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BUSINESS TAX ACT (Act 28 of 2009) Business Tax (DoubleTaxationAgreement) Regulations, 2011 In exerciseof the powersconferred section79 of the by BusinessTax Act, the Vice-president and the Minister of Finance Trade, and hereby makes followingRegulationsthe , ' 1. TheseRegulations may be cited as the Business Tax (DoubleTaxationAgreement) Regulations,20I. | 2. It is hereby declaredthat the Governmentof the

Citation

Declaratron andeffectof Agreemenl

SCHEDULE AGREEMENT BETWEEN TIIE GOVERIIMENT OF THE REPUBLIC OF SEYCIIELLES AND TIIE GOVERNMENT OF THE REPI]BLIC OF ZAMBIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND TIIE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of the Republic of Zambia and the Government theRepublic Seychelles of of desiring promote to and strengthen the economicrelationsbetwein ih. t*o countries; l-lave agrced follows: as

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ARTICLE 1

201 [3lst January l]

PERSONS COVERED who areresidents ThisAgreement shallapplyto persons ofone or bothofthe contracting States. ARTICLE 2 TAXES COVERED l. This Agreement shall apply to taxes on income imposedon behalf of a ContractingState,political subdivision of its localauthorities or irrespective the of manner whichtheyarelevied. in Thereshall be regarded taxeson incomeall taxes as irnposed totalincome, oron elements income. on of Theexisting to taxes whichthisAgreement shallapply are:
t

2.

3.

(a)

inZambia: the IncomeTax; :

(hereinafter to tax'); and referred as "the Tantbian (b) in Seychelles: 0 (ii) the Business Tax; IncomeTax the Petroleum

(hereinafter referred as"Seychelles to tax"). 4. This Agreement shall apply also to any identicalor whichareimposed ei,ther substantially simi\artaxes by ContractingStateafter the date of slgnatureof the Agreement additionto, or in placeof the existing in

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taxes. The competentauthoritiesof the Contracting States shall notift each other of any significant changeswhich have been made in their respective taxdtionlaws. ARTICLE 3 GENERAL DEFINITIONS

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For thepurposes thisAgreement, of unless context the otherwise requires: (a) the term "Zambia" means the Republic of Zarnbia or any area within which Zambia, in accordance with international law,may exercise sovereign ghtsorj urisdiction; ri theterm"seychelles" means tenitory ofthe the Republicof Seychelles includingits exclusive economic zone and continentalshelf where Seychelles exercises sovereign rights and jurisdictionin conformit!with theprovisions of the United Nations Conventionon the Law of theSea: the tbrms "a ContractingState" and "the other ContractingState" meansRepublicof Zambia or the Republicof Seycnelles as the context , requires; the term "company" meansany body corporate or any entity which is treatedas a companyor bodycorporate taxpurposes; for the term "competent authority"means: (i) inZambia,theCommissioner General of the Zambia RevenueAuthority or his authorized representative;

(b)

(c)

(d)

(e)

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in Seychelles, Minister of Finance the or his authorized representative ;

the term "enterprise" applies the carryingon to ofany business; theterms"enterprise a Cbntracting of State" and ofthe otherContractingState"mean "enterprise respectively an entefprise carried on by a residentof a ContractingStateand an enterprise carriedon by a resident theotherContractlng of State; the term "international traffic" means any transportby a ship or aircraft operated an by enterprise a Contracting of State,exceptwhen the ship or aircraft is operated solely between places theotherContracting in State; theterm"national"means: (i) i any individualpossessing nationality thc, ofa Contracting State; and (iil any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State;

(e)

(h)

(i)

0)

The term "person"includesan individual.a company anyother and bodyof persons whichis treated anentityfortax purposes. as

2.

The term "business" includes performance the of professional services of other and activities of anindependent character. . \ As regards application the provisions this the of of Agreement any time hy a Contra_cting at Statc,aiiy

(k)

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terms not defined therein shall, unlessthe context otherwiserequires,havethe meaningwhich it has at that time underthe law ofthat Statefor thepurposes of ,the taxes to which this Agreement applies, any meaningunderthe applicable laws of that State tax prevailingover a meaning. given to the term under otherlawsofthat State. ARTICLE 4 RESIDENT
l.

