Act No. 2016-04 Of 06 January 2016

Original Language Title: Loi n° 2016-04 du 06 janvier 2016

Read the untranslated law here: http://www.jo.gouv.sn/spip.php?article10701

Law No. 2016-04 of 06 January 2016 Act No. 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 for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, signed at Lisbon, on June 13, 2014 explanatory memorandum in order to strengthen their economic cooperation in the field of taxation the Republic of Senegal and the Portuguese Republic signed in Lisbon, on June 13, 2014, the Convention aimed at avoidance of double taxation and fiscal evasion with respect to taxes on income.

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, prevent international tax evasion and fraud which are scalable, multifaceted and complex, and that threaten the preservation of the tax base.

Economic activities must, by the application of this Convention, receive a reduced tax and an exemption for certain categories of income to promote financial flows. It will also contribute to equity and security in trade between the two States.

The Convention applies to natural and legal persons resident in the Contracting States as well as to taxes on income imposed on behalf of a Contracting State or of its dismemberments.

Are regarded as taxes on income, taxes collected on the total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital gains. It is, for the Portugal of the tax on income, and for Senegal's:-corporate tax;
-flat-rate minimum tax on companies;
-the income tax of physical persons;
-the fixed contribution to the charges employers;
-tax gain on lands built-up or undeveloped, to which can be added similar taxes created subsequent to this Convention.

In addition, to prevent the escape or the tax bill, the Convention provides a collaboration between 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 Contracting States required for this purpose.

Concluded for an indefinite period, this Convention may be denounced no later than June 30 of any calendar year after the period of five years from its entry into force.

In expressing its consent to be bound the present Convention, Senegal will contribute to increase the flow of financial and commercial exchanges with the Portugal and open, thus, a new era in the relationship between the two countries.

Such is the economy of the present Bill.



The National Assembly adopted in its session of Monday, December 28, 2015, the President of the Republic enacts the law whose content follows: sole Article. -The President of the Republic is authorized to ratify the Convention between the Republic of Senegal and the Portuguese Republic for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, signed at Lisbon, on June 13, 2014.

This Act will be enforced as law of the State.

Made in Dakar, 06 January 2016 Macky SALL.
By the President of the Republic: Prime Minister Mahammed Boun Abdallah DIONNE CONVENTION between the Republic of SENEGAL and the Republic Portuguese for avoid the DOUBLE taxation and of preventing the escape tax for taxes on income the Republic of Senegal and the Republic of Portugal.

Desiring to conclude a Convention for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, have agreed upon the following provisions: Chapter I. -Scope of the Convention Article 1. -Persons 1. This Convention shall apply to persons who are residents of a Contracting State or the two Contracting States.

Section 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 perception.

3 are considered as taxes on the income taxes imposed on total income or on elements of income, including taxes on gains from the alienation of property movable or immovable property, taxes on the total amount of salaries paid by enterprises, as well as taxes on capital gains.

4. the existing taxes to which the Convention shall apply are in particular: has) with regard to Senegal: (i) the tax on corporations nivenu;
(ii) the flat-rate minimum corporate tax;
(iii) the tax on income of individuals;
(iv) the flat-rate contribution to the burden of employers;
(v) the gain on built and non-built land tax.
(hereinafter referred to as "Senegalese tax").

(b) in relation to the Portugal: (i) the tax on the income of natural persons (Imposto sobre o Rendimento das Pessoas Singulares - IRS);
(ii) the tax on income of legal persons (impost sobre o Rendimento das Pesscas Colectivas - 1RC);
(iii) additional tax on income of legal persons (Derramas): (hereinafter referred to as «Portuguese tax»).

5. the Convention shall apply also to any identical or substantially similar taxes that would be entered into force after the date of signature of this Convention and additional to existing taxes or in place. The competent authorities of the Contracting States shall communicate the significant changes made to their respective taxation laws.

