Resolução

Resolução da Assembleia da República n.º 13/2006

Aprova a Convenção entre a República Portuguesa e a República da Turquia para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o Rendimento, assinada em Lisboa em 11 de Maio de 2005

Capítulo I - Âmbito de aplicação da convenção

Artigo 1.º

Pessoas visadas

Esta Convenção aplica-se às pessoas residentes de um ou de ambos os Estados Contratantes.

Artigo 2.º

Impostos visados

1 -Esta Convenção aplica-se aos impostos sobre o rendimento exigidos por cada um dos Estados Contratantes, suas subdivisões políticas ou administrativas e suas autarquias locais, seja qual for o sistema usado para a sua cobrança.
2 -São considerados impostos sobre o rendimento os impostos incidentes sobre o rendimento total ou sobre parcelas do rendimento, incluídos os impostos sobre os ganhos derivados da alienação de bens mobiliários ou imobiliários, os impostos sobre o montante global dos salários pagos pelas empresas, bem como os impostos sobre as mais-valias.
3 -Os impostos actuais a que esta Convenção se aplica são, nomeadamente:
1. a)Relativamente a Portugal:
  1. i)O imposto sobre o rendimento das pessoas singulares - (IRS);
  2. ii)O imposto sobre o rendimento das pessoas colectivas - (IRC); e
  3. iii)O imposto local sobre o imposto sobre o rendimento das pessoas colectivas (Derrama);
    (a seguir referidos pela designação de «imposto português»);
2. b)Relativamente à Turquia:
  1. i)O imposto sobre o rendimento (Gelir Vergisi);
  2. ii)O imposto sobre as sociedades (Kurumlar Vergisi);
  3. iii)A tributação incidente sobre o imposto sobre o rendimento e o imposto sobre as sociedades (Gelir Ve Kurumlar Vergisi üzerinden alinan fon payi);
    (a seguir referidos pela designação de «imposto turco»).
4 -A Convenção será também aplicável aos impostos de natureza idêntica ou substancialmente similar que entrem em vigor posteriormente à data da assinatura da Convenção e que venham a acrescer aos actuais ou a substituí-los. As autoridades competentes dos Estados Contratantes comunicarão uma à outra as modificações importantes introduzidas nas respectivas legislações fiscais.

Capítulo II - Definições

Artigo 3.º

Definições gerais

1 -Para efeitos desta Convenção, a não ser que o contexto exija interpretação diferente:
1. a)O termo «Portugal» significa o território português, o mar territorial e bem assim as áreas marítimas relativamente aos quais a República Portuguesa exerce jurisdição ou direitos de soberania para efeitos da prospecção, exploração e conservação dos recursos naturais, nos termos da legislação internacional;
2. b)O termo «Turquia» significa o território turco, o mar territorial e bem assim as áreas marítimas relativamente aos quais a Turquia exerce jurisdição ou direitos de soberania para efeitos da prospecção, exploração e conservação dos recursos naturais, nos termos da legislação internacional;
3. c)As expressões «um Estado Contratante» e «o outro Estado Contratante» significam Portugal ou a Turquia, consoante resulte do contexto;
4. d)O termo «pessoa» compreende uma pessoa singular, uma sociedade e qualquer outro agrupamento de pessoas;
5. e)O termo «sociedade» significa qualquer pessoa colectiva ou qualquer entidade que é tratada como pessoa colectiva para fins tributários;
6. f)As expressões «empresa de um Estado Contratante» e «empresa do outro Estado Contratante» significam, respectivamente, uma empresa explorada por um residente de um Estado Contratante e uma empresa explorada por um residente do outro Estado Contratante;
7. g)A expressão «tráfego internacional» significa qualquer transporte por navio, aeronave ou veículo de transporte rodoviário explorado por uma empresa de um Estado Contratante, excepto se o navio, aeronave ou veículo de transporte rodoviário for explorado somente entre lugares situados no outro Estado Contratante;
8. h)A expressão «autoridade competente» significa:
  1. i)Relativamente a Portugal, o Ministro das Finanças, o director-geral dos Impostos ou o seu representante autorizado;
  2. ii)Relativamente à Turquia, o Ministro das Finanças ou o seu representante autorizado;
9. i)O termo «nacional» designa:
  1. i)Qualquer pessoa singular que tenha a nacionalidade de um Estado Contratante;
  2. ii)Qualquer pessoa colectiva, sociedade de pessoas ou associação constituída de harmonia com a legislação em vigor num Estado Contratante.
2 -No que se refere à aplicação da Convenção, num dado momento, por um Estado Contratante, qualquer expressão não definida de outro modo deverá ter, a não ser que o contexto exija interpretação diferente, o significado que lhe for atribuído nesse momento pela legislação desse Estado que regula os impostos a que a Convenção se aplica, prevalecendo a interpretação resultante desta legislação fiscal sobre a que decorre de outra legislação desse Estado.

Artigo 4.º

Residente

1 -Para efeitos desta Convenção, a expressão «residente de um Estado Contratante» significa qualquer pessoa que, por virtude da legislação desse Estado, está aí sujeita a imposto devido ao seu domicílio, à sua residência, à sua sede, ao local de direcção ou a qualquer outro critério de natureza similar e aplica-se igualmente a esse Estado e às suas subdivisões políticas ou administrativas ou autarquias locais. Todavia, esta expressão não inclui qualquer pessoa que está sujeita a imposto nesse Estado apenas relativamente ao rendimento de fontes localizadas nesse Estado.
2 -Quando, por virtude do disposto no n.º 1, uma pessoa singular for residente de ambos os Estados Contratantes, a situação será resolvida como segue:
1. a)Será considerada residente apenas do Estado em que tenha uma habitação permanente à sua disposição. Se tiver uma habitação permanente à sua disposição em ambos os Estados, será considerada residente apenas do Estado com o qual sejam mais estreitas as suas relações pessoais e económicas (centro dos interesses vitais);
2. b)Se o Estado em que tem o centro de interesses vitais não puder ser determinado ou se não tiver uma habitação permanente à sua disposição em nenhum dos Estados, será considerada residente apenas do Estado em que permaneça habitualmente;
3. c)Se permanecer habitualmente em ambos os Estados ou se não permanecer habitualmente em nenhum deles, será considerada residente apenas do Estado de que for nacional;
4. d)Se for nacional de ambos os Estados, ou se não for nacional de nenhum deles, as autoridades competentes dos Estados Contratantes resolverão o caso de comum acordo.
3 -Quando, em virtude do disposto no n.º 1 do presente artigo, uma pessoa que não seja uma pessoa singular for residente de ambos os Estados Contratantes, será considerada residente apenas do Estado em que estiver situada a sua direcção efectiva. Contudo, se o local da direcção efectiva não puder ser determinado, as autoridades competentes dos Estados Contratantes resolverão através de acordo amigável qual o Estado de que a referida pessoa é considerada residente para efeitos da presente Convenção.

Artigo 5.º

Estabelecimento estável

1 -Para efeitos desta Convenção, a expressão «estabelecimento estável» significa uma instalação fixa através da qual a empresa exerce toda ou parte da sua actividade.
2 -A expressão «estabelecimento estável» compreende, nomeadamente:
1. a)Um local de direcção;
2. b)Uma sucursal;
3. c)Um escritório;
4. d)Uma fábrica;
5. e)Uma oficina;
6. f)Uma mina, um poço de petróleo ou gás, uma pedreira ou qualquer outro local de extracção de recursos naturais.
3 -Um local ou um estaleiro de construção, um projecto de construção, de instalação ou de montagem ou as actividades de supervisão com eles conexas só constituem um estabelecimento estável se a sua duração exceder nove meses.
4 -Não obstante as disposições anteriores deste artigo, a expressão «estabelecimento estável» não compreende:
1. a)As instalações utilizadas unicamente para armazenar, expor ou entregar bens ou mercadorias pertencentes à empresa;
2. b)Um depósito de bens ou de mercadorias pertencentes à empresa mantido unicamente para os armazenar, expor ou entregar;
3. c)Um depósito de bens ou mercadorias pertencentes à empresa mantido unicamente para serem transformados por outra empresa;
4. d)Uma instalação fixa mantida unicamente para comprar bens ou mercadorias ou reunir informações para a empresa;
5. e)Uma instalação fixa mantida unicamente para exercer para a empresa qualquer outra actividade de carácter preparatório ou auxiliar;
6. f)Uma instalação fixa mantida unicamente para o exercício de qualquer combinação das actividades referidas nas alíneas a) a e), desde que a actividade de conjunto da instalação fixa resultante desta combinação seja de carácter preparatório ou auxiliar.
5 -Não obstante o disposto nos n.os 1 e 2, quando uma pessoa que não seja um agente independente a que é aplicável o n.º 6 actue num Estado Contratante por conta de uma empresa do outro Estado Contratante, considera-se que essa empresa possui um estabelecimento estável no primeiro Estado mencionado desde que essa pessoa:
1. a)Tenha e habitualmente exerça num Estado Contratante poderes para concluir contratos em nome da empresa, a não ser que as suas actividades se limitem exclusivamente às actividades mencionadas no n.º 4, as quais, se fossem exercidas através de uma instalação fixa, não permitiriam considerar esta instalação fixa como um estabelecimento estável, de acordo com as disposições desse número; ou
2. b)Não detenha esses poderes mas mantenha habitualmente no primeiro Estado mencionado um depósito de bens ou de mercadorias a partir do qual efectue entregas regulares de bens ou de mercadorias em nome da empresa e exerça qualquer outra actividade que contribua para a venda de bens ou de mercadorias.
6 -Não se considera que uma empresa tem um estabelecimento estável num Estado Contratante pelo simples facto de exercer a sua actividade nesse Estado por intermédio de um corretor, de um comissário geral ou de qualquer outro agente independente, desde que essas pessoas actuem no âmbito normal da sua actividade.
7 -O facto de uma sociedade residente de um Estado Contratante controlar ou ser controlada por uma sociedade residente do outro Estado Contratante ou que exerce a sua actividade nesse outro Estado (quer seja através de um estabelecimento estável quer de outro modo) não é, só por si, bastante para fazer de qualquer dessas sociedades estabelecimento estável da outra.

