Law n ° 2016-01 of 04 January 2016 authorizing the President of the Republic to ratify the Convention between the Government of the Republic of Senegal and the Government of the United Kingdom of Great Britain and Northern Ireland to avoid double standards Taxation and the prevention of tax evasion with respect to taxes on income and capital gains, signed in Dakar on 26 February 2015.



EXPOSE REASONS


In order to strengthen their economic cooperation in the field of tax evasion with respect to taxes on income and capital gains, the Republic of Senegal and the United Kingdom of Great Britain and Northern Ireland signed Dakar, February 26, 2015, a Convention to avoid double taxation and to prevent tax evasion with respect to taxes on income and capital gains.


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 applies to natural and legal persons resident in both countries, as well as to taxes on income and on capital gains collected on behalf of a Contracting State or its dismemberments.

The following are considered taxes on income and capital gains, taxes collected on total income, or items of income, including taxes on gains from the alienation of movable or immovable property.

These are:



* for Senegal:

-corporation tax;

The flat-rate minimum tax;

Personal income tax;

The added value tax on constructed and non-built-up properties.



* For the UK:


Income tax;

Corporation tax;

Capital gains tax.

This Convention shall also apply to taxes of an identical or similar nature, created subsequently to it and which are added to or replaced by the aforementioned taxes.

In addition, in order to prevent tax evasion or avoidance, 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 on the date 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 after a period of five years from the date of entry into force of the Convention.

By expressing its consent to be bound by this Convention, Senegal will contribute to increasing the flow of financial and trade flows with the United Kingdom of Great Britain and Northern Ireland and will thus open a new era in the 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 Government of the Republic of Senegal and the Government of the United Kingdom of Great Britain and Northern Ireland in order to avoid double taxation and to prevent Tax evasion with respect to taxes on income and capital gains, signed in Dakar on February 26, 2015.

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

Done at Dakar, January 04, 2016


Macky SALL.

The President of the Republic:

The Prime Minister,
Mahammed Boun Abdallah DIONNE

CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF THE SENEGAL AND THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT MOUNTAIN AND NORTHERN IRELAND IN ORDER TO AVOID DOUBLE TAXATION AND TO PREVENT TAX EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL GAINS

The Government of the Republic of Senegal and the Government of the United Kingdom of Great Britain and Northern Ireland;

Desiring to conclude a convention to avoid double taxation and to prevent tax evasion with respect to taxes on income and capital gains;

Have agreed as follows:


Article 1. -Target persons

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


Article 2. -Taxes Covered

(1) This Convention shall apply to taxes on income and on capital gains collected on behalf of a Contracting State, its political subdivisions or its local authorities, irrespective of the system of collection.

2. Are considered taxes on income and capital gains, taxes collected on total income or on items of income, including taxes on gains from the alienation of movable or immovable property.

The current taxes to which this Convention applies include:
(a) in respect of Senegal:
(i) corporation tax;
(ii) the basic minimum tax;
(iii) personal income tax; and
(iv) the added value of the built and unbuilt properties;

(hereinafter referred to as " Senegalese tax);

(b) in respect of the United Kingdom:
(i) income tax;
(ii) corporation tax; and
(iii) the capital gains tax;

(hereinafter referred to as " United Kingdom tax ").

4. The Convention shall also apply to taxes of an identical or similar nature which would be established after the date of signature of the Convention and which would be in addition to, or in place of, existing taxes. The competent authorities of the Contracting States shall notify each other of the significant changes made to their tax laws.


