Act No. 2016-01 Of January 04, 2016

Original Language Title: Loi n° 2016-01 du 04 janvier 2016

Read the untranslated law here: http://www.jo.gouv.sn/spip.php?article10647

Law No. 2016-01 of 04 January 2016 Act No. 2016-01 of 04 January 2016 authorising 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 for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on the income and capital gains signed at Dakar, February 26, 2015.

EXPLANATORY memorandum in order to strengthen their economic cooperation in the field of fiscal evasion with respect to taxes on the income and on capital gains, the Republic of Senegal and the United Kingdom of Great Britain and Northern Ireland signed in Dakar on 26 February 2015, an agreement to avoid double taxation and prevent fiscal evasion with respect to taxes on income and on 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, 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 physical and legal persons residents of the two countries as well as taxes on income and on capital gains imposed on behalf of a Contracting State or of its dismemberments.

Are regarded as taxes on income and on capital gains, taxes collected on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property.

It's: * for Senegal:-corporate tax;

 the flat-rate minimum tax;

 the tax on income of individuals;

 the added value of the properties built and artificial tax.

* For the United Kingdom: the income tax;

 the corporate tax;

 the tax on capital gains.

This Convention shall apply also to any identical or substantially similar taxes, created subsequent to it and which are in addition to the aforementioned taxes or which replace.

In addition, to prevent avoidance or evasion, the Convention provides a collaboration between 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 Contracting States required for this purpose.

Concluded for an indefinite period, this Convention may be denounced after a period of five years from the date of entry into force of the Convention.

In expressing its consent to be bound the present Convention, Senegal will contribute to increase the flow of financial and commercial exchanges with the United Kingdom of Great Britain and Northern Ireland 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 Government of the Republic of Senegal and the Government of United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and on capital gains, signed at Dakar, February 26, 2015.

This Act will be enforced as law of the State.

Made in Dakar, January 04, 2016 Macky SALL.

The President of the Republic: Prime Minister Mahammed Boun Abdallah DIONNE CONVENTION between the Government of the Republic of SENEGAL and the Government of United Kingdom of great Brittany and of Ireland of North for avoid the DOUBLE taxation and of preventing the escape tax for taxes on income and CAPITAL GAINS the Government of the Republic of Senegal and the Government of the United Kingdom of Great Britain and Northern Ireland;

Eager to conclude a convention for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and on capital gains;

Have agreed upon the following provisions: Article 1. -Persons this Convention shall apply to persons who are residents of one or both Contracting States.

Section 2. -Taxes covered 1. This Convention shall apply to taxes on income and on capital gains levied on behalf of a Contracting State, its political subdivisions or its local authorities, irrespective of the collection system.

2 are regarded as taxes on income and on capital gains, taxes collected on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property.

3. the existing taxes to which this Convention shall apply are in particular: has) with regard to Senegal: (i) the corporation tax;
(ii) I' flat-rate minimum tax;
(iii) the tax on income of individuals; and (iv) the tax of added value of the properties built and non-built;

(Hereinafter referred to as "Senegalese tax");

(b) in relation to the United Kingdom: (i) the income tax;
(ii) the corporation tax; and (iii) the tax on capital gains;

(Hereinafter referred to as "tax managed United Kingdom").

4. the Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention and additional to existing taxes or place. The competent authorities of the Contracting States shall communicate significant changes to their tax legislation.

Article 3. -General definitions 1. For the purposes of this Convention, unless the context otherwise requires: a) 'Sénégal' means the Republic of Senegal and the geographical point of view, includes the national territory, and the territorial sea, beyond it, the areas over which the Republic of senegal has sovereign rights and exercising its jurisdiction, in accordance with international law;

(b) the term "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 British laws on the Continental Shelf, and to international law, exercise its sovereign rights on ground and marine subsoil and their natural resources;

(c) the terms «A Contracting State» and «The other Contracting State» mean, as the case, Senegal and the United Kingdom;

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

(e) the term "company" means any legal person or any entity which is considered, for the purposes of taxation, as a legal person;

(f) the term "enterprise" applies to the exercise of any activity or business;

(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 of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(i) the term "competent authority" means: (i) in the case of Senegal, the Minister of finance or his authorized representative; and (ii) in the case of the United Kingdom, the Commissioners of the tax and customs administration ("Commissioners for Her Majesty's Revenue and Customs") or their authorized delegate;