Capítulo III - Tributação dos rendimentos

Artigo 6.º

Rendimentos dos bens imobiliários

1 -Os rendimentos que um residente de um Estado Contratante aufira de bens imobiliários (incluídos os rendimentos das explorações agrícolas ou florestais) situados no outro Estado Contratante podem ser tributados nesse outro Estado.
2 -A expressão «bens imobiliários» terá o significado que lhe for atribuído pelo direito do Estado Contratante em que tais bens estiverem situados. A expressão compreende sempre os acessórios, o gado e o equipamento das explorações agrícolas (incluindo a piscicultura) e florestais, os direitos a que se apliquem as disposições do direito privado relativas à propriedade de bens imóveis, o usufruto de bens imobiliários e os direitos a retribuições variáveis ou fixas pela exploração ou pela concessão da exploração de jazigos minerais, fontes e outros recursos naturais; os navios, aeronaves e veículos de transporte rodoviário não são considerados bens imobiliários.
3 -O disposto no n.º 1 aplica-se aos rendimentos derivados da utilização directa, do arrendamento ou de qualquer outra forma de utilização dos bens imobiliários.
4 -O disposto nos n.os 1 e 3 aplica-se igualmente aos rendimentos provenientes dos bens imobiliários de uma empresa e aos rendimentos dos bens imobiliários utilizados para o exercício de profissões independentes.

Artigo 7.º

Lucros das empresas

1 -Os lucros de uma empresa de um Estado Contratante só podem ser tributados nesse Estado, a não ser que a empresa exerça a sua actividade no outro Estado Contratante por meio de um estabelecimento estável aí situado. Se a empresa exercer a sua actividade deste modo, os seus lucros podem ser tributados no outro Estado mas unicamente na medida em que sejam imputáveis a esse estabelecimento estável.
2 -Com ressalva do disposto no n.º 3, quando uma empresa de um Estado Contratante exercer a sua actividade no outro Estado Contratante por meio de um estabelecimento estável aí situado, serão imputados, em cada Estado Contratante, a esse estabelecimento estável os lucros que este obteria se fosse uma empresa distinta e separada que exercesse as mesmas actividades ou actividades similares, nas mesmas condições ou em condições similares, e tratasse com absoluta independência com a empresa de que é estabelecimento estável.
3 -Na determinação do lucro de um estabelecimento estável, é permitido deduzir as despesas que tiverem sido feitas para realização dos fins prosseguidos por esse estabelecimento estável, incluindo as despesas de direcção e as despesas gerais de administração, efectuadas com o fim referido, quer no Estado em que esse estabelecimento estável estiver situado quer fora dele.
4 -Nenhum lucro será imputado a um estabelecimento estável pelo facto da simples compra de bens ou de mercadorias, por esse estabelecimento estável, para a empresa.
5 -Quando os lucros compreendam elementos do rendimento especialmente tratados noutros artigos desta Convenção, as respectivas disposições não serão afectadas pelas deste artigo.

Artigo 8.º

Transporte marítimo, aéreo e rodoviário

1 -Os lucros de uma empresa de um Estado Contratante provenientes da exploração de navios, aeronaves ou veículos de transporte rodoviário no tráfego internacional só podem ser tributados nesse Estado.
2 -O disposto no n.º 1 é aplicável igualmente aos lucros provenientes da participação num pool, numa exploração em comum ou num organismo internacional de exploração.

Artigo 9.º

Empresas associadas

1 -Quando:
1. a)Uma empresa de um Estado Contratante participar, directa ou indirectamente, na direcção, no controlo ou no capital de uma empresa do outro Estado Contratante; ou
2. b)As mesmas pessoas participarem, directa ou indirectamente, na direcção, no controlo ou no capital de uma empresa de um Estado Contratante e de uma empresa do outro Estado Contratante;
e, em ambos os casos, as duas empresas, nas suas relações comerciais ou financeiras, estiverem ligadas por condições aceites ou impostas que difiram das que seriam estabelecidas entre empresas independentes, os lucros que, se não existissem essas condições, teriam sido obtidos por uma das empresas, mas não o foram por causa dessas condições, podem ser incluídos nos lucros dessa empresa e, consequentemente, tributados.
2 -Quando um Estado Contratante incluir nos lucros de uma empresa desse Estado - e tributar nessa conformidade - os lucros pelos quais uma empresa do outro Estado Contratante foi tributada nesse outro Estado, e os lucros incluídos deste modo constituírem lucros que teriam sido obtidos pela empresa do primeiro Estado, se as condições acordadas entre as duas empresas tivessem sido as condições que teriam sido estabelecidas entre empresas independentes, o outro Estado procederá ao ajustamento adequado do montante do imposto aí cobrado sobre os lucros referidos se esse outro Estado considerar o ajustamento justificado. Na determinação deste ajustamento serão tomadas em consideração as outras disposições desta Convenção e as autoridades competentes dos Estados Contratantes consultar-se-ão, se necessário.

Artigo 10.º

Dividendos

1 -Os dividendos pagos por uma sociedade residente de um Estado Contratante a um residente do outro Estado Contratante podem ser tributados nesse outro Estado.
2 -Esses dividendos podem, no entanto, ser igualmente tributados no Estado Contratante de que é residente a sociedade que paga os dividendos e de acordo com a legislação desse Estado, mas se o beneficiário efectivo dos dividendos for um residente do outro Estado Contratante o imposto assim estabelecido não excederá:
1. a)5% do montante bruto dos dividendos pagos se o seu beneficiário efectivo for uma sociedade (com excepção de uma sociedade de pessoas) que, durante um período consecutivo de dois anos antes do pagamento dos dividendos, ou no caso de a sociedade que paga os dividendos existir há menos de dois anos, durante a vigência da sociedade, detenha directamente pelo menos 25% do capital social da sociedade que paga os dividendos; ou
2. b)15% do montante bruto dos dividendos nos restantes casos.
  As autoridades competentes dos Estados Contratantes estabelecerão, de comum acordo, a forma de aplicar estes limites. Este número não afecta a tributação da sociedade pelos lucros a partir dos quais os dividendos são pagos.
3 -O termo «dividendos», usado neste artigo, significa os rendimentos provenientes de acções, acções ou bónus de fruição, partes de fundador ou outros direitos, com excepção dos créditos, que permitam participar nos lucros, assim como os rendimentos derivados de outras partes sociais sujeitos ao mesmo regime fiscal que os rendimentos de acções pela legislação do Estado de que é residente a sociedade que os distribui.
4 -Os lucros de uma sociedade de um Estado Contratante que exerce actividade no outro Estado Contratante através de um estabelecimento estável aí situado depois de tributados nos termos do artigo 7.º podem ser tributados sobre o montante remanescente no Estado Contratante em que está situado o estabelecimento estável e em conformidade com as disposições da legislação interna desse Estado, mas o imposto assim estabelecido não poderá exceder 5% desse montante.
5 -O disposto nos n.os 1 e 2 não é aplicável se o beneficiário efectivo dos dividendos, residente de um Estado Contratante, exercer actividade no outro Estado Contratante de que é residente a sociedade que paga os dividendos, por meio de um estabelecimento estável aí situado, ou exercer nesse outro Estado uma profissão independente, por meio de uma instalação fixa aí situada, e a participação relativamente à qual os dividendos são pagos estiver efectivamente ligada a esse estabelecimento estável ou a essa instalação fixa. Nesse caso, são aplicáveis as disposições do artigo 7.º ou do artigo 14.º, consoante o caso.
6 -Com ressalva do disposto no n.º 4, quando uma sociedade residente de um Estado Contratante obtiver lucros ou rendimentos provenientes do outro Estado Contratante, esse outro Estado não pode exigir nenhum imposto sobre os dividendos pagos pela sociedade, excepto na medida em que esses dividendos forem pagos a um residente desse outro Estado ou na medida em que a participação relativamente à qual os dividendos são pagos estiver efectivamente ligada a um estabelecimento estável ou a uma instalação fixa situados nesse outro Estado, nem sujeitar os lucros não distribuídos da sociedade a um imposto sobre os lucros não distribuídos, mesmo que os dividendos pagos ou os lucros não distribuídos consistam, total ou parcialmente, em lucros ou rendimentos provenientes desse outro Estado.