Article 3. -general definitions

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

A) the term " Senegal " Refers to the Republic of Senegal and from a geographical point of view, includes the national territory, the territorial sea and, beyond that territory, the areas on which the Republic of the Senate has sovereign rights and exercises its jurisdiction, in accordance with International law;

(b) " United Kingdom " Means Great Britain and Northern Ireland, including any area beyond the territorial sea of the United Kingdom within which the United Kingdom may, in accordance with the laws of the United Kingdom on the Continental Shelf, and To exercise its sovereign rights relating to the seabed and the seabed and to their natural resources;

(c) expressions " A Contracting State " And " The other Contracting State " Designate, as appropriate, Senegal or the United Kingdom;

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

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

(f) the term Enterprise " Applies to the conduct of any activity or business;

(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 business of a Contracting State, except where the ship or aircraft 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; and

(ii) in the case of the United Kingdom, the Tax Administration and Customs Commissioners
("Commissioners for Her Majesty's Revenue and Customs") Or their authorized representative;

(j) " Na tional " Means:
(i) in the case of Senegal, any individual who possesses the Senegalese nationality and any legal person or association constituted in accordance with the legislation in force in Senegal; and
(ii) in the case of the United Kingdom, any British citizen or British subject who does not have the citizenship of another country or territory of the Commonwealth if he or she has a right of residence in the United Kingdom and any legal person, Grouping or association established in accordance with the legislation in force in the United Kingdom;

K) the term " Business " Includes the practice of professions or other activities of an independent character;

(l) expression " Pension plan " Means any regime or other mechanism that:

(i) is, in principle, exempt from income tax; and
(ii) is managed for the purpose of administering or remitting pension or pension benefits or generating income for the benefit of one or more such mechanisms.

(2) For the purposes of the application of the Convention at any time by a Contracting State, any expression which is not defined therein shall, unless the context requires a different interpretation, the meaning assigned to it at that time by the law of that State concerning The taxes to which the Convention applies, the meaning attributed to that 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, by virtue of the law of that State, is liable to 1tax in that State by reason of his domicile, residence, place of management, place of registration or any other criterion of a similar nature, State and any political subdivision or local authority of that State. However, this term does not include persons who are subject to tax in that State only for income or capital gains from sources in that State.

2. The expression " Resident of a Contracting State " Includes:

(a) a pension plan established in that State; and
(b) an organization created and which has exclusively an educational, cultural, scientific, charitable or religious purpose (or many of these purposes) and who is a resident of that State under the law of that State, notwithstanding the fact that all or part of His income or earnings may be exempt from tax under the national law of that State.

Where, according to the provisions of paragraph 1, a natural person is a resident of both Contracting States, the situation shall be settled as follows:

(a) that person is considered to be a resident only of the State in which it has a permanent home; if it has a permanent home in both States, it is 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 State in which that person has the centre of his or her vital interests cannot be determined, or if it has a permanent home in any of the States, it shall be considered to be a resident only of the State in which it Usual way;

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

(d) if that person has the nationality of the two States or if it 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 natural person is a resident of both Contracting States, the competent authorities of the Contracting States shall determine, by mutual agreement, the Contracting State to which that person is Considered to be a resident under this Convention. In the absence of mutual agreement between the competent authorities of the Contracting States, the person shall not be considered to be a resident of any of those Contracting States for the purposes of claiming benefits under this Convention, to The exception to those referred to in Article 21, paragraph 3, and Articles 23 and 24.

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 carries on all or part of its business.

2. The expression " Permanent establishment " Includes:

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

3. A construction, assembly or assembly site shall constitute a permanent establishment only if its duration exceeds six months.

4. The expression " Permanent establishment " Also includes:

(a) the provision of services by an undertaking acting through employees or other staff engaged by the undertaking for that purpose, where such activities continue (for the same project or for a related project) to The inside of a Contracting State for one or more periods of a total period of more than 183 days in any period of twelve months beginning or ending in the taxation year concerned;

(b) in respect of a natural person, the supply of services in a Contracting State by that natural person, if the person stays in that State for one or more periods of a total duration of more than 183 days during any period Twelve months beginning or ending in the fiscal year under review.

5. Nonosbbly 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, exhibition or delivery of goods belonging to the enterprise;

(b) goods belonging to the undertaking are stored solely for the purpose of storage, exhibition or delivery;

(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.