(j) the term "na tional ' means: (i) in the case of Senegal, any individual who possesses the Senegalese nationality and any legal person or association established in accordance with the legislation in force in Senegal; and (ii) in the case of the United Kingdom, any British citizen, or any British subject who does not have citizenship of another country or territory Member of the Commonwealth if it enjoys a right of residence in the United Kingdom and any person Corporation, group or association constituted in accordance with the legislation in force in the United Kingdom;

(k) the term "business" includes the exercise of liberal professions or other activities at independent character;

(l) "pension scheme" means any scheme or other mechanism that: i) is, in principle, exempt from income tax; and ii) is operated for the purpose administering superannuation or pension benefits or to generate revenue for the benefit of one or more mechanisms of this kind.

2. for the purposes of the Convention at any time by a Contracting State, any term which is not defined have, unless the context requires a different interpretation, the meaning attributed to it, at that time, the law of that State concerning the taxes to which the Convention applies the meaning assigned to that 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, «resident of a Contracting State» means any person who, under the law of that State is subject to 1impot in this State, because of his domicile, residence, place of management, place of registration or any other criterion of a similar nature, including that State and any political subdivision or local authority of that State. However, this expression does not include persons who are subject to tax in that State as the income or the capital gains from sources in that State.

2. the term "resident of a Contracting State" includes: a) a pension plan established in this State; and (b) an organization established and who is exclusively educational, cultural, scientific, charitable or religious purpose (or several of these goals) and who is a resident of this State under the legislation of that State, notwithstanding the fact that all or part of its income or gains may be exempt from tax under the domestic law of that State.

3. where, under the provisions of paragraph 1 an individual is a resident of both Contracting States, his status is set as follows: a) this person is considered to be a resident only of the State where it has a permanent home; If it has a permanent home in the two States, it is considered as a resident only of the State with which his personal and economic relations are closer (centre of vital intrêts);

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

(c) if he has habitual abode in both States or if it resides habitually in any of them, it is considered to be a resident only of 1 the State which possesses the nationality;

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

4. where, under the provisions of paragraph 1 an individual is a resident of both Contracting States, the competent authorities of the Contracting States will determine, by mutual agreement, the Contracting State in which that person is considered as a resident under the Convention. In the absence of a mutual agreement between the competent authorities of the Contracting States, the person is not considered as a resident of any of the Contracting States for the purposes of claiming benefits under this Convention, with the exception of those referred to in paragraph 3 of article 21 and articles 23 and 24.

 

Article 5 -Permanent establishment 1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which a company 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; and (f) a mine, an oil or gas, a quarry or any other place of extraction of natural resources.

3. a construction, Assembly or installation constitutes a permanent establishment only if its duration exceeds six months.

4. the term "permanent establishment" also includes: a) the provision of services by an undertaking acting through employees or other personnel engaged by the enterprise for this purpose, where activities of that nature continue (for the same project or a connected project) within a Contracting State for one or more periods of a total duration of more than 183 days in any period of twelve months commencing or ending in the fiscal year concerned;

b) concerning a natural person, the provision of services in a Contracting State by such physical person, if the person is present in this State for one or more periods of a total period of more than 183 days in any period of twelve months commencing or ending in the fiscal year under review.

5. Nonosbstant the preceding provisions of this article, considering that it has not 'permanent establishment' if: has) it is made use of facilities for the sole purpose of storage, exposure or delivery of goods belonging to the enterprise;

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

(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 referred to in paragraphs (a) to (e), provided that the activity of entire installation fixed business resulting from this combination guard a preparatory or auxiliary character.

6. Notwithstanding the provisions of paragraphs 1 and 2, where one person, other than an officer with status independent, to whom paragraph 7 applies acts on behalf of a business and has in that State powers it carries normally to conclude contracts on behalf of the company, this company is considered as having a permanent establishment in that State for all the activities that this person performs for the company unless the activities of such person are limited to those mentioned in paragraph 5 and that, if they were exercised through a fixed place of business, would not consider this installation fixed business as a permanent establishment within the meaning of the provisions of this paragraph.

7. Notwithstanding the preceding provisions of this article, an insurance enterprise of a Contracting State is, except in matters of reinsurance, considered as having 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 through one person other than an agent of an independent status to whom paragraph 8 applies.

