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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 23

Elimination of Double Taxation

(1) Double taxation shall be eliminated in accordance with the following provisions of this Article.

(2) In the case of Senegal:

  • Where a resident of Senegal receives income, which in accordance with the provisions  of this Convention, is subject to tax in Italy, then Senegal shall allow as a deduction from the tax on the income of such resident an amount equal to the income tax paid in Italy.
  • Such deduction may not, however, exceed that part of the tax on income as computed before the deduction is given, which is attributable, as the case may be, to the income that is subject to tax in Italy.
  • Where, in accordance with any provision of this Convention, any income derived by a resident of Senegal, is exempt from taxation in such State, then Senegal may nevertheless, include such exempted income in computing the tax on the remaining income of such resident.

(3) In the case of Italy:

  • Where a resident of Italy has elements of income which are subject to tax in Senegal, then Italy, in order to calculate its own income specified in Article 2 of this Convention, may include such elements of income in the taxable amount of the aforesaid taxes, unless specific provisions of this Convention specify differently.
  • In such case, Italy must deduct from the taxes calculated in such a manner, the tax on income paid in Senegal, although the amount of the deduction cannot exceed the share of the Italian tax that is attributable on the aforesaid elements of income, in the same proportion as they are contributed to the overall income.
  • However, no deduction shall be granted if the elements of the income are subject in Italy, to taxation through tax withholdings at the request of the beneficial owner of the income in accordance with Italian laws.