6. Notwithstanding the provisions of paragraphs 1 and 2, where a person, other than an agent of an independent status, to whom paragraph 7 applies, acts on behalf of a business and has in that Contracting State powers That it habitually exercises it in order to conclude contracts on behalf of the undertaking, that undertaking shall be deemed to have a permanent establishment in that State for all the activities that that person carries out for the enterprise, to The activities of that person are limited to those referred to in paragraph 5, and Which, if exercised through a fixed place of business, would not permit the consideration of that fixed place of business as a permanent establishment within the meaning of the provisions of that paragraph.

7. Notwithstanding the preceding provisions of this Article, an insurance undertaking of a Contracting State shall, except in the case of reinsurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums In the territory of that other State related to risks that are incurred therein through a person other than an agent of an independent status to whom paragraph 8 applies.

8. A business shall not be regarded as having a permanent establishment in a Contracting State solely because it carries on business there through a broker, general commission agent or any other agent with a status Provided that these persons act within the ordinary course of their activity. However, where the activities of such an agent are carried out exclusively or almost exclusively on behalf of that enterprise and the conditions are fixed or imposed between that undertaking and the agent in the context of their relations The agent shall not be considered to be independent within the meaning of this paragraph, which is financial and commercial and which is different from those established between independent undertakings.

9. The fact that a company which is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State or carries on business in that other 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.


Article 6. -Real estate revenues

(1) Income derived by 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 to it by the law of the Contracting State in which the property in question is situated. The term includes in any case the accessories, the livestock and the equipment of the agricultural and forestry holdings, the rights to which the provisions of the common law relating to land ownership apply, the usufruct of immovable property And the rights to variable or fixed payments for the exploitation or concession of the exploitation of mineral deposits, sources and other natural resources; ships, cakes and aircraft shall not be regarded as immovable property.

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

4. The provisions of paragraphs 1 and 3 above shall also apply to income from immovable property of a business.


Article 7. -Business profits

(1) The profits of a business of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the 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 undertaking carrying out the same or similar activities and dealing independently with the undertaking of which it constitutes 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 amounts (other than reimbursement of expenses incurred) by the permanent establishment, amounts (other than reimbursement of costs incurred) borne by the permanent establishment By the permanent establishment at the rate of the head office of the undertaking or any of 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 Bank, as interest on amounts lent to the head office of the business or to any of its other offices.

4. If it is for the use of 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 paragraph 2 shall prevent this Contracting State to determine the taxable profits according to the distribution in use; the method of allocation adopted must, however, be such that the result obtained is in accordance with the principles contained in this Article.

5. No profit is 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 or capital gains 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 actual headquarters of the undertaking is situated.

2. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include:

(a) profits derived from the rental, without personnel, of ships or aircraft, and
(b) profits derived from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used in the transport of goods;
Where such rental or use, maintenance or rental, as the case may be, is incidental to the operation, in international traffic, of ships or aircraft.

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


Article 9. -Associated Enterprises

1. When;

(a) a business of a Contracting State is directly or indirectly involved in the direction, 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 both cases, the two undertakings are, In their commercial or financial relations, linked by agreed or imposed conditions, which differ from those which would be agreed between independent undertakings, profits which, without these conditions, would have been achieved by one Enterprises but could not be included because of these conditions, may be included in the Profits of this business and taxed accordingly.

2. Where a Contracting State includes in the profits of a business of that State (and tax accordingly) profits on which a business of the other Contracting State has already been taxed in the other State and the profits thus included Are profits that would have been made by the company of the first mentioned State if the conditions agreed between the two undertakings were those which would have been agreed between independent undertakings, the other State shall proceed to Appropriate adjustment of the amount of tax collected on these profits.

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) A Contracting State shall not be required to make a consequential adjustment under paragraph 2 after the expiry of the time limits provided for in its domestic legislation.