8. an enterprise shall not be considered as having a permanent establishment in a Contracting State merely because it carries its activity through a broker, general Commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary activity course. However, when the activities of such an agent are exercised wholly or almost wholly on behalf of this company and that conditions are fixed or imposed between that enterprise and the agent in their commercial and financial relations and that different from those which would have been set between independent enterprises, the agent is not regarded as an independent within the meaning of this paragraph.

9. 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) does not, in itself, to make one any of these companies a permanent establishment of the other.

Section 6. -Property income 1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry holdings) 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 and equipment holdings agricultural and forestry, rights to which apply the provisions of ordinary law concerning land ownership, usufruct of real property and rights to variable or fixed payments for the operation or the concession of the exploitation of mineral deposits, sources and other natural resources; ships, boats and aircraft are not considered to be real property.

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

4. the provisions of paragraphs 1 and 3 above apply also to income from real property of an enterprise.

Section 7. -1 business profits. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the company operates in the other State Contracting through a permanent establishment situated therein. If 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 charged, in each Contracting State, to that permanent establishment the profits that he could achieve if it had been a separate company carrying out identical or similar activities 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 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 or activity, except in the case of a banking business, as interest on moneys lent to the Head Office of the company or any any of its other offices.

4 if it is use of 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 adopted allocation method should be such that the result is consistent 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 or capital gains 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. -Shipping and air 1. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State where the effective company management headquarters is located.

2. for the purposes of this article, profits from the operation in international traffic of ships or aircraft include: a) the profits from leasing, without personnel, ships or aircraft, and b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the carriage of goods;
When rental or such use, this interview or this rental as the case may be, is incidental to the operation of ships or aircraft in international traffic.

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

Article 9 -Associated enterprises 1. When;

((a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of one enterprise of the other Contracting State, or that b) the same persons participate directly or indirectly to the direction, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and that, in the other case the two companies are, in their commercial or financial, relationships bound by agreed or imposed conditions which differ from those which would be agreed between independent companies, the benefits that without these conditions, would have been made by one of the companies but were unable being 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 tax accordingly) profits on which an enterprise of the other Contracting State has already been imposed in the other State and the profits so included are profits that would have been made by the company of the first mentioned if state the conditions agreed between the two companies were those which would have been agreed between independent enterprises the other State is an appropriate adjustment to the amount of the tax which is received on these profits.

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 is not bound to a correlative adjustment under paragraph 2 after the expiry of the time limits provided in its domestic laws.

4. the provisions of subsection 2 do not apply when a judicial procedure, administrative or other legal proceeding resulted in a final decision that, under actions giving rise to an adjustment of the profits of an enterprise of a State Contracting, in accordance with paragraph 1, this company is liable under the laws of that State, a penalty for fraud, gross negligence or wilful misconduct.

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

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

3. Notwithstanding the provisions of paragraph 2, unless the beneficial owner of the dividends is a pension plan, dividends paid on income (including earnings) from directly or indirectly, of immovable property within the meaning of article 6 by an investment company which is a resident of a Contracting State whose revenue from these properties are tax-exempt and which distributes most of these revenues each year , may also be taxed in that State, in accordance with the laws 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 15% of the gross amount of the dividends.

4. the term "dividends" as used in this article means income from shares or other rights (with the exception of receivables), share of beneficiaries, as well as any other income considered shares by the taxation law of the State of which the company vending is a resident.

5. the provisions of paragraphs 1, 2 and 3 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 activity through a permanent establishment is situated and generating dividends participation related actually. In this case the provisions of article 7 shall apply.

6. where a company which is resident of a Contracting State derives profits or income from the other Contracting State, that other State may levy no tax on dividends paid by the company, except to the extent where such dividends are paid to a resident of that other State or insofar as where the dividends generating participation relates effectively to a permanent establishment situated in that other State , or impose any tax in respect of the taxation of retained earnings, on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of 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, the taxable profits under paragraph 1 of article 7 may be subject to an additional tax in the other State, in accordance with its legislation, however the additional tax cannot exceed 5% of the amount of these benefits.

8. no benefit is granted under this section, if the aim main or one of the main purposes of any person concerned with the creation or assignment of the shares or other generating dividend rights was to take advantage of this article by that creation or assignment.

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 State, the tax so charged shall not exceed 10% 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 paragraph 2, the Government of a Contracting State, its political subdivisions and local authorities are exempt from tax in the other State Contracting in what concerned the interest from that State.