Chapter II. -Definitions Article 3. -General definitions 1. For the purposes of this Convention, unless the context otherwise requires: a) the term «Portugal» means the Republic of Portugal and point geographically and according to international law, means the national territory, territorial waters as well as the maritime areas over which the Portugal exercises its sovereign rights or jurisdiction;

(b) the term 'Sénégal' means the Republic of Senegal and the geographically and according to international law, means the national territory, the territorial waters as well as the maritime areas over which Senegal exercises its sovereign rights or jurisdiction;

(c) the terms «A Contracting State» and «The other Contracting State» mean, as the context requires, Senegal or the Portugal;

(d) the term "tax" means depending on the context, the Senegalese tax or Portuguese tax;

(e) the term "person" includes natural persons, companies and any other body of persons;

(f) the term "company" means any body corporate or any entity which is treated as a legal person for the purposes of taxation;

(g) 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;

(h) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which the place of effective management is situated in a Contracting State, except when the ship uu aircraft is operated solely between places in the other Contracting State;

(i) the term "competent authority" means: (i) with regard to Senegal, the Minister of finance or his authorized delegate;

(ii) in relation to Portugal, the Minister of finance, the Director general of the tax authority and customs or their representatives authorized;

(j) the term "national" means: (i) any individual possessing the nationality of a State Contracting;

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

2. for the purposes of the Convention at any time by a Contracting State, any term or phrase that is not defined has, unless the context otherwise requires, meaning that assigns, at that time, the law of that State concerning the taxes covered by the Convention, the meaning given to this term or expression by the tax of that State prevailing on the meaning attributed to it by the other branches of the law of This state.

Article 4. -Resident 1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of domicile, residence, place of management or any other criterion of a similar nature and also applies to that State as well as all its political or administrative subdivisions or its local authorities. However, this term does not include persons who are subject to tax in that State as the income from sources in that State.

2. where, under the provisions of paragraph 1, an individual is considered as a resident of both Contracting States, his status will be determined as follows:


(a) that person is considered as a resident only of the Contracting State where it has a permanent home. When she has a permanent home in both Contracting States, it is considered as resident only of the State with which his personal and economic relations are closer (centre of vital interests);

(b) if the Contracting State where that person has his centre of vital interests cannot be determined, or if it has a permanent home in any of the Contracting States, it is considered to be resident only of the Contracting State where she is staying in usual manner;

(c) whether he has habitual abode in both Contracting States or if it resides habitually in any of them, it is considered to be resident only of the Contracting State in which it is a national;

(d) If this person is a national of both Contracting States or if it possesses the nationality of any of them, the competent authorities of the Contracting States settle the question by mutual agreement.

3. where, under the provisions of paragraph (l), one person other than an individual is a resident of both Contracting States, it is considered to be a resident only of the State in which its place of effective management is situated.

Article 5.-establishing stable 1. Within the meaning of this Convention, the term "permanent establishment" means a fixed place of business through which an enterprise of a Contracting State carries on all or part of its activity.

2. the term "permanent establishment" includes especially: a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a mine, an oil or gas, a quarry or any other place of extraction of natural resources.

3. the term "permanent establishment" also includes: a) a site construction or mounting or monitoring training, but only when this project or these activities were lasting more than nine months;

(b) the provision of services including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for this purpose, but only where activities of that nature continue (for the same project or a connected project) within the territory of a Contracting State for one or more periods, representing a total of more than 183 days within a period any dc 12 months.

4. Notwithstanding the preceding provisions of this article, considering that there is no permanent establishment if: has) it is made use of facilities for the sole purpose of storage or display of goods belonging to the enterprise;

(b) goods belonging to the company are stored for the sole purpose of storage or display;

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

(d) a fixed place of business is used solely to purchase merchandise or to gather information for the enterprise;

(e) a fixed place of business is used for the sole purpose to exercise, for the enterprise, any other activity of a preparatory or auxiliary character;

((f) a fixed place of business is used for the sole purpose of fiscal year cumulative activities mentioned in paragraph a) to (e)), provided that the activity of the fixed place of business resulting from this combination set keeps a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, where one person - other than an agent of an independent status, referred to in paragraph 7 - acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed as having a permanent establishment in the first Contracting State for all the activities that this person performs for her if the person ((: a) has in this state of power exercised by it are usually to enter into contracts on behalf of the enterprise, unless the activities of such person are limited to those listed in paragraph 4 and which exercised in a fixed place of business would not this fixed place of business a permanent establishment within the meaning of paragraph or b) with no power , it normally retains in the first State a stock of goods on which she regularly collects goods for the purposes of delivery on behalf of the company.

6. Notwithstanding the preceding provisions of this article, an insurance enterprise of a Contracting State is considered as having a permanent establishment in the other Contracting State, except in regard to reinsurance, the moment that, through one person other than an agent of an independent status referred to in paragraph 7, elIe collects premiums in the territory of that State or insures risks situated in this territory.

