Member Article

It should be noted that international double taxation is an obstacle to commercial relations and the free movement of goods, services, people and capital. The need to eliminate it has become even more decisive in the current economic and international context dominated as it is by new technologies, by the Internet and by globalisation. In regulating the right of the countries involved to impose taxes in a determined situation, it is possible to avoid the transfer of income and capital for mere tax purposes and to strengthen ties (economics and others) between the States in question.

It is, therefore, hoped that these new agreements entered into with the said countries will contribute to increasing trade between the countries involved and to a fairer division of the respective powers to raise taxes.

With the news of the approval by the Council of Ministers of the said Agreements and the said Conventions, an up-to-date list of all the Conventions to avoid double taxation entered into by Portugal is annexed to this note.

TABLE OF THE CONVENTIONS TO AVOID DOUBLE TAXATION ENTERED INTO BY PORTUGAL

IMPORTANT NOTE:

The Conventions to Avoid Double Taxation (DTCs) entered into by Portugal, in accordance with the OECD model, should only be applied when the entities paying the income are in possession of the duly completed forms authenticated by the respective tax authority, in compliance with the provisions of art. 98 of the IRC (corporate income tax) Code and art. 18 of Decree-Law no. 42/91 of 22 January, approved by Order in Council no. 4743-A/2008, of the Minister of State for Finances, published in D.R. no. 37, II Series, of 21 February 2008, taking into account Amendment no. 427-A/2008, published in D.R. no. 43, of 29 February 2008.