|
|
|
|
|
|
|
|
|
|
The Government of Canada and the Government of the
Republic of Senegal, desiring to conclude a Con
vention for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on
income, have agreed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This Convention shall apply to persons who are residents of
one or both of the Contracting States.
|
|
|
|
|
|
|
|
|
|
|
|
1. This Convention shall apply to taxes on income imposed on
behalf of each Contracting State, irrespective of the manner in
which they are levied.
|
|
|
|
2. There shall be regarded as taxes on income all taxes
imposed on total income or on elements of income including
taxes on gains from the alienation of movable or immovable
property as well as taxes on capital appreciation.
|
|
|
|
3. The existing taxes to which the Convention shall apply are,
in particular:
|
|
|
|
(a) in the case of Canada:
|
|
|
|
the income taxes imposed by the Government of Canada
under the Income Tax Act, (hereinafter referred to as
``Canadian tax'');
|
|
|
|
(b) in the case of Senegal:
|
|
|
|
(i) the tax on companies,
|
|
|
|
(ii) the minimum lump-sum tax on companies,
|
|
|
|
(iii) the income tax on individuals,
|
|
|
|
(iv) the employers' lump-sum contribution,
|
|
|
|
(v) the capital gains tax on developed and undeveloped
land,
|
|
|
|
(hereinafter referred to as ``Senegalese tax'').
|
|
|
|
4. The Convention shall apply also to any identical or
substantially similar taxes which enter into force after the date of
signature of this Convention in addition to, or in place of, the
existing taxes. The competent authorities of the Contracting
States shall notify each other of any significant changes which
have been made in their respective taxation laws.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. In this Convention, unless the context otherwise requires:
|
|
|
|
(a) the term ``Canada'', used in a geographical sense, means
the territory of Canada, including
|
|
|
|
(i) any area beyond the territorial sea of Canada which, in
accordance with international law and the laws of Canada,
is an area in respect of which Canada may exercise rights
with respect to the seabed and subsoil and their natural
resources; and
|
|
|
|
(ii) the sea and airspace above every area referred to in
clause (i) in respect of any activity carried on in connection
with the exploration for or the exploitation of the natural
resources referred to therein;
|
|
|
|
(b) the term ``Senegal'' means the Republic of Senegal; when
used in a geographical sense, it means the national territory,
the territorial waters as well as the maritime areas over which,
in accordance with international law, Senegal exercises
sovereign rights or jurisdiction;
|
|
|
|
(c) the terms ``a Contracting State'' and ``the other Contracting
State'' mean, as the context requires, Canada or Senegal;
|
|
|
|
(d) the term ``person'' includes an individual, a company and
any other body of persons; in the case of Canada, it also
includes a trust;
|
|
|
|
(e) the term ``company'' means any body corporate or any
entity which is treated as a body corporate for tax purposes;
|
|
|
|
(f) 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;
|
|
|
|
(g) the term ``competent authority'' means:
|
|
|
|
(i) in the case of Canada, the Minister of National Revenue
or the Minister's authorized representative,
|
|
|
|
(ii) in the case of Senegal, the Minister responsible for
Finance or the Minister's authorized representative;
|
|
|
|
(h) the term ``national'' means:
|
|
|
|
(i) any individual possessing the nationality of a
Contracting State;
|
|
|
|
(ii) any legal person, partnership or association deriving its
status as such from the laws in force in a Contracting State;
|
|
|
|
(i) 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.
|
|
|
|
2. As regards the application of the Convention by a
Contracting State any term not defined therein shall, unless the
context otherwise requires, have the meaning that it has under the
law of that State for the purposes of the taxes to which the
Convention applies, any meaning under the applicable tax laws
of that State prevailing over a meaning given to the term under
other laws of that State.
|
|
|
|
|
|
|
|
|
|
|
|
1. For the purposes of this Convention, the term ``resident of
a Contracting State'' means:
|
|
|
|
(a) any person who, under the laws of that State, is liable to tax
therein by reason of the person's domicile, place of
incorporation, residence, place of management or any other
criterion of a similar nature;
|
|
|
|
(b) the Government of that Contracting State or a political
subdivision or local authority thereof or, in the case of Canada,
any agency or instrumentality of any such government,
subdivision or authority.
|
|
|
|
2. Where by reason of the provisions of paragraph 1 an
individual is a resident of both Contracting States, then the
individual's status shall be determined as follows:
|
|
|
|
(a) the individual shall be deemed to be a resident only of the
Contracting State in which the individual has a permanent
home available; if the individual has a permanent home
available in both Contracting States, the individual shall be
deemed to be a resident only of the Contracting State with
which the individual's personal and economic relations are
closer (centre of vital interests);
|
|
|
|
(b) if the Contracting State in which the individual's centre of
vital interests is situated cannot be determined, or if there is not
a permanent home available to the individual in either
Contracting State, the individual shall be deemed to be a
resident only of the Contracting State in which the individual
has an habitual abode;
|
|
|
|
(c) if the individual has an habitual abode in both Contracting
States or in neither of them, the individual shall be deemed to
be a resident only of the Contracting State of which the
individual is a national;
|
|
|
|
(d) if the individual is a national of both Contracting States or
of neither of them, the competent authorities of the
Contracting States shall settle the question by mutual
agreement.