Artigo 11.º

Juros

1 -Os juros provenientes de um Estado Contratante e pagos a um residente do outro Estado Contratante podem ser tributados nesse outro Estado.
2 -No entanto, esses juros podem ser igualmente tributados no Estado Contratante de que provêm e de acordo com a legislação desse Estado, mas se o beneficiário efectivo dos juros for um residente do outro Estado Contratante, o imposto assim estabelecido não excederá:
1. a)10% do montante bruto dos juros, desde que estes sejam pagos em conexão com um empréstimo realizado por um período superior a dois anos;
2. b)15% do montante bruto dos juros, nos restantes casos.
3 -Não obstante o disposto no n.º 2:
1. a)O Banco Central da Turquia está isento do imposto português relativamente aos juros com fonte em Portugal;
2. b)O Banco Central de Portugal está isento do imposto turco relativamente aos juros com fonte na Turquia;
3. c)O Governo, as subdivisões políticas ou administrativas, ou as autarquias locais de um dos Estados Contratantes estão isentos de imposto no outro Estado Contratante relativamente aos juros com fonte nesse outro Estado.
4 -O termo «juros», usado neste artigo, significa os rendimentos de créditos de qualquer natureza com ou sem garantia hipotecária e com direito ou não a participar nos lucros do devedor, e, nomeadamente, os rendimentos da dívida pública e de obrigações de empréstimos, incluindo prémios atinentes a esses títulos.
5 -O disposto nos n.os 1 e 2 não é aplicável se o beneficiário efectivo dos juros, residente de um Estado Contratante, exercer actividade no outro Estado Contratante de que provêm os juros, por meio de um estabelecimento estável aí situado, ou exercer nesse outro Estado uma profissão independente, por meio de uma instalação fixa aí situada, e o crédito relativamente ao qual os juros são pagos estiver efectivamente ligado a esse estabelecimento estável ou a essa instalação fixa. Nesse caso, são aplicáveis as disposições do artigo 7.º ou do artigo 14.º, consoante o caso.
6 -Os juros consideram-se provenientes de um Estado Contratante quando o devedor for um residente desse Estado. Todavia, quando o devedor dos juros, seja ou não residente de um Estado Contratante, tiver num Estado Contratante um estabelecimento estável ou uma instalação fixa em relação com os quais haja sido contraída a obrigação pela qual os juros são pagos e esse estabelecimento estável ou essa instalação fixa suporte o pagamento desses juros, tais juros são considerados provenientes do Estado em que o estabelecimento estável ou a instalação fixa estiverem situados.
7 -Quando, devido a relações especiais existentes entre o devedor e o beneficiário efectivo ou entre ambos e qualquer outra pessoa, o montante dos juros, tendo em conta o crédito pelo qual são pagos, exceder o montante que seria acordado entre o devedor e o beneficiário efectivo na ausência de tais relações, as disposições deste artigo são aplicáveis apenas a este último montante. Nesse caso, o excesso pode continuar a ser tributado de acordo com a legislação de cada Estado Contratante, tendo em conta as outras disposições desta Convenção.

Artigo 12.º

Royalties

1 -As royalties provenientes de um Estado Contratante e pagas a um residente do outro Estado Contratante podem ser tributadas nesse outro Estado.
2 -No entanto, essas royalties podem ser igualmente tributadas no Estado Contratante de que provêm e de acordo com a legislação desse Estado, mas se o beneficiário efectivo das royalties for um residente do outro Estado Contratante, o imposto assim estabelecido não poderá exceder 10% do montante bruto das royalties.
3 -O termo «royalties», usado neste artigo, significa as retribuições de qualquer natureza pagas pelo uso ou pela concessão do uso de um direito de autor sobre uma obra literária, artística ou científica, incluindo os filmes cinematográficos bem como os filmes ou gravações para transmissão pela rádio ou televisão, de uma patente, de uma marca de fabrico ou de comércio, de um desenho ou de um modelo, de um plano, de uma fórmula ou de um processo secretos, bem como pelo uso ou pela concessão do uso de um equipamento industrial, comercial ou científico, ou por informações respeitantes a uma experiência adquirida no sector industrial, comercial ou científico.
4 -O disposto nos n.os 1 e 2 não é aplicável se o beneficiário efectivo das royalties, residente de um Estado Contratante, exercer actividade no outro Estado Contratante de que provêm as royalties, por meio de um estabelecimento estável aí situado, ou exercer nesse outro Estado uma profissão independente, por meio de uma instalação fixa aí situada, e o direito ou bem relativamente ao qual as royalties são pagas estiver efectivamente ligado a esse estabelecimento estável ou a essa instalação fixa. Nesse caso, são aplicáveis as disposições do artigo 7.º ou do artigo 14.º, consoante o caso.
5 -As royalties consideram-se provenientes de um Estado Contratante quando o devedor for um residente desse Estado. Todavia, quando o devedor das royalties, seja ou não residente de um Estado Contratante, tiver num Estado Contratante um estabelecimento estável ou uma instalação fixa em ligação com os quais haja sido contraída a obrigação que dá origem ao pagamento das royalties e esse estabelecimento estável ou essa instalação fixa suporte o pagamento dessas royalties, tais royalties são consideradas provenientes do Estado Contratante em que o estabelecimento estável ou a instalação fixa estiverem situados.
6 -Quando, devido a relações especiais existentes entre o devedor e o beneficiário efectivo das royalties ou entre ambos e qualquer outra pessoa, o montante das royalties, tendo em conta o uso, o direito ou as informações pelos quais são pagas, exceder o montante que seria acordado entre o devedor e o beneficiário efectivo na ausência de tais relações, as disposições deste artigo são aplicáveis apenas a este último montante. Nesse caso, o excedente pode continuar a ser tributado de acordo com a legislação de cada Estado Contratante, tendo em conta as outras disposições desta Convenção.

Artigo 13.º

Mais-valias

1 -Os ganhos que um residente de um Estado Contratante aufira da alienação de bens imobiliários considerados no artigo 6.º e situados no outro Estado Contratante podem ser tributados nesse outro Estado.
2 -Os ganhos provenientes da alienação de bens mobiliários que façam parte do activo de um estabelecimento estável que uma empresa de um Estado Contratante tenha no outro Estado Contratante ou de bens mobiliários afectos a uma instalação fixa de que um residente de um Estado Contratante disponha no outro Estado Contratante para o exercício de uma profissão independente, incluindo os ganhos provenientes da alienação desse estabelecimento estável (isolado ou com o conjunto da empresa) ou dessa instalação fixa, podem ser tributados nesse outro Estado.
3 -Os ganhos que uma empresa de um Estado Contratante aufira da alienação de navios, aeronaves ou veículos de transporte rodoviário utilizados no tráfego internacional, ou de bens mobiliários afectos à exploração desses navios, aeronaves ou veículos de transporte rodoviário, só podem ser tributados nesse Estado.
4 -Os ganhos provenientes da alienação de quaisquer outros bens diferentes dos mencionados nos n.os 1, 2 e 3 deste artigo só podem ser tributados no Estado Contratante de que o alienante é residente.
5 -O disposto no n.º 4 não afectará o direito de um Estado Contratante, ao abrigo da respectiva legislação interna, de cobrar imposto sobre os ganhos auferidos por um residente do outro Estado da alienação de acções representativas de uma participação de mais de 25% do capital social de uma sociedade residente do primeiro Estado mencionado se a alienação tiver lugar relativamente a um residente do primeiro Estado mencionado e se o prazo decorrido entre a aquisição e a alienação não exceder um ano.

Artigo 14.º

Profissões independentes

1 -Os rendimentos obtidos por um residente de um Estado Contratante pelo exercício de serviços profissionais ou de outras actividades de carácter independente só podem ser tributados nesse Estado. No entanto, esses rendimentos podem ser igualmente tributados no outro Estado Contratante se os referidos serviços ou actividades forem exercidos nesse outro Estado e se:
1. a)Esse residente dispuser de forma habitual, no outro Estado, de uma instalação fixa para o exercício desses serviços ou dessas actividades; ou
2. b)Esse residente permanecer no outro Estado Contratante com vista ao exercício desses serviços ou dessas actividades durante um período ou períodos cuja duração total seja igual ou superior a 183 dias em qualquer período consecutivo de 12 meses.
  Nestas circunstâncias, só pode ser tributada nesse outro Estado a fracção dos rendimentos imputável a essa instalação fixa ou derivada dos serviços ou das actividades exercidos durante a sua permanência nesse outro Estado, consoante o caso.
2 -Os rendimentos obtidos por uma empresa de um Estado Contratante pelo exercício de serviços profissionais ou de outras actividades de carácter independente só podem ser tributados nesse Estado. No entanto, esses rendimentos podem ser igualmente tributados no outro Estado Contratante se os referidos serviços ou actividades forem exercidos nesse outro Estado e se:
1. a)Essa empresa dispuser de forma habitual, no outro Estado, de um estabelecimento estável para o exercício dos seus serviços ou das suas actividades; ou
2. b)O período ou períodos durante os quais os serviços são prestados exceder no total 183 dias em qualquer período consecutivo de 12 meses.
  Nestas circunstâncias, só pode ser tributada nesse outro Estado a fracção dos rendimentos imputável a esse estabelecimento estável ou aos serviços ou actividades exercidos nesse outro Estado, consoante o caso. Em qualquer dos casos, a empresa pode optar por ser tributada nesse outro Estado relativamente a esses rendimentos em conformidade com o disposto no artigo 7.º da presente Convenção, como se os rendimentos fossem imputáveis a um estabelecimento estável da empresa situado nesse outro Estado. Esta opção não afecta o direito desse outro Estado de proceder a uma retenção de imposto sobre os referidos rendimentos.
3 -A expressão «serviços profissionais» abrange, em especial, as actividades independentes de carácter científico, literário, artístico, educativo ou pedagógico, bem como as actividades independentes de médicos, advogados, engenheiros, arquitectos, dentistas e contabilistas, bem como outras actividades que requeiram aptidões profissionais específicas.

