Gambia: Technical fees
Article 14 of the agreement provides that technical fees arising in Gambia may be taxed in both countries. The tax chargeable in Gambia is limited to 15 per cent of the gross fees if the recipient is subject to United Kingdom tax (see INTM162020) on those fees.
If the recipient has a permanent establishment in Gambia with which the technical fees are effectively connected (see INTM153110 fifth sub-paragraph), or if he elects under Article 14(5) to be treated as though he had such a permanent establishment, the Gambian tax chargeable on those fees should be calculated as if they were profits attributable to that permanent establishment and taxable under the business profits Article (Article 7).
Credit relief is due for the Gambian tax on the fees on whichever basis it is charged, but the United Kingdom measure of the income will be the net technical fees after deduction of expenses attributable to those fees (see INTM168062).