|
|
|
|
3. Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both Contracting States,
the competent authorities of the Contracting States shall by
mutual agreement endeavour to settle the question and to
determine the mode of application of the Convention to such
person.
|
|
|
|
|
|
|
|
|
|
|
|
1. For the purposes of this Convention, the term ``permanent
establishment'' means a fixed place of business through which
the business of an enterprise is wholly or partly carried on.
|
|
|
|
2. The term ``permanent establishment'' includes especially:
|
|
|
|
(a) a place of management;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(f) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources, including that relating to the
exploration for or the exploitation of natural resources;
|
|
|
|
(g) a building site or construction project;
|
|
|
|
(h) an assembly project which exists for more than three
months.
|
|
|
|
3. Notwithstanding the preceding provisions of this Article,
the term ``permanent establishment'' shall be deemed not to
include:
|
|
|
|
(a) the use of facilities solely for the purpose of storage or
display of goods or merchandise belonging to the enterprise;
|
|
|
|
(b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of storage or
display;
|
|
|
|
(c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
|
|
|
|
(d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise or of collecting
information, for the enterprise;
|
|
|
|
(e) the maintenance of a fixed place of business solely for the
purpose of its advertising, for the supply of information, for
scientific research or for similar activities which have a
preparatory or auxiliary character, for the enterprise.
|
|
|
|
4. A person - other than an agent of an independent status to
whom paragraph 5 applies - acting in a Contracting State on
behalf of an enterprise of the other Contracting State shall be
deemed to be a permanent establishment in the first-mentioned
State:
|
|
|
|
(a) if the person has, and habitually exercises in the
first-mentioned State an authority to conclude contracts in the
name of the enterprise, unless the activities of such person are
limited to the purchase of goods or merchandise for the
enterprise; or
|
|
|
|
(b) if the person maintains in the first-mentioned State a stock
of goods or merchandise belonging to the enterprise from
which the person habitually fills orders on behalf of the
enterprise.
|
|
|
|
5. An enterprise shall not be deemed to have a permanent
establishment in a Contracting State merely because it carries on
business in that State through a broker, general commission
agent or any other agent of an independent status, provided that
such persons are acting in the ordinary course of their business.
|
|
|
|
6. 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 Contracting State, or which carries on business in that
other State (whether through a permanent establishment or
otherwise), shall not of itself constitute either company a
permanent establishment of the other.
|
|
|
|
7. An insurance enterprise shall, except with regard to
re-insurance, be deemed to have a permanent establishment in a
Contracting State from the time it collects premiums in the
territory of that State or insures risks situated therein through a
representative who does not fall within the type of persons
referred to in paragraph 5 above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Income from immovable property, including income from
agriculture or forestry, situated in the other Contracting State
may be taxed in the Contracting State in which such property is
situated.
|
|
|
|
2. For the purposes of this Convention, the term ``immovable
property'' shall be defined in accordance with the law of the
Contracting State in which the property in question is situated.
The term shall in any case include property accessory to
immovable property, livestock and equipment used in
agriculture and forestry, rights to which the provisions of general
law respecting landed property apply, usufruct of immovable
property and rights to variable or fixed payments as
consideration for the working of, or the right to work, mineral
deposits, sources and other natural resources; ships and aircraft
shall not be regarded as immovable 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 and to income from the alienation of such property.
|
|
|
|
4. The provisions of paragraphs 1 and 3 shall also apply to the
income from immovable property of an enterprise and to income
from immovable property used for the performance of
independent personal services.
|
|
|
|
|
|
|
|
|
|
|
|
1. The profits of an enterprise of a Contracting State shall be
taxable only in that State unless the enterprise carries on business
in the other Contracting State through a permanent establishment
situated therein. If the enterprise carries on or has carried on
business as aforesaid, the profits of the enterprise may be taxed
in the other State but only so much of them as is 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, there shall in each Contracting State be attributed to that
permanent establishment the profits which it might be expected
to make if it were a distinct and separate enterprise engaged in the
same or similar activities under the same or similar conditions
and dealing wholly independently with the enterprise of which
it is a permanent establishment.
|
|
|
|
3. In determining the profits of a permanent establishment,
there shall be allowed those deductible expenses which are
incurred for the purposes of the permanent establishment
including executive and general administrative expenses,
whether incurred in the State in which the permanent
establishment is situated or elsewhere; in the latter case, a share
of the general administrative expenses of the head office may be
allocated to each permanent establishment on a pro rata basis
with respect to the turnover realised by each of them.
