Income Tax (Double Taxation Relief) (Taxes on Income) (Republic of Botswana) Order, 2015

This Order may be cited by its stated title.

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Jurisdiction: Zambia
Instrument: Statutory instrument
Citation: SI 20 of 2015
Version: 30 Apr 2015
Language: en
Official source: View official record ↗

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This Order may be cited by its stated title. This section makes the Zambia–Botswana double taxation agreement effective in Zambia and says it applies to residents of one or both Contracting States. This Agreement applies to taxes on income imposed for a Contracting State, its political subdivisions, or local authorities. This provision defines which taxes are treated as taxes on income and capital. This provision says the Agreement applies to Zambia’s Income Tax and Botswana’s income tax, including capital gains tax.

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Provisions of Income Tax (Double Taxation Relief) (Taxes on Income) (Republic of Botswana) Order, 2015

Showing 118 of 118

1
This Order may be cited as the Income Tax (Double
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AI-assisted research summary: This Order may be cited by its stated title.

1. This Order may be cited as the Income Tax (Double Taxation Relief) (Taxes on Income) (Republic of Botswana) Order, 2015.
2
Section 2
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AI-assisted research summary: This section makes the Zambia–Botswana double taxation agreement effective in Zambia and says it applies to residents of one or both Contracting States.

2. It is declared that the Agreement, the text of which is set out in the Schedule to this Order, being an Agreement relating to the relief from double taxation on the income made between the Government of the Republic of Zambia and the Government of the Republic of Botswana shall have effect in Zambia in accordance with section seventy-four of the Act. Double taxation agreement Cap. 323 SCHEDULE (Paragraph 2) THE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF ZAMBIA AND THE GOVERNMENT OF THE REPUBLIC OF BOTSWANA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME PREAMBLE The Government of the Republic of Zambia and the Government of the Republic of Botswana desiring to conclude an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, Have agreed as follows: ARTICLE 1 PERSONS COVERED This Agreement shall apply to persons who are residents of one or both of the Contracting States. Copies of this Statutory Instrument can be obtained from the Government Printer, P.O. Box 30136, 10101 Lusaka. Price K20.00 each. 70 Statutory Instruments 30th April, 2015 ARTICLE 2 TAXES COVERED

Part

SCHEDULE

1
Section 1
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AI-assisted research summary: This Agreement applies to taxes on income imposed for a Contracting State, its political subdivisions, or local authorities.

1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or of its political sub-divisions or of its local authorities, irrespective of the manner in which they are levied.
2
Section 2
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AI-assisted research summary: This provision defines which taxes are treated as taxes on income and capital.

2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
3
Section 3
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AI-assisted research summary: This provision says the Agreement applies to Zambia’s Income Tax and Botswana’s income tax, including capital gains tax.

3. The existing taxes to which this Agreement shall apply are: (a) in the Republic of Zambia, the Income Tax (hereinafter referred to as “Zambian tax”); and (b) in Botswana: the income tax including taxation of capital gains (hereinafter referred to as “Botswana tax”).
4
Notwithstanding any other provisions of this Agreement, where Botswana
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AI-assisted research summary: This Agreement does not apply where Botswana tax is paid or payable under a Tax Agreement under the Botswana Income Tax Act, except to the extent that Tax Agreement allows.

4. Notwithstanding any other provisions of this Agreement, where Botswana tax is paid or payable in accordance with a Tax Agreement under the Botswana Income Tax Act, this Agreement shall not apply except to such an extent as may be provided in such Tax Agreement.
5
The Agreement shall apply also to any identical or substantially similar
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AI-assisted research summary: The competent authorities of the Contracting States must notify each other about significant changes to their taxation laws.

5. The Agreement shall apply also to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes which have been made in their taxation laws. ARTICLE 3 GENERAL DEFINITIONS
1
For the purpose of this Agreement, unless the context otherwise requires
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AI-assisted research summary: This section defines key terms used in the Agreement, including Zambia, Botswana, business, company, competent authority, enterprise, international traffic, national, and person.

1. For the purpose of this Agreement, unless the context otherwise requires: (a) the term “Zambia” means the Republic of Zambia; or any area within which Zambia, in accordance with international law, may exercise sovereign right or jurisdiction; and (b) the term “Botswana” means the Republic of Botswana; (c) the term “business” includes the performance of professional services and of other activities of an independent character; (d) the terms “a Contracting State” and “the other Contracting State” mean Zambia or Botswana as the context requires; (e) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes; (f) the term “competent authority” means: (i) in Zambia, the CommissionerGeneral of the Zambia Revenue Authority or his authorised representative; and (ii) in Botswana, the Minister of Finance and Development Planning, represented by the Commissioner-General of the Botswana Unified Revenue Service or his authorised representative; (g) the term “enterprise” applies to the carrying on of any business; (h) the terms “enterprise of a Contracting State”and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; 30th April, 2015 Statutory Instruments 71 (i) the term “international traffic” means any transport by a ship, a boat, aircraft or rail or road transport vehicle operated by an enterprise that has its place of effective management in a Contracting State, except when the ship, boat, aircraft or rail or road transport vehicle is operated solely between places in the other Contracting State; (j) the term “national” means: (i) any individual possessing the nationality or citizenship of a Contracting State; (ii) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State; and (k) the term “person” includes an individual, an estate of a deceased person, a trust, a company and any other body of persons which is treated as an entity for tax purposes.
2
As regards the application of the provisions of this Agreement at any
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AI-assisted research summary: If a term is not defined in the Agreement, it takes the meaning it has under that State’s tax law, and that tax-law meaning prevails over any other local law meaning.

2. As regards the application of the provisions of this Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the law of that State for the purposes of the taxes to which this Agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under laws of that State. ARTICLE 4 RESIDENT
1
For the purposes of this Agreement, the term “resident of a Contracting
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AI-assisted research summary: This provision defines “resident of a Contracting State” for the Agreement.

