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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

Methods for Elimination of Double Taxation

(1) Insofar as Mauritius is concerned, double taxation shall be avoided in the following manner:

  • (a) where a resident of Mauritius receives profits, income or gains derived from Senegal, which by virtue of this Convention, are taxable in Senegal, then Mauritius shall grant a tax credit deductible from the Mauritian tax calculated on the basis of the same profits, income or gains as those on which the Senegalese tax is calculated;
  • (b) where a company which is a resident of Mauritius receives dividends from a company which is a resident of Senegal, the tax credit to be deducted from the Mauritian income shall take into consideration the Senegalese tax owed by the company making the distributions on the profits which were used for the payment of dividends;
  • (c) the tax credit to be deducted from the profits, income or gains arising in Senegal, as per paragraphs (a) and (b) of this Article, cannot however exceed the Mauritian tax (calculated prior to the deductible tax credit).

(2) Insofar as Senegal is concerned double taxation shall be avoided in the following manner:

  • (a) where a resident of Senegal receives profits, income or gains derived from Mauritius, which by virtue of the Convention, are taxable in Mauritius, then Senegal shall grant a tax credit deductible from the Senegalese tax calculated on the basis of the same profits, income or gains as those on which the Mauritian tax is calculated;
  • (b) where a company which is a resident of Senegal receives dividends from a company which is a resident of Mauritius, the tax credit to be deducted from the Senegalese income shall take into consideration the Mauritian tax owed by the company making the distributions on the profits which were used for the payment of dividends;
  • (c) the tax credit to be deducted from the profits, income or gains arising in Senegal, as per paragraphs (a) and (b) of this Article, cannot however exceed the Senegalese tax (calculated prior to the deductible tax credit).

(3) Insofar as the deductible tax credit mentioned in paragraphs (1) and (2) of this Article is concerned, the tax levied in Mauritius or Senegal, in accordance with the context, shall be deemed to include the tax that could be levied in each of the Contracting States, but which was reduced or exempted, by virtue of specific provisions, by either of the Contracting States with the sole aim of promoting economic development.