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Ottawa, August 7, 2001
2001-069

Tax Convention Signed By Canada And Senegal

Related document:

• Text of the Convention.

Finance Minister Paul Martin announced that a Convention between Canada and Senegal for the avoidance of double taxation and the prevention of fiscal evasion was signed on August 2, 2001, in Dakar.

Under the Convention:

• the rate of withholding tax on dividends is set at 15 per cent in the case of Canada and 16 per cent in the case of Senegal;
• the rate of withholding tax on interest is set at 15 per cent in the case of Canada and two rates apply in the case of Senegal: 20 per cent in respect of interest on Senegalese "bons de caisse" (investments that are similar to guaranteed investment certificates) and 16 per cent in all other cases; and
• a withholding rate of 15 per cent will apply to royalties.

The Convention will enter into force upon the exchange of the instruments of ratification between Canada and Senegal. In the case of withholding tax, the Convention will apply as of January 1 in the calendar year following that in which it enters into force. In the case of other taxes, the Convention will apply for taxation years beginning on or after that day.

The full text of the Convention is available on the Department of Finance Canada Web site at www.fin.gc.ca.

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