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Cape Verde - Sao Tome Tax Treaty (2019, 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

Methods of Elimination of Double Taxation

(1) Where a resident of a Contracting State derives income which may be taxed in the other Contracting State, in accordance with the provisions of this Convention, the first-mentioned State shall deduct from the income tax of that resident an amount equal to the income tax paid in that other State. The amount deducted shall not, however, exceed the fraction of the income tax, calculated before the deduction, corresponding to the income that may be taxed in that other State.

(2) When, in accordance with the provisions of this Convention, income derived by a resident of a Contracting State is exempt from tax in that State, that State may, nevertheless, in calculating the amount of the tax on the remaining income of such resident, take into account the exempted income.