4. the term "interest" as used in this article means income of claims of any kind, secured or not secured by mortgage or a right to participate in the debtor's profits, including public funds revenues and borrowing bonds, including premiums and prizes attaching to such securities. Penalties for late payment are not regarded as interest payments within the meaning of this article. The term "interest" does not include income treated as dividends in accordance with the provisions of article 10.

5. the provisions of paragraphs 1 and 2 do not apply where the beneficial owner of the interest, being a resident of a State Contracting, carries on in the other Contracting State comes the interests a business activity through a permanent establishment is situated and the generating of interest receivable related actually. In this case, the provisions of article 7 shall apply.

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

7. when, due to special relationship between the payer and the beneficial owner or that one and the other have with third parties, the amount of the interest paid exceeds, for whatever reason, one which would be agreed 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.

8. no advantage is granted under this section, if the main purpose or one of the main purposes of any person concerned with the creation or assignment of the generating receivables of interest was to take advantage of this article by that creation or assignment.

Section 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 taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed: has) on the fees referred to in subparagraph a) of paragraph 3, 10% of the gross amount of the royalties.
b) concerning the fees referred to in subparagraph b) of paragraph 3, 10% of the amount adjusted royalties. For the purposes of this sub-paragraph, "the adjusted amount" means 60 per cent of the gross amount of the royalties.

The competent authorities of the Contracting States regulate agreed the modalities of application of these limitations.

3. the term "royalties" as used in this article means: has) the remuneration 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 trade mark or a trade, a drawing or a model, a plan, a formula or a secret process and for information relating to experience gained in the industrial field commercial or scientific; and (b) remuneration of any kind for the use or right of use of an industrial, commercial or scientific equipment.

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 activity of business through a permanent establishment situated therein and the right or well Builder royalty related actually. In this case, the provisions of article 7 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's royalties, whether or not a resident of a Contracting State has in a Contracting State a permanent establishment to which the obligation giving rise to the payment of the royalties was reached, which supports the exchange of these charges, they are deemed come from the State where the permanent establishment is situated.

6. where, because of special relationship between the payer and the beneficial owner or that one or the other relationships with third parties, the amount of the royalties paid exceeds, for whatever reason, one 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.

7. no benefit is granted under this section if the main purpose or one of the main purposes of any person concerned with the creation or assignment of the generating rights of royalties was to take advantage of this article by that creation or assignment.


Article 13. -1 capital gains. The gains that a resident of a Contracting State title 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. the gains that a resident of a State Contracting derived from the alienation of shares or comparable interests deriving 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.

3. 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 including such gains from the alienation of that permanent establishment (alone or here), may be taxed in that other State.

4. gains a resident of a State Contracting from the alienation of ships or aircraft operated in international traffic by an enterprise of that State, or by movable property pertaining to the operation of these vessels or aircraft shall be taxable only in that State.

5. gains other than those covered by paragraph 2, that a resident of a Contracting State from the alienation of shares of a company which is a resident of the other Contracting State may be taxed in that other State if assignor, a period 12 months preceding this alienation, held directly or indirectly, 50% at least of the capital of this company. The tax imposed in this 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.

Section 14. -Income from employment 1. Subject to the provisions of articles 15, 17, 18, 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 receives in respect of an employment exercised in the other Contracting State shall be taxable only in the first State, if: a) the recipient is present in the other State for a period or periods exceeding not in total 183 days during any 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 which the employer has in the other State.

3. 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 that State.

Section 15. -Fees. directors ' fees and other similar payments derived by a resident of a Contracting State in his capacity as member of the Board of Directors of a company which is a resident of the other Contracting State may be taxed in that other State.

Section 16. -Artists and sportspersons 1. 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 cinema theatre artist, radio or television, or a musician, or as a sportsman, may be taxed in that other State.

2. where the 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, these income be taxed notwithstanding the provisions of articles 7 and 14, in the Contracting State where the activities of the entertainer or athlete are exercised.

3. the provisions of paragraphs 1 and 2 are not applicable to remuneration or profits from activities, within the framework of an agreement of cultural exchange in a Contracting State, if the visit to that State is wholly or partly funded by public funds of the other State Contracting or one of its political subdivisions or local authorities. In this 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 to be taxable only in that State.

Section 18. -Public service 1. (a) salaries, wages and other similar remuneration paid by a Contracting State or of its political subdivisions or local authorities to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.

(b) However, these salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State, that the individual is a resident of that State who: i) has the nationality of that State; or ii) did not become a resident of that State for the sole purpose of rendering such services;
and is subject to the tax on the salaries, wages and other similar remuneration in that State.