For thepurposes thisAgreement, term"resident of the of a Contracting State"means person any who, under the lawsof that State, liableto tax thereinby reason is of hisdomicile,residence, placeofmanagement, place of registrationor any other criterion of a similar nature, and also includes that State, political subdivision or local authority thereof. This term, however, doesnot includeanyperson who is liableto tax in thatState respect in only of income from sources situated thatState. in : Whereby reason the provisions paragraph an of of I individualis a resident ofboth contracting States, then hisstatus shallbedetermined follows: as (a) he shallbe deemed be a resident to only of the Contracting Statein which he hasa permanent home availableto him; if he has a permanent home available to him in both Contracting States, shallbedeemed bea resident he to ofthe State with which his personaland economic relations closer(centre vital interests); are of if the ContractingState in which he has his centre ofvital interests cannot determined, be or if he hasnot a permanenl homeavailable him to in eitherContracting he State, shallbe deemed

2.

(b)

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to be a residentonly ofthe Statein which he has anhabitualabode; (c) if he hq an habitualabodein both Statesor in neither of them, he shall be deemedto be a resident only of the State 0f which he is a national; if he is a nationalof both States of neitherof or them, the competent authorities of the ContractingStatesshall settle the queStionby mutualagreement.

(d)

. 3.

Where by reasonof the provisions of paragraphI a personother than air individual is a residentof both Contracting States,then it shall be deemedto be a residentonly ofthe Statein which its placeof effective management situated. is ARTICLE 5 , . . PERMANENTNSTANLISHMENT

'-r

I,

For the purposes of this Agreement, the term "permanentestablishmenf' means a fixed place of throughwhich the business an enterprise : business of is wholly orpartlycarried on. The term "permanent establishment"'includes especially: (a) (b) (c) (d) (e) aplaceofmanagement; abranch; anoffice; afactory; \

2.

aworkshop;and

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a mine, an oil or gaswell, a quarryor any other place of extraction,exploitationor exploration ofnatural resources.

3.

The term "permanent establishment" likewise encompasses: (a) a building site, a construction, assembly or installation project or supervisoryactivity in connectionwith such site or activity, but only wheresuchsite,projector activity continues for aperiodofmore than I 83days; the furnishing of services, including consultancyservices,by an enterprise through employeesor other'personnelengagedby the enterprisefor such purpose,but only where activitiesof that naturecontinueforthe sameor projectwithin the Contracting a connected State for a period or periods aggregating more than I 83 dayswithin apytwqlvemonthperiod.

(b)

4.

Notrvithstanding the preceding provisions of this Article, the term "permanentestablishment" shall be deemed notto include: (a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belongingto theenterprise; the maintenance of a stock of goods or merchandise belongingto the enterprisesolely forthe purpose storage, of displayor delivery; the maintenance of a stock of goods or merchandise belongingto the enterprise solely for the purpose of prodessing by another enterprise;

(b)

(c)

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of the maintenance a fixed place of business goods-or solely for the purposeof purchasing or merchandise, for collectinginformation,for theenterPrise; of the maintenance a fixed place of business solely for the purposeof carrying on, for the or any enterprise, otheractivity of a preparatory auxiliarycharacter; of the maintenance a fixed place of business solely for any combination of activities (a) in mentioned subparagraphs to (e),provided that the overall activity of the fixed place of is from this combination of a resulting business or preparatory auxiliary character.