1. For the purposes of this Agreement, the term “resident of a Contracting State” means; any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of incorporation, place of effective management or any other criterion of a similar nature, and also includes that State and any political sub-divisions or local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State or capital situated therein.
2
Where by reason of the provisions of paragraph 1 an individual is a
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AI-assisted research summary: If an individual is resident in both Contracting States, this provision gives a step-by-step rule to treat the person as resident only in one State.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: (a) the individual shall be deemed to be the resident solely of the State in which a permanent home is available to the individual; if a permanent home is available to the individual in both States, the individual shall be deemed to be a resident solely of the State with which the individual’s personal and economic interests are closer (centre of vital interests); (b) if sole residence cannot be determined under the provisions of subparagraph (a), the individual shall be deemed to be a resident solely of the State in which the individual has an habitual abode; (c) if the individual has an habitual abode in both States or in neither of them, the individual shall be deemed to be the resident solely of the State of which the individual is a national; (d) if the individual is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
3
Where by reason of the provisions of paragraph 1 a person other than an
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AI-assisted research summary: If a non-individual is resident in both Contracting States, it is treated as resident only in the State where its place of effective management is located. If there is doubt, the competent authorities of the Contracting States must resolve the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident solely of the State in which its place of effective management is 72 Statutory Instruments 30th April, 2015 situated. In case of doubt the competent authorities of the Contracting States shall settle the question by mutual agreement. ARTICLE 5 PERMANENT ESTABLISHMENT
1
Section 1
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AI-assisted research summary: “Permanent establishment” means a fixed place of business through which an enterprise’s business is wholly or partly carried on.

1. For the purposes of this Agreement, the term “permanent establish- ment” means a fixed place of business through which the business of an enter- prise is wholly or partly carried on.
2
Section 2
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AI-assisted research summary: This provision defines “permanent establishment” to include several types of fixed business places and some natural-resource sites.

2. The term “permanent establishment” includes especially: (a) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; (f) a mine, an oil or gas well, a quarry or any other place of extraction or exploitation of natural resources; (g) an installation or structure used for the exploration of natural resources provided that the installation or structure continues for a period of more than six months; and (h) a warehouse in relation to a person providing storage facilities for others.
3
The term “permanent establishment” likewise encompasses
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AI-assisted research summary: “Permanent establishment” also includes certain building, service, and professional activities if they continue beyond 183 days in a relevant twelve-month period.

3. The term “permanent establishment” likewise encompasses: (a) a building site, a construction, assembly or installation project or any supervisory activity in connection with such site or project, but only where such site, project or activity continues for a period of more than 183 days within any twelve-month period; (b) the furnishing of services, including consultancy services, by an enter- prise through employees or other personnel engaged by an enter- prise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the Contracting State for a period or periods aggregating more than 183 days within any twelve-month period commencing or ending in the fiscal year concerned. (c) the performance of professional services or other activities of an independent character by an individual, but only where those services or activities continue within a Contracting State for a period or periods exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned.
4
Notwithstanding the preceding provisions of this Article, the term
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AI-assisted research summary: This provision says certain limited facilities or business places do not count as a “permanent establishment.”

4. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include: (a) the use of facilities solely for the purpose of storage, display of goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (c) the maintenance of stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display; (d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise; 30th April, 2015 Statutory Instruments 73 (e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; and (f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
5
Notwithstanding the provisions of paragraphs 1 and 2, where a person
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AI-assisted research summary: An enterprise may be treated as having a permanent establishment in the other state if a person acting for it habitually has contract-signing authority there, or habitually keeps stock and fills orders or makes deliveries there, unless the person's activities are limited to certain preparatory or auxiliary activities.

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 6 applies - is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned Contracting State in respect of any activities which that person undertakes for the enterprise, if such person— (a) has, and habitually exercises in that State an authority to conclude contracts in the name of the enterprise; (b) has no such authority, but habitually maintains in the first-mentioned Contracting State a stock of goods or merchandise belonging to the enterprise from which he regularly fills orders or makes deliveries on behalf of the enterprise; unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
6
An enterprise of a Contracting State shall not be deemed to have a
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AI-assisted research summary: An enterprise of a Contracting State is not treated as having a permanent establishment in the other Contracting State just because it does business there through an independent broker, general commission agent, or similar agent.

6. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
7
Notwithstanding the preceding provisions of this Article, an insurance
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AI-assisted research summary: An insurance enterprise from a Contracting State is treated as having a permanent establishment in the other Contracting State if it collects premiums there or insures risks there through a non-independent person, except for reinsurance.

7. Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to reinsurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that State or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 6 applies.
8
The fact that a company which is a resident of a Contracting State
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AI-assisted research summary: A company’s control relationship with a company in the other Contracting State does not, by itself, make either company a permanent establishment of the other.

8. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment of otherwise), shall not of itself constitute either company a permanent establishment of the other. ARTICLE 6 INCOME FROM IMMOVABLE PROPERTY
1
Section 1
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AI-assisted research summary: Income from immovable property in the other Contracting State may be taxed there.

1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry), situated in the other Contracting State may be taxed in that other State.
2
The term “immovable property” shall have the meaning which it has
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AI-assisted research summary: This section defines “immovable property” and says certain vehicles are not treated as immovable property.

2. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct 74 Statutory Instruments 30th April, 2015 of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources. Ships, boats, aircraft, rail and road transport vehicles shall not be regarded as immovable property.
3
The provisions of paragraph 1 shall apply to income derived from the
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AI-assisted research summary: Paragraph 1 applies to income from direct use, letting, or any other use of immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting or use in any other form of immovable property.
4
The provisions of paragraphs 1 and 3 shall also apply to the income
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AI-assisted research summary: The provisions in paragraphs 1 and 3 also apply to an enterprise’s income from immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise.
5
Where the ownership of shares or other rights in a company or legal
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AI-assisted research summary: Income from using, letting, or otherwise exploiting a right of enjoyment linked to shares or other rights may be taxed in the relevant State.