4. The provisions of paragraph 2 shall not apply where a judicial, administrative or other legal procedure has resulted in a final decision according to which, by virtue of actions giving rise to an adjustment of the profits of a In accordance with paragraph 1, that undertaking shall be liable, under the laws of that State, to a penalty for fraud, gross negligence or wilful misconduct.


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 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 that directly holds at least 25 % of the capital of the corporation paying the dividends;
(b) 8 per cent of the gross amount of the dividends if the beneficial owner is a pension plan established in the other State;
(c) 10 per cent of the gross amount of the dividends in all other cases.

This paragraph shall not affect the taxation of the company in respect of the profits on which the dividends are paid.

Notwithstanding the provisions of paragraph 2, except where the beneficial owner of the dividends is a pension plan, dividends paid on income (including earnings) derived directly or indirectly from immovable property in the sense of Article 6 by an investment company which is a resident of a Contracting State whose income from such immovable property is exempt from tax and which distributes most of the income each year, may also be taxed in that State, In accordance with the laws of that State, but if the beneficial owner of the dividend is a resident of the other The tax so charged shall not exceed 15 % of the gross amount of the dividends.

4. The term " Dividends " Used in this Article means income from shares or other rights (other than claims), shares of beneficiaries, and any other income regarded as shares by the tax law of the State of which the company Distributor is a resident.

5. The provisions of paragraphs 1, 2 and 3 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, an activity By the intermediary of a permanent establishment situated therein and the holding of dividends in respect of which the dividends are paid is effectively connected with it. In this case, the provisions of Article 7 shall apply.

6. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not collect any tax on dividends paid by the company, except to the extent that such dividends are paid To a resident of that other State or to the extent that the holding of the dividends is effectively connected with a permanent establishment situated in that other State, or withhold any tax, in respect of the taxation of the undistributed profits, On retained earnings, even if dividends paid or retained earnings In whole or in part in profits or income from that other State.

7. Where a company which is a resident of a Contracting State has a permanent establishment in the other Contracting State, taxable profits under paragraph 1 of Article 7 may be subject to one additional tax in the other State, in accordance with its legislation, however, the additional tax may not exceed 5 % of the amount of such profits.

8. No benefit shall be granted under this Article, if the main purpose or one of the main purposes of any person concerned by the creation or assignment of the shares or other dividend-generating rights has been to profit from the present Article by this creation or assignment.


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 State, the tax so charged shall not exceed 10 % of the Gross amount of interest. The competent authorities of the Contracting States shall, by mutual agreement, regulate the application of this limitation.

(3) Notwithstanding the provisions of paragraph 2, the Government of a Contracting State, its political subdivisions and local authorities shall be exempt from tax in the other Contracting State in respect of interest arising from that 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, in particular the income from public funds and bonds Debt, including premiums and prizes attached to these securities. Late payment penalties are not considered interest payments within the meaning of this section. The term " Interest " Does not include income that is considered dividends in accordance with the provisions of section 10.

5. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises from a business carried on by the intermediary A permanent establishment situated therein and the debt-claim for the interest is effectively connected with it. In this case, the provisions of Article 7 shall apply.

6. Interest shall be deemed to arise in a Contracting State when the debtor is a resident of that 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 for which the debt giving rise to the interest payment has been incurred and which bears the burden of Such interest shall be deemed to arise from the State in which the permanent establishment is situated.

7. Where, by reason of a special relationship between the payer and the beneficial owner or both of which relate to third parties, the amount of interest paid exceeds, for any reason, the amount that would be Agreed upon by 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 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.

8. No benefit shall be granted under this Article, if the main purpose or one of the main purposes of any person concerned by the creation or assignment of interest-generating claims has been to take advantage of this Article by that Article. Creation or assignment.