7. we do not consider that an enterprise of a Contracting State has a permanent establishment in the other Contracting State by reason only that it carries on business in that other State through a broker, general Commission agent or any other enjoying intermediary of an independent status, provided that such persons are acting in the ordinary course of their business.

8. 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 State Contracting or which carries on business (whether through an establishment stable or not) is not enough in itself to make one any of these companies a permanent establishment of the other.

Chapter III. -Taxation of income Article 6. -Property income 1. Income of a resident of a Contracting State from property real estate (including income from agricultural or forestry) situated in the other Contracting State may be taxed in that other State.

2. the term "immovable property" has the meaning given to it by the law of the Contracting State where the property in question is situated. The term includes in any case accessories, livestock dead or alive's farms and forestry, rights to which the provisions of private law concerning land ownership, usufruct of real property and rights to variable or fixed payments for the exploitation or concession of the dc holding deposits mmeraux, sources and other natural resources; ships and aircraft are not considered to be real property.

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

4. the provisions of paragraphs 1 and 3 above above apply also to income from real property of an enterprise and to income properties used to practice an independent profession.

5. Notwithstanding the provisions of article 7, the preceding provisions of this article shall apply also to income from movable property or income from services related to the use or the concession of use of immovable property which, under the taxation law of the Contracting State in which the property in question is situated, are assimilated to income from real property.

Section 7. -The profits of an enterprise of a Contracting State business profits are taxable only in that State unless the enterprise operates in the other State Contracting through a permanent establishment situated therein. When the enterprise carries on business in such a way, the profits of the enterprise are taxable in the other State but only insofar as 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 State Contracting through a permanent establishment situated, it is imputed, in each Contracting State, to that permanent establishment the profits he could achieve if it constituted a distinct and separate enterprise engaged in activities identical or similar under conditions identical or similar and dealing independently with the enterprise of which it is a permanent establishment.

 

3. in determining the profits of a permanent establishment, are allowed as deductions expenses incurred for the purposes of establishment, including Executive and general expenses so incurred administration, either in the State where the permanent establishment is situated or elsewhere.

However, no deduction is allowed for amounts that would be, if any, paid (at some tracks than the reimbursement of expenses) by the permanent establishment at the headquarters of the company or any any of its offices, as royalties, fees or other similar payments, for the use of patents or other rights, or as commission, for specific services performed or for management activity or except in the case of a banking business, as interest on moneys lent to the permanent establishment.


Similarly, it need not account, in the calculation of the profits of a permanent establishment, of amounts (other than the reimbursement of expenses incurred) worn by the permanent establishment to the flow of the central seat of the undertaking or of one any of its other offices, such as royalties, fees or other similar payments, for the use of patents or other rights, or as commission for specific services performed or for management activity or except in the case of a banking business, as interest on loan at the headquarters of the company or any of its other offices.

4. If it has been customary in a Contracting State to determine the profits attributable 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, according to the distribution in use: the method of apportionment adopted shall be such that the result obtained conforms with the principles contained in this article.

5. no benefit is attributed to a permanent establishment that he simply bought goods for the company, 6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment are determined each year by the same method, unless there is good and sufficient contrary reasons.

7. where profits include items of income which are dealt with separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.

Section 8. -Maritime and air navigation 1. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State where the place of effective management of the enterprise is situated.

2. If the seat of effective management of a shipping enterprise is aboard a ship, this seat is regarded as located in the Contracting State where the home port of the vessel or, failing home port, in the Contracting State of which the operator of the ship is a resident.

3. the provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint operation or an international organization Article 9. -Associated enterprises 1. When: a) 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;

(b) the same persons participate directly or indirectly in the management, to the control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, that, in either case, the two companies are, in their commercial relations or financial conditions accepted or imposed that differ from those would be agreed between independent enterprises , profits which, without these conditions, would have been obtained by one of the companies but could not be, due to these conditions, may be included in the profits of that enterprise and taxed accordingly.

2. where a Contracting State includes in the profits of an enterprise of that State and imposes accordingly profits on which an enterprise of the other Contracting State has been imposed in that other State and the profits so included are profits that would have been made by the company of the first State if the conditions agreed between the two companies had been those which would have been agreed between independent enterprises the other State is an appropriate adjustment of the amount of the tax that has been levied on those profits if this adjustment is considered to be justified, in principle and in its amount. by that other State.