|
|
|
|
Where the apportionment of the general administrative expenses
referred to above does not result in a normal share or normal
profits, the competent authorities of the Contracting States may,
in accordance with the provisions of Article 24, make an
appropriate adjustment to determine the profits of the permanent
establishment.
|
|
|
|
4. No profits shall be attributed to a permanent establishment
by reason of the mere purchase by that permanent establishment
of goods or merchandise for the enterprise.
|
|
|
|
5. For the purposes of the preceding paragraphs, the profits to
be attributed to the permanent establishment shall be determined
by the same method year by year unless there is good and
sufficient reason to the contrary.
|
|
|
|
6. Where profits include items of income which are dealt with
separately in other Articles of this Convention, then the
provisions of those Articles shall not be affected by the
provisions of this Article.
|
|
|
|
|
|
|
|
|
|
|
|
1. Profits derived by an enterprise of a Contracting State from
the operation of ships or aircraft in international traffic shall be
taxable only in that State.
|
|
|
|
2. Notwithstanding the provisions of paragraph 1 and Article
7, profits derived from the operation of ships or aircraft used
principally to transport passengers or property exclusively
between places in a Contracting State may be taxed in that State.
|
|
|
|
3. The provisions of paragraphs 1 and 2 shall also apply to
profits from the participation in a pool, a joint business or an
international operating agency.
|
|
|
|
|
|
|
|
|
|
|
|
1. Where
|
|
|
|
(a) an enterprise of a Contracting State participates directly or
indirectly in the management, control or capital of an
enterprise of the other Contracting State, or
|
|
|
|
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
Contracting State and an enterprise of the other Contracting
State,
|
|
|
|
and in either case conditions are made or imposed between the
two enterprises in their commercial or financial relations which
differ from those which would be made between independent
enterprises, then any profits which would, but for those
conditions, have accrued to one of the enterprises, but, by reason
of those conditions, have not so accrued, 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 taxes accordingly - profits on
which an enterprise of the other Contracting State has been
charged to tax in that other State and the profits so included are
profits that would have accrued to the enterprise of the
first-mentioned State if the conditions made between the two
enterprises had been those that would have been made between
independent enterprises, then that other State shall make an
appropriate adjustment to the amount of tax charged therein on
those profits. In determining such adjustment, due regard shall be
had to the other provisions of this Convention.
|
|
|
|
3. A Contracting State shall not change the profits of an
enterprise in the circumstances referred to in paragraph 1 after the
expiry of the time limits provided in its domestic laws and, in any
case, after five years from the end of the year in which the profits
which would be subject to such change would have accrued to an
enterprise of that State.
|
|
|
|
4. The provisions of paragraphs 2 and 3 shall not apply in the
case of fraud, wilful default or neglect.
|
|
|
|
|
|
|
|
|
|
|
|
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 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:
|
|
|
|
(a) in the case of Senegal, sixteen per cent (16%) of the gross
amount of the dividends;
|
|
|
|
(b) in the case of Canada, fifteen per cent (15%) of the gross
amount of the dividends.
|
|
|
|
The provisions of this paragraph shall not affect the taxation of
the company in respect of the profits out of which the dividends
are paid.
|
|
|
|
3. The term ``dividends'' as used in this Article means income
from shares, ``jouissance'' shares or ``jouissance'' rights, mining
shares, ``parts sociales'', founders' shares or other rights, not
being debt-claims, participating in profits, as well as income
which is subjected to the same taxation treatment as income from
shares by the taxation law of the State of which the company
making the distribution is a resident.
|
|
|
|
4. The provisions of paragraph 2 shall not apply if the
beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other Contracting
State of which the company paying the dividends is a resident,
through a permanent establishment situated therein, or performs
in that other State independent personal services through a fixed
base situated therein, and the holding in respect of which the
dividends are paid is effectively connected with such permanent
establishment or fixed base. In such case the provisions of Article
7 or Article 14, as the case may be, shall apply.
|
|
|
|
5. Where a company which is a resident of a Contracting State
derives profits or income from the other Contracting State, that
other State may not impose any tax on the dividends paid by the
company, except insofar as such dividends are paid to a resident
of that other State or insofar as the holding in respect of which the
dividends are paid is effectively connected with a permanent
establishment or a fixed base situated in that other State, nor
subject the company's undistributed profits to a tax on
undistributed profits, even if the dividends paid or the
undistributed profits consist wholly or partly of profits or income
arising in such other State.
