The UK and Senegal signed a tax treaty on February 26, the UK’s HM Revenue and Customs has announced.
Under the agreement, taxation in the source country on dividends is 5 percent for corporate shareholders that hold at least a 25 percent interest in the company paying the dividends, is 8 percent if the beneficial owner is a pension scheme established in source country, and is 10 percent in other cases.
Taxation in the source country on interest is set at a 10 percent rate. The withholding rate is set at 5 percent for royalties allowing use of any copyright of literary, artistic, or scientific work or for information (know-how) concerning industrial, commercial, or scientific experience. The withholding rate is 10 percent for royalties for use of industrial, commercial, or scientific equipment.
The treaty also provides for exchange of information on request.
The agreement was signed in Dakar by John Marshall, Her Majesty’s Ambassador to the Republic of Senegal and His Excellency Mankeur Ndiaye, Minister for Foreign Affairs.
It will enter into force once both countries have completed necessary legislative procedures and have exchanged diplomatic notes.
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