Canada–Namibia Tax Convention Act, 2013 (S.C. 2013, c. 27, s. 2)

At the time of signing of the Convention between Canada and the Republic of Namibia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital, the undersigned have agreed upon the following provisions which shall be an integral part of the Convention.

• 1 With reference to subparagraph (d) of paragraph 1 of Article 3 of the Convention, it is understood that the reference to any other body of persons includes a reference to a partnership.

• 2 With reference to Article 13 of the Convention:

  • (a) the provisions of paragraph 5 thereof shall not affect the right of a Contracting State to levy, according to its law, a tax on gains from the alienation of any property derived by an individual who is a resident of the other Contracting State and has been a resident of the first-mentioned State at any time during the six years immediately preceding the alienation of the property.

  • (b) should Namibia amend its domestic tax laws to provide for the taxation of capital gains realized on the alienation of property, the following provision shall also apply:

    “Where an individual, who ceases to be a resident of a Contracting State, and immediately thereafter, becomes a resident of the other Contracting State, is treated for the purposes of taxation in the first-mentioned State as having alienated a property and is taxed in that State by reason thereof, the individual may elect to be treated for purposes of taxation in the other State as if the individual had, immediately before becoming a resident of that State, sold and repurchased the property for an amount equal to its fair market value at that time. However, this provision shall not apply to property, any gain from which that other State could have taxed in accordance with the provisions of Article 13 of the Convention if the individual had realized the gain before becoming a resident of that other State. The competent authorities of the Contracting States may consult to determine the application of this paragraph.”

• 3 Nothing in this Convention shall be construed as preventing a Contracting State from imposing on the earnings of a company attributable to a permanent establishment in that State, or the earnings attributable to the alienation of immovable property situated in that State by a company carrying on a trade in immovable property, a tax in addition to the tax that would be chargeable on the earnings of a company that is a national of that State, except that any additional tax so imposed shall not exceed 5 per cent of the amount of such earnings that have not been subjected to such additional tax in previous tax years.

IN WITNESS WHEREOF the undersigned, duly authorised to that effect by their respective Governments, have signed this Protocol.

DONE in duplicate at Windhoek, this 25th day of March 2010, in the English and French languages, each version being equally authentic.