(e)

(0

1 Notwithstandingthe provisionsof paragraphs and2, person otherthanan agentofan independent wherea 6 to status whom paragraph applies- is actingon behalf in and of an enterprisq has,andhabituallyexercises, a in contracts ContractingStdtean authorityto conclude be that enterpriseshall the name of tne enterprise, in establishment thatState to havea permanent deemed of any activities which that person in respect unlessthe activitiesof for undertakes the enterprise, such person are limited to those mentioned in througha fixed place 4 paragraph which, if exercised 'of would not make this fixed place of U-utiness, 'under the a perrnanentestablishment business provisionsof thatParagraPh. 6. to shallnot be deemed havea permanent An enterprise it merelybecause State in a Contracting establishment in that State through a broker, carries on business generalcommissionagentol a-nyother agentof an independentstatos,provided tha.t suc.hpersons are oftheir business' course actingin theordinary

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The fact that a company which is a resident of a Contracting State controls or is controlled bv a qompany which is a resident the otherContru.iing of State, which carries business that otherStatE or on in (whether through a perrnanentestablishmentor otherwise), shall not of itself constitute either companya permanent establishment theother. of ARTICLE 6 INCOME FROM IMMOVABLE PROPERTY

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I^ncom.e derived by a residentof a ContractingState from immovableproperty (including incomJ from agriculture or forestry) situated in the other ContractingStatemaybetaxedin thatotherState.

3.

The provisionsof paragraphI shall apply to income derivedfrom thedirectuse,lefiing,or uiein anyother form of immovable property.

4.

servlces.

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ARTICLE 7 BUSINESSPROFITS

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the enterprise carrieson business aforesaid, as the profitsofthe enterprise betaxedin theotherState may but only so much of them as is attributable the to permanent establ ishment.
)

Subjectto the provisionsof paragraph where an 3, enterprise a Contracting of State carries business on in the other ContractingState through a permanent establishment situatedtherein,theie shail in each

same or similar conditions and dealing wholly independently with the enterprise which it is b of permanent establ ishment.

3.

In the determination the profits of a permanent of establishment, thereshall be allowedas deductions

However, ,u.h deduction no shall be allowed in respectof amounts,if any, paid (otherwisethan ,

2011] [3lst January

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by of towards reimbursement actual expenses) the

4.

State in In sofarasit hasbeencustomriry a Contracting to the to determine profitsto beattributed a permanent the on establishment the basisof an apportionment.of

in contained thisArricle. 5. 'No profits shall be attributed to a permanent by ofthe merepurchase that by estabiishment reason for or of establishment goods merchandise permanent theenterprise. the For the purposestofthe precedingparagraph-s, establishrnent to profitsto'beattributed thepermanent

6.

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by shall be determined the samemethodyear by year unless there is good and suffrcient reason to the contrary. 7. Whereprofis includeitemsof incomewhich aredealt with separatelyin other Articles of this Agreement, then the provisionsof those Articles shall not be ofthisArticle. by affected theprovisions ARTICLE 8 INTERNATIONAL TRAFFIC l Profits from the operation of ships or aircrafts in international traflic shall be taxable only in the Contracting State in which the place of effective is ofthe enterprise situated. management For the purposesof this Article, profits from the operationof ships or aircraft in internationaltraffic include: (a) profits from the rental on a bareboatbasis of and ships aircraft; or or profits from the use,maintenance rentalof containers (including trailers and related used of for equipment the transport containers) ofgoodsor merchandise; for thetransport

2.

(b)

or wheresuchrentalor wheresuchuse,maintenance rental,as the casemay be, is incidentalto the operationof ships or traffic. aircraftin intemational 3. of If the place of effectivemanagement a shipping is enterprise aboarda ship or boat, then it shall be State which in the deemed besituatedin Cpntracting to or, or boatis situafed, if of the homeharbour the ship

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thereis no suchhomeharbour,in the ContractingState of whichtheoperator ofthe shipor boatis a resident. 4. The provisionsof paragraphI shall also apply to piofits from theparticipation a pool,ajoint business in or an international operating agency. ARTICLE 9 ASSOCIATED ENTERPRISE l. Where: . (a) an enterprise a ContractingStateparticipates of directly or indirectly in the management, 'other control or capitalof an enterprise the of ContractingState; or the same persons participate directly or indirectlyin themanagement, controlor capital of an enterprise a Contracting of Stateand an enterprise ofthe otherContracting State,

