Income Tax (Double Taxation Relief) (Taxes on Income) (The Kingdom of Morocco) Order, 2018

This section gives the Order’s short title.

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Jurisdiction: Zambia
Instrument: Statutory instrument
Citation: SI 6 of 2018
Version: 2 Feb 2018
Language: en
Official source: View official record ↗

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About this statute

This section gives the Order’s short title. The scheduled double taxation agreement applies in Zambia and covers persons who are residents of one or both Contracting States. This provision says the agreement applies to taxes on income imposed by a Contracting State, its political subdivisions, or local authorities. Certain taxes are treated as taxes on income, including taxes on total income, elements of income, gains from property sales, and wages or salaries paid by enterprises. This section says which taxes the Agreement covers in Zambia and Morocco.

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Provisions of Income Tax (Double Taxation Relief) (Taxes on Income) (The Kingdom of Morocco) Order, 2018

Showing 105 of 105

1
This Order may be cited as the Income Tax (Double Taxation
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AI-assisted research summary: This section gives the Order’s short title.

1. This Order may be cited as the Income Tax (Double Taxation Relief) (Taxes on Income) (The Kingdom of Morocco) Order, 2018.
2
The Agreement set out in the schedule to this Order, relating
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AI-assisted research summary: The scheduled double taxation agreement applies in Zambia and covers persons who are residents of one or both Contracting States.

2. The Agreement set out in the schedule to this Order, relating to the relief from double taxation on the income made between the Government of the Republic of Zambia and the Kingdom of Morocco shall have effect in Zambia in accordance with section 74 of the Act. Title Double taxation agreement Copies of this Statutory Instrument can be obtained from the Government Printer, P.O. Box 30136, 10101 Lusaka. Price K36.00 each. 42 Statutory Instruments 2nd February, 2013 SCHEDULE (Paragraph 2) AGREEMENT BETWEEN THE REPUBLIC OF ZAMBIA AND THE KINGDOM OF MOROCCO FORTHE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Republic of Zambia and the Kingdom of Morocco; Desiring to further promote and develop their economic relations by concluding 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 ThisAgreement shall apply to persons who are residents of one or both of the Contracting States. ARTICLE 2 TAXES COVERED

Part

SCHEDULE

1
ThisAgreement shall apply to taxes on income imposed on behalf of a Contracting State
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AI-assisted research summary: This provision says the agreement applies to taxes on income imposed by a Contracting State, its political subdivisions, or local authorities.

1. ThisAgreement shall apply to taxes on income imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.
2
There shall be regarded as taxes on income all taxes imposed on total income, or on
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AI-assisted research summary: Certain taxes are treated as taxes on income, including taxes on total income, elements of income, gains from property sales, and wages or salaries paid by enterprises.

2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property and taxes on the total amounts of wages or salaries paid by enterprises.
3
The existing taxes to which this Agreement shall apply are in particular
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AI-assisted research summary: This section says which taxes the Agreement covers in Zambia and Morocco.

3. The existing taxes to which this Agreement shall apply are in particular: (a) in the case of the Republic of Zambia, the Income Tax(hereinafter referred to as “Zambian tax”); and (b) in the case of the Kingdom of Morocco: (i) (ii) the Income Tax; and the Corporation Tax; (hereinafter referred to as “Moroccan tax”).
4
This Agreement shall apply also to any identical or substantially similar taxes that are
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AI-assisted research summary: This provision extends the Agreement to certain taxes imposed after signature and requires the competent authorities of the Contracting States to notify each other of significant changes to their tax laws.

4. This Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of this 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 that have been made in their respective taxation laws. ARTICLE 3 GENERAL DEFINITIONS
1
For the purposes 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.

1. For the purposes 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 rights or jurisdiction; (b) the term “Morocco” means the Kingdom of Morocco and, when used in a geographical sense, the term “Morocco” includes: (i) the territory of the Kingdom of Morocco, the territorial sea thereof; and (ii) the maritime areas beyond the territorial sea, including the seabed and subsoil thereof (continental shelf) and the exclusive economic zone over which Morocco exercises sovereign rights, in accordance with its domestic 2nd February, 2013 Statutory Instruments 43 laws and international law, for the purposes of exploration and exploitation of the natural resources of such areas; (c) the terms “a Contracting state” and “the other Contracting state” mean the Republic of Zambia or the Kingdom of Morocco as the context requires; (d) the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes; (e) the term “competent authority” means : (i) in the case of Zambia, the Commissioner-General of the Zambia Revenue Authority or the Commissioner-General’s authorised representative; and (ii) in the case of Morocco, the Minister of Finance or his authorised representative; (f) 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; (g) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise which is a resident of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; (h) the term “national” means: (i) any individual possessing the nationality of a Contracting State; or (ii) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State; and (i) The term “person” includes an individual, a company and any other body of persons.
2
As regards the application of this Agreement at any time by a Contracting State, any term
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AI-assisted research summary: If a term is not defined in the Agreement, it takes its meaning under the State’s tax law, unless the context requires otherwise.

