PROTOCOL
The Federal Republic of Germany and the Republic of the Ivory Coast, on signing on 3 July 1979 at Abidjan the Convention for the avoidance of double taxation and the establishment of rules for reciprocal administrative assistance with respect to taxes on income and on capital, the two States have agreed on the following provisions, which shall form an integral part of this Convention:
(1) Ad Article 10:
Notwithstanding paragraph (2) of Article 10, the tax levied in the Ivory Coast on dividends paid by a company which is a resident of the Republic of the Ivory Coast and which is exempt from the tax on profits or does not pay that tax at the ordinary rate may not exceed 18 per cent of the gross amount of the dividends.
(2) Ad Articles 10 and 11:
Notwithstanding Articles 10 and 11, dividends and interest arising in the Federal Republic of Germany shall be taxable in accordance with the tax laws of that State:
- (a) If they are derived from rights or debt-claims with profit participation (particularly the income which a sleeping partner (stiller Gesellschafter) derives from his participation, income derived from a loan carrying the right to profit participation (partiarisches Darlehen) and income derived from participating debentures (Gewinnobligationen) within the meaning of the laws of the Federal Republic of Germany, and
- (b) Provided that they are deductible when the profits of the payer of this income are determined.
(3) Ad Article 23:
If a company which is a resident of the Federal Republic of Germany uses income arising in the Republic of the Ivory Coast for the payment of dividends, paragraph (1) of Article 23 of the Convention shall not preclude the levying of a compensatory tax on the amounts distributed as company tax in accordance with the provisions of the tax laws of the Federal Republic of Germany.