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France - Senegal Tax Treaty (as amended through 1991 protocol) — Orbitax Tax Hub

CHAPTER I - INCOME TAXES
CHAPTER II - INHERITANCE TAXES
CHAPTER III - REGISTRATION DUTIES OTHER THAN INHERITANCE TAXES; STAMP DUTIES
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

Dividends

(1) Dividends paid by a company which is domiciled in a Contracting State to a person domiciled in the other Contracting State may be taxed in that other State.

(2) However, such dividends may also be taxed in the State where the company paying the dividends is domiciled and in accordance with the legislation of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged shall not exceed 15 per cent of the gross amount of the dividends.

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

(3)

  • (a) A person domiciled in Senegal who receives dividends from a company domiciled in France which would create an entitlement to a tax credit ("avoir fiscal") if received by a person domiciled in France is entitled to receive payment from the French Treasury for an amount equal to such tax credit ("avoir fiscal"), subject to deduction of the tax provided for in paragraph (2).
  • (b) The provisions of paragraph (a) shall apply only to a person domiciled in Senegal who is:
    • (i) An individual, or
    • (ii) A company which holds, directly or indirectly, less than 10 per cent of the capital of the French company paying the dividends.
  • (c) The provisions of paragraph (a) shall not apply if the beneficial owner of the payment from the French Treasury referred to therein is not liable for tax in Senegal in respect of such payment.
  • (d) The payments from the French Treasury referred to in paragraph (a) shall be considered dividends for purposes of the implementation of this Convention.

(4) A person domiciled in Senegal who receives dividends paid by a company domiciled in France, and who is not entitled to the payment from the French Treasury referred to in paragraph (3), may be reimbursed for the deduction at source if it has actually been paid by the company in respect of those dividends.

The gross amount of the deduction for which reimbursement is made shall be considered a dividend for purposes of the implementation of the Convention. It shall be taxable in France in accordance with the provisions of paragraph (2).

(5) 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 which is subjected to the tax regime on distributions by the tax laws of the State where the company making the distribution is domiciled.

(6) The provisions of paragraphs (1), (2), (3) and (4) shall not apply if the beneficial owner of the dividends, being domiciled in a Contracting State, carries on business in the other Contracting State where the company paying the dividends is domiciled through a permanent establishment situated therein or performs in that other State independent personal services from a fixed base situated therein, 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 10 or Article 23, as the case may be, shall apply.

(7) Where a company which is domiciled in a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except in so far as such dividends are paid to a person domiciled in that other State in so far 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 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 State.