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HMRC internal manual

Double Taxation Relief Manual

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HM Revenue & Customs
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Namibia: double taxation agreement, Article 2: General definitions

(1) In the present Convention, unless the context otherwise requires:

  1. the term `United Kingdom` means Great Britain and Northern Ireland;
  2. the term `South West Africa` means the territory of South West Africa;
  3. the terms `one of the territories` and `the other territory` mean the United Kingdom or South West Africa, as the context requires;
  4. the term `taxation authorities` means, in the case of South West Africa, the Commissioner for Inland Revenue or his authorised representative; in the case of the United Kingdom, the Commissioners of Inland Revenue or their authorised representative; and, in the case of any territory to which this Convention is extended under Article 24, the competent authority for the administration in such territory of the taxes to which this Convention applies;
  5. the term `tax` means United Kingdom tax or South West African tax, as the context requires;
  6. the term `person` includes any body of persons, corporate or not corporate;
  7. the term `company` means any body corporate;

h. (i) the terms `resident of the United Kingdom` and `resident of South West Africa` mean respectively any person who is resident in the United Kingdom for the purposes of United Kingdom tax and any person who is resident in South West Africa for the purposes of tax; but

(ii) where by reason of the provisions of sub-paragraph (i) an individual is a resident of both territories, then this case shall be solved in accordance with the following rules:

(aa) he shall be deemed to be a resident of the territory in which he has a permanent home available to him; if he has a permanent home available to him in both territories, he shall be deemed to be a resident of the territory with which his personal and economic relations are closest (hereinafter referred to as \`his centre of vital interests\`);  


(bb) if the territory in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either territory, he shall be deemed to be a resident of the territory in which he has an habitual abode;  


(cc) if he has an habitual abode in both territories or in neither of them, he shall be deemed to be a resident of the territory of which he is a national;   


(dd) if he is a national of both territories or of neither of them, the taxation authorities of the territories shall determine the question by mutual agreement;  

(iii) where by reason of the provisions of sub-paragraph (i) a legal person is a resident of both territories, then it shall be deemed to be a resident of the territory in which its place of effective management is situated; the same provisions shall apply to partnerships and associations which under the national laws by which they are governed are not legal persons;

  1. the terms `resident of one of the territories` and `resident of the other territory` mean a person who is a resident of the United Kingdom or a person who is a resident of South West Africa, as the context requires;
  2. the terms `United Kingdom enterprise` and `South West African enterprise` mean respectively an industrial or commercial enterprise or undertaking carried on by a resident of the United Kingdom and an industrial or commercial enterprise or undertaking carried on by a resident of South West Africa, and the terms `enterprise of one of the territories` and `enterprise of the other territory` mean a United Kingdom enterprise or a South West African enterprise, as the context requires;
  3. (i) the term `permanent establishment` means a fixed place of business in which the business of the enterprise is wholly or partly carried on;

(ii) a permanent establishment shall include especially:

(aa) a place of management; (bb) a branch; (cc) an office; (dd) a factory; (ee) a workshop; (ff) a mine, quarry or other place of extraction of natural resources; (gg) a building site or construction or assembly project which exists for more than twelve months;

(iii) the term `permanent establishment` shall not be deemed to include:

(aa) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;   


(bb) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;  


(cc) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;  


(dd) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise;  


(ee) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise;  

(iv) an enterprise of one of the territories shall be deemed to have a permanent establishment in the other territory if it carries on the activity of providing the services of public entertainers or of athletes referred to in Article 15, in that other territory;

(v) a person acting in one of the territories on behalf of an enterprise of the other territory - other than an agent of an independent status to whom sub-paragraph

(vi) applies - shall be deemed to be a permanent establishment in the first-mentioned territory if he has, and habitually exercises in that territory, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise;

(vi) an enterprise of one of the territories shall not be deemed to have a permanent establishment in the other territory merely because it carries on business in that other territory through a broker, general commission agent or any other agent of an independent status, where such persons are acting in the ordinary course of their business;

(vii) the fact that a company which is a resident of one of the territories controls or is controlled by a company which is a resident of the other territory, or which carries on business in that other territory (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other;

(l) the term `international traffic` includes traffic between places in one country in the course of a voyage which extends over more than one country.

(2) Where under this Convention any income is exempt from tax, or is to be granted relief from tax, in one of the territories if (with or without other conditions) it is subject to tax in the other territory and that income is subject to tax in that other territory by reference to the amount thereof which is remitted to or received in that other territory, the exemption or relief to be allowed under this Convention in the first-mentioned territory shall apply only to the amount so remitted or received.

(3) In the application of the provisions of this Convention by one of the Contracting Parties any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws in force in the territory of that Party relating to the taxes which are the subject of this Convention.