, In order to avoid taxation not in accordance with this Convention. The Agreement shall be applied irrespective of the time limits laid down in the domestic law of the Contracting States.

(3) The competent authorities of the Contracting States shall endeavour, by mutual agreement, to resolve the difficulties or doubts which may be caused by the interpretation or application of this Convention.

4. The competent authorities of the Contracting States may communicate directly with each other, including in a joint committee made up of such authorities or their representatives, in view of reaching an agreement as indicated in the paragraphs Previous.

Article 27. -Exchange of information

(1) The competent authorities of the Contracting States shall exchange such information as is likely to be relevant for the application of the provisions of this Convention or for the administration or enforcement of domestic legislation relating to Taxes of any kind or denomination levied on behalf of the Contracting States, their political or administrative subdivisions or their local authorities to the extent that the taxation they provide is not contrary to this Convention. The exchange of information is not restricted by Articles 1 and 2.

(2) Information received under paragraph 1 by a Contracting State shall be kept secret in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (y The courts and administrative bodies) concerned by the establishment or collection of the taxes referred to in paragraph 1, by the proceedings or proceedings concerning those taxes, by the decisions on appeals relating to those taxes or By controlling the above. Such persons or authorities shall use this information only for those purposes. They may disclose this information during public court hearings or in judgments. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes where that possibility is the result of the laws of the two States and where the competent authority of the State providing the information authorizes This usage.

(3) The provisions of paragraphs 1 and 2 shall in no case be construed as imposing on a Contracting State the obligation:

(a) take administrative measures derogating from its legislation and administrative practice or that of the other Contracting State;
(b) to furnish information which could not be obtained on the basis of its legislation or in the course of its normal administrative practice or those of the other Contracting State;
(c) provide information that would reveal a trade, industrial, professional or commercial secret or information whose disclosure would be contrary to public policy.

4. If information is requested by a Contracting State in accordance with that Article, the other Contracting State shall use its powers to obtain the information requested, even if it does not need it for its own tax purposes. The obligation contained in the preceding sentence shall be subject to the limitations provided for in paragraph 3, except where such limitations are likely to prevent a Contracting State from disclosing information solely because it does not Not of interest to him in the national context.

In no case shall the provisions of paragraph 6 be construed so as to allow a Contracting State to refuse to disclose information solely because it is held by a bank, another financial institution An agent or a person acting as an agent or a trustee or because the information relates to the property rights of a person.

6. The competent authorities shall, by way of consultation, draw up appropriate procedures for the implementation of the exchange of information provided for in paragraph 1.


Article 28. -Assistance for recovery

(1) The Contracting States shall assist each other in the recovery of their tax claims. Such assistance shall not be limited by Articles 1 and 2. The competent authorities of the Contracting States may settle by mutual agreement the arrangements for the application of this Article.

2. The term " Tax debt " As used in this Article means an amount owing as taxes of any kind or denomination levied on behalf of the Contracting States, their political or administrative subdivisions or local authorities, to the extent that The corresponding taxation shall not be contrary to this Convention or any other instrument to which these Contracting States are parties, as well as the interest, administrative penalties and recovery or conservation costs to be strengthened by such taxes.

(3) Where a revenue claim of a Contracting State which is recoverable under the laws of that State and is due by a person who, on that date, cannot, by virtue of those laws, prevent its recovery, that revenue claim shall, at the request of The competent authorities of that State, accepted for recovery by the competent authorities of the other Contracting State. This tax debt is recovered by that other State in accordance with the provisions of its applicable law on the recovery of its own taxes as if the debt in question was a tax debt of that other State.

4. Where a revenue claim of a Contracting State is a claim in respect of which that State may, under its law, take protective measures to ensure its recovery, that claim shall, at the request of the authorities To be accepted for the adoption of provisional measures by the competent authorities of the other Contracting State.

That other State must take protective measures in respect of that tax claim in accordance with the provisions of its law as if it were a tax debt of that other State, even if at the time when those measures were applied, the Tax debt is not recoverable in the first-mentioned State or is owed by a person who has the right to prevent his recovery.

(5) Notwithstanding the provisions of paragraphs 3 and 4, the limitation periods and the priority applicable under the law of a Contracting State to a tax debt due to its nature as such do not apply to any Tax claim accepted by that State for the purposes of paragraph 6 or 4. In addition, a tax claim accepted by a Contracting State for the purposes of paragraph 6 or 4 may not be applied any priority in that State under the law of the other Contracting State.

