DT7654 - Gambia: Notes

Residence (Article 4)

The convention provides that a person is a resident of one country if they are liable to taxation in that country by reason of their domicile, residence, place of management or any other criterion of a similar nature. The convention does not have the normal special rules for determining of which country a person is a resident for treaty purposes where they are resident in each country under each country’s own domestic law.

For the purposes of the convention where, under domestic law, a company is a resident of both countries, it will be treated as a resident of the country in which its business is managed and controlled.

Tax spared (Article 20)

The convention provides for credit to be given for tax ‘spared’ (see INTM161270 to INTM161290) in Gambia under the provisions of Gambian law set out in Article 20(2). Relief is restricted to tax ‘spared’ in Gambia for a period of ten years in respect of any one source of income.

Amounts of tax spared for which credit relief is given should be reported as mentioned in INTM161290.