5. Where the ownership of shares or other rights in a company or legal person entitles the owner to the enjoyment of immovable property situated in a Contracting State and held by that company or legal person, income derived by the owner from the direct use, letting or use in any other form of the right of enjoyment may be taxed in that State. ARTICLE 7 Business Profits
1
The profits of an enterprise of a Contracting State shall be taxable only
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AI-assisted research summary: Enterprise profits are taxed only in the enterprise’s own Contracting State unless the enterprise has a permanent establishment in the other State.

1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as are attributed to that permanent establishment.
2
Subject to the provisions of paragraph 3, where an enterprise of a
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AI-assisted research summary: If an enterprise from one Contracting State does business in the other through a permanent establishment, profits are attributed to that permanent establishment as if it were a separate independent enterprise.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
3
Section 3
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AI-assisted research summary: When calculating a permanent establishment’s profits, business expenses may be deducted, but certain payments to head office or other offices generally may not be deducted or counted, except for some banking-enterprise interest cases.

3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in the determination of the profits of a permanent establishment, for amounts charged (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for use of patents or other rights, or by way of commission for specific services performed or for management, or except in the case of a banking enterprise by way of interest on moneys lent to the head office of the enterprise or any of its other offices.
4
Section 4
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AI-assisted research summary: A Contracting State may continue using a customary apportionment method to tax permanent establishment profits, but the method’s result must follow the Article’s principles.

4. In so far as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the 30th April, 2015 Statutory Instruments 75 profits to be taxed by such an apportionment as may be customary. The method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.
5
Section 5
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AI-assisted research summary: A permanent establishment is not treated as making profits just because it buys goods or merchandise for the enterprise.

5. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
6
Section 6
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AI-assisted research summary: Profits attributed to a permanent establishment should be worked out using the same method each year, unless there is good and sufficient reason to change it.

6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
7
Where profits include items of income which are dealt with
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AI-assisted research summary: If profits include income covered separately in other Articles, those Articles are not affected by this Article.

7. Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article. ARTICLE 8 INTERNATIONAL TRANSPORT
1
Profits of an enterprise of a Contracting State from the operation of
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AI-assisted research summary: Profits from operating transport vehicles in international traffic are taxable only in the Contracting State where the enterprise’s place of effective management is situated.

1. Profits of an enterprise of a Contracting State from the operation of ships, boats, aircraft or rail or road transport vehicles in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
2
For the purposes of this Article, profits from the operation of ships,
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AI-assisted research summary: For this Article, certain rental, lease, and container-use profits are treated as included in profits from operating transport vehicles in international traffic.

2. For the purposes of this Article, profits from the operation of ships, boats, aircraft or rail or road transport vehicles in international traffic shall include: (a) profits derived from the rental or lease on a bare boat basis of ships, boats or aircraft used in international traffic; (b) profits derived from the rental or lease of rail or road transport vehicles; (c) profits derived from the use, rental or lease of containers, if such profits are incidental to the profits to which the provisions of paragraph 1 apply.
3
Section 3
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AI-assisted research summary: If a shipping or inland waterways transport enterprise is managed from aboard a ship or boat, its place of effective management is treated as being in the Contracting State of the ship or boat’s home harbour; if there is no home harbour, it is treated as being in the Contracting State where the operator is resident.

3. If the place of effective management of a shipping enterprise or of an inland waterways transport enterprise is aboard a ship or boat, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship or boat is situated, or, if there is no such home harbour, in the Contracting State of which the operator of a ship or boat is a resident.
4
The provisions of paragraph 1 shall also apply to profits from the
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AI-assisted research summary: The rules in paragraph 1 also apply to profits from participation in a pool, a joint business, or an international operating agency.

4. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. ARTICLE 9 ASSOCIATED ENTERPRISES
1
Where
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AI-assisted research summary: If two related enterprises set non-arm’s-length conditions, profits that would have accrued may be included in one enterprise’s profits and taxed accordingly.

1. Where: (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 76 Statutory Instruments 30th April, 2015
2
Section 2
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AI-assisted research summary: If one Contracting State taxes profits already taxed in the other State, the other State must make an appropriate tax adjustment.

2. Where a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first- mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall if necessary consult each other. ARTICLE 10 DIVIDENDS
1
Section 1
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AI-assisted research summary: Dividends paid by a company resident in one Contracting State may be taxed in the other Contracting State.

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2
However, such dividends may also be taxed in the Contracting State of
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AI-assisted research summary: A Contracting State may tax dividends paid by a resident company, but the tax on the beneficial owner’s dividends is capped at 5% or 7% depending on ownership.

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed: (a) 5 percent of the gross amount of the dividends if the beneficial owner is a company which holds at least 25 percent of the capital of the company paying dividends; or (b) 7 percent of the gross amount of the dividends in all other cases. The competent authorities of the Contracting States shall settle the mode of application of these limitations by mutual agreement. This paragraph shall not affect taxation of the company in respect of the profits out of which the dividends are paid.
3
The term “dividends” as used in this Article means income from shares,
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AI-assisted research summary: This Article defines “dividends” to include certain share-related and similar profit-participating income, and excludes debt-claims.

3. The term “dividends” as used in this Article means income from shares, “jouissance” shares or “jouissance” rights, mining shares, founders’ shares or other rights (not being debt-claims) participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the Contracting State of which the company making the distribution is a resident.
4
The provisions of paragraphs 1 and 2 shall not apply if the beneficial
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AI-assisted research summary: Paragraphs 1 and 2 do not apply when the dividend recipient is a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment there, and the dividend-bearing holding is effectively connected with that permanent establishment.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.
5
Where a company which is a resident of a Contracting State derives
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AI-assisted research summary: A source state must not tax dividends paid by a resident company from another Contracting State, except in limited cases, and must not tax the company’s undistributed profits as undistributed profits.