|
|
|
|
6. Nothing in this Convention shall be construed as preventing
a Contracting State from imposing on the earnings of a company
attributable to a permanent establishment in that State, a tax in
addition to the tax which would be chargeable on the earnings of
a company which is a national of that State, provided that any
additional tax so imposed shall not exceed:
|
|
|
|
(a) in the case of Senegal, sixteen per cent (16%),
|
|
|
|
(b) in the case of Canada, fifteen per cent (15%)
|
|
|
|
of the amount of such earnings which have not been subjected to
such additional tax in previous taxation years. For the purpose of
this paragraph, the term ``earnings'' means the profits, including
any gains, attributable to a permanent establishment situated in
a Contracting State in a year and previous years after deducting
therefrom all taxes, other than the additional tax referred to
herein, imposed on such profits by that State.
|
|
|
|
7. The provisions of paragraph 6 shall also apply with respect
to earnings derived from the alienation of immovable property
situated in a Contracting State by a company carrying on a trade
in immovable property, whether or not it has a permanent
establishment in that State.
|
|
|
|
|
|
|
|
|
|
|
|
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 laws of that State, but
if the beneficial owner of the interest is a resident of the other
Contracting State, the tax so charged shall not exceed:
|
|
|
|
(a) in the case of Senegal, twenty per cent (20%) of the gross
amount of the interest on ``bons de caisse'' and sixteen per
cent (16%) of their gross amount in all other cases;
|
|
|
|
(b) in the case of Canada, fifteen per cent (15%) of the gross
amount of the interest in all cases.
|
|
|
|
3. Notwithstanding the provisions of paragraph 2,
|
|
|
|
(a) interest arising in a Contracting State and paid in respect
of indebtedness of the government of that State or of a political
subdivision or local authority thereof shall, provided that the
interest is beneficially owned by a resident of the other
Contracting State, be taxable only in that other State;
|
|
|
|
(b) interest arising in Senegal and paid to a resident of Canada
shall be taxable only in Canada if it is paid in respect of a loan
made, guaranteed or insured, or a credit extended or insured
by the Export Development Corporation;
|
|
|
|
(c) interest arising in Canada and paid to a resident of Senegal
shall be taxable only in Senegal if it is paid in respect of a loan
made, guaranteed or insured, or a credit extended, guaranteed
or insured by an appropriate Senegalese institution as is
specified and agreed in letters exchanged between the
competent authorities of the Contracting States.
|
|
|
|
4. The term ``interest'' as used in this Article means income
from debt-claims of every kind, whether or not secured by
mortgage, and in particular, income from government securities
and income from bonds or debentures, including premiums and
prizes attaching to such securities, bonds or debentures, as well
as income which is subjected to the same taxation treatment as
income from money lent by the taxation laws of the State in
which the income arises. However, the term ``interest'' does not
include income dealt with in Article 10.
|
|
|
|
5. The provisions of paragraph 2 shall not apply if 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, through a permanent establishment situated
therein, or performs in that other State independent personal
services from a fixed base situated therein, and the debt-claim in
respect of which the interest is paid is effectively connected with
such permanent establishment or fixed base. In such case the
provisions of Article 7 or Article 14, as the case may be, shall
apply.
|
|
|
|
6. Interest shall be deemed to arise in a Contracting State when
the payer is a resident of that State. Where, however, the person
paying the interest, whether the payer is a resident of a
Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the
indebtedness on which the interest is paid was incurred, and such
interest is borne by such permanent establishment or fixed base,
then such interest shall be deemed to arise in the Contracting
State in which the permanent establishment or fixed base is
situated.
|
|
|
|
7. Where, by reason of a special relationship between the
payer and the beneficial owner or between both of them and some
other person, the amount of the interest, having regard to the
debt-claim for which it is paid, exceeds the amount which would
have been agreed upon by the payer and the beneficial owner in
the absence of such relationship, the provisions of this Article
shall apply only to the last-mentioned amount. In such case, the
excess part of the payments shall remain taxable according to the
laws of each Contracting State, due regard being had to the other
provisions of this Convention.
|
|
|
|
|
|
|
|
|
|
|
|
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 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 fifteen per cent (15%) of the gross amount of the
royalties.
|
|
|
|
3. The term ``royalties'' as used in this Article means payments
of any kind received as a consideration for the use of, or the right
to use, any copyright, patent, trade mark, design or model, plan,
secret formula or process, or for the use of, or the right to use,
industrial, commercial or scientific equipment, or for
information concerning industrial, commercial or scientific
experience, and includes payments of any kind in respect of
motion picture films and works on film, videotape or other means
of reproduction for use in connection with television.
|
|
|
|
4. The provisions of paragraph 2 shall not apply if the
beneficial owner of the royalties, being a resident of a
Contracting State, carries on business in the other Contracting
State in which the royalties arise, through a permanent
establishment situated therein, or performs in that other State
independent personal services from a fixed base situated therein,
and the right or property in respect of which the royalties are paid
is effectively connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or Article 14,
as the case may be, shall apply.