2. As regards the application of this Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that 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 other laws of that State. ARTICLE 4 RESIDENT
1
For the purposes of this Agreement, the term “resident of a Contracting State” means any
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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 that person’s domicile, residence, place of incorporation, place of management or any other criterion of a similar nature, and also includes that State and any political subdivision 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.
2
Where by reason of the provisions of paragraph 1 an individual is a resident of both
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AI-assisted research summary: If a person is resident in both Contracting States, the provision uses tie-breaker rules to decide which State they are treated as resident of.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then that individual’s status shall be determined as follows: (a) the individual shall be deemed to be a resident only of the State in which a permanent home is available to that individual; if a permanent home is available to that individual in both States, that individual shall be deemed to be a resident solely of the State with which that individual’s personal and economic relations are closer (centre of vital interests); (b) if sole residence cannot be determined under the provisions of sub paragraph (a), the individual shall be deemed to be a resident only of the State in which that individual has an habitual abode; (c) if the individual has an habitual abode in both States or in neither of them, that individual shall be deemed to be a resident only of the State of which that individual is a national; and 44 Statutory Instruments 2nd February, 2013 (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 individual is a
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AI-assisted research summary: If a non-individual is treated as resident in both Contracting States, the competent authorities must try to agree which state counts as the residence for the Agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to determine by mutual agreement the Contracting State of which such person shall be deemed to be a resident for the purposes of the Agreement, having regard to its place of effective management, the place where it is incorporated or otherwise constituted and any other relevant factors. ARTICLE 5 PERMANENT ESTABLISHMENT
1
For the purposes of this Agreement, the term “permanent establishment” means a fixed
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AI-assisted research summary: This provision defines “permanent establishment” as a fixed place of business through which an enterprise’s business is carried on wholly or partly.

1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2
The term “permanent establishment” includes especially
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AI-assisted research summary: This provision says what counts as a “permanent establishment,” listing several example places and facilities.

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 exploration, extraction or exploitation of natural resources; (g) a sales outlet; and (h) a warehouse put at the disposal of a person providing storage facilities for others.
3
The term “permanent establishment”shall be deemed to include
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AI-assisted research summary: “Permanent establishment” includes certain construction-related sites or projects, and certain resource-exploration installations or structures, only when they last more than six months.

3. The term “permanent establishment”shall be deemed to include: (a) a building site, a construction, assembly or installation project or supervisory activities in connection therewith but only if such site, project or activities last more than six months; (b) an installation or structure used in the exploration for natural resources provided that the installation or structure continues for a period of more than six months.
4
Notwithstanding the preceding provisions of this Article, the term “permanent
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AI-assisted research summary: This provision says certain storage, display, processing, purchasing, information-collection, and preparatory or auxiliary activities 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 or 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 storage or display; (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; (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; (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 – other than an
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AI-assisted research summary: An enterprise is treated as having a permanent establishment in the first-mentioned Contracting State if a non-independent person acts there for it and has authority to conclude contracts, or lacks that authority but habitually keeps and delivers stock of goods there.

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person – other than an agent of an independent status to whom paragraph7 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 2nd February, 2018 Statutory Instruments 45 permanent establishment in the first-mentioned Contracting State in respect of any activities which that person undertakes for the enterprise, if such a person: (a) has and habitually exercises in that State an authority to conclude contracts in the name 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; or (b) has no such authority, but habitually maintains in the first-mentioned State a stock of goods or merchandise from which that person regularly delivers goods or merchandise on behalf of the enterprise.
6
Notwithstanding the preceding provisions of this Article, an insurance enterprise of a
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AI-assisted research summary: An insurance enterprise 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 re-insurance.

6. Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to re-insurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 7 applies.
7
An enterprise of a Contracting State shall not be deemed to have a permanent establishment
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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 or agent, if that person acts in the ordinary course of business.