5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except in so far as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other State, nor subject the company’s undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. 30th April, 2015 Statutory Instruments 77 ARTICLE 11 INTEREST
1
Section 1
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AI-assisted research summary: Interest arising in one Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2
Section 2
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AI-assisted research summary: Interest may be taxed in the source state, but if the recipient is the beneficial owner, that tax must not exceed 10% of the gross interest.

2. However, such interest may also be taxed in the State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 10 per cent of the gross amount of the interest. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limita- tion.
3
Section 3
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AI-assisted research summary: Interest arising in a Contracting State is exempt from tax there if it is derived and beneficially owned by specified public bodies of the other Contracting State.

3. Notwithstanding the provisions of paragraph 2, interest aris- ing in a Contracting State shall be exempt from tax in that State, provided that it is derived and beneficially owned by: (a) the Government, a political sub-division or a local authority of the other Contracting State; or (b) any agency wholly owned or controlled by Government, political sub- division, or local authority of the other Contracting State.
4
Section 4
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AI-assisted research summary: This Article defines “interest” broadly, but excludes penalty charges for late payment.

4. The term “interest” as used in this Article means income from debt- claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purposes of this Article.
5
Section 5
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AI-assisted research summary: Paragraphs 1 and 2 do not apply in a specific business-permanent-establishment situation; instead, Article 7 applies.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.
6
Section 6
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AI-assisted research summary: Interest is treated as arising in a Contracting State if the payer is resident there, unless the payer has a qualifying permanent establishment in a Contracting State and the interest is borne by that establishment.

6. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the State in which the permanent establishment is situated.
7
Where, by reason of a special relationship between the payer and the
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AI-assisted research summary: If a special relationship causes interest to exceed an arm’s-length amount, the article applies only to the arm’s-length amount.

7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. ARTICLE 12 ROYALTIES
1
Royalties arising in a Contracting State and paid to a resident of the other
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AI-assisted research summary: Royalties arising in one Contracting State and paid to a resident of the other may be taxed in that other State.

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 78 Statutory Instruments 30th April, 2015
2
Section 2
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AI-assisted research summary: Royalties may be taxed in the source Contracting State, but if the recipient is the beneficial owner, the tax on the gross royalties must not exceed 10%.

2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties. The competent authorities of the Contract- ing States shall by mutual agreement settle the mode of application of this limitation.
3
Section 3
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AI-assisted research summary: This provision defines “royalties” for this Article.

3. The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work (including cinematography films and films, tapes or discs for radio or television broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for the use of or the right to use industrial, commercial, or scientific equipment or for information concerning industrial, commercial or scientific experience.
4
The provisions of paragraphs 1 and 2 shall not apply if the beneficial
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AI-assisted research summary: Paragraphs 1 and 2 do not apply if the beneficial owner of the royalties is a resident of a Contracting State and carries on the relevant business through a permanent establishment in the other Contracting State, with the royalties-related right or property effectively connected to that permanent establishment.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.
5
Royalties shall be deemed to arise in a Contracting State when the payer
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AI-assisted research summary: Royalties are treated as arising in a Contracting State if the payer is resident there, with a special rule for royalties tied to a permanent establishment.

5. Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, whether that person is a resident of a Contracting State or not, has in a Contracting State a permanent establishment with which the right or property in respect of which the royalties are paid is effectively connected, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the State in which the permanent establishment is situated.
6
Where, by reason of a special relationship between the payer and the
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AI-assisted research summary: If royalties are set higher because of a special relationship, this provision applies only to the amount that would have been agreed without that relationship.

6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. ARTICLE 13 TECHNICAL FEES

Part

part of the payments shall remain taxable according to the laws of each Contracting

1
Technical fees arising in a Contracting State which are derived by a resident
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AI-assisted research summary: Technical fees sourced in one Contracting State and received by a resident of the other Contracting State may be taxed in that other State.

1. Technical fees arising in a Contracting State which are derived by a resident of the other Contracting State may be taxed in that other State.
2
However, such technical fees may also be taxed in the Contracting State
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AI-assisted research summary: Technical fees may be taxed in the State where they arise, but if the beneficial owner is resident in the other Contracting State, the tax cannot exceed 10% of the gross amount.

2. However, such technical fees may also be taxed in the Contracting State in which they arise, and according to the laws of that State, but if the beneficial owner of the technical fees is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the technical fees.
3
The term “technical fees” as used in this Article means payments of any
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AI-assisted research summary: This provision defines “technical fees” as payments for administrative, technical, managerial, or consultancy services performed outside that State, except payments to the payer’s employee.

3. The term “technical fees” as used in this Article means payments of any kind to any person, other than to an employee of the person making the payments, in consideration for any services of an administrative, technical, managerial or consultancy nature performed outside that State.
4
The provisions of paragraphs 1 and 2 of this Article shall not apply if the
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AI-assisted research summary: Paragraphs 1 and 2 do not apply when the beneficial owner is a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment there, and the fees are effectively connected with that establishment.

4. The provisions of paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of the technical fees, being a resident of a Contracting State, carries on business in the other Contracting State in which the technical fees arise, through a permanent establishment situated therein and the technical fees 30th April, 2015 Statutory Instruments 79 are effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.
5
Section 5
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AI-assisted research summary: Technical fees are treated as arising in a Contracting State if the payer is resident there, or in the State where a related permanent establishment is situated if the fees are tied to and borne by that establishment.

5. Technical fees shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the technical fees, whether that person is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the obligation to pay the technical fees was incurred, and such technical fees are borne by that permanent establishment, then such technical fees shall be deemed to arise in the State in which the permanent establishment is situated.
6
Where by reason of a special relationship between the payer and the
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AI-assisted research summary: If technical fees are paid under a special relationship and exceed the amount that would have been agreed without that relationship, the Article applies only to the lower amount; the excess stays taxable under each Contracting State’s law.