|
|
|
|
5. Royalties shall be deemed to arise in a Contracting State
when the payer is a resident of that State. Where, however, the
person paying the royalties, whether the payer is a resident of a
Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the
obligation to pay the royalties was incurred, and such royalties
are borne by such permanent establishment or fixed base, then
such royalties shall be deemed to arise in the State in which the
permanent establishment or fixed base is situated.
|
|
|
|
6. Where, by reason of a special relationship between the
payer and the beneficial owner or between both of them and some
other person, the amount of the royalties, having regard to the
use, right or information for which they are paid, exceeds the
amount which would have been agreed upon by the payer and the
beneficial owner in the absence of such relationship, the
provisions of this Article shall apply only to the last-mentioned
amount. In such case, the excess part of the payments shall
remain taxable according to the laws of each Contracting State,
due regard being had to the other provisions of this Convention.
|
|
|
|
|
|
|
|
|
|
|
|
1. Gains derived by a resident of a Contracting State from the
alienation of immovable property situated in the other
Contracting State may be taxed in that other State.
|
|
|
|
2. Gains from the alienation of movable property forming part
of the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting
State or of movable property pertaining to a fixed base available
to a resident of a Contracting State in the other Contracting State
for the purpose of performing independent personal services,
including such gains from the alienation of such a permanent
establishment (alone or with the whole enterprise) or of such a
fixed base, may be taxed in that other State.
|
|
|
|
3. Gains derived by an enterprise of a Contracting State from
the alienation of ships or aircraft operated in international traffic
or movable property pertaining to the operation of such ships or
aircraft shall be taxable only in that State.
|
|
|
|
4. Gains derived by a resident of a Contracting State from the
alienation of:
|
|
|
|
(a) shares, the value of which is derived principally from
immovable property situated in the other State,
|
|
|
|
(b) an interest in a partnership or trust, the value of which is
derived principally from immovable property situated in that
other State,
|
|
|
|
may be taxed in that other State.
|
|
|
|
5. Gains from the alienation of any property, other than that
referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in the
Contracting State of which the alienator is a resident.
|
|
|
|
6. The provisions of paragraph 5 shall not affect the right of a
Contracting State to levy, according to its law, a tax on gains from
the alienation of any property derived by an individual who is a
resident of the other Contracting State and has been a resident of
the first-mentioned State at any time during the five years
immediately preceding the alienation of the property.
|
|
|
|
7. Where an individual who ceases to be a resident of a
Contracting State, and immediately thereafter becomes a resident
of the other Contracting State, is treated for the purposes of
taxation in the first-mentioned State as having alienated a
property and is taxed in that State by reason thereof, the
individual may elect to be treated for purposes of taxation in the
other State as if the individual had, immediately before becoming
a resident of that State, sold and repurchased the property for an
amount equal to its fair market value at that time. However, this
provision shall not apply to property any gain from which,
arising immediately before the individual became a resident of
that other State, may be taxed in that other State nor to immovable
property situated in a third State.
|
|
|
|
|
|
|
|
|
|
|
|
1. Income derived by a resident of a Contracting State in
respect of professional services or other independent activities of
a similar character shall be taxable only in that State unless the
resident has a fixed base regularly available in the other
Contracting State for the purpose of performing the activities. If
the resident has or had such a fixed base, the income may be taxed
in the other State but only so much of it as is attributable to that
fixed base.
|
|
|
|
2. The term ``professional services'' includes especially
independent scientific, literary, artistic, educational or teaching
activities as well as the independent activities of physicians,
lawyers, engineers, architects, dentists and accountants.
|
|
|
|
|
|
|
|
|
|
|
|
1. Subject to the provisions of Articles 16, 18 and 19, salaries,
wages and other similar remuneration derived by a resident of a
Contracting State in respect of an employment shall be taxable
only in that State unless the employment is exercised in the other
Contracting State. If the employment is so exercised, such
remuneration as is derived therefrom may be taxed in that other
State.
|
|
|
|
2. Notwithstanding the provisions of paragraph 1,
remuneration derived by a resident of a Contracting State in
respect of an employment exercised in the other Contracting
State shall be taxable only in the first-mentioned State if:
|
|
|
|
(a) the recipient is present in the other State for a period or
periods not exceeding in the aggregate 183 days in any twelve
month period commencing or ending in the calendar year
concerned, and
|
|
|
|
(b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other State, and
|
|
|
|
(c) the remuneration is not borne by a permanent
establishment or a fixed base which the employer has in the
other State.
|
|
|
|
3. Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated in international traffic by an
enterprise of a Contracting State may be taxed in that State.
|
|
|
|
|
|
|
|
|
|
|
|
1. Directors' fees and other similar payments derived by a
resident of a Contracting State in the capacity as a member of the
board of directors or a similar organ of a company which is a
resident of the other Contracting State, may be taxed in that other
State.