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 May exceed:

(a) in respect of the royalties referred to in subparagraph (a) of paragraph 3, 10 per cent of the gross amount of the royalties;
(b) in respect of the royalties referred to in subparagraph 3 (b), 10 per cent of the adjusted amount of the royalties. For the purposes of this subparagraph, " The adjusted amount " Means 60 % of the gross amount of the royalties.

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


3. The term " Royalties " Used in this Article means:

(a) 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 or trade mark, A design, plan, formula or secret process and for information relating to experience acquired in the industrial, commercial or scientific field; and

(b) remuneration of any kind paid for the use or concession of the use of industrial, commercial or scientific equipment.

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 in the other Contracting State in which the royalties arise a business activity by The intermediary of a permanent establishment situated therein and the right or property in respect of which the royalties are paid is effectively connected with it. In this case, the provisions of Article 7 shall apply.

(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 for which the obligation giving rise to the payment of the royalties has been entered into and which bears the Exchange of these charges shall be deemed to arise in the State in which the permanent establishment is situated.

6. Where, by reason of a special relationship between the payer and the beneficial owner or between one or the other with third parties, the amount of the royalties paid exceeds, for any reason, the amount that would be Agreed upon by 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 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.

7. No benefit shall be granted under this Article if the main purpose or one of the main purposes of any person concerned by the creation or assignment of the royalty-generating rights has been to take advantage of this Article by that Article. Creation or assignment.



Article 13. -Capital Gains

Gains derived by a resident of a Contracting State in respect of 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 derived by a resident of a Contracting State from the alienation of shares or comparable interests 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.

Gains from the alienation of movable property forming part of the assets of a permanent establishment that a business of a Contracting State has in the other Contracting State including such gains from the alienation of that establishment Stable (alone or with the enterprise as a whole), may be taxed in that other State.

4. Gains derived by a resident of a Contracting State from the alienation of ships or aircraft operated in international traffic by a business of that State, or movable property pertaining to the operation of such ships or aircraft, shall be taxable That in that State.

(5) Gains other than those to which paragraph 2 applies, that a resident of a Contracting State derives from the alienation of the shares of a company which is a resident of the other Contracting State may be taxed in that other State if assignor, in the course of the Within a period of 12 months preceding that alienation, held directly or indirectly, at least 50 % of the capital of that company. The tax levied in that State may not exceed 25 % of the 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.


Article 14. -Employment income

Subject to the provisions of Articles 15, 17, 18, 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 Be exercised in the other Contracting State. If the employment is exercised therein 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 paid in respect of an employment exercised in the other Contracting State. Are taxable only in the first State, if:

(a) the beneficiary stays in the other State for a period or periods not exceeding a total of 183 days during any twelve-month period beginning or ending in the taxation 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 which the employer has in the other State.

Notwithstanding the preceding provisions of this Article, remuneration received by a resident of a Contracting State in respect of an employment exercised aboard a ship or aircraft operated in international traffic shall be taxable only In this state.


Article 15. -Tantiths

Tantiths and other similar payments derived by a resident of a Contracting State in his capacity as members of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.


Article 16. -Artists and athletes

Notwithstanding the provisions of Article 14, 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 artist, Radio or television, or that a musician, or as an athlete, may be taxed in that other State.

2. Where the income from activities that an entertainer or sportsman performs personally and in that capacity is attributed not to the artist or the athlete himself, but to another person, such income may be taxed notwithstanding the Provisions of Articles 7 and 14, in the Contracting State in which the activities of the artist or sportsman are exercised.

(3) The provisions of paragraphs 1 and 2 shall not apply to remuneration or profits derived from activities carried on within the framework of a cultural exchange agreement in a Contracting State, if the visit to that State is wholly or Partially financed by public funds of the other Contracting State or one of its political subdivisions or local authorities. In such case, the income or profits shall be taxable only in the Contracting State of which the artist or sportsman is a resident.

Article 17. -Pensions

Subject to the provisions of paragraph 2 of Article 18, pensions and other similar remuneration paid to a resident of a Contracting State may be taxed in that State.