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 subsection 2 do not apply when as a result of a judicial, administrative or other proceedings legal procedure a final decision said because of actions resulting in an adjustment of profits under paragraph 1, one of the companies in question is liable to a penalty for fraud, gross negligence or deliberate failure.

Section 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 legislation 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 one company (other than a partnership) which holds directly at least 25 per cent of the capital of the company 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 regulate agreed the modalities of application of these limitations.

The provisions of this subsection do not affect the taxation of the company in respect of the benefits that are used for the payment of dividends.

3. the term "dividends" as used in this article means income from shares, shares or jouissance, mining, founder shares or other rights, with the exception of receivables, as well as income from other shares subject to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. With regard to the Portugal, the term "dividends" also means the profits awarded or paid under an association in participation.

1. the provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the dividends, being a resident of a State Contracting, carries on in the other Contracting State of which the company paying the dividends is a resident, a business through a permanent establishment situated therein activity, either an independent profession through a fixed base which is located , and generating participation of dividends related actually. In these 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 cannot levy no tax on dividends paid by the company, except to the extent where such dividends are paid to a resident of that other Contracting State or to the extent where the generating dividends participation relates effectively to a permanent establishment or a fixed base situated in that other Contracting State , or collect any tax, in respect of the taxation of retained earnings of the company, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income from the other Contracting State.

Section 11. -Interests 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 they come and under the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest. The competent authorities of the Contracting States regulate agreed the modalities of application of this limitation.

3. 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 or administrative subdivisions, its local authorities or the Central Bank of that other State Contracting.

4. the term «interest» as used in this article means income of claims of any nature, secured or not secured by mortgage or a right to participate in the debtor's profits, and including income on public funds and bonds of debentures, including premiums and prizes attaching to such securities. The penalties for late payment are not considered as interest within the meaning of this article.

5. the provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the interest resident of a State Contracting, carries on in the other Contracting State, comes the interests or a business activity through a permanent establishment situated therein, or an independent profession through a fixed base is situated, and that the generator claim of interest is effectively connected with that permanent establishment or fixed this basis. In this case, the provisions of article 7 or article 15 as the case may be, shall apply.


6. the interests are regarded as arising in a Contracting State when the payer is a resident of that Contracting State. However. When the debtor of interests, whether or not a resident of a Contracting State has, in a State Contracting a permanent establishment or a fixed base for which the debt giving rise to the payment of interest was incurred and that supports the load of these interests, these are considered as being from the Contracting State where the permanent establishment or the fixed base is situated.

7. when, because of the special relationship between the payer and the beneficial owner or that one and the other person, the amount of the interest, taking into account the debt for which they are paid, exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the payments is taxable in accordance with the legislation of each Contracting State and in light of the other provisions of the present Convention, Article 12. -Royalties 1. The royalties from 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 imposed in the Contracting State in which they arise and according to the laws of this State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the amount gross. The competent authorities of the Contracting States regulate agreed the modalities of application of this limitation.

3. the term "royalties" as used in this article means payments of any kind paid for the concession of the use of a copyright in a literary, artistic or scientific, including motion pictures, of a patent, or the use of a trademark of commerce, design or model, plan, a formula or process secret and information relating to experience gained in the industrial field commercial or scientific, 4. The provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the royalties, being a resident of a State Contracting, carries on in the other Contracting State comes royalties, or a business activity through a permanent establishment situated therein, or independent through a fixed base is situated, and the right or well Builder royalties relate effectively to that permanent establishment or that basis fixed In this case, the provisions of article 7 or article 15 as the case may be, shall apply.

5. royalties shall be deemed as coming from a Contracting State when the payer is a resident of that State. However, when the debtor of royalties, whether or not he is a resident of a Contracting State has in a State Contracting a permanent establishment or a fixed base, for which the obligation giving rise to the payment of the royalties was reached and which supports as such the burden thereof, such charges are deemed come of the Contracting State in which the permanent establishment or the fixed base is situated.

6. when, because of the special relationship between the payer and the beneficial owner or that one and the other with some other person, the amount of fees, taking into account the provision for which they are paid exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the payments remains taxable according to the laws of each Contracting State, taking into account the other provisions of this Convention.