Artigo 15.º

Profissões dependentes

1 -Com ressalva do disposto nos artigos 16.º, 18.º, 19.º, 20.º e 21.º, os salários, vencimentos e outras remunerações similares obtidos de um emprego por um residente de um Estado Contratante só podem ser tributados nesse Estado a não ser que o emprego seja exercido no outro Estado Contratante. Se o emprego for aí exercido, as remunerações correspondentes podem ser tributadas nesse outro Estado.
2 -Não obstante o disposto no n.º 1, as remunerações obtidas por um residente de um Estado Contratante de um emprego exercido no outro Estado Contratante só podem ser tributadas no primeiro Estado mencionado se:
1. a)O beneficiário permanecer no outro Estado durante um período ou períodos que não excedam, no total, 183 dias em qualquer período de 12 meses com início ou termo no ano civil em causa;
2. b)As remunerações forem pagas por uma entidade patronal ou em nome de uma entidade patronal que não seja residente do outro Estado; e
3. c)As remunerações não forem suportadas por um estabelecimento estável ou por uma instalação fixa que a entidade patronal tenha no outro Estado.
3 -Não obstante as disposições anteriores deste artigo, as remunerações de um emprego exercido a bordo de um navio, de uma aeronave ou de um veículo de transporte rodoviário explorados no tráfego internacional por uma empresa de um Estado Contratante podem ser tributadas nesse Estado.

Artigo 16.º

Percentagens de membros de conselhos

As percentagens, senhas de presença e remunerações similares obtidas por um residente de um Estado Contratante na qualidade de membro do conselho de administração ou do conselho fiscal de uma sociedade residente do outro Estado Contratante, ou na qualidade de membro de qualquer outro órgão que exerça funções análogas na sociedade, podem ser tributadas nesse outro Estado.

Artigo 17.º

Artistas e desportistas

1 -Não obstante o disposto nos artigos 14.º e 15.º, os rendimentos obtidos por um residente de um Estado Contratante na qualidade de profissional de espectáculos, tal como artista de teatro, cinema, rádio ou televisão, ou músico, bem como de desportista, provenientes das suas actividades pessoais exercidas nessa qualidade no outro Estado Contratante, podem ser tributados nesse outro Estado.
2 -Não obstante o disposto nos artigos 7.º, 14.º e 15.º, os rendimentos da actividade exercida pessoalmente pelos profissionais de espectáculos ou desportistas, nessa qualidade, atribuídos a uma outra pessoa, podem ser tributados no Estado Contratante em que são exercidas essas actividades dos profissionais de espectáculos ou dos desportistas.
3 -Os rendimentos obtidos da actividade exercida pelos profissionais de espectáculos ou desportistas num Estado Contratante ficam isentos de imposto nesse Estado se a deslocação a esse Estado for financiada na totalidade ou na sua maior parte através de fundos públicos do outro Estado Contratante ou de uma sua subdivisão política ou administrativa ou de uma sua autarquia local.

Artigo 18.º

Pensões

Com ressalva do disposto no n.º 2 do artigo 19.º, as pensões e outras remunerações similares pagas a um residente de um Estado Contratante em consequência de um emprego anterior só podem ser tributadas nesse Estado. Esta disposição é igualmente aplicável às rendas vitalícias pagas a um residente de um Estado Contratante.

Artigo 19.º

Remunerações públicas

1 -a) Os salários, vencimentos e outras remunerações similares, excluindo as pensões, pagos por um Estado Contratante ou por uma sua subdivisão política ou administrativa ou autarquia local a uma pessoa singular em consequência de serviços prestados a esse Estado ou essa subdivisão ou autarquia só podem ser tributados nesse Estado.
1. b)Os salários, vencimentos e outras remunerações similares só podem, contudo, ser tributados no outro Estado Contratante se os serviços forem prestados nesse Estado e se a pessoa singular for um residente desse Estado:
  1. i)Sendo seu nacional; ou
  2. ii)Que não se tornou seu residente unicamente para o efeito de prestar os ditos serviços.
2 -a) As pensões pagas por um Estado Contratante ou por uma sua subdivisão política ou administrativa ou autarquia local, quer directamente quer através de fundos por elas constituídos, a uma pessoa singular em consequência de serviços prestados a esse Estado ou a essa subdivisão ou autarquia só podem ser tributadas nesse Estado.
1. b)Estas pensões só podem, contudo, ser tributadas no outro Estado Contratante se a pessoa singular for um residente e um nacional desse Estado.
3 -O disposto nos artigos 15.º, 16.º, 17.º e 18.º aplica-se aos salários, vencimentos e outras remunerações similares, e às pensões, pagos em consequência de serviços prestados em relação com uma actividade industrial ou comercial exercida por um Estado Contratante ou por uma sua subdivisão política ou administrativa ou autarquia local.

Artigo 20.º

Professores e investigadores

Um indivíduo que é ou foi residente de um Estado Contratante imediatamente antes de se deslocar ao outro Estado Contratante com o fim exclusivo de ensino ou de investigação científica numa universidade, colégio, escola ou outra instituição similar de ensino ou de investigação científica, reconhecida como sendo destituída de fins lucrativos pelo Governo desse outro Estado, ou ao abrigo de um programa oficial de intercâmbio cultural, durante um período não excedente a dois anos a contar da data da sua primeira deslocação a esse Estado, fica isento de imposto nesse outro Estado relativamente à remuneração obtida em consequência desse ensino ou investigação.

Artigo 21.º

Estudantes

1 -As importâncias que um estudante ou um estagiário que é, ou foi, imediatamente antes da sua permanência num Estado Contratante, residente do outro Estado Contratante e cuja permanência no Estado primeiramente mencionado tem como único fim os seus estudos ou a sua formação receba para fazer face às despesas com a sua manutenção, estudos ou formação não são tributadas no primeiro Estado mencionado desde que provenham de fontes situadas fora desse Estado.
2 -As remunerações que um estudante ou um estagiário que é, ou foi, imediatamente antes da sua permanência num Estado Contratante residente do outro Estado Contratante, receba de um emprego exercido no primeiro Estado mencionado durante um período ou períodos não excedentes a 183 dias num ano civil com o propósito de adquirir experiência prática relacionada com a sua educação ou formação não são tributadas nesse Estado.

Artigo 22.º

Outros rendimentos

1 -Os elementos do rendimento de um residente de um Estado Contratante, donde quer que provenham, não tratados nos artigos anteriores da presente Convenção só podem ser tributados nesse Estado.
2 -O disposto no n.º 1 não se aplica ao rendimento, que não seja rendimento de bens imobiliários como são definidos no n.º 2 do artigo 6.º, auferido por um residente de um Estado Contratante que exerce actividade industrial ou comercial no outro Estado Contratante por meio de um estabelecimento estável nele situado ou que exerce nesse outro Estado uma profissão independente através de uma instalação fixa nele situada, estando o direito ou a propriedade em relação ao qual o rendimento é pago efectivamente ligado com esse estabelecimento estável ou instalação fixa. Nesse caso, são aplicáveis as disposições do artigo 7.º ou do artigo 14.º, consoante o caso.

Capítulo IV - Eliminação da dupla tributação

Artigo 23.º

Eliminação da dupla tributação

1 -No caso de Portugal, a dupla tributação é evitada do seguinte modo:
1. a)Quando um residente de Portugal obtiver rendimentos que, de acordo com o disposto nesta Convenção, possam ser tributados na Turquia, Portugal deduzirá do imposto sobre os rendimentos desse residente uma importância igual ao imposto sobre o rendimento pago na Turquia. A importância deduzida não poderá, contudo, exceder a fracção do imposto sobre o rendimento, calculado antes da dedução, correspondente aos rendimentos que podem ser tributados em Portugal;
2. b)Quando, de acordo com o disposto nesta Convenção, o rendimento obtido por um residente de Portugal for isento de imposto neste Estado, Portugal poderá, não obstante, ao calcular o quantitativo do imposto sobre o resto dos rendimentos desse residente ter em conta o rendimento isento;
3. c)Não obstante o disposto na alínea a), quando uma sociedade (com excepção de uma sociedade de pessoas) residente de Portugal recebe dividendos de uma sociedade residente da Turquia e que não está isenta do imposto sobre as sociedades na Turquia, Portugal concederá uma dedução relativa a 95% desses dividendos incluídos na base tributável da sociedade que recebe os dividendos desde que a sociedade residente de Portugal seja uma sociedade que, durante um período consecutivo de dois anos antes do pagamento dos dividendos, ou no caso de a sociedade que paga os dividendos existir há menos de dois anos durante a vigência da sociedade, detenha directamente pelo menos 25% do capital social da sociedade que paga os dividendos.
2 -No caso da Turquia, a dupla tributação é evitada do seguinte modo:
1. a)Com ressalva do disposto na legislação da Turquia relativamente à concessão do crédito respeitante ao imposto exigível num território situado fora da Turquia e a imputar no imposto turco, o imposto português exigível nos termos da legislação portuguesa e de acordo com a presente Convenção, relativamente ao rendimento (incluindo os lucros e ganhos tributáveis) auferido por um residente da Turquia de fontes situadas em Portugal, será deduzido do imposto turco que incide sobre esse rendimento. A importância deduzida não poderá, contudo, exceder o montante do imposto turco, calculado antes da dedução, imputável a esse rendimento;
2. b)Quando, de acordo com o disposto nesta Convenção, o rendimento obtido por um residente da Turquia for isento de imposto na Turquia, a Turquia poderá, não obstante, ao calcular o quantitativo do imposto sobre o resto dos rendimentos desse residente ter em conta o rendimento isento.

