DT7713 - DT: The Gambia: double taxation agreement, Article 14: Fees for technical services

(1) Fees for technical services arising in one of the territories and paid to a resident of the other territory may be taxed in that other territory.

(2) Notwithstanding the provisions of Article 7, such fees may also be taxed in the territory in which they arise and according to the law of that territory- but where such fees are paid to a resident of the other territory who is subject to tax there in respect thereof the tax so charged in the territory in which the fees arise shall not exceed 15 per cent of the gross amount of the fees arising there.

(3) The term `fees for technical services` as used in this Article means payments of any kind to any person, other than to an employee of the person making the payments, in consideration for any services of a technical or consultancy nature.

(4) The provisions of paragraphs (1) and (2) of this Article shall not apply if the recipient of the fees, being a resident of one of the territories, has in the other territory in which the fees arise a permanent establishment with which the fees are effectively connected. In such a case, the provisions of Article 7 shall apply.

(5) If a resident of one of the territories who receives fees for technical services which arise in the other territory and who is subject to tax in respect thereof in the firstmentioned territory so elects for any year of assessment, financial year or year of income, the tax chargeable in respect of those fees in the territory in which they arise shall be calculated as if he had a permanent establishment in the last-mentioned territory and as if those fees were taxable in accordance with Article 7 as profits attributable to that permanent establishment. Nothing in this paragraph shall prevent either territory from requiring the tax payable under paragraph (2) of this Article to be deducted from the fees at the time they are paid but any tax which has been so deducted and which is found to be excessive following the exercise of an election under the provisions of this paragraph shall be refunded to the recipient of the fees.

(6) Fees for technical services shall be deemed to arise in one of the territories when the payer is the Government of that territory or a political subdivision thereof, a local authority or a resident of that territory, and to the extent that they are attributable to services rendered in that territory. Where, however, the person paying the fees whether he is a resident of one of the territories or not, has in one of the territories a permanent establishment in connection with which the obligation to pay the fees was incurred and the fees are borne by that permanent establishment then -the fees shall be deemed to arise in that territory to the extent that they are attributable to services rendered in that territory.