6. Where by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the technical fees paid exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last- mentioned amount. In such case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Agreement. ARTICLE 14 CAPITAL GAINS
1
Section 1
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AI-assisted research summary: Gains from selling certain immovable property in the other Contracting State may be taxed there.

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contract- ing State, may be taxed in that other State.
2
Section 2
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AI-assisted research summary: Gains from selling movable property used in a permanent establishment, including gains from selling the permanent establishment itself, may be taxed in the other State.

2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Con- tracting State has in the other Contracting State, including such gains from the alienation of such a permanent establishment (alone or with the whole enter- prise), may be taxed in that other State.
3
Section 3
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AI-assisted research summary: Gains from selling certain transport vehicles and related movable property used in international traffic are taxable only in the Contracting State where the place of effective management is situated.

3. Gains from the alienation of ships, boats, aircraft or rail or road trans- port vehicles operated in international traffic or movable property pertaining to the operation of such ships, boats, aircraft or rail or road transport vehicles, shall be taxable only in the Contracting State in which the place of effective manage- ment is situated.
4
Section 4
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AI-assisted research summary: The other Contracting State may tax gains from selling shares if the seller is a resident of a Contracting State and the shares get more than 50% of their value from immovable property in that other State.

4. Gains derived by a resident of a Contracting State from the alienation of shares deriving more than 50 per cent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State.
5
Gains from the alienation of any property other than that referred to in
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AI-assisted research summary: Gains from selling property covered by this rule are taxable only in the Contracting State where the seller is resident.

5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident.
6
Notwithstanding the provisions of paragraph 5, gains from the alienation
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AI-assisted research summary: Gains from selling certain shares or corporate rights may be taxed in the first-mentioned State if the seller moved to the other Contracting State within the last two years.

6. Notwithstanding the provisions of paragraph 5, gains from the alienation of shares or other corporate rights of a company which is a resident of one of the Contracting States derived by an individual who was a resident of that State and who after acquiring such shares or rights has become a resident of the other Contracting State, may be taxed in the first-mentioned State if the alienation of the shares or other corporate rights occur at any time during the two years next following the date on which the individual has ceased to be a resident of that first-mentioned State. ARTICLE 15 INCOME FROM EMPLOYMENt
1
Section 1
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AI-assisted research summary: Employment income of a resident of a Contracting State is taxable only in that State, unless the employment is exercised in the other Contracting State.

1. Subject to the provisions of Articles 16, 18, and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect 80 Statutory Instruments 30th April, 2015 of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
2
Section 2
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AI-assisted research summary: Employment income is taxable only in the first-mentioned State if the listed conditions are met.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: (a) the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in any twelve- month period commencing or ending in the fiscal year concerned; (b) the remuneration is paid by or on behalf of an employer who is not a resident of the other State; and (c) the remuneration is not borne by a permanent establishment which the employer has in the other State.
3
Notwithstanding the preceding provisions of this Article, remuneration
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AI-assisted research summary: Remuneration from certain ship, aircraft, rail, or road vehicle jobs in international traffic may be taxed in the state where the enterprise’s effective management is located.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship, boat, aircraft or rail or road transport vehicle operated in international traffic by an enterprise of a Contracting State may be taxed in the State in which the place of effective management of the enterprise is situated. ARTICLE 16 DIRECTORS’ FEES Directors’ fees and other similar payments derived by a resident of a Contracting State in that person’s capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State. ARTICLE 17 ENTERTAINERS AND SPORTSPERSONS
1
Notwithstanding the provisions of Articles 7 and 15, income derived by
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AI-assisted research summary: Income earned by a resident of a Contracting State from personal entertainer or sportsperson activities in the other Contracting State may be taxed there.

1. Notwithstanding the provisions of Articles 7 and 15, income derived by a resident of a Contracting State as an entertainer such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from that person’s personal activities as such exercised in the other Contracting State, may be taxed in that other State.
2
Where income in respect of personal activities exercised by an entertainer
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AI-assisted research summary: Income from an entertainer’s or sportsperson’s personal activities may be taxed in the Contracting State where those activities are carried out if the income is paid to someone else.

2. Where income in respect of personal activities exercised by an entertainer or a sportsperson in that person’s capacity as such accrues not to the entertainer or sports person but to another person, that income may, notwithstanding the provisions of Articles 7 and 14, be taxed in the Contracting State in which the activities of the entertainer or sports person are exercised.
3
Section 3
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AI-assisted research summary: Income earned by a resident of one Contracting State from activities in the other State is tax-exempt there if the visit is mainly supported by public funds or occurs under a cultural agreement between the Governments.

3. Income derived by a resident of a Contracting State from activities exercised in the other Contracting State as envisaged in paragraphs 1 and 2, shall be exempt from tax in that other State if the visit to that other State is supported wholly or mainly by public funds of the first-mentioned Contracting State, a political subdivision, or a local authority thereof, or takes place under a cultural agreement or arrangement between the Governments of the Contracting States. ARTICLE 18 PENSIONS AND ANNUITIES
1
Subject to the provisions of paragraph 2 of Article 19, pensions and
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AI-assisted research summary: Pensions, similar remuneration, and annuities from one Contracting State paid to a resident of the other may be taxed in the first-mentioned Contracting State, subject to Article 19(2).

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration, and annuities, arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in the first-mentioned Contracting State. 30th April, 2015 Statutory Instruments 81
2
Section 2
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AI-assisted research summary: This provision defines “annuity” as a stated sum paid periodically at stated times during life or over a specified or ascertainable period, in return for adequate and full consideration.

2. The term “annuity” means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or money’s worth.
3
Notwithstanding the provisions of paragraph 1, pensions paid and other
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AI-assisted research summary: Pensions and similar payments under certain public social security schemes are taxable only in that State.