Capítulo V - Disposições especiais

Artigo 24.º

Não discriminação

1 -Os nacionais de um Estado Contratante não ficarão sujeitos no outro Estado Contratante a nenhuma tributação ou obrigação com ela conexa diferente ou mais gravosa do que aquelas a que estejam ou possam estar sujeitos os nacionais desse outro Estado que se encontrem na mesma situação, em especial no que se refere à residência. Não obstante o estabelecido no artigo 1.º, esta disposição aplicar-se-á também às pessoas que não são residentes de um ou de ambos os Estados Contratantes.
2 -Com ressalva do disposto no n.º 4 do artigo 10.º, a tributação de um estabelecimento estável que uma empresa de um Estado Contratante tenha no outro Estado Contratante não será nesse outro Estado menos favorável do que a das empresas desse outro Estado que exerçam a mesma actividade.
3 -Salvo se for aplicável o disposto no n.º 1 do artigo 9.º, no n.º 7 do artigo 11.º ou no n.º 6 do artigo 12.º, os juros, royalties e outras importâncias pagas por uma empresa de um Estado Contratante a um residente do outro Estado Contratante serão dedutíveis, para efeitos da determinação do lucro tributável de tal empresa, como se tivessem sido pagas a um residente do primeiro Estado mencionado.
4 -As empresas de um Estado Contratante cujo capital, total ou parcialmente, directa ou indirectamente, seja possuído ou controlado por um ou mais residentes do outro Estado Contratante não ficarão sujeitas, no primeiro Estado mencionado, a nenhuma tributação ou obrigação com ela conexa diferente ou mais gravosa do que aquelas a que estejam ou possam estar sujeitas as empresas similares desse primeiro Estado.
5 -Estas disposições não poderão ser interpretadas no sentido de obrigar um Estado Contratante a conceder aos residentes do outro Estado Contratante as deduções pessoais, abatimentos e reduções para efeitos fiscais, atribuídos em função do estado civil ou encargos familiares, concedidos aos seus próprios residentes.
6 -As disposições do presente artigo aplicar-se-ão aos impostos abrangidos pela presente Convenção.

Artigo 25.º

Procedimento amigável

1 -Quando uma pessoa considerar que as medidas tomadas por um ou por ambos os Estados Contratantes conduzem ou poderão conduzir, em relação a si, a uma tributação não conforme com o disposto nesta Convenção, poderá, independentemente dos recursos estabelecidos pela legislação nacional desses Estados, submeter o seu caso à autoridade competente do Estado Contratante de que é residente ou, se o seu caso está compreendido no n.º 1 do artigo 24.º, à do Estado Contratante de que é nacional. O caso deverá ser apresentado dentro de três anos a contar da data da primeira notificação da medida que der causa à tributação não conforme com o disposto na presente Convenção.
2 -Essa autoridade competente, se a reclamação se lhe afigurar fundada e não estiver em condições de lhe dar uma solução satisfatória, esforçar-se-á por resolver a questão através de acordo amigável com a autoridade competente do outro Estado Contratante, a fim de evitar a tributação não conforme com o disposto na presente Convenção. O acordo alcançado será aplicado independentemente dos prazos estabelecidos no direito interno dos Estados Contratantes.
3 -As autoridades competentes dos Estados Contratantes esforçar-se-ão por resolver, através de acordo amigável, as dificuldades ou dúvidas a que possa dar lugar a interpretação ou a aplicação da Convenção.
4 -As autoridades competentes dos Estados Contratantes poderão comunicar directamente entre si, inclusivamente através de uma comissão mista constituída por essas autoridades ou pelos seus representantes, a fim de chegarem a acordo nos termos indicados nos números anteriores.

Artigo 26.º

Troca de informações

1 -As autoridades competentes dos Estados Contratantes trocarão entre si as informações necessárias para aplicar as disposições desta Convenção ou as das leis internas dos Estados Contratantes relativas aos impostos abrangidos por esta Convenção, na medida em que a tributação nelas prevista não seja contrária a esta Convenção. As informações obtidas por um Estado Contratante serão consideradas secretas, do mesmo modo que as informações obtidas com base na legislação interna desse Estado, e só poderão ser comunicadas às pessoas ou autoridades (incluindo tribunais e autoridades administrativas) encarregadas do lançamento, cobrança ou execução dos impostos abrangidos por esta Convenção, do exercício da acção criminal ou de decisão de recursos relativos a estes impostos. Essas pessoas ou autoridades utilizarão as informações assim obtidas apenas para os fins referidos. Essas informações poderão ser utilizadas no caso de audiências públicas de tribunais ou de sentença judicial.
2 -O disposto no n.º 1 nunca poderá ser interpretado no sentido de impor a um Estado Contratante a obrigação:
1. a)De tomar medidas administrativas contrárias à sua legislação ou à sua prática administrativa ou às do outro Estado Contratante;
2. b)De fornecer informações que não possam ser obtidas com base na sua legislação ou no âmbito da sua prática administrativa normal ou das do outro Estado Contratante;
3. c)De transmitir informações reveladoras de segredos ou processos comerciais, industriais ou profissionais ou informações cuja comunicação seja contrária à ordem pública.

Artigo 27.º

Membros de missões diplomáticas e de postos consulares

O disposto na presente Convenção não prejudicará os privilégios fiscais de que beneficiem os membros de missões diplomáticas ou de postos consulares em virtude das regras gerais de direito internacional ou de disposições de acordos especiais.

Capítulo VI - Disposições finais

Artigo 28.º

Entrada em vigor

1 -Cada um dos Estados Contratantes notificará o outro Estado Contratante do cumprimento dos respectivos requisitos constitucionais necessários à entrada em vigor da presente Convenção. A presente Convenção entrará em vigor na data da última das notificações supracitadas.
2 -As disposições da presente Convenção aplicar-se-ão:
1. a)Em Portugal:
  1. i)Aos impostos devidos na fonte cujo facto gerador surja em, ou a partir de, 1 de Janeiro do ano imediatamente seguinte ao da entrada em vigor da Convenção;
  2. ii)Aos demais impostos, relativamente aos rendimentos com origem em qualquer ano fiscal com início em, ou a partir de, 1 de Janeiro do ano imediatamente seguinte ao da entrada em vigor da Convenção;
2. b)Na Turquia - aos impostos relativos ao período fiscal com início em, ou a partir de, 1 de Janeiro imediatamente seguinte à data da entrada em vigor da Convenção e subsequentes períodos fiscais.

