background image
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 21

Elimination of Double Taxation

(1) Where a resident of Senegal derives income which, in accordance with the provisions of this Convention, may be taxed in the United Kingdom, Senegal shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in the United Kingdom. The amount of the deduction, however, shall not exceed that part of the Senegalese tax which is appropriate to that income.

(2) Where, in accordance with any provision of this Convention, income derived by a resident of Senegal is exempted from tax in Senegal, Senegal may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

(3) Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom or, as the case may be, regarding the exemption from United Kingdom tax of a dividend arising in a territory outside the United Kingdom or of the profits of a permanent establishment situated in a territory outside the United Kingdom (which shall not affect the general principle hereof):

  • (a) Senegalese tax payable under the laws of Senegal and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within Senegal (excluding in the case of a dividend tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Senegalese tax is computed;
  • (b) a dividend which is paid by a company which is a resident of Senegal to a company which is a resident of the United Kingdom shall be exempted from United Kingdom tax, when the conditions for exemption under the law of the United Kingdom are met;
  • (c) the profits of a permanent establishment in Senegal of a company which is a resident of the United Kingdom shall be exempted from United Kingdom tax when the exemption is applicable and the conditions for exemption under the law of the United Kingdom are met;
  • (d) in the case of a dividend not exempted from tax under sub-paragraph (b) above which is paid by a company which is a resident of Senegal to a company which is a resident of the United Kingdom and which controls directly or indirectly at least 10 percent of the voting power in the company paying the dividend, the credit mentioned in sub-paragraph (a) above shall also take into account the Senegalese tax payable by the company in respect of its profits out of which such dividend is paid.

(4) For the purposes of paragraph 3, profits, income and gains owned by a resident of the United Kingdom which may be taxed in Senegal in accordance with this Convention shall be deemed to arise from sources in Senegal.