DT3884 - Botswana: double taxation agreement,
Article 20: Elimination of double taxation
This agreement applies for periods before the new
comprehensive agreement has effect (see DT3850).
- Subject to the provisions of the law of the United Kingdom
regarding the allowance as a credit against United Kingdom tax of
tax payable in a territory outside the United Kingdom (which shall
not affect the general principle hereof):
- Botswana tax payable under the laws of Botswana and in
accordance with this Agreement, whether directly or by deduction,
on profits or income from sources within Botswana (excluding, save
as provided hereafter in this paragraph in the case of a dividend,
tax payable in respect of the profits out of which the dividend is
paid) shall be allowed as a credit against any United Kingdom tax
computed by reference to the same profits or income by reference to
which the Botswana tax is computed.
- In the case of a dividend paid by a company which is a resident
of Botswana to a company which is a resident of the United Kingdom
and which controls directly or indirectly at least 10 per cent of
the voting power in the company paying the dividend, the credit
shall take into account (in addition to any Botswana tax for which
credit may be allowed under the preceding provisions of this
paragraph) the Botswana tax payable by the company in respect of
the profits out of which such dividend is Paid.
- For the purposes of paragraph (1) of this Article, where a
development approval order is made under Section 52, or a tax
agreement is entered into on or after 1 July 1973 under Section 54
of the Income Tax Act of Botswana the term `Botswana tax payable`
shall, subject to the mutual agreement of the competent authorities
in each such case, be deemed to include the whole or part of any
amount which would have been payable as Botswana tax for any year
but for an exemption or reduction of tax granted for that year or
any Part thereof under the order or tax agreement in question.
- Subject to the provisions of the law of Botswana regarding the
allowance as a credit against Botswana tax of tax payable in a
territory outside Botswana (which shall not affect the general
principle hereof) United Kingdom tax payable under the laws of the
United Kingdom and in accordance with this Agreement, whether
directly or by deduction, on profits or income from sources within
the United Kingdom shall be allowed as a credit against any
Botswana tax computed by reference to the same profits or income by
reference to which the United Kingdom tax is computed.
- For the purposes of paragraphs (1) and (3) of this Article
profits and income owned by a resident of a Contracting State which
may be taxed in the other Contracting State in accordance with this
Agreement shall be deemed to arise from sources in that other
Contracting State.
- Where profits on which an enterprise of a Contracting State has
been charged to tax in that State are also included in the profits
of an enterprise of the other Contracting State and the profits so
included are profits which would have accrued to that enterprise of
the other State if the conditions made between the enterprises had
been those which would have been made between independent
enterprises dealing at arm's length, the amount of such profits
included in the profits of both enterprises shall be treated for
the purposes of this Article as income from a source in the other
State of the enterprise of the first-mentioned State and relief
shall be given accordingly under the provisions of paragraph (1) or
paragraph (3) of this Article.