(b)

andin eithercase conditions madeor imposed are between the two enterprises their commercialor financial relations in which differ from those which would be made between independent enterprises, anyprofitswhichwould,but for then those conditions, haveaccrued oneofthe enterprises, by to but, reasonof those conditions,have not so accrued,may be included theprofitsofthat enterprise taxedaccordingly. in and 2. Wherea Contracting State includes theprofitsof an in enterprise that State andtaxesaccordinglyprofits of on which an enterprise the otherContracting of State has been chargedto tax in that other Stateand the profits so included are profits which would have accrued theenterprise to ofthe first-mentioned State if the conditions madebetween two enterprises the had been those which would have been made between

-

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independent enterprises, then that other State may makean appropriate adjustment the amountof the to tax chargedthereinon thoseprofits. In determining suchadjustment, regardshall be had to the othei due provisions of this Agreement and the competent authorities the Contracting of States shall if necessary consult each other. ARTICLE 10 DIVIDENDS
l.

Dividends paidby a company which is a resident a of Contracting State a resident theotherContracting to of State maybetaxedin thatotherState. However,such dividendsmay also be taxed in the Cgltracting Stateof which the companypayingrhe dividends a resident according the lawsolthat is and to State,but if the beneficial ownerof the dividendsis a residentof the other ContractingState,the tax so charged shallnotexceed: (a) five (5) percentof the gross amount of the dividends the beneficial if owneris a company which holdsat leasttwenty-five(25) percent of thecapitalofthe company payingthedividends; or ien (10) percentof the gross amount of the dividends all othercases. in

)

(b)

The competent authorities the ContractingStates of shallsettle modeof application these the of limitations by mutualagreement. This paragraph shall not affect the taxation of the companyin respectof the profits out of which the dividends paid. are

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The term "dividends"as usedin this Article means income from sharesor other rights participating in profits,not beingdebt-claims, well asincomefrom. as bther corporaterights which is subjected the same to taxationtreatmentas incomefrom shares the laws by ofth-eContractingStateofwhichthe company making thedistribution a resident. is Theprovisions ofparagraphs and2shallnot applyif I thebeneficial ownerof thedividends, beinga rejOlnt of a Contracting State, carries business theother on in

4.

case, provisions the ofArticle 7 shallapply. 5.

State in so far astheholdingin respect whichthe or of dividendsare paid is effectivelycbnnected with a

ARTICLE 11 INTEREST
l.

Interesta{sing in a Contracting Stateand paid to a resident ofthe otherContracting State maybetaxedin thatotherState.

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However, such interest may also be taxed in the ContractingStatein which it arisesand accordingto the Laws of that State,but if the beneficial owner of the interest is a resident of the other Conffacting State,the tax so chargedshall not exceedfive (5) per centofthe grossamountofthe interest. Notwithstanding the provisions of paragraph 2, interest arisingin a Contracting Stateshallbe exempt if: fromtax inthatState (a) the payer of the interestis the Governmentof politicalsubdivision a State, that Contracting or localauthoritythereof; the interest is paid to the Governmentof the political subdivision State, otherContracting or a localauthoritythereof;or the interestis paid to the Bank of Zambiaor the CentralBank Seychel of les.

3,

(b)

(c)

4.

The term "interest" as used in this Article means incomefrom debt-claims everykind,whetherornot of securedby mortgagpand whether or not carrying a right to participate in the debtor's profits, and in particular,income from Governmentsecuritiesand incomefrom bonds debentures, including premiums or and prizes attachingto such securities,bonds or debentures. Penalty charges lafepaymentshallnot for beregarded interest thepurposes as for ofthis Article. Theprovisions paragraphs and2 shallnot applyif I of the beneficial ownerof the interest, beinga resident of a Contracting State,carrieson business in'the other Contracting State.in whichtheinterest arises, through a permanent establishment thereinandthedebtsituated claim in respectof which the interest is paid is

5.