7. 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. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, and conditions are made or imposed between that enterprise and the agent in their commercial and financial relations which differ from those which would have been made between independent enterprises, that person will not be considered an agent of an independent status within the meaning of this paragraph.
8
The fact that a company which is a resident of a Contracting State controls or is controlled
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AI-assisted research summary: A company’s control relationship with another company 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 or 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 under the law of the
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AI-assisted research summary: This provision defines “immovable property” by reference to the law of the Contracting State where the property is located, lists items included, and excludes ships, boats, and aircraft.

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 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, and aircraft shall not be regarded as immovable property.
3
The provisions of paragraph 1 shall apply to income derived from the direct use, letting
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AI-assisted research summary: Paragraph 1 applies to income from the 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 from immovable
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AI-assisted research summary: Paragraphs 1 and 3 also apply to income from immovable property of an enterprise and to income from immovable property used for independent personal services.

4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services. 46 Statutory Instruments 2nd February, 2018 ARTICLE 7 BUSINESS PROFITS
1
The profits of an enterprise of a Contracting State shall be taxable only in that State
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AI-assisted research summary: An enterprise’s profits are taxable only in its own Contracting State unless it also carries on business in the other Contracting State through a permanent establishment.

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 is attributable to that permanent establishment.
2
Subject to the provisions of paragraph 3, where an enterprise of a Contracting State
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AI-assisted research summary: If a Contracting State’s enterprise operates in the other Contracting State through a permanent establishment, profits are attributed to that 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, deductible business expenses are allowed, but certain payments to the head office or other offices are not.

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 Contracting 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. Like wise, 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 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 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 use its customary profit-apportionment method for a permanent establishment, but the result must follow the Article’s principles, and no profits may be attributed just because the permanent establishment buys goods or merchandise for the enterprise.

4. Insofar 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 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. 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
For the purposes of the preceding paragraphs, the profits to be attributed to the permanent
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AI-assisted research summary: Profits attributed to a permanent establishment are to be determined 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 separately in other Articles of
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AI-assisted research summary: If profits include income handled separately in other Articles, those other Articles are not changed 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 SHIPPING AND AIR TRANSPORT
1
Profits from the operation of ships or aircraft in international traffic shall be taxable only
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AI-assisted research summary: Profits from operating ships or aircraft in international traffic are taxable only in the Contracting State where the enterprise is resident.

1. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State of which the enterprise is a resident.
2
For the purposes of this Article, profits derived by an enterprise of a Contracting State
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AI-assisted research summary: For this Article, certain shipping, aircraft, and container rental profits are treated as included profits if they are incidental to the paragraph 1 profits.

2. For the purposes of this Article, profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall include: 2nd February, 2018 Statutory Instruments 47 (a) profits derived from the rental on a bare boat basis of ships or aircraft used in international traffic; and (b) profits derived from the use or rental of containers; if such profits are incidental to the profits to which the provisions of paragraph 1 apply.
3
The provisions of paragraph 1 shall also apply to profits from the participation in a pool,
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AI-assisted research summary: Paragraph 1 also applies to profits from participation in a pool, a joint-business, or an international operating agency, but only to the part attributable to the participant’s share in the joint operation.

3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint-business or an international operating agency, but only to so much of the profits so derived as is attributable to the participant in proportion to its share in the joint operation. ARTICLE 9 ASSOCIATED ENTERPRISES
1
Section 1
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AI-assisted research summary: If related enterprises in two Contracting States set non-arm’s-length conditions, profits that would have accrued may be included in the 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.
2
Where a Contracting State includes in the profits of an enterprise of that State – and taxes
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AI-assisted research summary: If profits are taxed in one Contracting State and should have accrued differently under independent-enterprise conditions, 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.
3
The provisions of paragraph 2 shall not apply where judicial, administrative or other legal
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AI-assisted research summary: Paragraph 2 does not apply if legal proceedings end with a final ruling that one of the enterprises is liable to penalty for fraud, gross negligence, or wilful default.

3. The provisions of paragraph 2 shall not apply where judicial, administrative or other legal proceedings have resulted in a final ruling that by actions giving rise to an adjustment of profits under paragraph 1, one of the enterprises concerned is liable to penalty with respect to fraud, gross negligence or wilful default. ARTICLE 10 DIVIDENDS
1
Dividends paid by a company which is a resident of a Contracting State to a resident of
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AI-assisted research summary: Dividends paid by a resident company of one Contracting State to a resident of the other Contracting State may be taxed in that other 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 which the company
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AI-assisted research summary: Dividends may be taxed in the company’s residence state, but if the beneficial owner is resident in the other Contracting State, the tax on the dividends must not exceed 10% of the gross amount.

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 10 per cent of the gross amount of the dividends. The competent authorities of the Contracting States shall settle the mode of application of these limitations by mutual agreement. The provisions of paragraph 2 of this Articleshall not affect the 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,”jouissance”
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AI-assisted research summary: This provision defines “dividends” for this Article.

3. The term “dividends” as used in this Article means income from shares,”jouissance” shares or “jouissance” rights, mining shares, founders’ sharesor other rights,not being debt- claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatmentas income from shares by the laws of the Contracting State of which the company making the distribution is a resident. 48 Statutory Instruments 2nd February, 2018
4
The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the
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AI-assisted research summary: Paragraphs 1 and 2 do not apply to a dividend beneficial owner in the stated business-base connection case; instead, Article 7 or 14 applies.

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, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
5
Where a company which is a resident of a Contracting State derives profits or income
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AI-assisted research summary: A company’s resident-state tax rules here limit the other Contracting State from taxing its dividends or undistributed profits, with stated exceptions.

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 insofar 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 establishmentor a fixed basesituated in that other State, nor subject the company’sundistributed profits to a taxonthe company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.
6
The provisions of this Article shall not apply if it was the main purpose or one of the
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AI-assisted research summary: This Article does not apply if the share or rights transfer was mainly done to take advantage of the Article.

6. The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the shares or other rights in respect of which the dividend is paid to take advantage of this Article by means of that creation or assignment. ARTICLE 11 INTEREST
1
Section 1
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AI-assisted research summary: Interest paid across Contracting States may be taxed in the recipient’s State of residence.

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
However, such interest may also be taxed in the Contracting State in which it arises, and
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AI-assisted research summary: Interest may also be taxed in the source Contracting State, but the tax is capped at 10% of the gross interest if the beneficial owner is resident in the other Contracting State.

2. However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10per 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 limitation.
3
Notwithstanding the provisions of paragraph 1 and 2, interest arising ina contracting
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AI-assisted research summary: Certain government-to-government interest payments are exempt from Zambian or Moroccan tax, and the competent authorities may agree to extend the paragraph to other government institutions.

3. Notwithstanding the provisions of paragraph 1 and 2, interest arising ina contracting state, borne and paid by: (a) the Government of the Republic of Zambia or its political sub-division or a local authority thereof, or its Central Bank, or any agency wholly owned by the Government or its political sub-division or local authority, to the Government of the Kingdom of Morocco or its Central Bank, shall be exempt from Zambian tax; and (b) the Government of the Kingdom of Morocco or its Central Bank to the Government of the Republic of Zambia or a political sub-division or a local authority thereof, or its Central Bank, or any agency wholly owned by the Government, its political sub- division or local authority thereof, shall be exempt from Moroccan tax. The competent authorities of the Contracting States may determine by mutual agreement any other government institution to which this paragraph shall apply.
4
The term “interest” as used in this Article means income from debt-claims of every kind,
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AI-assisted research summary: This article defines “interest” broadly as income from debt-claims, including certain government securities, bonds, debentures, premiums, and prizes, but excludes late-payment penalty charges.

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 purpose of this Article.
5
The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the
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AI-assisted research summary: Paragraphs 1 and 2 do not apply when the interest beneficiary meets the stated business or fixed-base connection tests, and then Article 7 or Article 14 applies instead.

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, or performs in 2nd February, 2018 Statutory Instruments 49 that other State independent personal services from a fixed base situated therein, and the debt- claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such cases, the provisions of Article 7 or Article 14, as the case may be, 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 permanent establishment or fixed base in a Contracting State connected to the debt and the interest is borne by that establishment or base.

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 that person is a resident of a Contracting State or not, has in a Contracting State a permanent establishmentor a fixed basein connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment,or a fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
7
Where, by reason of a special relationship between the payer and the beneficial owner or
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AI-assisted research summary: If interest is inflated because of a special relationship, only the arm’s-length amount is covered by this Article; the excess stays taxable under each Contracting State’s laws.

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.
8
The provisions of this Article shall not apply if it was the main purpose or one of the
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AI-assisted research summary: This Article does not apply when the creation or assignment of the debt claim was mainly done to take advantage of the Article.

8. The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the debt claim in respect of which the interest is paid to take advantage of this Article by means of that creation or assignment. ARTICLE 12 ROYALTIES AND FEES FOR TECHNICAL SERVICES
1
Royalties or fees for technical services arising in a Contracting State and paid to a resident
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AI-assisted research summary: Royalties or fees for technical services from one Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

1. Royalties or fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2
However, notwithstanding the provisions of Article 14, such royalties or fees for technical
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AI-assisted research summary: Royalties or fees for technical services may be taxed in the source Contracting State, but if the beneficial owner is a resident of the other Contracting State, the tax cannot exceed 10% of the gross amount.

2. However, notwithstanding the provisions of Article 14, such royalties or fees for technical services 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 royalties or fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties or fees for technical services.
3
The term “royalties” as used in this Article means payments of any kind received as
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AI-assisted research summary: This provision defines “royalties” as payments made for using, or having the right to use, listed intellectual property, equipment, or know-how.

3. The term “royalties” as used in this Article means payments of any kind received as consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films or films or tapes used for radio or television broadcasting or broadcasting by satellite, cables, optical fibres or similar technology used for public broadcasting, magnetic tapes, discs or laser discs, any software, 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, agricultural or scientific experience (know-how).
4
The term “fees for technical services” as used in this Article means payments of any kind
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AI-assisted research summary: This provision defines “fees for technical services” as payments for managerial, technical, or consultancy services, except payments for services mentioned in article 15.

4. The term “fees for technical services” as used in this Article means payments of any kind received as a consideration for services of a managerial, technical or consultancy nature but does not include payments for services mentioned in article 15.
5
The provisions of paragraphs 1 and 2 of this Article shall not apply if the beneficial
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AI-assisted research summary: The special rule in paragraphs 1 and 2 does not apply in certain connected-business cases involving royalties or technical service fees.

5. The provisions of paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of the royalties or fees for technical services, being a resident of a Contracting State, carries on business in the other contracting state in which the royalties or fees for technical services arise, through a permanent establishment situated therein, or performs in that other Contracting State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties or fees for technical services are paid is effectively connected with such permanent establishment or fixed base. In such cases, the provisions of Article 7 or 14, as the case may be, shall apply. 50 Statutory Instruments 2nd February, 2018
6
Royalties or fees for technical services shall be deemed to arise in a Contracting State
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AI-assisted research summary: Royalties or fees for technical services are treated as arising in a Contracting State based on the payer’s residence, with a separate rule where a permanent establishment or fixed base bears the cost.

6. Royalties or fees for technical services 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 or fees for technical services, whether that person is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties or fees for technical services was incurred and such royalties or fees for technical services are borne by such permanent establishment or fixed base, then such royalties or fees for technical services shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.
7
Where, by reason of a special relationship between the payer and the beneficial owner or
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AI-assisted research summary: If related parties charge royalties or fees for technical services above the 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 royalties or fees for technical services, 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.
8
The provisions of this Article shall not apply if it was the main purpose, or one of the
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AI-assisted research summary: This Article does not apply if a main purpose of the people involved in creating, assigning, or providing the services was to take advantage of the Article.

8. The provisions of this Article shall not apply if it was the main purpose, or one of the main purposes, of any persons concerned with the creation or the assignment of the rights in respect of which the royalties, or the furnishing of services in respect of which fees for technical services, are paid to take advantage of this Article by means of that creation or assignment or that furnishing of services. ARTICLE 13 CAPITAL GAINS
1
Gains derived by a resident of a Contracting State from the alienation of immovable
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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 Contracting State may be taxed in that other State.
2
Gains from the alienation of movable property forming part of the business property of
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AI-assisted research summary: The other State may tax gains from alienating certain movable property tied to a permanent establishment or fixed base.

2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting Stateor of 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, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), or of such fixed base, may be taxed in that other State.
3
Gains derived by an enterprise of a Contracting State operating ships or aircraft in
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AI-assisted research summary: An enterprise of a Contracting State that operates ships or aircraft in international traffic has gains from selling those ships, aircraft, or related movable property taxed only in the State where the enterprise is resident.

3. Gains derived by an enterprise of a Contracting State operating ships or aircraft in international traffic from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State of which the enterprise is a resident.
4
Gains from the alienation of shares of the capital stock of a company, the property of
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AI-assisted research summary: Gains from selling company shares may be taxed in the Contracting State if the company’s property is mainly immovable property there.

4. Gains from the alienation of shares of the capital stock of a company, the property of which consists directly or indirectly principally of immovable property situated in a Contracting State may be taxed in that State.
5
Gains from the alienation of any property other than that referred to in the preceding
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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 the preceding paragraphs of this Article, shall be taxable only in the Contracting State of which the alienator is a resident. ARTICLE 14 INDEPENDENT PERSONAL SERVICES
1
Section 1
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AI-assisted research summary: Income from independent professional activities is taxable only in the resident’s state, unless the other state may tax it under the fixed-base or 183-day rules.

1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed in the other Contracting State— (a) if that resident has a fixed base regularly available in the other Contracting State for the purpose of performing that resident’s activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in the other Contracting State; or 2nd February, 2018 Statutory Instruments 51 (b) if that resident’s stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned; in that case, only so much of the income as is derived from that resident’s activities performed in that other State may be taxed in that other State.
2
The term “professional services” includes especially independent scientific, literary,
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AI-assisted research summary: “Professional services” includes certain independent scientific, literary, artistic, educational, teaching, and professional activities.

2. The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. ARTICLE 15 DEPENDENT PERSONAL SERVICES
1
Subject to the provisions of Articles 16, 18, 19, 20, and 21, salaries, wages and other
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AI-assisted research summary: Employment income of a resident is taxed only in that resident’s Contracting State, unless the work is performed in the other Contracting State.

1. Subject to the provisions of Articles 16, 18, 19, 20, and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect 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
Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a
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AI-assisted research summary: Employment remuneration 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 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; and (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 establishmentor a fixed basewhich the employer has in the other State.
3
Notwithstanding the preceding provisions of this Article, remuneration derived in respect
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AI-assisted research summary: A Contracting State may tax certain employment income from ship or aircraft work in international traffic, and may also tax directors’ fees paid to a resident in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic, may be taxed in the Contracting State of which the employee is a resident. ARTICLE 16 DIRECTORS’ FEES Directors’ fees and 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 14 and 15, income derived by a resident of a
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AI-assisted research summary: Income a resident earns as an entertainer or sportsperson from personal activities in the other Contracting State may be taxed in that other State.

1. Notwithstanding the provisions of Articles 14 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 or a sportsperson
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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 exercised, even if the income goes 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 sportsperson but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised.
3
Section 3
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AI-assisted research summary: Income from activities in the other Contracting State is exempt from tax there if the visit is mainly funded by public funds of the first State, or is under a cultural agreement or arrangement between the two 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 52 Statutory Instruments 2ndFebruary, 2018 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 Pensions and other similar remunerations arising in a Contracting State and paid to a resident of the other Contracting State in consideration of past employment may be taxed in the state in which they arise. ARTICLE 19 GOVERNMENT SERVICE
1
(a) Salaries, wages and other similar remuneration, other than a pension, paid by a
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AI-assisted research summary: Salaries, wages, and similar remuneration for services are taxable only in the specified Contracting State, depending on where the services are rendered and the person's residence and nationality.

1. (a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State; and (b) such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are renderedin 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
(a) Any pensions paid by or out of funds created bya Contracting State or a political
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AI-assisted research summary: Pensions from a Contracting State or its subdivision/local authority are taxable only in that State, unless the recipient is a resident and national of the other Contracting State.

2. (a) Any pensions paid by or out of funds created bya Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State; and (b) such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that other State.
3
The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages, pensionsand
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AI-assisted research summary: Articles 15 to 18 apply to certain remuneration linked to business carried on by a Contracting State or its subdivisions, and some student or apprentice payments are exempt from tax if the stated residence, purpose, and source conditions are met.

3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages, pensionsand other similar remunerationin respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof. ARTICLE 20 STUDENTS AND BUSINESS APPRENTICES Payments which a student or business apprentice, who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of that student’s or business apprentice’s education or training, receives for the purpose of that student’s or business apprentice’s maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State. ARTICLE 21 PROFESSORSAND TEACHERS
1
A professor or teacher who makes a temporary visit to one of the Contracting Statesfor a
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AI-assisted research summary: A professor or teacher on a temporary visit for up to two years to teach or do research in a Contracting State is exempt from tax there on the related remuneration, if the pay comes from outside that State.

1. A professor or teacher who makes a temporary visit to one of the Contracting Statesfor a period not exceeding two yearsfrom the date of first arrival in that State, solely for the purpose of teachingor carrying out researchat a university, college, school or other educational institution in that Stateand who is, or immediately before such visit was, a resident of the other Contracting State shall, in respect of remuneration for such teaching or research, be exempt from tax in the first-mentioned State, provided that such remuneration is derivedby the professor or teacherfrom outside that State.
2
The provisions of this Article shall not apply to income from research if such research is
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AI-assisted research summary: This Article does not apply to income from research when the research is not in the public interest and is mainly for the private benefit of a specific person or persons.

2. The provisions of this Article shall not apply to income from research if such research is undertaken not in the public interest but wholly or mainly for the private benefit of a specific person or persons. 2nd February, 2018 Statutory Instruments 53 ARTICLE 22 OTHER INCOME
1
Section 1
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AI-assisted research summary: Income of a resident of a Contracting State is taxable only in that State if it is not dealt with in 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
Section 2
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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 and the income is connected with a permanent establishment or fixed base in the other Contracting State.

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 business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. ARTICLE 23 ELIMINATION OF DOUBLE TAXATION
1
Where a resident of a Contracting State derives income which, in accordance with the
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AI-assisted research summary: If a resident of a Contracting State has income that may be taxed in the other Contracting State, the first-mentioned State must allow a deduction for income tax paid there.

1. Where a resident of a Contracting State derives income which, in accordance with the provisions of this Agreement, may be taxed in the other Contracting State, the first-mentioned State shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in that other State.Such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in that other State.
2
Where in accordance with any provisions of this Agreementincome derived by a resident
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AI-assisted research summary: If income is exempt from tax under the Agreement, the State may still count that exempt income when working out tax on the resident’s remaining income.

2. Where in accordance with any provisions of this Agreementincome derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. ARTICLE 24 NON-DISCRIMINATION
1
Nationals of a Contracting State shall not be subjected in the other Contracting State to
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AI-assisted research summary: Nationals of a Contracting State must not be taxed in the other Contracting State more heavily than nationals of that other State in similar 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 subjected in either
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AI-assisted research summary: Stateless residents of a Contracting State must not be taxed, or made subject to related requirements, on terms more burdensome than those applied 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, in particular with respect to residence, are or may be subjected.
3
The taxation on a permanent establishment which an enterprise of a Contracting State has
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AI-assisted research summary: Tax on a permanent establishment in the other Contracting State must not be less favourable than the tax on enterprises in that State doing 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
Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11,
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AI-assisted research summary: An enterprise may deduct certain payments to a resident of the other Contracting State when calculating taxable profits, unless specified Article 9, 11, or 12 provisions apply.

4. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, paragraph 7 of Article 12 apply, interest, royalties, fees for technical services 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.
5
Enterprises of a Contracting State, the capital of which is wholly or partly owned or
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AI-assisted research summary: Covered enterprises must not be taxed more heavily, or face more burdensome connected requirements, than similar domestic enterprises in the first-mentioned State.

5. 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 54 Statutory Instruments 2nd February, 2018 which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
6
The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to
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AI-assisted research summary: This section says the Article applies to taxes of every kind and description, despite Article 2.

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
Where a person considers that the actions of one or both of the Contracting States result
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AI-assisted research summary: A person who thinks the Contracting States have taxed them contrary to the Agreement may present a case to the competent authority, and must do so within three years from first notification.

1. Where a person considers that the actions of one or both of the Contracting States result or will result for that person in taxation not in accordance 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 that person is a resident or, if the case comes under paragraph 1 of Article 24, to that of the Contracting State of which that personis a national.The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement.
2
The competent authority shall endeavour, if the objection appears to it to be justified
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AI-assisted research summary: The competent authority should try to settle a justified objection by mutual agreement with the other Contracting State’s competent authority, and any agreement reached must be implemented even if domestic time limits have expired.

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 this 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 resolve by mutual
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AI-assisted research summary: The competent authorities of the Contracting States should try to resolve interpretation or application problems by mutual agreement, and may consult to remove 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 thisAgreement. 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 with each other
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AI-assisted research summary: The competent authorities of the Contracting States may communicate directly with each other, including through a joint commission.

4. The competent authorities of the Contracting States may communicate with each other directly, including through a joint commission consisting of themselves or their representatives for the purpose of reaching an agreement in the sense of the preceding paragraphs. ARTICLE 26 EXCHANGE OF INFORMATION
1
The competent authorities of the Contracting States shall exchange such information as is
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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 administering or enforcing domestic tax laws.

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 on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to this Agreement. The exchange of information is not restricted by Articles 1and 2.
2
Any information received under paragraph 1 by a Contracting State shall be treated as
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AI-assisted research summary: Information received under paragraph 1 must be kept secret and used only for specified tax-related purposes; limited disclosure is allowed in public court proceedings or judicial decisions.

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 paragraph 3 cannot be used to require a Contracting State to take certain administrative actions or disclose protected 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; and 2nd February, 2018 Statutory Instruments 55 (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 policy (ordre public).
4
Section 4
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AI-assisted research summary: When one Contracting State requests information under this Article, the other Contracting State must use its information-gathering measures to obtain it, even if it does not need the information for its own tax purposes.

4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures 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 may not refuse to supply information just because it is held by certain financial or fiduciary intermediaries, or because it relates to ownership interests.

5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person. ARTICLE 27 ASSISTANCE IN THE COLLECTION OF TAXES
1
The Contracting States shall lend assistance to each other in the collection of revenue
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AI-assisted research summary: The Contracting States must assist each other in collecting revenue claims, and their competent authorities may agree on how this article works.

1. The Contracting States shall lend assistance to each other in the collection of revenue claims. This assistance is not restricted by Articles 1and 2.The competent authorities of the Contracting States may by mutual agreement settle the mode of application of this Article.
2
Section 2
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AI-assisted research summary: This article defines “revenue claim” as certain tax-related amounts, including 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 laws of that State
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AI-assisted research summary: If a revenue claim meets the stated conditions, the competent authority of the other Contracting State must accept it for collection and collect it under its own tax enforcement rules.

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 which that State may,
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AI-assisted research summary: A Contracting State’s revenue claim may have to be accepted by the other Contracting State’s competent authority for conservancy measures, and that other State must apply its own laws to take those measures.

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 therequest 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 areapplied, 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 accepted by a
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AI-assisted research summary: A revenue claim accepted for paragraph 3 or 4 is not subject to certain time limits or priority rules in that State.

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 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
Proceedings with respect to the existence, validity or the amount of a revenue claim of a
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AI-assisted research summary: Proceedings about the existence, validity, or amount of a revenue claim of one Contracting State must not be brought before the courts or administrative bodies of the other Contracting State.

6. Proceedings with respect to the existence, validity or the amount of a revenue claim of a Contracting State shall not be brought before the courts or administrative bodies of the other Contracting State.
7
Where, at any time after a request has been made by a Contracting State under paragraph
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AI-assisted research summary: If a covered revenue claim later stops meeting the stated conditions, the first-mentioned State’s competent authority must promptly tell the other State, and the first-mentioned State may have to suspend or withdraw the request if the other State chooses that option.

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: 56 Statutory Instruments 2nd February, 2018 (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 request.
8
Section 8
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AI-assisted research summary: The article says a Contracting State is not required to take certain administrative or assistance measures, and the agreement does not affect diplomatic or consular fiscal privileges.

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; and (d) 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. ARTICLE28 MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS Nothing in this Agreement shall affect 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
Each of the Contracting States shall notify to the other, in writing, through diplomatic
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AI-assisted research summary: Each Contracting State must notify the other, in writing and through diplomatic channels, when it has completed the procedures needed to bring the Agreement into force.

1. Each of the Contracting States shall notify to the other, in writing, through diplomatic channels, the completion of procedures required by its law for the bringing into force of this Agreement.
2
This Agreement shall enter into force on the date of receipt of the later of these notifications
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AI-assisted research summary: This Agreement enters into force when the later of the two notifications is received.

2. This Agreement shall enter into force on the date of receipt of the later of these notifications and its provisions shall have effect— (a) in respect of taxes withheld at source, on amounts paid or credited, on or after the first day of January of the calendar year following that in which this Agreement enters into force; and (b) in respect of other taxes, for any taxable year or period beginning on or after the first day of January of the calendar year following that in which this Agreement enters into force. ARTICLE 30 TERMINATION
1
This Agreement shall remain in force until terminated by a Contracting State. Either
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AI-assisted research summary: The Agreement stays in force until a Contracting State terminates it.

1. This Agreement shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Agreement through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year after the fifth year following the year in which the Agreementhas entered into force. In such case, the Agreement shall cease to have effect— (a) in respect of taxes withheld at source, on amounts paid or credited, on or after the first day of January of the calendar year following that in which such notice is given; and (b) in respect of other taxes, for any taxable year or period beginning on or after the first day of January of the calendar year following that in which such notice is given. 2nd February, 2018 Statutory Instruments 57 IN WITNESS WHEREOF, the undersigned, duly authorised thereto by their respective Governments, have signed this Agreement. Done in duplicate at ————————————, this —————— day of —————— 20——— in the English and Arabic languages, both texts being equally authentic. In case of divergence of interpretation, the English text shall prevail. FOR THE GOVERNMENT OF THE REPUBLIC OF ZAMBIA FOR THE GOVERNMENT OF THE KINGDOM OF MOROCCO ……………………………………. ……………………………… Felix C. Mutati MINISTER OF FINANCE Saadia EL. Alaoul AMBASSADOR OF MOROCCO EDGAR C. LUNGU, President LUSAKA 25th January , 2018 [MFB.6/8/21] 58 Statutory Instruments 2nd February, 2018

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