Article 18. -Public service

1. (a) Salaries and other similar remuneration paid by a Contracting State or a political 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.

(b) However, such salaries 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 who:

(i) has the nationality of that State; or
(ii) has not become a resident of that State solely for the purpose of rendering those services;
And is subject to tax in that State on such salaries, wages and other similar remuneration.

(a) Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by, or on funds set up by a Contracting State or a political subdivision or a political subdivision thereof, to a natural person, Services rendered to that State or to that subdivision or local authority shall be taxable only in that State.

(b) However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the natural person is a resident and has the nationality of that State

3. The provisions of Articles 14, 15, 16 and 17 shall apply to salaries, wages, pensions and other similar remuneration in respect of services rendered in the course of an enterprise carried on by a Contracting State or one of its Political subdivisions or local authorities.


Article 19. -Students

The sums 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 State for the sole purpose of furthering his studies or his Training, receives to cover its maintenance, education or training costs are not taxable in that State, provided that they come from sources outside that State.

Article 20. -Other income

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

(2) Notwithstanding, the provisions of paragraph 1, where an amount of income is paid to a resident of a Contracting State in respect of income received by trustries or executors administering the estates of deceased persons, and Trusters or executors are residents of the other Contracting State, the amount is considered to come from the same sources and treated in the same proposals as the income received by these trusteers or executors and on Which this moment is paid.

Any tax paid by the truss or executors on the income paid to the beneficiary is considered to be paid by the beneficiary.

3. The provisions of paragraph 1 shall not apply to income other than those derived from immovable property defined in paragraph 2 of Article 6, where the beneficiary of such income is resident in a Contracting State, carries on an activity Enterprise in the other Contracting State through a permanent establishment situated therein, to the extent that the right or the property generating income is effectively connected with it. In this case, the provisions of Article 7 shall apply.

4. Where, by reason of a special relationship between the resident referred to in paragraph 1 and another person, or both of them maintain the amount of the income referred to in that paragraph with third parties, the amount of the income referred to in that paragraph exceeds, where applicable, The amount that would be agreed upon, 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 income shall remain taxable according to the laws of each Contracting State and taking into account the other provisions of this Convention.

5. No benefit shall be granted under this Article if the main purpose, or one of the main purposes, of any person concerned by the creation or assignment of the rights in respect of which the income is paid has been to take advantage of the present Article by this creation or assignment.

Article 21. -Elimination of double taxation

Where a resident of Senegal receives income which, in accordance with the provisions of this Convention, may be taxed in the United Kingdom, Senegal shall grant a deduction on the income tax of that resident of an amount equal to the tax paid In the UK. This deduction shall not, however, exceed the fraction of the Senegalese tax corresponding to those income.

2. Where, in accordance with any provision of this Convention, income derived by a resident of a Contracting State is exempt from tax in Senegal, Senegal may nevertheless, by calculating the amount of tax on the balance of income Of that resident, account for the exempt income.

3. Subject to the provisions of the law of the United Kingdom concerning the grant of a deductible credit from the United Kingdom tax in respect of a tax payable in a territory situated in the United Kingdom or, as the case may be, The United Kingdom's tax on a dividend from a territory outside the United Kingdom or the profits of a permanent establishment of a territory outside the United Kingdom (which cannot affect the general principles here):

(a) the Senegalese tax payable under the legislation of Senegal and in accordance with this Convention, directly or by way of deduction, on profits, income or taxable earnings from sources in Senegal (at execution in The case of a dividend tax owing on the profits on which a dividend is paid) is considered to be an allowable credit from any United Kingdom tax on the same profits, income or taxable earnings on which the tax is payable. Senegalese is calculated;

(b) a dividend paid by a company that is a resident of Senegal to a company that is a resident of the United Kingdom is exempt from tax in the United Kingdom, if the conditions for exemption under the legislation of the United Kingdom are met;

(c) the profits of a permanent establishment in Senegal of a company that is a resident of the United Kingdom are exempt from tax in the United Kingdom if
The exemption is applied and if the conditions for exemption under the legislation of the United Kingdom are met and

(d) in the case of a non-exempt dividend, under subparagraph (b) above, paid by a company that is a resident of Senegal to a company that is a resident of the United Kingdom and controls directly or indirectly 10 % at least Voting rights of the company paying the dividend, the credit referred to in subparagraph (a) also takes into account the corporation's tax under the legislation of Senegal, in respect of the profits on which the dividend is paid.