Artigo 29.º

Denúncia

1 -A presente Convenção permanecerá em vigor enquanto não for denunciada por um Estado Contratante. Qualquer Estado Contratante pode denunciar a Convenção por via diplomática, mediante um aviso prévio mínimo de seis meses antes do fim de qualquer ano civil a contar do 5.º ano subsequente à data da entrada em vigor da Convenção.
2 -Nesse caso, a Convenção deixará de se aplicar:
1. a)Em Portugal:
  1. i)Aos impostos devidos na fonte cujo facto gerador surja em, ou a partir de, 1 de Janeiro do ano imediatamente seguinte ao mencionado no referido aviso de denúncia;
  2. ii)Aos demais impostos, relativamente aos rendimentos com origem no ano fiscal com início em, ou a partir de, 1 de Janeiro do ano imediatamente seguinte ao mencionado no referido aviso de denúncia;
2. b)Na Turquia - aos impostos relativos a qualquer período fiscal com início em, ou a partir de, 1 de Janeiro do ano imediatamente seguinte ao mencionado no referido aviso de denúncia.
  Em testemunho do qual os abaixo assinados, devidamente autorizados para o efeito, assinaram a presente Convenção.
  Feito em duplicado, em Lisboa, aos 11 dias do mês de Maio de 2005, nas línguas portuguesa, turca e inglesa, sendo os três textos igualmente autênticos. Em caso de divergência na interpretação ou na aplicação da presente Convenção, prevalecerá o texto inglês.
  Pela República Portuguesa:
  Luís Campos e Cunha, Ministro de Estado e das Finanças.
  Pela República da Turquia:
  Ali Tuygan, Subsecretário do Ministério dos Negócios Estrangeiros.
  PROTOCOLO
  No momento de proceder à assinatura da Convenção para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o Rendimento, celebrada na presente data entre a República Portuguesa e a República da Turquia, os abaixo assinados acordaram nas seguintes disposições complementares, que fazem parte integrante da Convenção:
  Ad artigo 6.º
  No que se refere ao artigo 6.º, entende-se que as respectivas disposições se aplicam igualmente aos rendimentos derivados de bens mobiliários associados (pessoais) e da prestação de serviços destinados à manutenção ou utilização de bens imobiliários (propriedade imobiliária).
  Ad artigo 8.º
  No que se refere ao n.º 2 do artigo 8.º, entende-se que as disposições do referido número incluem os lucros de um consórcio ou de uma forma de associação similar, correspondente à participação detida no consórcio ou na associação por uma sociedade residente de um Estado Contratante.
  Ad artigo 10.º
  No que se refere ao n.º 3 do artigo 10.º, entende-se que a expressão «dividendos» inclui igualmente: no caso de Portugal, os lucros atribuídos em virtude de um contrato de participação nos lucros (associação em participação); no caso da Turquia, o rendimento obtido de um fundo de investimento e de um fideicomisso de investimento (trust).
  Ad artigo 12.º
  Para efeitos do n.º 3 do artigo 12.º, entende-se que a expressão «royalties» inclui os ganhos obtidos do uso dos referidos direitos ou bens, no caso de alienação desses direitos ou bens, na medida em que tais ganhos sejam dependentes da produtividade, da utilização ou da disposição dos mesmos.
  Ad artigo 14.º
  No que se refere ao n.º 2 do artigo 14.º, entende-se que se uma empresa de um Estado Contratante optar pela tributação no outro Estado Contratante nos termos do disposto no artigo 7.º da presente Convenção, a retenção de imposto efectuada nesse outro Estado sobre o rendimento dessa empresa pode ser deduzida do imposto calculado sobre o rendimento determinado de acordo com o disposto no artigo 7.º da presente Convenção.
  Ad artigo 25.º
  No que se refere ao n.º 2 do artigo 25.º, entende-se que o contribuinte deverá requerer o reembolso resultante do referido acordo amigável dentro do prazo previsto na legislação interna, depois de notificado pela administração fiscal quanto ao resultado do acordo amigável.
  Em testemunho do qual os signatários, devidamente autorizados para o efeito, assinaram o presente Protocolo.
  Feito em duplicado, em Lisboa, aos 11 dias do mês de Maio de 2005, nas línguas portuguesa, turca e inglesa, sendo os três textos igualmente autênticos. Em caso de divergência na interpretação ou na aplicação do presente Protocolo, prevalecerá o texto inglês.
  Pela República Portuguesa:
  Luís Campos e Cunha, Ministro de Estado e das Finanças.
  Pela República da Turquia:
  Ali Tuygan, Subsecretário do Ministério dos Negócios Estrangeiros.
  (ver texto em língua turca no documento original)
  CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE REPUBLIC OF TURKEY FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.
  The Portuguese Republic and the Republic of Turkey, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows:
  CHAPTER I
  Scope of the convention
  Article 1
  Persons covered
  This Convention shall apply to persons who are residents of one or both of the Contracting States.
  Article 2
  Taxes covered
1 -This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its political or administrative subdivisions or local authorities, irrespective of the manner in which they are levied.
2 -There shall be regarded as taxes on income taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
3 -The existing taxes to which the Convention shall apply are in particular:
1. a)In the case of Portugal:
  1. i)The personal income tax [imposto sobre o rendimento das pessoas singulares (IRS)];
  2. ii)The corporate income tax [imposto sobre o rendimento das pessoas colectivas (IRC)]; and
  3. iii)The local surtax on corporate income tax (Derrama);
    (hereinafter referred to as «Portuguese tax»);
2. b)In the case of Turkey:
  1. i)The income tax (Gelir Vergisi);
  2. ii)The corporation tax (Kurumlar Vergisi);
  3. iii)The levy imposed on the income tax and the corporation tax (Gelir Ve Kurumlar Vergisi üzerinden alinan fon payi);
    (hereinafter referred to as «Turkish tax»).
4 -The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention 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 taxation laws.
CHAPTER II
Definitions
Article 3
General definitions
1 -For the purposes of this Convention, unless the context otherwise requires:
1. a)The term «Portugal» means the Portuguese territory, territorial sea as well as the maritime areas over which the Portuguese Republic has jurisdiction or sovereign rights for the purposes of exploration, exploitation and conservation of natural resources, pursuant to international law;
2. b)The term «Turkey» means the Turkish territory, territorial sea as well as the maritime areas over which Turkey has jurisdiction or sovereign rights for the purposes of exploration, exploitation and conservation of natural resources, pursuant to international law;
3. c)The terms «a Contracting State» and «the other Contracting State» mean Portugal or Turkey, as the context requires;
4. d)The term «person» includes an individual, a company and any other body of persons;
5. e)The term «company» means any body corporate or any entity which is treated as a body corporate for tax purposes;
6. 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;
7. g)The term «international traffic» means any transport by a ship, aircraft or road vehicle operated by an enterprise of a Contracting State, except when the ship, aircraft or road vehicle is operated solely between places in the other Contracting State;
8. h)The term «competent authority» means:
  1. i)In Portugal, the Minister of Finance, the Director General of Taxation (Director-Geral dos Impostos) or their authorised representative;
  2. ii)In Turkey: the Minister of Finance or his authorised representative;
9. i)The term «national» means:
  1. i)Any individual possessing the nationality of a Contracting State;
  2. ii)Any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State.
2 -As regards the application of the Convention 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 the Convention 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 Convention, the term «resident of a Contracting State» means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, legal head office, place of management or any other criterion of a similar nature and also includes that State and any political or administrative 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 Contracting States, then his status shall be determined as follows:
1. a)He shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);
2. b)If the State in which he has his centre of vital interests cannot be determined or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
3. c)If he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;
4. d)If he 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 of this article, a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the Contracting State in which its place of effective management is situated. However, if its place of effective management can not be determined, then the competent authorities of the Contracting States shall determine by mutual agreement the State of which the person shall be deemed to be a resident for the purpose of this Convention.
Article 5
Permanent establishment
1 -For the purposes of this Convention, 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:
1. a)A place of management;
2. b)A branch;
3. c)An office;
4. d)A factory;
5. e)A workshop; and
6. f)A mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
3 -A building site, construction, assembly or installation project or supervisory activities in connection therewith constitute a permanent establishment only if they last more than 9 months.
4 -Notwithstanding the preceding provisions of this article, the term «permanent establishment» shall be deemed not to include:
1. a)The use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
2. b)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
3. c)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
4. 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;
5. 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;
6. f)The maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs 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 agent of an independent status to whom paragraph 6 applies is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned State if:
1. a)He has and habitually exercises in a Contracting State an authority to conclude contracts on behalf of the enterprise, unless his activities are limited wholly to the activities described 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
2. b)He has no such authority but habitually maintains in the first-mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise and conducts any other activity that contributes to the sale of goods or merchandise.
6 -An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
7 -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.
CHAPTER III
Taxation of income
Article 6
Income from immovable property
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 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 (including the breeding and cultivation of fish) 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, aircraft and road vehicles shall not be regarded as 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 property of an enterprise and to income from immovable property used for the performance of independent personal services.
Article 7
Business profits
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 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 -In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.
4 -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.
5 -Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.
Article 8
Shipping, air and land transport
1 -Profits of an enterprise of a Contracting State from the operation of ships, aircraft or road vehicles in international traffic shall be taxable only in that State.
2 -The provisions of paragraph 1 shall also apply to profits derived from the participation in a pool, a joint business or an international operating agency.
Article 9
Associated enterprises
1 -Where:
1. 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
2. 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 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, if the other Contracting State considers the adjustment justified. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other.
Article 10
Dividends
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 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:
1. a)5 per cent of the gross amount of the dividends paid if the beneficial owner is a company (other than a partnership) that, for an uninterrupted period of two years prior to the payment of the dividends, or if the company paying the dividends has existed for less than two years during the lifetime of the company, holds directly at least 25 per cent of the capital (capital social) of the company paying the dividends; or
2. b)15 per cent of the gross amount of the dividends, in all other cases.
  The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these limitations. This paragraph shall 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» shares or «jouissance» rights, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.
4 -Profits of a company of a Contracting State carrying on business in the other Contracting State through a permanent establishment situated therein may after having been taxed under article 7, be taxed on the remaining amount in the Contracting State in which the permanent establishment is situated and in accordance with the provisions of domestic law of that State, but the tax so charged shall not exceed 5 per cent of that amount.
5 -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.
6 -Subject to the provision of paragraph 4, 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 establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the 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.
Article 11
Interest
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 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:
1. a)10 per cent of the gross amount of the interest if it is paid on a loan made for a period of more than two years;
2. b)15 per cent of the gross amount of the interest, in all other cases.
3 -Notwithstanding the provisions of paragraph 2:
1. a)The Central Bank of Turkey shall be exempt from Portuguese tax with respect to interest arising in Portugal;
2. b)The Central Bank of Portugal shall be exempt from Turkish tax with respect to interest arising in Turkey;
3. c)The Government, the political or administrative subdivisions or the local authorities of one of the Contracting States shall be exempt from tax in the other Contracting State with respect to interest arising in that other State.
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.
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 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 case the provisions of article 7 or article 14, as the case may be, shall apply.
6 -Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or 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 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 Convention.
Article 12
Royalties
1 -Royalties 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 royalties 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 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.
3 -The term «royalties» as used in this article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, and films or recordings for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, 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 royalties 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 -Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by that permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
6 -Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 13
Capital gains