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effectively connected with such permanent establishment. suchcase, provisions In the ofArticle 7 shallapply. Interestshallbe deemed arisein a ContractingState to when the payer is a resident of that State.Where, however,the personpayingthe interest,whetherhe is a resident of a Contracting State or not, has in a Contracting State a perrnanent establishment in connection with which the indebtedness which the on interestis paid was incurred,andsuchinterestis borne by suchpermanent establishment, suchinterest then shall be deemedto arise in the Statein which the , perrnanent establ ishments situated. i

7.

Whereby reason a special of relationship between the payer and the beneficial owner or betweenboth of them and some other person, the amount of the interest, havingregard thedebt-claim which it is to for paid, exceeds the amountwhich would have been agreed uponby the payerandthe bbneficial ownerin theabsence suchrelationship, provisions this of the of Article shallapplyonlyto thelast-mentioned amount. In such case,the excess part of the paymentsshall remain taxable according to the laws of each ContractingState,due regardbeing had to the other provisionsof thisAgreement. ARTICLE 12 ROYALTIES

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Royalties arisingin a Contracting Stateand paid to a resident ofthe otherContracting State may betaxedin thatotherState. However, such royaltiesmay also be taxed in thq

2.

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Contracting Statein which they arise,andaccording to the laws of that State, if the recipient is the "but beneficial owner of the royalties,the tax so charged shallnot exceed (10) per centofthe grossamount ten ofthe royalties.
J.

The term o'royalties"as used in this Article means payrnents any kind receivedas a consideration of for

scientific experience.

4.

The provisionsofparagraphsI and2 shall not apply if the beneficial ownerof the royalties, beinga resident of a Contragting State,carrieson business the other in ContractingStatein which the royaltiesarise,through a pennanentestablishment situated therein and the right or propertyin respectof which the royaltiesare paid is effectively connectedwith such permanent establishment suchcase, provisions In the ofArticle Z shallapply. Royaltiesshall be deemed arise in a Contracting to Statewhenthe payeris a residentof that State.Where. however, person the payingtheroyalties, whether ii he a resident of a Contracting State or not, has in a Contracting State a perrnanentestablishmentwith which the right or property in respectof which the royalties are paid is effectively connected, and such royaltiesare bome by suchpermanent establishment, thensuchroyaltiesshallbe deemed arisein the State to in which thepermanent establishment situated. is

5.

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Where,by reason special ofa relationship between the payer and the beneficialowner or between both of )erson, the amount of the rtheuse, rightor information exceeds amountwhich the

last-mentioned amountof royalties. suchcase,the tn excesspart of the paymentsshall remain taxable according the laws of eachContracting to State,due regard being had to the other provisi6ns ol this Agreement. ARTICLE 13 CAPITAL GAINS

Denerc,arigjhe owner "#ll9'Jrll?f?ffi,:XtHi: the provisionsof this Arricle shall apply only to iiie

t.

Gainsderived by^a.resident Contracting ofa State from tne atrenation immovablepropertyreferred of to in Article 6 and situatedin the ottrerContracting State may betaxedin thatotherState. . Gains from the alienation of movable property forn-ri1e part of thebusiness prop..ty of a permanent establishment which an el State in theotherContra has gains from the alienatior establishment (aloneor w may betaxedin thatotherState. Gainsfrom thealienation shipsor aircraflts of operated in international traffic o.rnouubl"p.op"rty pertaining to the operationof such ships oi ai.r.afts, shall bE taxable_only the ContraciingState in in which the placeofeffectivemanagement iJsituated. Gainsfrom the alienation oflany propertyotherthan that referred in paragraphs'1,' to 2Lnd'3, shall be

2.

a J.

4.

