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Residence (Article 4)

The convention provides that a person is a resident of one country if they are liable to taxation in that country by reason of their domicile, residence, place of management or any other criterion of a similar nature. The convention does not have the normal special rules for determining of which country a person is a resident for treaty purposes where they are resident in each country under each country’s own domestic law.

For the purposes of the convention where, under domestic law, a company is a resident of both countries, it will be treated as a resident of the country in which its business is managed and controlled.

Tax spared (Article 20)

The convention provides for credit to be given for tax ‘spared� (see INTM161270 to INTM161290) in Gambia under the provisions of Gambian law set out in Article 20(2). Relief is restricted to tax ‘spared� in Gambia for a period of ten years in respect of any one source of income.

Amounts of tax spared for which credit relief is given should be reported as mentioned in INTM161290.