Article 13. -Fees for technical services 1. The remunerations for technical services arising in a Contracting State and which the beneficial owner is a resident of the other Contracting State may be taxed in that other State.

2. However, these fees for technical services may also be taxed in the Contracting State they come and under the laws of that State, but if the beneficial owner of such remuneration is a resident of the other Contracting State, the tax so charged shall not exceed 8 per cent of the gross amount of the remuneration. The competent authorities of the Contracting States regulate agreed the modalities of application of this limitation.

3 "remunerations 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 the Convention, account management, technical services or consultancy activities, including the provision of services by the technical staff or other personnel.

4, the provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the remunerations for technical services, resident of a State Contracting, carries on in the other Contracting State comes the remunerations for technical services a business activity through a permanent establishment that is located, or performs in that other State Contracting independent through a fixed base and that the right or well Builder pay for technical services relates effectively to This permanent establishment or that basis fixed. In this case, the provisions of articles 7 and 15, as the case may be, shall apply, 5. The remunerations for technical services are considered as coming from a Contracting State when the payer is a resident of that State. However, when the person paying the remuneration for technical services whether or not a resident of a Contracting State has in a Contracting State a permanent establishment or a fixed base, for which commitment giving rise to pay for technical services was contracted and which bear the load of these pay for technical services, these are deemed come from the Contracting State where the permanent establishment is situated , or the fixed base.

6. where, because of special relationship between the payer and beneficial owner or that one and the other maintain with third parties, the amount of the fees for technical services, taking into account the provision for which they have been paid, exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the payments is taxable according to the laws of each Contracting State and in light of the other provisions of this Convention.

Section 14. -1 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.

2. gains from the alienation of movable property forming part of the assets of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property which belong to a fixed base available to a resident of a Contracting State in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of this establishment stable (alone or with the whole of the company) or fixed this base may be taxed in that other State.

3. gains from the alienation of ships or aircraft operated in international traffic by an enterprise of a Contracting State and by movable property allocated to the operation of such ships or aircraft shall be taxable only in the Contracting State where the place of effective management of the enterprise is situated.

4. gains a resident of a State Contracting from the alienation of shares or similar rights which derive directly or indirectly more than 50% 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 from a more than 50 percent stake in a company which is resident of a Contracting State may be taxed in that State but the tax so charged may not exceed 20 percent of earnings, 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.

Section 15. -Independent personal services 1. Income derived by a resident of a Contracting State of a liberal profession or other activities at independent character shall be taxable only in that State except ' if he has permanently in the other Contracting State of a fixed basis for the exercise of its activities or if it is present in that other State for one or more periods of a total period exceeding 183 days in any twelve month period. If he has a fixed base or is present in that other State during the above-mentioned period, income are taxable in that other State to the extent that they are attributable to that fixed base or come from another State during the aforesaid period.

2. the term "professional services" includes independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, engineers, lawyers, dentists, architects and accountants.


Section 16. -Dependent personal services 1. Subject to the provisions of articles 17, 19, 20, 21 and 22, salaries, wages and other similar remuneration that a resident of a Contracting State receives 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 exercised, the remuneration received for this 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 if State: a) the recipient is present in the other State for one or more periods exceeding in total 183 days during a period of twelve months commencing or ending in the fiscal year concerned; 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 a fixed base that the employer has in the other State.

3. Notwithstanding the preceding provisions of this article, remuneration received in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State where the effective seat of management of the enterprise is situated.

Article 17. -Fees the fees chips and other similar payments received by a resident of a Contracting State in his capacity as member of the Board of directors or supervisory or of another similar organ of a company which is a resident of the other Contracting State are taxable in that other State.

Section 18. -Artists and sportspersons 1. 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 artist of the show, as an artist of theatre, film, radio or television, or a musician, or as a sportsperson, may be taxed in that other State.

2. where income from activities exercised by an entertainer or a sportsperson personally and as such are attributed not to the entertainer or athlete himself but to another person, that income are taxable, notwithstanding the provisions of articles 7, 15 and 16, in the Contracting State where the activities of the entertainer or athlete are exercised.

3. Notwithstanding the provisions of paragraphs l and 2, income derived by a resident of a Contracting State in respect of the activities referred to in paragraph 1 within the framework of agreements of cultural exchange between the two Contracting States are exempt from tax in the Contracting State in which the activities are exercised if the stay in that State is wholly or largely funded by one of the Contracting States or by both Contracting States their subdivisions political or administrative local authorities or public institutions.