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taxable only in the Contracting State of which the is alienator a resident. ARTICLE 14 INCOME FROM EMPLOYMENT l. Subjectto the provisionsof Articles15,17and 18, salaries, wages and other similar remuneration of derivedby a resident a Contracting Statein respect of an employmentshall be taxable only in thatState unless the employment is exercisedin the other If Contracting State. the employment so exercised, is as such remuneration is derived therefrommav be taxedin thatotherState. Notwithstanding the provisions of paragraph l, remuneration derivedby a residentof a Contracting Statein respectof an employmentexercisedin the other ContractingStateshall be taxableonly in the if: fi rst-mentioned State (a) the recipientis presentin the other Statefor a periodor periods exceeding the aggregate not in 183 days in any twelve-month period commencingor ending in the fiscal year and concerned; the remuneration paid by or on behalfof an is who is nota resident theotherState; employer of and the remuneration not borneby a permanent is establishment which the employerhas in the otherState.

)

(b)

(c)

Notwithstanding the precedingprovisionsof this Article, remuneration derived from an employment exercisedon board a ship or aircraft operatedin

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internationaltraffic may be taxed in the Contracting Statein which the place of effective management of theenterprise situated. is 4. ' Salaries, wages, allowances perquisites and received by anemployee ofan airlineor shippingenterprise ofa Contracting State and stationed in the other ContractingStateshall be taxablein the Contracting Statein which the place of effective management of theenterprise situated. is , ARTICLE 15 DIRECTORS'FEES Directors' feesandsimilarpayments derived a resident a by of Contracting Statein his capacity a member the boardof as of directorsof a company which is a residentof the other Contracting Statemay betaxedin thatotherState. ARTICLE 16 ENTERTAINERS AND SFORTSPERSONS l. Notwithstanding provisions Articles 7 and 14 the of incomederivedby a resident a Contracting of State as an entertainer, suchasa theatre, motionpicture,radio or television artiste, or a musician, or as a sportsperson, from his personalactivities as such exerqised theotherContracting in State, may betaxed in thatotherState. Where income in respect of personal activities exercised an entertainer a sportsperson his by or in capabityas such accruesnot to the entertainer or sportsperson himself but to another person, that income ffioy, notwithstandingthe provisions of Articles7 and14,be taxedin the Contracting Statein which the activitiesof the enteitainer sportsperson or areexercisecl"

'

2.

.

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Income derived by a residentof a Contracting State from activitiesexercised inthe otherContractingState asenvisaged paragraphs and2 ofthisArticle, shall in i be exempted from tax in that other Stateif the visit to that other Stateis supported wholly or substantially by fundsof eitherContracting politicalsubdiyision State, or a local authority thereof, or takes place under a cultural agreement or affangement between the Govemments theConhacting of States. ARTICLE 17 PENSIONSAND ANNUITIES

L

Subject theprovisions paragraph of Article 18, to of 2 pensions othersimilarremuneration annuities and and arisingin a Contracting Stateandpaidto a resident of theotherContracting State, maybetaxable thefirsti4 mentioned State. The term "annuity" means a stated sum payable periodicallyaf statedtimes during life or during a specifiedor ascertainable period of time under an obligation makethepayments returnfor adequate to in andfull consideration moneyor money's in wofth. Notwithstanding the provisions of paragraph l, pensions othersimilarpayments and madeunderthe socialsecuritysystem a Contracting of State, shallbe taxable only in thatState. ARTICLE 18 GOVERNMENT SERVICE

2.

J.

l.

(.a) Salaries, wages othersimilarremunerhtion, and othsrthanapension, by a Contracting paid State or a politicalsubdivision a local authority or thereofto an individriai in respectof services

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rendered that State subdivision authoritv to or or shallbetaxable only in thatState. (b) " However, such salaries,wages and sirnilar remuneration shallbe taxableonly in the other Contracting Stateif the services rendered are in that State the individualis a resident that and of State, who: (i) (ii) is anational ofthat State; or did not becorne residentof that State a solely for the purposeof renderingthe services.

2.

(a)

Any pension paidby, or out of fundscreated by, a Contracting State a politicalsubdivision or or a local authority thereof to an individual in respectof servicesrenderedto that State or subdivision authority or shallbetaxable only in thatState. : However,suchpension shallbetaxableonly in the otherContracting State the individualis a if residqnt anda national thatState. of, ofl,

(b)

J.