2. a) Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by, or out of funds made by a Contracting State or any of its political subdivisions or communities to an individual in respect of services rendered to that State or to this subdivision or local authority thereof 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 individual 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 compensation similar in respect of services rendered in connection with a business activity carried on by a Contracting State or one of its political subdivisions or local authorities.

Section 19. -Students are that a student or a trainee who is, or was immediately before visiting a Contracting State a resident of the other State Contracting, and who stays in the first State solely to continue his studies or his training, receives to cover maintenance costs, for studies or training are not taxable in that State provided that they are derived from sources outside that State.

Section 20. -Other income 1. Items of income of a resident of a Contracting State which the resident is the beneficial owner, wherever they come from, who are not treated 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 on the income received by trustrees or executors administering estates of deceased persons and that such trustees or executors are residents of the other Contracting State, the amount is considered from the same sources and in the same proposals as income received by these trustees or executors and Treaty on which this time is paid.

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

3. the provisions of paragraph 1 shall not apply to other than income from real property as defined in paragraph 2 of article 6, if the recipient of such income resident of a Contracting State exercising a business activity in the other State Contracting through a permanent establishment situated therein, to the extent that the right or well Builder income goes with it actually. In this case, the provisions of article 7 shall apply.

4. where, because of special relations existing between the resident referred to in paragraph 1 and the other person, or that one and the other have with any third party the amount of income referred to in the paragraphs exceeds, where appropriate, the amount that would be agreed, 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.

5. no benefit is granted under this section if main purpose or one of the main purposes of any person concerned with the creation or assignment of the rights in respect of which the income is paid was to take advantage of this article by that creation or assignment.

Section 21. -Elimination of double taxation 1. Where a resident of Senegal derives income which, in accordance with the provisions of this Convention, may be taxed in the United Kingdom, Senegal grant a deduction from the tax on the income of that resident an amount equal to the tax paid in the United Kingdom. This deduction cannot exceed that portion of the Senegalese tax corresponding to such income.

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

3. subject to the provisions of the legislation of the United Kingdom regarding the allowance as a credit against the tax of the United Kingdom in respect of tax payable in a territory located in the United Kingdom or, as the case concerning the tax exemption of the United Kingdom on a dividend from a territory situated outside the United Kingdom or the benefits of an institutions stable to a territory outside the United Kingdom (which may not affect the General principles here laid down) (: a) tax payable Senegalese legislation of Senegal and in accordance with this Convention, directly or by deduction, on profits, income or taxable gains from sources in Senegal (to execution in the case of a dividend of the tax due at the rate of profit on which dividend is paid) is considered to be a credit against any tax from the United Kingdom based on the same benefits income or taxable gains on which the Senegalese tax is computed;

(b) a dividend paid by a company which is a resident of Senegal to a company which is a resident of the United Kingdom is exempt from taxation of 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 which is a resident of the United Kingdom are exempt from tax to the United Kingdom if the exemption is application and the conditions for exemption under the legislation of the United Kingdom are met) and (d) in the case of a dividend not exempt from tax under subparagraph b) above, paid by a company which is a resident of Senegal to a company which is a resident of the United Kingdom and which controls directly or indirectly 10% or more of the voting rights of the company paying the dividend, the credit referred to in subparagraph a) also takes account of the tax payable by the Corporation under the legislation of Senegal, in respect of the profits on which such dividend is paid.

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

Section 22. -Miscellaneous provisions


No provision of this Convention may infringe the rights of each Contracting State to apply its laws and regulations to prevent the escape tax, qualified or not as such, provided that they do not cause a levy contrary to this Convention.

Section 23. -Non-discrimination 1. Nationals of a Contracting State not be subjected in the other Contracting State to any taxation or obligation y relative which is other or more burdensome than those which are or may be subjected nationals of that other State who are in the same situation, including with regard to the residence.

2. the taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State is not established in that other State to less favourably than the taxation levied on enterprises of that other State carrying on the same activities.

3. has less than the provisions 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 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 undertaking, under the same conditions as if they had been paid to a resident of first State.

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

5. no provision of this article cannot be considered as obliging a Contracting State to grant to individuals who are not resident in that State personal allowances, rebates or discounts which are granted for the application of the tax to persons physical resident or to its nationals.

