On 10 February 2016, Luxembourg and Senegal signed an Income Tax Treaty.
The Treaty will come into force after the two countries exchange ratification instruments. The provisions of the treaty will have effect from 1 January of the calendar year next following that in which the agreement enters into force.
In accordance with the Treaty, the following withholding taxes will apply:
Dividends:
- 5% if the beneficial owner is a company (other than a partnership) which owns
- directly at least 20% of the capital of the company paying the dividends.
- 15% in all other cases.
Interest: 10%.
Royalties:
- 6% on royalties paid for the use or the right to use industrial, commercial or scientific equipment.
- 10% in all other cases.
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