1

The provisions Articles14, 15, l6 and l7 of this of Agreementshall apply to salaries, wagesand other similar remuneration, to pensionsin respectof and servicesrenderedin connection with a business carried on by a Contracting State or a political subdivision a local authority a statqtory or or body thereof. ARTICLE 19 TEACHERS AND RESEARCHERS

l.

An lndividual who is immediat.ty b.forevisitinga Contracting Statea resident the otlrerContractilrs of

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Stateand who, at the invitation of the Government of the first-mentioned Contraoting State or of a University,college,school,museumor other cultural institution in that first mentionedContractingStateor under an official programmeof cultural exchange, is present in that Contracting State for a period not exceeding consecutive two yearssolelyfor thepurpose of teaching,giving lectures carryingout research or at sucfr institution shall be exemptedfrom tax in that Contracting State on his remuneration f,or such activity,providedthatpaymentof suchremuneration is derivedby him from outside thatContractingState.

2.

The provisionsof paragraphI of this Article shall not applyto incomeresearch suchresearch undertaken if is not in the public interestbut prirnarily for the private benefitofa specifi person persons. c or ARTICLE.20 STUDENTS,BUSINESSAPPRENTICES AND TRAINEES

l.

Paymentswhich a studentor businessapprenticeor traineewho is or was immediatelybeforevisiting a ContractingStatea residentof the other Contracting State and who is present in the first mentioned Contracting State solely for the purpose of his educationor trainihg receivesfor the purposeof his maintenance, education trainingshallnotbetaxedin or that ContractingState,provided that such payments arisefrom sources outsidethatContracting State. In respectof grants, scholarships and remuneration from employment not covered by paragraph l, a student,businessapprenticeor trainee describedin paragraph shall, in addition,be entitled during such I education trainingto thesameexemptions, or reliefsor reductions respect taxesavailablc residents in of to of theState whichheis visiting.

2.

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ARTICLE 21 OTHER INCOME
L

Iterns income a resident a Contracting of of of State, not deattwith in the fd";oiru l*:::":lising, Aftlctes thlsAsreement betaxable in thai ot shall only State.

')

a J.

ARTICLE 22 ELIMINATION OF DOUBLE TAXATION
L

Double Thxation beeliminated follows: shall as

(b)

where a resident of Seychelles In Seychelles, income from Zambia which may be derives taxed in Zambia in accordance with the the provisionsof this Agreement, amountof the of that income shall be tax payablein respect allowed as a credit against Seychellestax imposedon that resident.The amountof credit, thatpart of Seychelles however,shallnot exceed to tax which is appropriate that income.

2.

For the pu{posesof paragraphI of this Article, the terms "Zambian tax payable" and "Seychellestax to payable"shallbe deemed includethe amountof tax have been paid in Zambia or in which would may be,but for anexemptionor as Seychelles, the case reduction granted in. accordance with the laws designed to promote economic development in Zambia or Seychelles as the case may be, such schemes having been mutually agreed by the competent authorities of the Contracting States as ofthis paragraph. qualiffing for thepurposes ARTICLE 23 NON.DISCRIMINATION

l.

Nationalsof a ContractingStateshall not be subjected in the other ContractingStateto any taxation or any requirementconnectedtherewith which is other or more burdensomethan the taxation and connected to requirements which nationalsof that other Statein This or circumstances'are may be subjected. the same provision shall notwithstandingthe provisions of of who arenot residents Article l, alsoapplyto persons oneor bothofthe CcntractingStates. which an establishment The taxation on a permanent has in the other enterpriseof a Contracting State ContiactingStateihall not be lessfavourablylevied in that other Statethanthe taxation levied on enterprises

2.

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3.

4.

5.

Theprovisions thisArticleshallapplyto thetaxes of ' whicharethesubject ofthisAgreement'. ARTICLE 24 MUTUAL AGREEMENTPROCEDURE

l.