Section 19. -Pensions and annuities subject to the provisions of paragraph 2 of article 20, pensions, annuities and other similar remuneration from a Contracting State and paid to a resident of the other Contracting State in respect of past employment shall be taxable only in that other Contracting State.

Section 20. -Public service 1. Salaries, wages and other similar remuneration paid by a Contracting State or a political or administrative subdivision or local to an individual in respect of services rendered to that State or subdivision or authority shall be 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 individual is a resident of that State who: has) has the nationality of that State; ou
b) ......................................................

2. Notwithstanding the provisions of the paragraph 1, pensions and other similar remuneration paid by a Contracting State or of its political or administrative subdivisions or local authorities, either directly or by out of funds that they have made to a person phvsique, in respect of services rendered to that State or subdivision or authority 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 individual is a resident of this State and has citizenship.

3. the provisions of articles 16, 17, 18 and 19 shall apply to salaries and other remuneration paid pensions in respect of services rendered in the framework of a business carried on by a Contracting State activity and similar to the one of its political or administrative subdivisions or local authorities.

Section 21. -Teachers and researchers a person who is, or has been, a resident of a Contracting State immediately before visiting the other Contracting State for sole purpose of teaching or conducting research at a University, college school or similar institution teaching or scientific research recognized by the Government of that other State as a non-profit , or as part of an official programme of cultural exchange for a period not not exceeding 2 years from the first visit to that other State, be exempt from tax in that other State on remuneration received in respect of this teaching or research.

Section 22. -Students are that a student or a trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is staying in the first State mentioned sole purpose of pursuing his studies or training, receives for expenses of stay for study or training is not taxable in that Contracting State provided that they are derived from sources outside that State.

Section 23. -Other income 1. Items of income of a resident of a Contracting State that they come that are not treated in the preceding articles of this Convention shall be taxable only in that State.

2. the provisions of subsection 1 do not apply to income other than income from immovable property as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a State Contracting, carries on a business activity in the other Contracting State through a permanent establishment situated therein or a profession independent from a fixed base which is located and the right or property usually of income related effectively. In this case the provisions of article 7 or article 15 as the case apply.

3. when, because of special relations existing between the person referred to in paragraph 1 and any other person, or that one and the other person the amount of income referred to in paragraph 1 exceeds the amount (if any) which have agreed such persons in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the income remains taxable under the laws of each Contracting State and in light of the other provisions of this Convention.

Chapter IV. -Methods of elimination of double taxation Article 24. -Elimination of double taxation 1. When a resident of a State Contracting derives income which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first State grants on the taxes it collects on the income of that resident, a deduction of an amount equal to the tax paid in that other State. This deduction cannot exceed the portion of the tax on the income before deductions, corresponding to the taxable income in that other State.

2. where, pursuant to a provision any of this Convention, income received by a resident of a Contracting State is exempt from tax in that State, may nevertheless, in calculating the amount of tax on the remaining income of that resident, take into account the exempted income.

Chapter V. - Provisions special Article 25. -Non-discrimination 1. Nationals of a Contracting State not be subjected in the other Contracting State to any taxation or obligation y, which is other or more heavy that provisions which are or may be subjected nationals of that other State who are in the same situation, in particular with regard to the residence. This provision applies also, notwithstanding the provisions of article 1, to persons who are not residents of a Contracting State or of the two Contracting States.

2. stateless persons who are residents of a Contracting State not be subjected in the other Contracting State to any taxation or obligation y, which is other or more heavy than those which are or may be subjected the State nationals who are in the same situation.


3. the import of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State is not established in that other State less favourably than the taxation levied on enterprises of that other State carrying on the same activities. This provision cannot be interpreted as obliging a Contracting State to grant to residents of the other State contracting the personal allowances, reliefs and tax reduction on the basis of civil status or family responsibilities which it grants to its own residents.

4. has less than the provisions of paragraph 1 article 9, paragraph 7 of article 11, paragraph 6 of article 12. paragraph 6 of article 13 and 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 are deductible, for the determination of the taxable profits of the company, under the same conditions as if they had been paid to a resident of the first mentioned State.