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 a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or 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 of an enterprise of a Contracting State from the alienation of ships, aircraft or road vehicles operated in international traffic or movable property pertaining to the operation of such ships, aircraft or road vehicles shall be taxable only in that State.
4 -Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the Contracting State of which the alienator is a resident.
5 -The provisions of paragraph 4 shall not affect the right of a Contracting State to levy according to its own law a tax on gains derived by a resident of the other State from the alienation of shares that represent a participation of more than 25 percent of the capital stock of a company which is resident of the first-mentioned State if the alienation takes place to a resident of the first-mentioned State, and if the period between acquisition and alienation does not exceed one year.
Article 14
Independent personal services
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. However, such income may also be taxed in the other Contracting State if such services or activities are performed in that other State and if:
1. a)He has a fixed base regularly available to him in the other State for the purpose of performing those services or activities; or
2. b)He is present in that other State for the purpose of performing those services or activities for a period or periods amounting in the aggregate to 183 days or more in any continuous period of 12 months.
  In such circumstances, only so much of the income as is attributable to that fixed base or derived from the services or activities performed during his presence in that other State, as the case may be, may be taxed in that other State.
2 -Income derived by an enterprise of a Contracting State in respect of professional services or other activities of a similar character shall be taxable only in that State. However, such income may also be taxed in the other Contracting State if such services or activities are performed in that other State and if:
1. a)The enterprise has a permanent establishment in that other State through which the services or activities are performed; or
2. b)The period or periods during which the services are performed exceed in the aggregate 183 days in any continuous period of 12 months.
  In such circumstances, only so much of the income as is attributable to that permanent establishment or to the services or activities performed in that other State, as the case may be, may be taxed in that other State. In either case, the enterprise may elect to be taxed in that other State in respect of such income in accordance with the provisions of article 7 of this Convention as if the income were attributable to a permanent establishment of the enterprise situated in that other State. This election shall not affect the right of that other State to impose a withholding tax on such income.
3 -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, and other activities requiring specific professional skill.
Article 15
Dependent personal services
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 Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
1. 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 calendar year concerned, and
2. b)The remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
3. c)The remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
3 -Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment exercised aboard a ship, aircraft or road vehicle operated in international traffic by an enterprise of a Contracting State may be taxed in that State.
Article 16
Directors' fees
Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or supervisory board of a company which is a resident of the other Contracting State or as a member of any other organ which performs the same functions in the company may be taxed in that other State.
Article 17
Artistes and sportsmen
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 sportsman, from his 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 sportsman in his capacity as such accrues not to the entertainer or sportsman himself 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 sportsman are exercised.
3 -Income derived by an entertainer or a sportsman from activities exercised in a Contracting State shall be exempt from tax in that State, if the visit to that State is supported wholly or mainly by public funds of the other contracting state a political or administrative subdivision or local authority thereof.
Article 18
Pensions
Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State. This provision shall also apply to life annuities paid to a resident of a Contracting State.
Article 19
Government service
1 -a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political or administrative 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;
1. b)However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
  1. i)Is a national of that State; or
  2. ii)Did not become a resident of that State solely for the purpose of rendering the services.
2 -a) Any pension paid by, or out of funds created by, a Contracting State or a political or administrative 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.
1. b)However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.
3 -The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State or a political or administrative subdivision or a local authority thereof.
Article 20
Professors and researchers
An individual who is or was a resident of a Contracting State immediately before visiting the other Contracting State solely for the purpose of teaching or scientific research at an university, college, school or other similar educational or scientific research institution which is recognised as non-profitable by the Government of that other State, or under an official programme of cultural exchange, for a period not exceeding two years from the date of his first arrival in that other State, shall be exempt from tax in that other State on his remuneration for such teaching or research.
Article 21
Students
1 -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 his education or training receives for the purpose of his maintenance, education or training shall not be taxed in the first-mentioned State, provided that such payments arise from sources outside that State.
2 -Remuneration which a student or a trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State derives from an employment which he exercises in the first-mentioned State for a period or periods not exceeding 183 days in a calendar year in order to obtain practical experience related to his education or formation shall not be taxed in that State.
Article 22
Other income
1 -Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing articles of this Convention shall be taxable only in that 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.
CHAPTER IV
Elimination of double taxation
Article 23
Elimination of double taxation
1 -In the case of Portugal, double taxation shall be avoided as follows:
1. a)Where a resident of Portugal derives income which, in accordance with the provisions of this Convention, may be taxed in Turkey, Portugal shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Turkey. 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 Portugal;
2. b)Where in accordance with any provisions of this Convention income derived by a resident of Portugal is exempt from tax in this State, Portugal may nevertheless, in calculating the amount of tax on the remaining income of such resident take into account the exempted income;
3. c)Notwithstanding the provision of sub-paragraph a), where a company (other than a partnership) which is resident of Portugal receives dividends from a company which is resident of Turkey and which is not exempt from corporation tax in Turkey, Portugal shall allow a deduction for 95 per cent of such dividends included in the tax base of the company receiving dividends, provided that the company which is resident of Portugal is a company that, for an uninterrupted period of two years prior to the payment of the dividends, or if the company paying the dividends has existed for less than two years during the lifetime of the company, holds directly at least 25 per cent of the capital (capital social) of the company paying the dividends.
2 -In the case of Turkey, double taxation shall be avoided as follows:
1. a)Subject to the provisions of the laws of Turkey regarding the allowance as a credit against Turkish tax of tax payable in a territory outside Turkey, Portuguese tax payable under the laws of Portugal and in accordance with this Convention, in respect of income (including profits and chargeable gains) derived by a resident of Turkey from sources within Portugal shall be allowed as a deduction from the Turkish tax on such income. Such deduction, however, shall not exceed the amount of Turkish tax, as computed before the deduction is given, attributable to such income;
2. b)Where in accordance with any provisions of this Convention income derived by a resident of Turkey is exempt from tax in Turkey, Turkey may nevertheless, in calculating the amount of tax on the remaining income of such resident take into account the exempted income.
  CHAPTER V
  Special provisions
  Article 24
  Non-discrimination
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 -Subject to the provisions of paragraph 4 of article 10, 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.
3 -Except where the provisions of paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12, apply, interest, royalties 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.
4 -Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
5 -These provisions 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.
6 -The provisions of this Article shall apply to the taxes covered by this Convention.
Article 25
Mutual agreement procedure
1 -Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of article 24, to that of the Contracting State of which he is 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 the Convention.
2 -The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. 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 agreement any difficulties or doubts arising as to the interpretation or application of the Convention.
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 necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. Any information received 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, or the determination of appeals in relation to, the taxes covered by the Convention. 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.
2 -In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:
1. a)To carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
2. 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;
3. 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).
  Article 27
  Members of diplomatic missions and consular posts
  Nothing in this Convention 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.
  CHAPTER VI
  Final provisions
  Article 28
  Entry into force
1 -Each Contracting State shall notify to the other Contracting State the completion of the procedures required by its law for the bringing into force of this Convention. This Convention shall enter into force on the date of the later of these notifications.
2 -The provisions of this Convention shall have effect:
1. a)In Portugal:
  1. i)In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the year next following the year in which this Convention enters into force;
  2. ii)In respect of other taxes as to income arising in any fiscal year beginning on or after the first day of January of the year next following the year in which this Convention enters into force;
2. b)In Turkey - in respect of taxes for the taxable period beginning on or after first day of January next following the date upon which this Convention enters into force and subsequent taxable periods.
  Article 29
  Termination
1 -This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year after the expiration of five years from the date of entry into force of the Convention.
2 -In such event, the Convention shall cease to have effect:
1. a)In Portugal:
  1. i)In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the year next following that specified in the said notice of termination;
  2. ii)In respect of other taxes, as to income arising in the fiscal year beginning on or after the first day of January of the year next following that specified in the said notice of termination;
2. b)In Turkey - for taxes with respect to every taxable period beginning on or after the first day of January of the year next following that specified in the said notice of termination.
  In witness whereof the undersigned, duly authorised thereto, have signed this Convention.
  Done in duplicate at Lisbon this eleven day of May, 2005 in the Portuguese, Turkish and English languages, all texts being equally authentic. In case of any divergence of interpretation or application of this Convention, the English text shall prevail.
  For the Portuguese Republic:
  Luís Campos e Cunha, Minister of State and Finance.
  For the Republic of Turkey:
  Ali Tuygan, Undersecretary of the Ministry of Foreign Affairs.
  PROTOCOL
  At the moment of signature of the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income concluded this day between the Portuguese Republic and the Republic of Turkey, the undersigned have agreed upon the following additional provisions, which form an integral part of the Convention.
  Ad Article 6
  With reference to article 6, it is understood that the provisions described therein shall also apply to income from associated movable (personal) property and from the provision of services for the maintenance or operation of immovable property (real property).
  Ad Article 8
  For the purposes of paragraph 2 of article 8, it is understood that the provisions of that paragraph include profits of a consortium or a similar form of association as corresponds to the participation held in the consortium or association by a company that is resident of a Contracting State.
  Ad Article 10
  With reference to paragraph 3 of article 10, it is understood that the term «dividends» also includes: in the case of Portugal, profits attributed under an arrangement for participation in profits (associação em participação); in the case of Turkey, income derived from an investment fund and investment trust.
  Ad Article 12
  For the purposes of paragraph 3 of article 12, it is understood that the term «royalties» includes gains derived from the use of such right or property in the case of an alienation of such right or property to the extent that such gains are contingent on the productivity, use, or disposition thereof.
  Ad Article 14
  With reference to paragraph 2 of article 14, it is understood that if the enterprise of a Contracting State elects to be taxed in the other Contracting State in accordance with the provisions of article 7 of this Convention, the tax withheld in that other State on the income of that enterprise may be deducted from the tax calculated on income which is determined in accordance with the provisions of article 7 of this Convention.
  Ad Article 25
  With respect to paragraph 2 of article 25, it is understood that the taxpayer must claim the refund resulting from such mutual agreement within a time period provided by the domestic law after the tax administration has notified the taxpayer of the result of the mutual agreement.
  In witness whereof the undersigned, duly authorised thereto, have signed this Protocol.
  Done in duplicate at Lisbon this eleven day of May, 2005 in the Portuguese, Turkish and English languages, all texts being equally authentic. In case of any divergence of interpretation or application of this Protocol, the English text shall prevail.
  For the Portuguese Republic:
  Luís Campos e Cunha, Minister of State and Finance.
  For the Republic of Turkey:
  Ali Tuygan, Undersecretary of the Ministry of Foreign Affairs.