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authorityof the ContractingStateof which competent I comesunderparagraph or, he is a resident if his case 23,to that of the ContractingStateof which ofArticle within he is a national.The casetnust be presented years from the first not^fication of the action three with the resulting in taxation not in "accordance of provisions t.tisAgreement.

2.

The competent authority shall endeavour,if the -ap1,ears to it to be justified and if it is not objection to solution, resolve itsilf ableto lrrive at a satisfactory the case by mutual agreementwith the competent with a view to State, authorityof the otherContracting of the avoidance taxationwhich is not in accordance shallbe reached Any agreement with this Agreement. any notwithstanding time limits in the implemented States. law domestic ofthe Contracting of authorities the ContractingStates The competent any to shali endeavour resolveby mutual agreement or interpretation difficultiesor doubtsarisingasto the consult They may also of application this Agreement. of forthe elimination doubletaxationin cases together for notprovided in thisAgreement.

a J.

4.

ARTICLE 25 EXCHANGE OF INFORMATION l. of The competent'authorities the ContractingStates for suchinformation as is necessary shallexchange

20ll] [3 lst January

Supplementto Official Gazette

4I

2,

In no caseshall the provisions paragraph be of I construed as to imposebn a Contracting so Statethe obligation:
(a)

to carryout administrative measures variance at with the laws or the administrative practiceof : thator ofthe otherContracting State; to supplyinformation which is not obtainable underthe laws or in the normalcourse the of administration f that or of the other o Contracting State; to supirly information whichwoulddisclose anv trade, business, industrial,commercialor professionalsecret oF trade process,or information. disclosure whittrwoulcl tlre of be contrary publicpolicy(ordre to pubiic).

(b)

(c)

42

to Supplement Ofricial Gazette
ARTICLE 26

2011] [3lst January

MEMBERS OF DIPLOMATIC MISSIONS AI\ID CONSULAR POSTS Nothing in this Agreementshall affect the fiscal privilegesof membersof diplomatic missionsor consularposts under the generalrules of internationallaw or under the provisions of specialagreements. ARTICLE 27 ENTRY INTO FORCE l. Each of the ContractingStatesshall notiff the other Contracting State the completion of the procedures requiredby its law for the bringing into force of this Agreement.This Agreementshall enter into force on the date of the later of these notifications and shall haveeffect. thereupon TheprovisionsofthisAgreementshallapply: (a) in Zambia, in respectof incomederived in any fiscal year on or after the first day of April next year in which the notice following the calendar is given. in Seychelles: (i) with regardto taxeswithheld at source,in respectof amountspaid or creditedon or after the first day of Januaryin the year following the date on which this entersinto force;and Agreement with regard to other taxes, in respectof agy taxableyear beginningon or after the first day of Januaryfollowing the dateon entersinto forcc" which thisAgreement

2.

(b)

(it)

201 [3lst January l]

Supplementto Official Gazette ARTICLE 28 TERMINATION

43

L

ThisAgreement shallremainin forceindefinitely, bgt either of the ContractingStatesmay, terminatethe Agreement channel, giving by throughthe diplomatic to the other Contracting State written notice of year termination laterthan30 Juneof anycalendar not starting five years after the year in which this Agreement entered force. into InsucheventthisAgreementshallceasetoapply:' (a) with regard to taxes withheld at source,in paidor credited respect amounts of aftertheend of the calendaryear in which such notice is given; and with regardto dther taxes,in respect taxable of years beginningafter the end of the calendar yearin whichsuchnoticeis given.

2.'

(b) - |

IN WITNESS WHEREOF the undersigned, authorised duly thereto, havesigned Agreement. this DONE at Victoria, Seychelles two originals, 7thdayof in this December,20l0.

REPI,JBLIC ZAMBIA OF

REPUBLICOF SEYCHELLES

MADE this21stdayofJanuary, 2010. DANNY FAURE VICE.PRESIDENT AI\D MINISTER OF FINANCE AF{DT'Rrd$E