(6) Proceedings concerning the existence of the validity or amount of a revenue claim of a Contracting State shall not be submitted to the courts or administrative bodies of the other Contracting State.

7. Where, at any time after an application has been made by a Contracting State under paragraph 3 or 4 and before the other State has recovered and transmitted the amount of the tax claim in question to the first-mentioned State, that revenue claim Ceases to be:

(a) in the case of an application under paragraph 3, a tax debt of the first State which is recoverable under the laws of that State and is due by a person who, at that time, cannot, under the laws of that State, prevent his or her Recovery, or

(b) in the case of an application under paragraph 4, a tax claim of the first-mentioned State in respect of which that State may, under its law, take protective measures to ensure its recovery Of the first State shall promptly notify the competent authorities of the other State and the first State, at the option of the other State, shall suspend or withdraw its application.

8. The provisions of this Article shall in no case be construed as imposing on a Contracting State the obligation:

(a) take administrative measures derogating from its legislation and administrative practice or those of the other Contracting State;
(b) to take measures that would be contrary to public order;
(c) to provide assistance if the other Contracting State has not taken all reasonable measures of recovery or conservation, as the case may be, that are available under its legislation or administrative practice;
(d) to provide assistance in cases where the resulting administrative burden for that State is significantly disproportionate to the benefits which may be derived by the other Contracting State.


Article 29. - Members of diplomatic missions and consular posts

The provisions of this Convention shall not affect the fiscal privileges enjoyed by members of diplomatic missions or consular posts under either the general rules of international law or provisions Specific agreements.


Article 30. -Right to the benefits of the Convention

(1) The provisions of this Convention shall not be construed so as to prevent the application by a Contracting State of the anti-abuse provisions provided for by its domestic law.

2. The benefits provided for in this Convention shall not be granted to a resident of a Contracting State who is not the beneficial owner of the income from the other Contracting State.

3. The provisions of this Convention shall not apply if the principal objective or objective of any person involved in the creation or assignment of property or rights in respect of which the income is paid is To take advantage of these provisions by means of such creation or assignment.

Chapter VI. -Final provisions


Article 31. -Entry into force

(1) This Convention shall enter into force thirty days after the date of receipt of the last notification, in writing and through diplomatic channels, on the performance of the internal procedures of the Contracting States required for that purpose.


This Convention shall apply:

(a) in Senegal:

(i) in respect of taxes collected by way of withholding tax on payments made on or after the first day of January of the calendar year following that of the entry into force of this Convention; and
(ii) in respect of other income taxes, income earned in any calendar year or fiscal period beginning on January 1 of the year following that of the entry into force of this Convention or after that date.

(b) in Portugal:

(i) in respect of taxes owing at source, when the generator event occurs on or after the first day of January of the calendar year following that of the entry into force of this Convention;
(ii) in respect of other taxes, on income in respect of taxable periods beginning on January 1 of the calendar year following that of the entry into force of this Convention.


Article 32. -Denunciation

This Convention shall remain in force for an indefinite period of time.

(2) Each Contracting State may denounce the Convention by notification in writing and by diplomatic means, until 30 June of any year after five calendar years after the entry into force of this Convention.

3. In the event of denunciation the Convention shall cease to be applicable:

(a) in Senegal:

(i) in respect of taxes collected by withholding tax at source, to amounts paid on or after the first day of January of the calendar year following that of the notification of termination of this Convention: and
(ii) in respect of other taxes on income, to income earned in any calendar year or fiscal year beginning on January 1 of the year following that of the notification of denunciation of this Agreement or after This date;

(b) in Portugal:

(i) in respect of taxes owing at source, when the generator event occurs on or after the first day of January of the calendar year following that of the notification of denunciation of this Convention:
(ii) in respect of other taxes, on income in respect of the taxable period beginning on January 1 of the calendar year following that of the notification of denunciation of this Convention.

IN WITNESS WHEREOF, the undersigned, being duly authorized to that effect, have signed this Convention.

Done in duplicate originals in Lisbon, on June 13, 2014, in the Portuguese and French languages, both versions being equally authentic.

For the Republic of Senegal:
Mankeur NDIAYE
Minister of Foreign Affairs
And the Senegalese of the Outside


For the Portuguese Republic:
Paulo PORTAS
Deputy Prime Minister