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Cape Verde - Senegal Tax Treaty (2018, not yet in force) — Orbitax Tax Hub

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 13

Fees for Technical Services

(1) Fees for technical services 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 fees for technical services 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 fees is a resident of the other Contracting State, the tax so charged shall not exceed 10 percent of the gross amount of the fees. The competent authorities of the Contracting States shall, by mutual agreement, settle the mode of application of this limitation.

(3) The term "fees for technical services" as used in this Article means any payment, other than those referred to in Articles 7, 12, 15 and 16 of this Convention, made to any person, in consideration for any services of managerial, technical or consultancy nature, including services rendered through technical personnel or otherwise.

(4) The provisions of paragraphs (1) and (2) shall not apply if the beneficial owner of the fees for technical services, being a resident of a Contracting State, carries on business in the other Contracting State in which the fees for technical services arise through a permanent establishment situated therein, or performs in the other Contracting State independent personal services from a fixed base situated in that other State, and the fees for technical services are effectively connected with:

  • (a) such permanent establishment or fixed base, or
  • (b) the business activities referred to in sub-paragraph (c) of paragraph (1) of Article 7.

In such case, the provisions of Article 7 or 15, as the case may be, shall apply.

(5) Fees for technical services shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the fees for technical services, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the liability to pay the fees for technical services was incurred, and such fees for technical services are borne by such permanent establishment or fixed base, then such fees for technical services 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 fees for technical services, having regard to the services 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 on the last-mentioned amount. In such case, the excess shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

(7) The provisions of this Article shall not apply if the main purpose, or one of the main purposes, of any person involved in the creation or alienation of shares or other rights in respect of which fees for technical services are paid other than to take advantage of this Article by such creation or alienation.