5. enterprises of a Contracting State, whose capital is in part or in whole, directly or indirectly owned or controlled by one or more residents of the other Contracting State, are subject in the first State to any taxation or obligation y, which is other or more heavy than those which are or may be subject to other similar of the first mentioned State businesses.

6. the provisions of this section apply, notwithstanding the provisions of article 2 to the taxes of any nature or description.


Section 26. -Mutual agreement procedure 1. Where a person considers that the measures taken by one of the Contracting States or by both Contracting States result or will result in taxation not in accordance with the provisions of this Convention for it, irrespective of the remedies provided by the national law of those States, it can refer the matter to the competent authority of the Contracting State of which it is a resident or, if his case is covered by paragraph 1 of article 25 , to that of the Contracting State in which it is a national. The case must be submitted within three years following the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.

2. the competent authority shall endeavour, if the claim appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to avoidance of taxation not in accordance with this Convention. The agreement is applied irrespective of the time limits provided by the domestic law of the Contracting States.

3. the competent authorities of the Contracting States shall endeavour by mutual agreement to solve any difficulties or dispel the doubts which may arise the interpretation or application of this Convention.

4. the competent authorities of the Contracting States may communicate directly with each other even within a joint commission consisting of the authorities or their representatives in seen to reach an agreement as indicated in the preceding paragraphs.

 

Section 27. -Exchange of information 1. The competent authorities of the Contracting States exchange likely relevant information to implement the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of any nature or description levied on behalf of the Contracting States, their political or administrative subdivisions or their communities insofar as the tax contained therein is not contrary to this Convention. The exchange of information is not restricted by articles 1 and 2.

2. the information received under paragraph 1 by a Contracting State are confidential in the same way that the information obtained pursuant to the legislation of that State and will be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the collection of taxes referred to in paragraph 1, by the procedures or proceedings in respect of those taxes or the establishment by decisions on appeals related to these taxes or the control of the foregoing. These persons or authorities use this information for these purposes only. They can reveal such information public hearings of courts or in judgments. Notwithstanding the foregoing, information received by a Contracting State can be used for other purposes where this possibility is due to the laws of both States, and when the competent authority of the State providing the information authorizes its use.

3. the provisions of paragraphs 1 and 2 shall not be interpreted as imposing a State Contracting obligation: has) to take administrative measures derogating from its legislation and its administrative practice or that of the other Contracting State;
(b) to provide information that could be obtained on the basis of its legislation or in the context of its normal administrative practice or those of the other Contracting State;
(c) to provide information that would reveal a commercial, industrial or professional secret or trade process, or information the disclosure of which would be contrary to public order.

4. If information is requested by a State contractor pursuant to this article, the other Contracting State uses the powers available to it to obtain the information requested, even if there in no need for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations provided for in paragraph 3 unless these limitations are likely to prevent a Contracting State to provide information only because they are not of interest to him in the national framework.

5. in any case the provisions of paragraph 6 shall not be construed as allowing a Contracting State to refuse to disclose information only because they are held by a Bank, other financial institution an agent or someone acting on atnt as agent or trustee or because that information related to the rights of property of a person.

6. the competent authorities shall, through consultation, develop appropriate procedures for the implementation of the exchange of information provided for in paragraph 1.

Section 28. -Assistance in recovery 1. The Contracting States shall assist each other for the recovery of their tax debts. This assistance is not restricted by articles 1 and 2. The competent authorities of the Contracting States can settle by common accord detailed rules for the application of this article.

2. the term 'revenue claim' as used in this article means an amount owed in respect of taxes of any nature or description levied on behalf of the Contracting States, their political or administrative subdivisions or local authorities, insofar as the corresponding taxation is not contrary to this Convention or any other instrument to which the Contracting States are parties , as well as interest, administrative penalties and costs of collection or conservation relating to these taxes.

3. when a revenue claim of a State Contracting that is recoverable under the laws of that State and is owed by a person who, at that time, cannot, under these laws, prevent its recovery, the tax debt is, at the request of the competent authorities of that State, accepted for its recovery by the competent authorities of the other Contracting State. That revenue claim shall be collected by that other State in accordance with the provisions of its legislation in the collection of its own taxes as if the debt in question was a revenue claim of that other State.

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

That other State must take protective measures against this tax in accordance with the provisions of its legislation claim as if it were a tax claim of that other State even if at the time when such measures are applied, the revenue claim is not recoverable in the first State or is due by a person who has the right to prevent its collection.