|
|
|
|
2. However, remuneration derived by such persons in respect
of any other capacity may be taxed under the provisions of
Article 14 or paragraph 1 of Article 15 of this Convention, as the
case may be.
|
|
|
|
|
|
|
|
|
|
|
|
1. Notwithstanding the provisions of Articles 14 and 15,
income derived by a resident of a Contracting State as an
entertainer, such as a theatre, motion picture, radio or television
artiste, or a musician, or as a sportsperson, from that resident's
personal activities as such exercised in the other Contracting
State, may be taxed in that other State.
|
|
|
|
2. Where income in respect of personal activities exercised by
an entertainer or a sportsperson in that individual's capacity as
such accrues not to the entertainer or sportsperson personally but
to another person, that income may, notwithstanding the
provisions of Articles 7, 14 and 15, be taxed in the Contracting
State in which the activities of the entertainer or sportsperson are
exercised.
|
|
|
|
3. The provisions of paragraphs 1 and 2 shall not apply to
income derived from activities performed in a Contracting State
by a resident of the other Contracting State in the context of a visit
in the first-mentioned State which is substantially supported by
public funds.
|
|
|
|
|
|
|
|
|
|
|
|
1. Pensions and annuities arising in a Contracting State and
paid to a resident of the other Contracting State may be taxed in
that other State.
|
|
|
|
2. Pensions and annuities arising in a Contracting State and
paid to a resident of the other Contracting State may also be taxed
in the State in which they arise and according to the laws of that
State. However, in the case of periodic payments:
|
|
|
|
(a) of a pension, the tax so charged shall not exceed fifteen per
cent (15%) of the gross amount of the total of such periodic
payments paid in the calendar year concerned that exceeds
twelve thousand Canadian dollars or its equivalent in
Senegalese currency;
|
|
|
|
(b) of an annuity, the tax so charged shall not exceed fifteen per
cent (15%) of the portion thereof that is subject to tax in that
State.
|
|
|
|
3. Notwithstanding anything in this Convention:
|
|
|
|
(a) war pensions and allowances (including pensions and
allowances paid to war veterans or paid as a consequence of
damages or injuries suffered as a consequence of a war) arising
in a Contracting State and paid to a resident of the other
Contracting State shall be exempt from tax in that other State
to the extent that they would be exempt from tax if received
by a resident of the first-mentioned State;
|
|
|
|
(b) alimony and other similar payments arising in a
Contracting State and paid to a resident of the other
Contracting State who is subject to tax therein in respect
thereof, shall be taxable only in that other State;
|
|
|
|
(c) benefits paid under the Social Security legislation in
Canada shall be taxable only in Canada.
|
|
|
|
|
|
|
|
|
|
|
|
1. (a) Salaries, wages and other similar remuneration, other
than a pension, paid by a Contracting State or a political
subdivision or a local authority thereof to an individual in
respect of services rendered to that State or subdivision or
authority shall be taxable only in that State.
|
|
|
|
(b) However, such salaries, wages and other similar
remuneration shall be taxable only in the other Contracting
State if the services are rendered in that State and the
individual is a resident of that State who:
|
|
|
|
(i) is a national of that State; or
|
|
|
|
(ii) did not become a resident of that State solely for the
purpose of rendering the services.
|
|
|
|
2. The provisions of paragraph 1 shall not apply to salaries,
wages and other similar remuneration paid in respect of services
rendered in connection with a business carried on by a
Contracting State or a political subdivision or a local authority
thereof.
|
|
|
|
|
|
|
|
|
|
|
|
Payments which a student, apprentice or business trainee who
is, or was immediately before visiting a Contracting State, a
resident of the other Contracting State and who is present in the
first-mentioned State solely for the purpose of that individual's
education or training receives for the purpose of that individual's
maintenance, education or training shall not be taxed in the
first-mentioned State, provided that such payments arise from
sources outside that State.
|
|
|
|
|
|
|
|
|
|
|
|
1. Subject to the provisions of paragraph 2, items of income
of a resident of a Contracting State, wherever arising, not dealt
with in the foregoing Articles of this Convention shall be taxable
only in that State.
|
|
|
|
2. However, if such income is derived by a resident of a
Contracting State from sources in the other Contracting State,
such income may also be taxed in the State in which it arises, and
according to the law of that State. However, in the case of
Canada, where such income is income from a trust, other than a
trust to which contributions were deductible, the tax so charged
shall, provided that the income is taxable in Senegal, not exceed
fifteen per cent (15%) of the gross amount of the income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. In the case of Canada, double taxation shall be avoided as
follows:
|
|
|
|
(a) subject to the existing provisions of the law of Canada
regarding the deduction from tax payable in Canada of tax
paid in a territory outside Canada and to any subsequent
modification of those provisions - which shall not affect the
general principle hereof - and unless a greater deduction or
relief is provided under the laws of Canada, tax payable in
Senegal on profits, income or gains arising in Senegal shall be
deducted from any Canadian tax payable in respect of such
profits, income or gains;
|
|
|
|
(b) where in accordance with any provision of the Convention
income derived by a resident of Canada is exempt from tax in
Canada, Canada may nevertheless, in calculating the amount
of tax on other income take into account the exempted income.