3. Notwithstanding the provisions of paragraph 1, pensions paid and other similar payments made under a public scheme which is part of the social security system of a Contracting State or a political subdivision or a local authority thereof shall be taxable only in that State. ARTICLE 19 GOVERNMENT SERVICE
1
Section 1
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AI-assisted research summary: Pay from a State or local authority for services is taxable only in that State, unless the services are performed in the other Contracting State and the worker is a resident and national there, or moved there solely for the services.

1. (a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State. (b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of rendering the services.
2
Section 2
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AI-assisted research summary: Pensions paid by a Contracting State or its local bodies are taxable only in that State, unless the recipient is a resident and national of the other Contracting State.

2. (a) Any pension paid by, or out of funds created by, a Contracting State or a political sub-division a local authority thereof to an individual in respect of services rendered to that State or sub-division or author- ity shall be taxable only in that State. (b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State. The provisions of Articles 15, 16, 17 and 18 shall apply to
3
Section 3
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AI-assisted research summary: Students, apprentices, and business trainees who are in a Contracting State only for education or training may be exempt from tax there on certain payments from outside that State.

3. salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State or a political sub-division or a local author- ity thereof. STUDENTS, APPRENTICES AND BUSINESS TRAINEES ARTICLE 20 A student, apprentice or business trainee who is present in a Contracting State solely for the purpose of such person’s education or training and who is, or immediately before being so present was, a resident of the other Contracting State, shall be exempt from tax in the first mentioned State on payments received from outside that first-mentioned State for the purposes of such person’s main- tenance, education or training. ARTICLE 21 OTHER INCOME
1
Section 1
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AI-assisted research summary: Certain income items of a resident of a Contracting State are taxable only in that State if they are not covered by the earlier Articles of the Agreement.

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that State.
2
The provisions of paragraph 1 shall not apply to income, other than
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AI-assisted research summary: Paragraph 1 does not apply to certain income when the recipient is a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment there, and the income is effectively connected with that permanent establishment.

2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on 82 Statutory Instruments 30th April, 2015 business in the other Contracting State through a permanent establishment situ- ated therein, and the right or property in respect of which the income is paid is In such case, the effectively connected with such permanent establishment. provisions of Article 7 shall apply.
3
Section 3
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AI-assisted research summary: Income of a resident of a Contracting State that is not covered earlier in the Agreement and arises in the other Contracting State may also be taxed in that other State.

3. Notwithstanding the provisions of paragraphs 1 and 2, items of in- come of a resident of a Contracting State not dealt with in the foregoing Articles of this Agreement and arising in the other Contracting State may also be taxed in that other State. ARTICLE 22 CAPITAL
1
Section 1
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AI-assisted research summary: The other Contracting State may tax capital represented by immovable property in Article 6 when it is owned by a resident of a Contracting State and located in that other State.

1. Capital represented by immovable property referred to in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.
2
Capital represented by movable property forming part of the business
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AI-assisted research summary: Capital tied to a permanent establishment or fixed base may be taxed in the other State.

2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services may be taxed in that other State.
3
Capital represented by ships and aircraft operated in international traffic
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AI-assisted research summary: Capital tied to ships, aircraft, boats, rail transport, road transport, and related movable property is taxable only in the Contracting State where the enterprise’s place of effective management is located.

3. Capital represented by ships and aircraft operated in international traffic and by boats engaged in inland waterways transport, rail or road transport and by movable property pertaining to the operation of such ships, aircraft, boats and rail or road transport shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
4
All other elements of capital of a resident of a Contracting State shall be
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AI-assisted research summary: Capital owned by a resident of a Contracting State is taxable only in that State.

4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State. ARTICLE 23 ELIMINATION OF DOUBLE TAXATION
1
Double taxation shall be eliminated as follows
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AI-assisted research summary: A resident of Zambia may credit Botswana tax paid on Botswana-source income against Zambian tax, but only up to the part of Zambian tax attributable to that income.

1. Double taxation shall be eliminated as follows: (a) In Zambia, where a resident of Zambia derives income from Botswana which may be taxed in Botswana in accordance with the provisions of this Agreement, the amount of the Botswana tax paid in respect of that income shall be allowed as a credit against Zambian tax imposed on that resident. The amount of credit, however, shall not exceed that part of Zambian tax which is appropriate to that income; (b) In Botswana, subject to the provisions of the laws of Botswana re- garding the allowance of a credit against Botswana tax of tax pay- able under the laws of a country outside Botswana, Zambian tax paid under the laws of Zambia and in accordance with this Agree- ment, whether directly or by deduction, on profits or income liable to tax in Zambia shall be allowed as a credit against any Botswana tax payable in respect of the same profits or income by reference to which the Zambian tax is computed. However, the amount of such credit shall not exceed the amount of the Botswana tax payable on that income in accordance with the laws of Botswana.
2
Section 2
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AI-assisted research summary: For paragraph 1, “Zambian tax paid” and “Botswana tax paid” include tax that would have been paid except for certain approved economic development exemptions or reductions.

2. For the purposes of paragraph 1 of this Article, the terms “Zambian tax paid” and “Botswana tax paid” shall be deemed to include the amount of tax which would have been paid in Zambia or in Botswana, as the case may be, but for an exemption or reduction granted in accordance with laws which establish 30th April, 2015 Statutory Instruments 83 schemes for the promotion of economic development in Zambia or Botswana, as the case may be, such schemes having been mutually agreed by the competent authorities of the Contracting States as qualifying for the purposes of this para- graph.
3
Section 3
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AI-assisted research summary: A grant to a resident of the other Contracting State is taxable only in the first-mentioned State if it is given under an agreed economic development scheme.

3. A grant given by a Contracting State or a political sub-division or a local authority thereof to a resident of the other Contracting State in accordance with laws which establish schemes for the promotion of economic development, such schemes having been mutually agreed by the competent authorities of the Contracting States as qualifying for the purposes of this paragraph, shall be taxable only in the first-mentioned State. ARTICLE 24 NON-DISCRIMINATION
1
Section 1
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AI-assisted research summary: Nationals of a Contracting State must not be taxed more heavily, or face more burdensome related requirements, in the other Contracting State than nationals of that other State in the same circumstances.

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.
2
Stateless persons who are residents of a Contracting State shall not be
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AI-assisted research summary: Either Contracting State must not impose more burdensome taxation or related requirements on stateless residents than it applies to nationals in the same circumstances.

2. Stateless persons who are residents of a Contracting State shall not be subjected in either Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of the State concerned in the same circumstances.
3
The taxation on a permanent establishment which an enterprise of a
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AI-assisted research summary: Taxation of a permanent establishment may not be less favourable than taxation on domestic enterprises carrying on the same activities.

3. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.
4
Enterprises of a Contracting State, the capital of which is wholly or
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AI-assisted research summary: Enterprises from one Contracting State with ownership or control from residents of the other Contracting State should not face more burdensome tax treatment than similar local enterprises.

4. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of that first-mentioned State are or may be subjected.
5
Section 5
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AI-assisted research summary: An enterprise of a Contracting State may deduct certain payments to a resident of the other Contracting State when calculating taxable profits, subject to the same conditions as if the payments were made to a resident of the first-mentioned State.

5. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, paragraph 6 of Article 12 and paragraph 6 of Article 13 apply, interest, royalties, technical fees and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first- mentioned State.
6
Section 6
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AI-assisted research summary: This provision says the Article applies to taxes of every kind and description, even if Article 2 would otherwise conflict.

6. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description. ARTICLE 25 MUTUAL AGREEMENT PROCEDURE
1
Section 1
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AI-assisted research summary: A person who thinks they are being taxed contrary to the Agreement may bring the case to the relevant competent authority, and must do so within 3 years of the first notification.

1. Where a person considers that the actions of one or both of the Con- tracting States result or will result for that person in taxation not in accordance 84 Statutory Instruments 30th April, 2015 with the provisions of this Agreement, that person may, irrespective of the remedies provided by the domestic law of those States, present a case to the competent authority of the Contracting State of which the person is a resident or, if the case comes under paragraph 1 of Article 24, to that of the Contracting State of which the person is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accor- dance with the provisions of the Agreement.
2
Section 2
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AI-assisted research summary: The competent authority should try to resolve a justified objection by mutual agreement with the other Contracting State’s competent authority.

2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
3
The competent authorities of the Contracting States shall endeavour to
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AI-assisted research summary: The competent authorities of the Contracting States must try to resolve interpretation or application problems by mutual agreement, and they may also consult together to eliminate double taxation in cases not covered by the Agreement.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of this Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement.
4
The competent authorities of the Contracting States may communicate
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AI-assisted research summary: The competent authorities of the Contracting States may communicate directly to reach agreement, and they may use a joint commission for an oral exchange of opinions when advisable.

4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a joint commission consisting of representatives of the competent authorities of the Contracting States. ARTICLE 26 EXCHANGE OF INFORMATION
1
The competent authorities of the Contracting States shall exchange such
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AI-assisted research summary: The competent authorities of the Contracting States must exchange information that is foreseeably relevant for carrying out the Agreement or for administering or enforcing domestic tax laws, subject to the stated tax-related conditions.

1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed by or on behalf of the Contracting States, insofar as the taxation thereunder is not contrary to the Agreement in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Articles 1 and 2.
2
Any information received under paragraph 1 by a Contracting State
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AI-assisted research summary: Information received by a Contracting State must be kept secret and used only for specified tax-related purposes.

2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
3
Section 3
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AI-assisted research summary: This provision says paragraphs 1 and 2 do not require a Contracting State to take conflicting administrative measures or disclose unavailable or secret information.

3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: (a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public 30th April, 2015 Statutory Instruments 85 policy (ordre public).
4
Section 4
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AI-assisted research summary: If a Contracting State requests information under this Article, the other Contracting State must use its information-gathering measures to obtain it.

4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering mea- sures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
5
Section 5
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AI-assisted research summary: A Contracting State must not refuse to supply information just because the information is held by certain financial or fiduciary entities, or because it relates to ownership interests.

5. In no case shall the provisions of paragraph 3 of this Article be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, trust, foundation, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.
6
The competent authorities shall, through consultation, develop
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AI-assisted research summary: The competent authorities must consult and develop appropriate conditions, methods, and techniques for information exchange matters.

6. The competent authorities shall, through consultation, develop appropriate conditions, methods and techniques concerning the matters respecting which such exchange of information should be made. ARTICLE 27 ASSISTANCE IN COLLECTION OF TAXES
1
The Contracting States shall lend assistance to each other in the collection
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AI-assisted research summary: The Contracting States must help each other collect revenue claims.

1. The Contracting States shall lend assistance to each other in the collection of revenue claims. This assistance is not restricted by Articles 1 and 2. The competent authorities of the Contracting States may by mutual agreement settle the mode of application of this Article.
2
The term “revenue claim” as used in this Article means an amount owed
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AI-assisted research summary: “Revenue claim” means an amount owed for certain taxes, plus related interest, administrative penalties, and collection or conservancy costs.

2. The term “revenue claim” as used in this Article means an amount owed in respect of taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation there under is not contrary to this Agreement or any other instrument to which the Contracting States are parties, as well as interest, administrative penalties and costs of collection or conservancy related to such amount.
3
When a revenue claim of a Contracting State is enforceable under the
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AI-assisted research summary: A Contracting State’s tax claim can be collected by the other Contracting State if it is enforceable, owed by a person who cannot stop its collection, and the first State’s competent authority asks for collection.

3. When a revenue claim of a Contracting State is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of collection by the competent authority of the other Contracting State. That revenue claim shall be collected by that other State in accordance with the provisions of its laws applicable to the enforcement and collection of its own taxes as if the revenue claim were a revenue claim of that other State.
4
When a revenue claim of a Contracting State is a claim in respect of
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AI-assisted research summary: A Contracting State may use conservancy measures to collect a revenue claim, and the other Contracting State’s competent authority must accept and apply those measures on request.

4. When a revenue claim of a Contracting State is a claim in respect of which that State may, under its law, take measures of conservancy with a view to ensure its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of taking measures of conservancy by the competent authority of the other Contracting State. That other State shall take measures of conservancy in respect of that revenue claim in accordance with the provisions of its laws as if the revenue claim were a revenue claim of that other State even if, at the time when such measures are applied, the revenue claim is not enforceable in the first-mentioned State or is owed by a person who has a right to prevent its collection.
5
Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim
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AI-assisted research summary: A revenue claim accepted by a Contracting State is not subject to that State’s time limits or priority rules just because it is a revenue claim, and it also does not get any priority under the other Contracting State’s laws.

5. Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim accepted by a Contracting State for purposes of paragraph 3 or 4 shall not, in that State, be subject to the time limits or accorded any priority applicable to a 86 Statutory Instruments 30th April, 2015 revenue claim under the laws of that State by reason of its nature as such. In addition, a revenue claim accepted by a Contracting State for the purposes of paragraph 3 or 4 shall not, in that State, have any priority applicable to that revenue claim under the laws of the other Contracting State.
6
Section 6
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AI-assisted research summary: Proceedings about a Contracting State’s revenue claim may only be brought before that State’s courts or administrative bodies.

6. Proceedings with respect to the existence, validity or the amount of a revenue claim of a Contracting State shall only be brought before the courts or administrative bodies of that State. Nothing in this Article shall be construed as creating or providing any right to such proceedings before any court or administrative body of the other Contracting State.
7
Where, at any time after a request has been made by a Contracting State
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AI-assisted research summary: If the relevant revenue claim stops qualifying after a request is made but before collection and remittance, the first-mentioned State’s competent authority must promptly notify the other State, and then the first-mentioned State must suspend or withdraw the request if the other State chooses.

7. Where, at any time after a request has been made by a Contracting State under paragraph 3 or 4 and before the other Contracting State has collected and remitted the relevant revenue claim to the first-mentioned State, the relevant revenue claim ceases to be: (a) in the case of a request under paragraph 3, a revenue claim of the first- mentioned State that is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection; or (b) in the case of a request under paragraph 4, a revenue claim of the first- mentioned State in respect of which that State may, under its laws, take measures of conservancy with a view to ensure its collection. The competent authority of the first-mentioned State shall promptly notify the competent authority of the other State of that fact and, at the option of the other State, the first-mentioned State shall either suspend or withdraw its re- quest.
8
Section 8
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AI-assisted research summary: This Article must not be read as requiring a Contracting State to take certain administrative measures or give assistance in the listed situations.

8. In no case shall the provisions of this Article be construed so as to impose on a Contracting State the obligation: (a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; (b) to carry out measures which would be contrary to public policy (ordre public); (c) to provide assistance if the other Contracting State has not pursued all reasonable measures of collection or conservancy, as the case may be, available under its laws or administrative practice; (h) to provide assistance in those cases where the administrative burden for that State is clearly disproportionate to the benefit to be derived by the other Contracting State. ARTICLE 28 MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS Nothing in this Agreement shall effect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements. ARTICLE 29 ENTRY INTO FORCE
1
The Contracting States shall notify each other in writing, through
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AI-assisted research summary: The Contracting States must notify each other in writing, through diplomatic channels, when their required legal procedures for the Agreement’s entry into force are complete.

1. The Contracting States shall notify each other in writing, through diplomatic channels, of the completion of the procedures required by the respective laws for the entry into force of this Agreement. This Agreement shall enter into force on the date of the later of the notifications referred to in paragraph 30th April, 2015 Statutory Instruments 87 1 of this Article.
2
Section 2
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AI-assisted research summary: This provision says when the Agreement starts applying to tax cases: withholding taxes apply to later payments or credits, and other taxes apply later in Zambia and Botswana.

2. The provisions of this Agreement shall apply: (a) with regard to taxes withheld at source, in respect of amounts paid or credited on or after the first day of the second month next following the date which the Agreement enters into force; and (b) with regard to other taxes: (i) (ii) in Zambia, in respect of income derived on or after the first day of April next following the date upon which the Agreement enters into force; and in Botswana, in respect of income derived on or after the first day of July next following the date upon which the Agreement enters into force. ARTICLE 30 TERMINATION
1
This agreement shall remain in force indefinitely but may be terminated
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AI-assisted research summary: The agreement stays in force indefinitely, but either Contracting State may terminate it with written notice.

1. This agreement shall remain in force indefinitely but may be terminated by a Contracting State. Either Contracting States may terminate the Agreement, through the diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year after the expiration of a period of five years after the date of its entry into force.
2
Section 2
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AI-assisted research summary: The Agreement stops applying after notice of termination, with different start dates for withholding tax and other taxes in Zambia and Botswana.

2. In such case, the Agreement shall cease to have effect - (a) with regard to taxes withheld at source, in respect of amounts paid or credited on or after the first day of the second month next following the date upon which the notice of termination is given; (b) with regard to other taxes: (i) in Zambia, in respect of income derived on or after the first day of April next following the date upon which the notice of termination is given; and (ii) in Botswana, in respect of income derived on or after the first day of July next following the date upon which the notice of termination is given. IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement. Done at Lusaka this 9th day of March, 2015 in duplicate, in the English language. HON. O. K. MATAMBO For the Government of the Republic of Botswana HON. A. B.CHIKWANDA, MP, For the Government of the Republic of Zambia EDGAR C. LUNGU, President LUSAKA 15th April, 2015 [MFB/6/8/25] 8(cid:2) Statutory Instruments 30th April, 2015

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