Section 24. -Mutual agreement procedure 1. Where a person considers that the measures taken by a Contracting State or by the two 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 domestic law of those States it can submit his case to the competent authority of the Contracting State of which it is a resident or, if his case comes under paragraph 1 of article 23 , 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 amicable 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 the Convention. They may also consult to eliminate double taxation in cases not provided for in the Convention.

4. the competent authorities of the Contracting States may communicate directly with each other to reach an amicable settlement, as indicated in the preceding paragraphs.

Section 25. -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 States Contracting Parties or their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the 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 , or by the 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 the two States and that the competent authority of the State providing the information approved this use.

3. the provisions of paragraphs 1 and 2 of the present article may not be interpreted as imposing a State Contracting obligation.

a) take administrative measures derogating from its legislation and its administrative practice or those 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 Contracting State in accordance with 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 for him in the national framework.

5. in any case the provisions of paragraph 3 shall not be construed as allowing a Contracting State to withhold information only because they are held by a Bank, other financial institution, an agent or a person acting as an agent or trustee, or because the information relate to the rights of property of a person.

Section 26. -Assistance for the collection of taxes 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 States may set agreed detailed rules for the application of this article.

2 'revenue claim' as used in this article means an amount owed in respect of taxes of any nature or description, collected on behalf of the Contracting States, of their political 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 Contracting State 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, this tax claim, at the request of the competent authorities of that State, accepted for its recovery by the competent authorities of the other Contracting State. This 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, this 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 shall take provisional measures against the tax debt in accordance with the provisions of its laws as it was a tax claim of that other State even if at the time when such measures are applied, creating tax is not recoverable in the first State or is due by a person empowered to prevent are recovery.

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 within the meaning of paragraph 3 or 4. In addition, a revenue claim accepted by a Contracting within the meaning of paragraph 3 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 Contracting State.

7. where at any time after a request has been made by a Contracting State under paragraph 3 and 4 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 a request under paragraph 3, a tax claim of the first State which is renewable under the laws of this State and is due by a person who , at that time, cannot, under the laws of that State, prevent its recovery; or (b) in the case of a request pursuant to subsection 4, a revenue claim of the first State with respect to which that State may, under its law, take interim protective measures to ensure his recovery: the competent authorities of the first State shall notify as soon as possible 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 may not be interpreted as imposing a State Contracting obligation.

a) 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;

(e) in providing assistance if that State considers that the tax for which assistance is sought is established contrary to generally accepted taxation principles.

Section 27. -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.


Section 28. -Entry into force 1. Each of the Contracting States notifies via diplomatic channels to the other Contracting State the completion of the procedures required by its law for the entry into force of the Convention. It shall enter into force on the date of the last notification and its provisions shall apply: has) Senegal: (i) with regard to taxes levied by deduction at source, to amounts paid where credited as of 1 January following the date of entry into force of this Convention;

(ii) with regard to other taxes, in the after tax year from 1 January following the date of entry into force of this Convention; and (b)) in the United Kingdom: (i) in relation to the income tax and the tax on the capital gains, to any taxation year commencing April 6 where after, of the calendar year immediately following that in which the Convention has entered into force;

(ii) with regard to the tax, in any fiscal year commencing April 1 or after, of the calendar year immediately following that in which the Convention has entered into force.

2. Notwithstanding the provisions of paragraph 1, the provisions of article 24 (Procedure) mutual agreement of article 25 (Exchange of information) and article 26 (Assistance in collection of taxes) shall apply from the date of entry into force of this Convention, without taking account of the period under review.


Section 29. -Termination 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, through diplomatic channels, with a minimum six months ' notice notified before the end of a calendar year after the expiry of a period of five years from the date of entry into force of the Convention. In this case, this Convention shall cease to apply: a) in Senegal: (i) respect the tax withheld at source, on income received from January 1 or after 1 January in the calendar year following that in which the notice is given, and (ii) in respect of other taxes, for taxation years commencing after 1 January (, or after 1 January in the calendar year following that in which the notice is given b) to the United Kingdom: (i) in relation to tax on the income from taxation beginning April 6 or after, of the calendar year immediately following that during which the denunciation has been notified;

(ii) with regard to the tax, in any fiscal year commencing April 1, or later, of the calendar year immediately following that during which the denunciation has been notified.

Made in Dakar, February 26, 2015, in duplicate, in English and French, both texts being equally authentic.

For the Government of the Republic of Senegal, Mankeur NDIAYE for the Government of the United Kingdom of Great Britain and Northern Ireland, John MARSHALL