|
|
|
|
2. In the case of Senegal, double taxation shall be avoided as
follows:
|
|
|
|
(a) where a resident of Senegal derives income which, in
accordance with the provisions of this Convention, may be
taxed in Canada, Senegal shall allow as a deduction from the
tax on the income of that resident, an amount equal to the
income tax paid in Canada; such deduction shall not, however,
exceed that part of the income tax, as computed before the
deduction is given, which is attributable to the income which
may be taxed in Canada;
|
|
|
|
(b) where, in accordance with any provision of the
Convention, income derived by a resident of Senegal is
exempt from tax in Senegal, Senegal may nevertheless, in
calculating the amount of tax on the remaining income of such
resident, take into account the exempted income.
|
|
|
|
3. For the purposes of this Article, profits, income or gains of
a resident of a Contracting State which may be taxed in the other
Contracting State in accordance with this Convention shall be
deemed to arise from sources in that other State.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Nationals of a Contracting State shall not be subjected in the
other Contracting State to any taxation or any requirement
connected therewith which is other or more burdensome than the
taxation and connected requirements to which nationals of that
other State in the same circumstances, in particular with respect
to residence, are or may be subjected.
|
|
|
|
2. The taxation on a permanent establishment which an
enterprise of a Contracting State has in the other Contracting
State shall not be less favourably levied in that other State than
the taxation levied on enterprises of that other State carrying on
the same activities.
|
|
|
|
3. Nothing in this Article shall be construed as obliging a
Contracting State to grant to residents of the other Contracting
State any personal allowances, reliefs and reductions for taxation
purposes on account of civil status or family responsibilities
which it grants to its own residents.
|
|
|
|
4. Enterprises of a Contracting State, the capital of which is
wholly or partly owned or controlled, directly or indirectly, by
one or more residents of the other Contracting State, shall not be
subjected in the first-mentioned State to any taxation or any
requirement connected therewith which is other or more
burdensome than the taxation and connected requirements to
which other similar enterprises of the first-mentioned State, the
capital of which is wholly or partly owned or controlled, directly
or indirectly, by one or more residents of a third State, are or may
be subjected.
|
|
|
|
5. The term ``taxation'' as used in this Article means taxes
which are the subject of this Convention.
|
|
|
|
|
|
|
|
|
|
|
|
1. Where a person considers that the actions of one or both of
the Contracting States result or will result for that person in
taxation not in accordance with the provisions of this
Convention, that person may, irrespective of the remedies
provided by the domestic law of those States, address to the
competent authority of the Contracting State of which that
person is a resident an application in writing stating the grounds
for claiming the revision of such taxation. To be admissible, the
said application must be submitted within two years from the
notification of the action which gives rise to taxation not in
accordance with the provisions of the Convention.
|
|
|
|
2. The competent authority referred to in paragraph 1 shall
endeavour, if the objection 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 the avoidance of taxation
not in accordance with the Convention.
|
|
|
|
3. The competent authorities of the Contracting States shall
endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of the
Convention. In particular, the competent authorities of the
Contracting States may consult together to endeavour to agree:
|
|
|
|
(a) to the same attribution of profits to a resident of a
Contracting State and its permanent establishment situated in
the other Contracting State;
|
|
|
|
(b) to the same allocation of income between a resident of a
Contracting State and any associated person referred to in
Article 9.
|
|
|
|
4. The competent authorities of the Contracting States may
consult together for the elimination of double taxation in cases
not provided for in the Convention.
|
|
|
|
5. The competent authorities of the Contracting States may
communicate with each other directly for the purpose of reaching
an agreement in the sense of the preceding paragraphs. When it
seems advisable in order to reach an agreement to have an
exchange of views, the matter may be referred to a commission
consisting of representatives of the contracting governments
specified by the competent authorities. The presidency of the
commission is exercised alternatively by a member of each
delegation.
|
|
|
|
|
|
|
|
|
|
|
|
1. The competent authorities of the Contracting States shall
directly exchange such information as is necessary for the
carrying out of the provisions of this Convention or of the
domestic laws of the Contracting States concerning taxes
covered by the Convention insofar as the taxation thereunder is
not contrary to the Convention. The exchange of information is
not restricted by Article 1. Any information received by a
Contracting State shall be treated as secret in the same manner as
information obtained under the domestic laws of that State and
shall be disclosed only to persons or authorities (including courts
and administrative bodies) involved in the assessment or
collection of, the enforcement in respect of, or the determination
of appeals in relation to, taxes. Such persons or authorities shall
use the information only for such purposes. They may disclose
the information in public court proceedings or in judicial
decisions.
