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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.

PROTOCOL

With regard to the Convention between the Government of the Republic of Senegal and the Government of the Republic of Italy for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income:

During the signing of the Convention entered into as of today's date between the Government of the Republic of Senegal and the Government of the Republic of Italy, for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed to the following provisions which shall be deemed to be an integral part of this Convention.

Please note that:

  • (a) With respect to paragraph (3) of Article 7, the expression "expenses which are incurred for the purposes of the permanent establishment" refers to expenses directly related to the activities of the permanent establishment.
  • (b) With respect to income from air transportation in international traffic, the provisions of the Convention entered into between the Government of the Republic of Senegal and the Government of the Republic of Italy for the avoidance of double taxation of income of air transportation companies of Senegal and Italy, signed at Dakar on December 29, 1988, shall remain in force and effect.
  • (c) With regard to Article 9, it is understood that when a State includes any profits of an enterprise of such State and consequently, taxes the profits which would have been realized by such enterprise if the conditions agreed upon with the enterprise of the other Contracting State had been those practiced with independent enterprises, then the other Contracting State may proceed to properly reassess the amount of tax which has been levied on any profits in that State, in case such other Contracting State believes that such reassessment is justified. To evaluate such reassessment, the competent authorities of the Contracting States, must consult with each other, due regard being had to the provisions of Article 25 of this Convention.
  • (d) With respect to paragraph (1) of Article 25, the phrase "notwithstanding the remedies provided by the domestic laws of these States", means that the use of the mutual agreement procedure cannot be considered as an alternative for domestic remedies, which are obligatory and must be used as a preliminary remedy wherever a conflict arises in the assessment of tax which is not in accordance with the provisions of the Convention.
  • (e) The provisions of paragraph (3) of Article 28 do not exclude the interpretation whereby the competent authorities of the Contracting States can, by mutual agreement, establish other procedures for the application of the tax deductions permitted under this Convention.

DONE at Rome, in duplicate, on this 20th day of July 1998, in the French and Italian languages, each version being equally binding.

FOR THE GOVERNMENT OF THE REPUBLIC OF ITALY:

FOR THE GOVERNMENT OF THE REPUBLIC OF SENEGAL: