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HMRC internal manual

Double Taxation Relief Manual

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HM Revenue & Customs
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DT: Ivory Coast: double taxation agreement, Article 23: Elimination of double taxation

  1. Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof):

 

  1. Ivory Coast tax payable under the laws of the Ivory Coast and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within the Ivory Coast (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Ivory Coast tax is computed; and

  2. in the case of a dividend paid by a company which is a resident of the Ivory Coast to a company which is a resident of the United Kingdom and which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividend, the credit shall take into account (in addition to any Ivory Coast tax for which credit may be allowed under the provisions of sub-paragraph (a) of this paragraph) the Ivory Coast tax payable by the company in respect of the profits out of which such dividend is paid.

Provided that this paragraph shall not apply to a company which is a resident of the United Kingdom and is a Petroleum Company as defined for the purposes of Schedule 9 to the Oil Taxation Act 1975.

  1. For the purposes of paragraph (1) of this Article, the term `Ivory Coast tax payable` shall be deemed to include any amount which would have been payable as Ivory Coast tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under:

 

  1. paragraphs IIA2(a), (b) and (c) and IIA4(1), (2) and (3) of the Annex to Law No 59-134 of 3 September 1959 so far as they were in force on, and have not been modified since, the date of signature of this Convention or have been modified only in minor respects so as not to affect their general character, or

  2. any other provision which may subsequently be made granting an exemption or reduction which is agreed by the competent authorities of the Contracting States to be of a substantially similar character, if it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character.

Provided that:

  1. relief from United Kingdom tax shall not be given by virtue of this paragraph in respect of income from any source, if the income arises in a period starting more than ten years after the exemption from, or reduction of, Ivory Coast tax was first granted in respect of that source;

  2. where an exemption or reduction of tax is granted to any enterprise under paragraph IIA2(c)(i) or paragraph IIA4(1) of the Annex to Law No 59-134 of 3 September 1959 the tax which would have been payable but for that exemption or reduction shall be taken into account for the purposes of this paragraph only where the exemption or reduction is certified by the competent authority of the Ivory Coast as having been given with a view to promoting industrial, commercial, scientific or educational development in the Ivory Coast.

 

  1. Subject to the provisions of the law of the Ivory Coast regarding the allowance as a credit against Ivory Coast tax of tax payable in a territory outside the Ivory Coast (which shall not affect the general principle hereof):

 

  1. United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within the United Kingdom (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any Ivory Coast tax computed by reference to the same profits, income or chargeable gains by reference to which the United Kingdom tax is computed; and

  2. in the case of a dividend paid by a company which is a resident of the United Kingdom to a company which is a resident of the Ivory Coast and which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividend, the credit shall take into account (in addition to any United Kingdom tax for which credit may be allowed under the provisions of sub-paragraph (a) of this paragraph) the United Kingdom tax payable by the company in respect of the profits out of which such dividend is paid.

 

  1. For the purposes of paragraphs (1) and (3) of this Article profits, income and capital gains owned by a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other Contracting State.