5. Notwithstanding the provisions of paragraphs 3 and 4, limitation periods, and applicable priority under the law of a Contracting State to a tax because of its nature as such claim does not apply to a revenue claim accepted by that State for the purposes of paragraph 6 or 4. In addition, a revenue claim accepted by a Contracting for the purposes of paragraph 6 or 4 State cannot apply no priority in this State under the legislation of the other Contracting State.

6. the procedures concerning the existence, validity or the amount of a revenue claim of a Contracting State are not subject to the courts or administrative bodies of the other State Contracting.


7. where at any time after a request has been formulated by a State Contracting under subsection 3 or 4 and until the other State has recovered and passed on the amount of the tax in question in the first State claim, this revenue claim ceases to be: a) in the case of an application under subsection 3, a tax claim of the first State which is recoverable under the laws of this State and is due by a person which, at that time, cannot, under the laws of that State, prevent its recovery, or b) in the case of an application under subsection 4, a revenue claim of the first State with respect to which that State may, under its law, take precautionary measures to ensure his recovery the competent authorities of the first State promptly notify this fact to the competent authorities of the other State and the first State at the option of the other State, suspends or withdraws its application.

8. the provisions of this article shall not be interpreted as imposing a State Contracting obligation: has) to take administrative measures derogating from its legislation and its administrative practice or those of the other Contracting State;
(b) to take measures which would be contrary to public order;
(c) to provide assistance if the other Contracting State has not taken all reasonable measures of collection or conservation, as applicable, that are available under its laws or administrative practice;
(d) to provide assistance in cases where the administrative burden resulting for that State is clearly disproportionate to the benefits that can be learned from by the other Contracting State.

Section 29. -Members of diplomatic missions and consular posts the provisions of the present Convention shall affect the fiscal privileges enjoyed by members of diplomatic missions or consular posts pursuant to the General rules of international law or the provisions of special agreements.

Article 30. -Right to the benefits of the convention 1. The provisions of this Convention cannot be interpreted so as to prevent the application by a State Contracting anti-abuse provisions provided for by its internal law.

2. the benefits provided for in this Convention are not granted to a resident of a Contracting State which is not the beneficial owner as income from the other Contracting State.

3. the provisions of this Convention shall not apply if the main purpose or one of the main objectives of any person involved in the creation or the assignment of property or rights in respect of which are paid income is to take advantage of these provisions by means of that creation or assignment.


Chapter VI. -Provisions Article 31 finals. -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 completion of the internal procedures Contracting States required for this purpose.

This Convention is applicable: a) Senegal: (i) with regard to taxes levied by deduction at source in the payment sums to January 1 of the calendar year following that of the entry into force of this Convention; and (ii) in respect of other taxes on income, the income derived during any calendar year or fiscal year commencing January 1 of the year following that of the entry into force of the present Convention or after this date.

(b) to the Portugal: (i) with respect to taxes due at source, when the operative event occurs from January 1 of the calendar year following that of the entry into force of this Convention;
(ii) in respect of other taxes on income derived from the taxable periods beginning on 1st January of the calendar year following the re-entry into force of the present Convention.

Section 32. -Denunciation 1. This Convention shall remain in force for an indefinite period of time.

2. each Contracting State may withdraw from the Convention by notification in writing and through diplomatic channels, up to 30 June of any year period of five calendar years after the dale of the entry into force of this Convention.

(3. in the event of denunciation, the Convention shall cease to be applicable: a) in Senegal: (i) with regard to taxes levied by deduction at source, the payment sums to January 1 of the calendar year following that of the notification of denunciation of the Convention: and (ii) in respect of other taxes on income the income derived during any calendar year or accounting period beginning January 1 of the year following that of the notification of denunciation of this Convention or after that date;

(b) to the Portugal: (i) with respect to taxes due at source, when the operative event occurs from January 1 of the calendar year following that of the notification of denunciation of this Convention: (ii) with regard to other taxes, revenues associated with the taxable period beginning January 1 of the calendar year following that of the notification of denunciation of this Convention.

IN witness whereof, the undersigned, duly authorized thereto, have signed this Convention.

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

For the Republic of Senegal: Mankeur NDIAYE, Minister for Foreign Affairs and of Senegalese outside for the Portuguese Republic: Paulo PORTAS Deputy Prime-Minister