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Kuwait - Senegal Tax Treaty (2007, 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 23

Elimination of Double Taxation

(1) The laws in force in either of the Contracting States shall continue to govern the taxation in the respective Contracting State except where provisions to the contrary are made in this Agreement.

(2) It is agreed that double taxation shall be avoided in accordance with the following paragraphs of this Article:

  • (a) in the case of Kuwait:
    • Where a resident of Kuwait derives income in accordance with the provisions of this Agreement, may be taxed in both Senegal and Kuwait, Kuwait shall allow as a deduction from, the tax on the income of that resident, an amount equal to the income tax paid in Senegal and as a deduction from the tax on the capital of that resident an amount equal to the capital tax paid in Senegal; Such deduction in either case shall 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 which may be taxed in Senegal.
  • (b) in the case of Senegal:
    • Where a resident of Senegal derives income in accordance with the provisions of this Agreement, may be taxed in both Kuwait and Senegal, Senegal shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Kuwait and as a deduction from the tax on the capital of that resident an amount equal to the capital tax paid in Kuwait; Such deduction in either case shall 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 which may be taxed in Kuwait.

(2) For the purposes of item (1) of this sub-paragraph the Zakat mentioned in item (3) of sub-paragraph (a) of paragraph (3) of Article 2 shall be considered an income tax.

(3) When, in accordance with any provision of this Agreement, the income received by a resident of a Contracting State is exempt from tax in this State, the latter may take into account the tax-free income to calculate the amount of the tax on the rest of the resident’s income.

(4) For the purposes of allowance as a credit in a Contracting State, the tax paid in the other Contracting State shall include the tax which is otherwise payable in that other Contracting State, but has been waived or reduced in accordance with the special investment incentive law or measures designed to promote economic development in that other Contracting State.