DT10253 | Double Taxation Relief Manual: Ivory Coast: notes

Permanent establishment (Article 5)

The permanent establishment Article does not have, in the list of activities which are deemed not to constitute a permanent establishment, the normal exclusion of the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information for the enterprise. So if a UK enterprise has a fixed place of business in the Ivory Coast whose sole function is to acquire raw materials, semi-finished or finished products, or any merchandise, materials, tools or other supplies for the enterprise, then that place of business will constitute a permanent establishment.

The taxable profits in the Ivory Coast will be the amount of commission which the enterprise would have had to pay to an independent agent for transactions of a similar kind to those carried out by the permanent establishment, less the operating costs of the permanent establishment and any other expenses allowable in accordance with Article 7(3). If accounts providing sufficient information are not available, then the Ivory Coast may determine the profits by taking a percentage of the total amounts involved, less the expenses in accordance with Article 7(3). Credit may be given for the Ivory Coast tax charged on either basis against the UK tax on the same income.

Employment (Article 16)

An individual resident in the UK who exercises their employment in the Ivory Coast may be taxable in the Ivory Coast if they are present there for more than 183 days in any 12 month period including “normal interruptions in work”, which is defined as any temporary absences from the country relating to their duties there, including periods of leave (Article 16(2)(a) and (3)).

Students and apprentices (Article 21)

Visiting students and apprentices from the Ivory Coast are exempt from UK tax on payments from abroad for the purpose of maintenance, education, training or research.

Tax spared (Article 23(2))

The convention provides for credit to be given for `tax spared’ (see INTM161270 & INTM161280) in the Ivory Coast under the laws of the Ivory Coast set out in Article 23(2). Relief is limited to `tax spared’ in the Ivory Coast for a period of ten years in respect of any one source of income.

Where credit is claimed for `tax spared’ under paragraph IIA2(c)(i) or paragraph IIA4(l) of the Annex to Law No. 59-134 of 3 September 1959, the claim should be accompanied by a certificate from the Ivory Coast authorities to the effect that the relief or exemption has been given with a view to promoting industrial, commercial, scientific or educational development in the Ivory Coast (Article 23(2)(d)).

All amounts of `tax spared’ for which credit relief is given should be reported as mentioned at INTM161290.