The Double Taxation Relief (Taxes on Income) (Ivory Coast) Order 1987

Made: 10th February 1987

At the Court at Buckingham Palace, the 10th day of February 1987 Present The Queen’s Most Excellent Majesty in Council

Now, therefore, Her Majesty, in exercise of the powers conferred upon Her by section 497 of the said Income and Corporation Taxes Act 1970, and of all other powers enabling Her in that behalf, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows:—

1

This Order may be cited as the Double Taxation Relief (Taxes on Income) (Ivory Coast) Order 1987.

2

It is hereby declared—

• (a) that the arrangements specified in the Convention set out in the Schedule to this Order have been made with the Government of the Republic of the Ivory Coast with a view to affording relief from double taxation in relation to income tax, corporation tax or capital gains tax and taxes of a similar character imposed by the laws of the Ivory Coast; and

• (b) that it is expedient that those arrangements should have effect.

SCHEDULE — Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of the Ivory Coast for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of the Ivory Coast;

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains;

Have agreed as follows:

Article 1 — Personal scope

This Convention shall apply to persons who are residents of one or both of the Contracting States.

Article 2 — Taxes covered

Article 3 — General definitions

Article 4 — Fiscal domicile

Article 5 — Permanent establishment

Article 6 — Income from immovable property

Article 7 — Business profits

Article 8 — Shipping and air transport

Article 9 — Associated enterprises

Article 10 — Dividends

Article 11 — Interest

Article 12 — Royalties

Article 13 — Management fees

Article 14 — Capital gains

Article 15 — Independent personal services

Article 16 — Dependent personal services

Article 17 — Directors' fees

Article 18 — Artistes and athletes

Article 19 — Pensions

Article 20 — Government remuneration and pensions

Article 21 — Students and business apprentices

Article 22 — Income not expressly mentioned

Article 23 — Elimination of double taxation

Article 24 — Non-discrimination

Article 25 — Mutual agreement procedure

Article 26 — Exchange of information

Article 27 — Diplomatic agents and consular officials

Article 28 — Entry into force

Article 29 — Termination

This Convention shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year beginning after the expiration of five years from the date of entry into force of the Convention. In such event, the Convention shall cease to have effect:

• (a) in the United Kingdom:

• (i) in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6 April in the calendar year next following that in which the notice is given;

• (ii) in respect of corporation tax, for any financial year beginning on or after 1 April in the calendar year next following that in which the notice is given;

• (b) in the Ivory Coast:

• (i) in respect of taxes on industrial, commercial and agricultural profits assessed on income of taxable periods beginning on or after 1 October in the calendar year next following that in which the notice is given;

• (ii) in respect of other taxes on income assessed on income of taxable periods commencing on or after 1 January in the calendar year next following that in which the notice is given;

• (iii) in respect of taxes payable at source on income credited or paid, on or after 1 January in the calendar year next following that in which the notice is given.

In witness whereof the undersigned, duly authorised thereto, have signed this Convention.

Done in duplicate at Abidjan this 26th day of June 1985, in the English and French languages, both texts being equally authoritative.

Signed

G. I. de Deney — Clerk of the Privy Council

Explanatory note

(This note is not part of the Order)

The Convention with the Republic of the Ivory Coast is set out in the Schedule to this Order.

The Convention provides for business profits not arising through a permanent establishment to be taxed only in the country of the taxpayer’s residence. Profits attributable to a permanent establishment may be taxed in the country in which the permanent establishment is situated (Articles 5 and 7). Profits arising from the operation of ships and aircraft are to be taxed only in the country in which the place of effective management of the enterprise is situated (Article 8).

Provision is made for income arising from immovable property and gains from the alienation of that property to be taxed in the country in which the property is situated (Articles 6 and 14).

The rate of tax imposed in the country of source on dividends derived by a resident of the other country is not to exceed 15% of the gross amount of the dividends. Where the company paying the dividend is a resident of the Ivory Coast and is exempt from tax on its profits or does not pay tax on its profits at the normal rate, then the rate of tax is not to exceed 18% of the gross amount of the dividends (Article 10).

The rate of tax imposed in the source country on interest is not to exceed 15%. However, the country of source will exempt from tax interest payable to the Government or a local authority of the other country or any agency or instrumentality wholly owned by that Government or local authority (Article 11).

The rate of tax in the source country on royalties flowing to the other country is not to exceed 10% (Article 12).

The rate of tax in the source country on management fees flowing to the other country is not to exceed 10% of the gross amount, but the payee may elect that the tax chargeable on those fees be calculated as if he had a permanent establishment in the source state i.e. net of expenses (Article 13).

The earnings of temporary business visitors are, subject to certain conditions, to be taxed only in the country of the taxpayer’s residence (Articles 15 and 16).

Government service salaries and pensions are normally to be taxed by the paying Government only (Article 20) while other pensions are to be taxed only in the country of the taxpayer’s residence (Article 19). Income derived by artistes and athletes may be taxed in the country where the activities are exercised. Where the activities exercised in one country are supported by public funds of the other country the income is taxable only in that other country (Article 18). Some payments made to visiting students and business apprentices are to be exempt from tax in the country visited (Article 21).

Where income continues to be taxable in both countries credit will be given by the country of the taxpayer’s residence in respect of tax imposed by the other country. The credit to be given in the United Kingdom for tax payable in the Ivory Coast includes credit for tax spared under certain provisions of Ivorian law (Article 23).

There are provisions safeguarding nationals and enterprises of one country against discriminatory taxation in the other country (Article 24) and for consultation and exchange of information between the taxation authorities of the two countries (Articles 25 and 26).

The Convention will enter into force thirty days after the date on which instruments of ratification are exchanged and shall have effect in the calendar year next following that in which the instruments of ratification are exchanged (Article 28).

Footnotes

[^f00001]: 1970 c. 10; section 497 was amended and extended by sections 98(2) and 100(1) of the Finance Act 1972 (c. 41) and section 10 of the Capital Gains Tax Act 1979 (c. 14).

[^f00002]: Instruments of ratification were exchanged on 24th December 1986.