4. For the purposes of paragraph 3, income, profits or capital gains of a resident of the United Kingdom taxed in Senegal in accordance with this Convention shall be deemed to have come from sources in Senegal.


Article 22. -Miscellaneous provisions

Nothing in this Convention shall affect the rights of each Contracting State to enforce its laws and regulations in order to prevent tax evasion, whether qualified or not, provided that they do not result in taxation Contrary to this Convention.


Article 23. -Non-discrimination

(1) The nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or any obligation connected therewith which is more or more burdensome than those to which nationals of that other State are or may be subjected Find in the same situation, especially with regard to the residence.

2. The taxation of a permanent establishment that a business of a Contracting State has in the other Contracting State is not established in that other State in a less favourable way than the taxation of undertakings in that other State which exercise the same Activity.

3. Unless the provisions of paragraph 1 of Article 9, paragraph 7 or 8 of Article 11, paragraph 6 or 7 of Article 12 or paragraph 4 or 5 of Article 20 are applicable, interest, royalties and other expenses paid By a business of a Contracting State to a resident of the other Contracting State shall, for the determination of the taxable profits of that enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.

(4) The undertakings of a Contracting State, of which the capital is wholly or partly, directly or indirectly, held or controlled by one or more residents of the other Contracting State shall not be subject in the first Contracting State to any Taxation or related obligation, which is more or more burdensome than those to which other similar undertakings in the first State are or may be subject.

5. Nothing in this Article may be regarded as obliging one of the Contracting States to grant to natural persons who are not resident in that State the personal deductions the abatement or reduction which is For the application of the tax to resident natural persons or to its nationals.


Article 24. -Mutual Agreement Procedure

(1) Where a person considers that the measures taken by a Contracting State or both Contracting States cause or will result in taxation not in accordance with the provisions of this Convention, that person may independently Under the domestic law of those States, submit its case to the competent authority of the Contracting State of which it is a resident or if its case falls within the jurisdiction of paragraph 1 of Article 23, to that of the Contracting State of which it is a national. 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 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 friendly 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 the Convention. They may also consult with a view to eliminating double taxation in cases not provided for by the Convention.

4. The competent authorities of the Contracting States may communicate with each other directly with a view to reaching an amicable agreement, as indicated in the preceding paragraphs.


Article 25. -Exchange of information

1. The competent authorities of the Contracting States shall exchange such information as is likely to be relevant for the implementation of the provisions of this Convention, or for the administration or enforcement of domestic legislation relating to Tax of any kind or denomination levied on behalf of the Contracting States or their political subdivisions or local authorities, to the extent that the taxation it provides is not contrary to the 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, or 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 above, information received by a Contracting State may be used for other purposes where that possibility arises from the laws of the two States and the competent authority of the State providing the information approves This usage.

3. The provisions of paragraphs 1 and 2 of this Article shall in no case be construed as imposing an obligation on a Contracting State.

(a) take administrative measures derogating from its legislation and administrative practice or those of the other Contracting State;

(b) to provide information that 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 No interest for him in the national context.

In no case shall the provisions of paragraph 3 be construed so as to enable 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 trustee or because the information relates to the property rights of a person.

Article 26. -Assistance in the collection of taxes

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 States may, by mutual agreement, settle the arrangements for the application of this Article.