|
|
|
|
2. In no case shall the provisions of paragraph 1 be construed
so as to impose on a Contracting State the obligation:
|
|
|
|
(a) to carry out administrative measures at variance with the
laws and the administrative practice of that or of the other
Contracting State;
|
|
|
|
(b) to supply information which is not obtainable under the
laws or in the normal course of the administration of that or of
the other Contracting State;
|
|
|
|
(c) to supply information which would disclose any trade,
business, industrial, commercial or professional secret or trade
process, or information, the disclosure of which would be
contrary to public policy (ordre public).
|
|
|
|
3. If information is requested by a Contracting State in
accordance with this Article, the other Contracting State shall
endeavour to obtain the information to which the request relates
in the same way as if its own taxation were involved
notwithstanding the fact that the other State does not need, at that
time, such information.
|
|
|
|
4. The exchange of information shall take place either as a
matter of routine or upon request regarding a specific case. The
competent authorities of the Contracting States shall agree on the
list of information to be communicated as a matter of routine.
|
|
|
|
|
|
|
|
|
|
|
|
1. Nothing in this Convention shall affect the fiscal privileges
of members of diplomatic missions or consular posts under the
general rules of international law or under the provisions of
special agreements.
|
|
|
|
2. Notwithstanding the provisions of Article 4, an individual
who is a member of a diplomatic mission, consular post or
permanent mission of a Contracting State which is situated in the
other Contracting State or in a third State shall be deemed for the
purposes of the Convention to be a resident of the sending State
if that individual is liable in the sending State to the same
obligations in relation to tax on total income as are residents of
that sending State.
|
|
|
|
3. The Convention shall not apply to international
organizations, to organs or officials thereof and to persons who
are members of a diplomatic mission, consular post or permanent
mission of a third State or group of States, being present in a
Contracting State and who are not liable in either Contracting
State to the same obligations in relation to tax on total income as
are residents thereof.
|
|
|
|
|
|
|
|
|
|
|
|
1. The provisions of this Convention shall not be construed to
restrict in any manner any exemption, allowance, credit or other
deduction accorded
|
|
|
|
(a) by the laws of a Contracting State in the determination of
the tax imposed by that State; or
|
|
|
|
(b) by any other agreement entered into by a Contracting
State.
|
|
|
|
2. Nothing in the Convention shall be construed as preventing
Canada from imposing a tax on amounts included in the income
of a resident of Canada with respect to a partnership, trust, or
controlled foreign affiliate, in which that resident has an interest.
|
|
|
|
3. Notwithstanding the provisions of paragraph 3 of Article
XXII (Consultation) of the General Agreement on Trade in
Services, the Contracting States agree that any dispute between
them as to whether a measure falls within the scope of this
Convention may be brought before the Council for Trade in
Services, as provided by that paragraph, only with the consent of
both Contracting States. Any doubt as to the interpretation of this
paragraph shall be resolved under Article 24 or, failing
agreement under that procedure, pursuant to any other procedure
agreed to by both Contracting States.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. This Convention shall be ratified and the instruments of
ratification shall be exchanged as soon as possible.
|
|
|
|
2. This Convention shall enter into force upon the exchange
of instruments of ratification and its provisions shall have effect:
|
|
|
|
(a) in respect of tax withheld at the source on amounts paid or
credited to non-residents, on or after the first day of January
in the calendar year following that in which the exchange of
instruments of ratification takes place; and
|
|
|
|
(b) in respect of other taxes, for taxation years beginning on
or after the first day of January in the calendar year following
that in which the exchange of instruments of ratification takes
place.
|
|
|
|
|
|
|
|
|
|
|
|
This Convention shall continue in effect indefinitely but either
Contracting State may, on or before June 30 of any calendar year
after the year of the entry into force of this Convention, give to
the other Contracting State a notice of termination through the
diplomatic channel; in such event, the Convention shall cease to
have effect:
|
|
|
|
(a) in respect of tax withheld at the source on amounts paid or
credited to non-residents, on or after the first day of January
of the calendar year following that in which that June 30 date
is included; and
|
|
|
|
(b) in respect of other taxes, for taxation years beginning on
or after the first day of January of the calendar year following
that in which that June 30 date is included.
|
|
|
|
IN WITNESS WHEREOF the undersigned, duly authorized
to that effect, have signed this Convention.
|
|
|
|
DONE in duplicate at this 2nd day of August, 2001, in the
English and French languages, each version being equally
authentic.
|
|
|
|
FOR THE GOVERNMENT FOR THE GOVERNMENT OF
CANADA OF THE REPUBLIC OF SENEGAL
|
|
|
|
Michèle Lévesque Cheikh Tidiane Gadio
|
|