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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 11

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 laws of that state, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged by the first-mentioned State shall not exceed 10 per cent of the gross amount of the dividends.

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

(3) Notwithstanding the provisions of paragraphs (1) and (2), dividends paid by a company which is a resident of a Contracting State shall be taxable only in the other Contracting State if the beneficial owner of the dividends is:

In the case of Cameroon:

  • (i) The Central Bank;
  • (ii) National Investment Co-operation;
  • (iii) National Social Insurance Fund;
  • (iv) Deposit and Consignment Fund;
  • (v) Autonomous Sinking Fund, or
  • (vi) any other institution wholly owned or held at least more than 50% of the capital of such institution by the Government, a political subdivision, local authority or local government which is recognized as an integral part of that Government as shall be notified through exchange of letters by the competent authorities.

In the case of the United Arab Emirates:

  • (a) the federal or local Governments, a political subdivision or a local authority;
  • (b) the following entities as long as they are wholly owned by the federal or local Governments of the United Arab Emirates:
    • (i) The Central Bank of the United Arab Emirates,
    • (ii) The Abu Dhabi Investment Authority,
    • (iii) The Abu Dhabi Investment Council,
    • (iv) Mubadala Development Company (Mubadala),
    • (v) Dubai World,
    • (vi) Investment Corporation of Dubai (ICD),
    • (vii) United Arab Emirates Investment Authority,
    • (viii) International Petroleum Investment Company (IPIC),
    • (ix) any other institution wholly owned or at held at least more than 50% of the capital of such institution by the Government, a political subdivision, local authority or local government which is recognized as an integral part of that Government as shall be notified through exchange of letters by the competent authorities.

(4) The term “dividends” as used in this Article means income from shares, “jouissance” shares or “jouissance” rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the taxation laws of the Contracting State of which the company making the distribution is a resident.

(5) 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 in that other Contracting State, or performs in that other Contracting State independent personal services from a fixed base situated in that other Contracting State, 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 8 or Article 15, as the case may be, shall apply.

(6) Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other Contracting 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 Contracting State who is the beneficial owner of the dividends 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 Contracting State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other contracting State.

(7) Notwithstanding any other provision of this Convention, except paragraph (3) of this Article, where a company which is a resident of a Contracting State has a permanent establishment in the other Contracting State, the profits taxable under Article 8, paragraph (1), may be subject to an additional tax in that other State, in accordance with its laws, but the additional charge shall not exceed 10 percent of the amount of those profits, after deducting there from the corporate tax imposed on such profits by that State.