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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 22

Elimination of Double Taxation

(1) In the case of Belgium, double taxation shall be avoided as follows:

  • (a) Where a resident of Belgium derives income which may be taxed in Senegal in accordance with the provisions of the Convention, other than those of paragraph (2) of Article 10, paragraphs (2) and (6) of Article 11 and paragraphs (2) and (6) of Article 12, Belgium shall exempt such income from tax but may, in calculating the amount of the tax on the remaining income of that resident, apply the rate of tax which would have been applicable if the income in question had not been exempted.
  • (b) Where a resident of Belgium receives items of income which are included in his total income subject to Belgian tax and comprise dividends which are taxable in accordance with paragraph (2) of Article 10 and are not exempted from Belgian tax by virtue of sub-paragraph (c) below, interest which is taxable in accordance with paragraphs (2) or (6) of Article 11, or royalties which are taxable in accordance with paragraphs (2) or (6) of Article 12, the fixed proportion of foreign tax for which provision is made in Belgian law shall be applied, in accordance with the terms and rate provided for by such law, to the Belgian tax which is charged on the income in question.
  • (c) Where a company which is a resident of Belgium owns shares in a company which is a resident of Senegal, the dividends paid to it by the latter which are taxable in Senegal in accordance with paragraph (2) of Article 10 shall be exempted from the company tax in Belgium to the extent that that exemption would have been accorded if the two companies had been residents of Belgium.
  • (d) Where, in accordance with Belgian law, losses of an enterprise carried on by a resident of Belgium in a permanent establishment situated in Senegal have been effectively deducted from the profits of that enterprise for the purposes of taxation in Belgium, the exemption provided for in sub-paragraph (a) shall not apply in Belgium to the profits of other chargeable periods attributable to that permanent establishment to the extent that those profits have also been relieved from tax in Senegal by reason of compensation for the said losses.

(2) In the case of Senegal, double taxation shall be avoided as follows:

  • (a) Senegal may not include in assessments for the purpose of the taxes on income referred to in Article 2 any income which is taxable in Belgium in accordance with the Convention and not covered by sub-paragraph (b) below, but it shall retain the right to calculate those taxes at a rate corresponding to the total income taxable in accordance with its laws.
  • (b) The dividends referred to in Article 10, interest referred to in Article 11 and royalties referred to in Article 12, which originate in Belgium and which are paid to residents of Senegal, shall be subject in that State:
    • (i) In the case of individuals, only to the general income tax;
    • (ii) In the case of corporate bodies, only to the tax on industrial and commercial profits and on profits from farming, without prejudice to the deductions provided for by the laws of Senegal for determining the profits that are subject to that tax.