France-Senegal: a ceiling of 15 % and a concept of own home

The tax treaty between France and Senegal was signed in Paris on March 29, 1974, and has been in force since April 24, 1976. Two amendments (1984 and 1991) modified it, followed by the Multilateral Investment Convention (MLI) in 2023. It caps withholding tax at 15% of the gross amount, for the beneficial owner, on dividends (Article 13, paragraph 2), on interest (Article 15, paragraph 2), and on royalties (Article 20, paragraph 3); other paragraphs reserve certain interest and royalties for a single state. It refers to domicile, not residence, and Article 2 sets out the criteria. This page follows the consolidated text published by the French tax authorities and the official commentary; it also includes information it was unable to access.

A text from 1974, two amendments, the MLI since 2023

The agreement comprises a protocol and three exchanges of letters. The amendment signed in Dakar on July 16, 1984, in force since January 1, 1986 according to the BOFiP (Official Bulletin of Public Finances), replaced the former Article 20, which now deals solely with royalties. The amendment of January 10, 1991, replaced Articles 5, 13, 14, 15, 16, 17, 19, and 26, amended Articles 8, 12, 18, and 35, and inserted Article 34 A. It has been in force since February 1, 1993.

The administrative list (BOI-ANNX-000306, version of April 29, 2026) classifies it under the heading "IR – S – DE". The list of conventions modified by the MLI (BOI-ANNX-000511, same date) gives, for Senegal, January 1, 2023 for withholding taxes and March 1, 2023 for other taxes, on the French side. The official commentary (BOI-INT-CVB-SEN) is older: 2012 for chapters 10 to 30, 2016 for chapter 40. Where it differs from the consolidated text, this page follows the text.

Domicile, not residence: Article 2

A natural person is considered domiciled "at the place where they have their permanent home," an expression that designates the center of their vital interests, that is to say, the place with which their personal ties are closest. When this criterion is insufficient, they are deemed to be domiciled in the State where they reside the longest. If the duration of their stay is equal, it is the State of which they are a national. If they are a national of neither State, the higher administrative authorities decide by mutual agreement.

A legal entity is domiciled at the location of its registered office. A group without legal personality is domiciled at the location of its effective management.

A cap of 15 % on three incomes, with exceptions

In each case, the income is taxable in the recipient's state and also in the source state, according to its legislation. The cap does not apply to all interest and royalties. Article 15, paragraph 3, reserves certain interest to the beneficial owner's state of residence, particularly interest related to states, local authorities, and public legal entities, as well as certain credit sales between businesses. Article 20, paragraph 1, reserves royalties from real estate, mines, and natural resources to the state where the property is located, and Article 20, paragraph 5, reserves copyright royalties for literary, artistic, or scientific works, including audiovisual works, to the beneficial owner's state of residence. Article 13, paragraph 3, contains specific rules on dividends, which are not detailed on this page.

Regarding royalties, the 2012 commentary provides further clarification. Royalties relating to real estate, mines, or quarries are taxable only in the state where they are located. Copyright royalties are taxable only in the state of residence. The 15 % ceiling applies to industrial property rights and know-how. The text states that the withholding tax cannot exceed 15 %; the actual rate levied is governed by the legislation of the source state, which this page does not examine.

Wages, pensions, non-commercial professions

Wages. Article 22 generally designates the state where the work is performed. Paragraph 2 refers taxation to the state of residence if three conditions are met:

• the stay in the other State does not exceed a total of 183 days "during the fiscal year in question" (the text writes it in words: one hundred and eighty-three days); ;
• the employer is not domiciled in the other State; ;
• the remuneration is not deducted from the profits of a permanent establishment or fixed base of the employer in the other State.

Pensions. Pensions and life annuities are taxable only in the State where the beneficiary is domiciled (Article 21).

Other income. According to the commentary, non-commercial professions are taxable only in the State of domicile, except for a fixed base in the other State (Article 23), and unnamed income follows the same rule, except for a permanent establishment (Article 25).

Capital gains: Article 16

Other capital gains are not detailed here.

The tax credit under Article 26 § 3

When a person domiciled in one state receives taxable income in another, the first state may also tax that income. The tax withheld in the other state is not deductible from taxable income, but the person is entitled to a tax credit against the tax owed in the first state. The amount of the credit depends on the income:

• for the income referred to in Articles 13, 14, 15, 16 (§ 2), 18 and 20 (§ 2 and 3): the credit equals the tax levied in the other State, without exceeding the tax of the first State corresponding to this income; ;
• For other income: the credit equals the tax of the first state corresponding to that income.

This second rule also applies to the remuneration under Articles 9, 10, 12, 16 (§ 4), 17 (first paragraph) and 20 (§ 1). The commentary refers to an allocation system.

Fortune, inheritances, bequests

Fortune. According to the 2012 commentary, the convention does not contain an article on wealth tax: each state retains the right to apply its own legislation. The application to real estate wealth tax is not addressed.

Inheritance. Inheritance is governed by Articles 27 to 34. Article 28 stipulates that real estate is subject to inheritance tax only in the state where it is located. For further details, the commentary refers to the convention with Mali; the rules applicable to movable property, receivables, and securities are not detailed here.

Bequests and donations. Article 34A, inserted in 1991, provides that each State exempts the other State or its local authorities from inheritance tax on bequests made to them. The commentary clarifies that this exemption extends to gifts.

Right to benefits, amicable procedure, joint commission

A clause added by the MLI, entitled "Right to Convention Benefits," denies a Convention benefit when one of the principal objectives of an arrangement or transaction was to obtain it, unless it is consistent with the object and purpose of the relevant provisions. Article 41, paragraph 1, stipulates that the case must be submitted within three years of the first notification of the contested measure. According to Article 41, paragraph 3, questions of principle fall under the jurisdiction of the Franco-Senegalese Inter-State Ministerial Committee. Furthermore, according to the commentary, an exchange of letters from 1974 provides for a joint commission, which meets twice a year, to handle recovery.

The three ceilings of 15 %: numerical example (fictitious profile)

Situation. A fictional French resident receives €20,000 in dividends, €8,000 in interest, and €6,000 in royalties from Senegal. He is also employed by a French company and undertakes three missions to Senegal during the year: 55, 70, and 28 days.

Issue. He wants to know the maximum tax that Senegal can collect at source according to the convention, and whether his missions remain below the threshold of 183 days.

Strategy. It applies the ceiling of 15 % to each income, assuming that none falls under the exceptions of Articles 15 § 3 and 20 §§ 1 and 5 (hypothesis), then adds up the days of stay of the tax year.

Result. Caps: €3,000 on dividends, €1,200 on interest, €900 on royalties: a maximum of €5,100 on €34,000. His assignments total 153 days: a 30-day margin. A fourth assignment of 45 days would bring the total to 198 days, or 15 days above the threshold. The two other conditions of Article 22 remain to be examined, and the actual tax rate levied in Senegal depends on Senegalese law.

What changes depending on your situation

• Your home as defined in the convention, assessed according to the criteria in its article 2.
• The nature of the income and the individual's status as a beneficial owner.
• The number of days spent in each state during the fiscal year.
• The nature and location of your assets, for inheritance purposes.
• The effects of the right to benefits clause on your situation.

The rule depends on your situation. No results are guaranteed.