2. The expression " Tax debt " As used in this Article means an amount owing as taxes of any kind or denomination, collected on behalf of the Contracting States, their political 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 thereof Taxes.

(3) Where a revenue claim of a Contracting State 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 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 revenue claim of that other State.

4. Where a revenue claim of a Contracting State is a claim in respect of which that State may, by virtue of 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 shall take provisional measures in respect of that tax claim, in accordance with the provisions of its law, as it was a tax debt of that other State, even if, at the time when those measures are applied, the Tax creation is not recoverable in the first State or is due by a person entitled to prevent 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, shall not apply to any Tax claim accepted by that State within the meaning of paragraph 3 or 4. In addition, a tax claim accepted by a Contracting State within the meaning of paragraph 3 or 4 may not be applied any priority in that State under the law of the other Contracting State.

(6) Proceedings concerning the existence, 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 a request has been made by a Contracting State under paragraph 3 and 4 before the other State has recovered and transmitted the amount of the tax debt in question to the first State, that revenue claim shall cease To be:

(a) in the case of an application made under paragraph 3, a tax debt of the first State which is renewable 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 made under paragraph 4, a tax claim of the first State in respect of which that State may, under its legislation, take protective measures to ensure its recovery:

The competent authorities of the first State shall notify the competent authorities of the other State as soon as possible 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 an obligation on a Contracting State.

(a) take administrative measures derogating from its legislation and administrative practice or those of the other Contracting State;

(b) to take measures 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 clearly disproportionate to the advantages which may be derived by the other Contracting State;

(e) to provide assistance if that State considers that the tax in respect of which assistance is sought is established in breach of the generally accepted principles of taxation.


Article 27. -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 28. -Entry into force

(1) Each Contracting State shall, by diplomatic means, notify the other Contracting State of the completion of the procedures required by its legislation concerning the entry into force of the Convention. It shall enter into force on the date of the last notification and its provisions shall apply:

(a) in Senegal:

(i) in respect of taxes collected by withholding tax at source, to amounts paid or credited as from 1 January following the date of entry into force of this Convention;

(ii) in respect of other taxes, to the taxation year beginning on or after the first day of January following the date of entry into force of this Convention; and

B) in the United Kingdom:

(i) in respect of income tax and capital gains tax, in any taxation year beginning on or after April 6, in the calendar year immediately following that in which the Convention entered into force;

(ii) in respect of corporation tax, any fiscal year beginning on or after April 1 of the calendar year immediately following the calendar year in which the Convention entered into force.

(2) Notwithstanding the provisions of paragraph 1, the provisions of Article 24 (Mutual Agreement Procedure) of Article 25 (Exchange of Information) and Article 26 (Assistance in the Collection of Taxes) shall apply from the date of Of the entry into force of this Convention, without reference to the relevant taxation period.

Article 29. -Denunciation

This Convention shall remain in force as long as it has not been denounced by a Contracting State. Each Contracting State may denounce this Convention, by diplomatic means, with a minimum notice of six months notified before the end of a calendar year after the expiration of five years from the date of entry into force of the Convention. Convention. In this case, this Convention shall cease to apply:

(a) in Senegal:

(i) in respect of tax withheld at the source, on income received on or after January 1 of the calendar year following the calendar year in which the notice is given, and

(ii) in respect of other taxes, for taxation years beginning on or after January 1 of the calendar year following the calendar year in which the notice is given

B) in the United Kingdom:

(i) in respect of tax on income tax that begins on or after April 6, the calendar year immediately following the calendar year in which the denunciation is notified;

(ii) in respect of corporation tax, any fiscal year beginning on or after April 1 of the calendar year immediately following the calendar year in which the denunciation has been notified.


Done at Dakar, on February 26, 2015, in duplicate, in the English and French languages, both texts being equally authentic.

For the Government
The Republic of Senegal,
Mankeur NDIAYE

For the Government
The United Kingdom of Great Britain
And Northern Ireland,
John MARSHALL