On 30 September 2016, it was announced in Monaco's Official Journal that the income tax treaty with Mali entered into force on 1 August 2016. The treaty, signed 13 February 2012, is the first of its kind between the two countries.
The treaty covers Monaco profits tax, and covers Malian:
The treaty includes the provision that a permanent establishment will be deemed constituted when an enterprise furnishes services within a Contracting State through employees or other engaged personnel for the same or connected project for a period or periods aggregating more than 3 months within any 12-month period.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Monaco applies the credit method for the elimination of double taxation, while Mali generally applies the exemption method. However, Mali applies the credit method for income referred to in Articles 9 (Associated Enterprises), 10 (Dividends), 11 (Interest), 12 (Royalties), 16 (Directors' Fees) and 17 (Artistes and Sportsmen). For income referred to in Articles 10, 11 and 12, the amount of tax levied in Monaco shall be deemed to be equal to 10% of the gross dividends paid by Monaco enterprises with mixed capital, 20% for other dividends, 10% for interest and 20% for royalties.
A protocol to the treaty, signed 30 August 2013, also entered into force on 1 August. The protocol replaces Article 25 (No Prejudicial or Restrictive Measures) and Article 27 (Exchange of Information).
The treaty and the protocol apply from 1 January 2017.
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