Artigo 29.º

Denúncia

1 -A presente Convenção permanecerá em vigor enquanto não for denunciada por um Estado Contratante. Qualquer Estado Contratante pode denunciar a Convenção por via diplomática, mediante um aviso prévio mínimo de seis meses antes do fim de qualquer ano civil a contar do 5.º ano subsequente à data da entrada em vigor da Convenção.
2 -Nesse caso, a Convenção deixará de se aplicar:
1. a)Em Portugal:
  1. i)Aos impostos devidos na fonte cujo facto gerador surja em, ou a partir de, 1 de Janeiro do ano imediatamente seguinte ao mencionado no referido aviso de denúncia;
  2. ii)Aos demais impostos, relativamente aos rendimentos com origem no ano fiscal com início em, ou a partir de, 1 de Janeiro do ano imediatamente seguinte ao mencionado no referido aviso de denúncia;
2. b)Na Turquia - aos impostos relativos a qualquer período fiscal com início em, ou a partir de, 1 de Janeiro do ano imediatamente seguinte ao mencionado no referido aviso de denúncia.
  Em testemunho do qual os abaixo assinados, devidamente autorizados para o efeito, assinaram a presente Convenção.
  Feito em duplicado, em Lisboa, aos 11 dias do mês de Maio de 2005, nas línguas portuguesa, turca e inglesa, sendo os três textos igualmente autênticos. Em caso de divergência na interpretação ou na aplicação da presente Convenção, prevalecerá o texto inglês.
  Pela República Portuguesa:
  Luís Campos e Cunha, Ministro de Estado e das Finanças.
  Pela República da Turquia:
  Ali Tuygan, Subsecretário do Ministério dos Negócios Estrangeiros.
  PROTOCOLO
  No momento de proceder à assinatura da Convenção para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o Rendimento, celebrada na presente data entre a República Portuguesa e a República da Turquia, os abaixo assinados acordaram nas seguintes disposições complementares, que fazem parte integrante da Convenção:
  Ad artigo 6.º
  No que se refere ao artigo 6.º, entende-se que as respectivas disposições se aplicam igualmente aos rendimentos derivados de bens mobiliários associados (pessoais) e da prestação de serviços destinados à manutenção ou utilização de bens imobiliários (propriedade imobiliária).
  Ad artigo 8.º
  No que se refere ao n.º 2 do artigo 8.º, entende-se que as disposições do referido número incluem os lucros de um consórcio ou de uma forma de associação similar, correspondente à participação detida no consórcio ou na associação por uma sociedade residente de um Estado Contratante.
  Ad artigo 10.º
  No que se refere ao n.º 3 do artigo 10.º, entende-se que a expressão «dividendos» inclui igualmente: no caso de Portugal, os lucros atribuídos em virtude de um contrato de participação nos lucros (associação em participação); no caso da Turquia, o rendimento obtido de um fundo de investimento e de um fideicomisso de investimento (trust).
  Ad artigo 12.º
  Para efeitos do n.º 3 do artigo 12.º, entende-se que a expressão «royalties» inclui os ganhos obtidos do uso dos referidos direitos ou bens, no caso de alienação desses direitos ou bens, na medida em que tais ganhos sejam dependentes da produtividade, da utilização ou da disposição dos mesmos.
  Ad artigo 14.º
  No que se refere ao n.º 2 do artigo 14.º, entende-se que se uma empresa de um Estado Contratante optar pela tributação no outro Estado Contratante nos termos do disposto no artigo 7.º da presente Convenção, a retenção de imposto efectuada nesse outro Estado sobre o rendimento dessa empresa pode ser deduzida do imposto calculado sobre o rendimento determinado de acordo com o disposto no artigo 7.º da presente Convenção.
  Ad artigo 25.º
  No que se refere ao n.º 2 do artigo 25.º, entende-se que o contribuinte deverá requerer o reembolso resultante do referido acordo amigável dentro do prazo previsto na legislação interna, depois de notificado pela administração fiscal quanto ao resultado do acordo amigável.
  Em testemunho do qual os signatários, devidamente autorizados para o efeito, assinaram o presente Protocolo.
  Feito em duplicado, em Lisboa, aos 11 dias do mês de Maio de 2005, nas línguas portuguesa, turca e inglesa, sendo os três textos igualmente autênticos. Em caso de divergência na interpretação ou na aplicação do presente Protocolo, prevalecerá o texto inglês.
  Pela República Portuguesa:
  Luís Campos e Cunha, Ministro de Estado e das Finanças.
  Pela República da Turquia:
  Ali Tuygan, Subsecretário do Ministério dos Negócios Estrangeiros.
  (ver texto em língua turca no documento original)
  CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE REPUBLIC OF TURKEY FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.
  The Portuguese Republic and the Republic of Turkey, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows:
  CHAPTER I
  Scope of the convention
  Article 1
  Persons covered
  This Convention shall apply to persons who are residents of one or both of the Contracting States.
  Article 2
  Taxes covered
1 -This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its political or administrative subdivisions or local authorities, irrespective of the manner in which they are levied.
2 -There shall be regarded as taxes on income taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
3 -The existing taxes to which the Convention shall apply are in particular:
1. a)In the case of Portugal:
  1. i)The personal income tax [imposto sobre o rendimento das pessoas singulares (IRS)];
  2. ii)The corporate income tax [imposto sobre o rendimento das pessoas colectivas (IRC)]; and
  3. iii)The local surtax on corporate income tax (Derrama);
    (hereinafter referred to as «Portuguese tax»);
2. b)In the case of Turkey:
  1. i)The income tax (Gelir Vergisi);
  2. ii)The corporation tax (Kurumlar Vergisi);
  3. iii)The levy imposed on the income tax and the corporation tax (Gelir Ve Kurumlar Vergisi üzerinden alinan fon payi);
    (hereinafter referred to as «Turkish tax»).
4 -The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention 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 taxation laws.
CHAPTER II
Definitions
Article 3
General definitions
1 -For the purposes of this Convention, unless the context otherwise requires:
1. a)The term «Portugal» means the Portuguese territory, territorial sea as well as the maritime areas over which the Portuguese Republic has jurisdiction or sovereign rights for the purposes of exploration, exploitation and conservation of natural resources, pursuant to international law;
2. b)The term «Turkey» means the Turkish territory, territorial sea as well as the maritime areas over which Turkey has jurisdiction or sovereign rights for the purposes of exploration, exploitation and conservation of natural resources, pursuant to international law;
3. c)The terms «a Contracting State» and «the other Contracting State» mean Portugal or Turkey, as the context requires;
4. d)The term «person» includes an individual, a company and any other body of persons;
5. e)The term «company» means any body corporate or any entity which is treated as a body corporate for tax purposes;
6. 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;
7. g)The term «international traffic» means any transport by a ship, aircraft or road vehicle operated by an enterprise of a Contracting State, except when the ship, aircraft or road vehicle is operated solely between places in the other Contracting State;
8. h)The term «competent authority» means:
  1. i)In Portugal, the Minister of Finance, the Director General of Taxation (Director-Geral dos Impostos) or their authorised representative;
  2. ii)In Turkey: the Minister of Finance or his authorised representative;
9. i)The term «national» means:
  1. i)Any individual possessing the nationality of a Contracting State;
  2. ii)Any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State.
2 -As regards the application of the Convention 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 the Convention 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 Convention, the term «resident of a Contracting State» means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, legal head office, place of management or any other criterion of a similar nature and also includes that State and any political or administrative 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 Contracting States, then his status shall be determined as follows:
1. a)He shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);
2. b)If the State in which he has his centre of vital interests cannot be determined or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
3. c)If he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;
4. d)If he 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 of this article, a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the Contracting State in which its place of effective management is situated. However, if its place of effective management can not be determined, then the competent authorities of the Contracting States shall determine by mutual agreement the State of which the person shall be deemed to be a resident for the purpose of this Convention.
Article 5
Permanent establishment
1 -For the purposes of this Convention, 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:
1. a)A place of management;
2. b)A branch;
3. c)An office;
4. d)A factory;
5. e)A workshop; and
6. f)A mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
3 -A building site, construction, assembly or installation project or supervisory activities in connection therewith constitute a permanent establishment only if they last more than 9 months.
4 -Notwithstanding the preceding provisions of this article, the term «permanent establishment» shall be deemed not to include:
1. a)The use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
2. b)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
3. c)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
4. 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;
5. 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;
6. f)The maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs 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 agent of an independent status to whom paragraph 6 applies is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned State if:
1. a)He has and habitually exercises in a Contracting State an authority to conclude contracts on behalf of the enterprise, unless his activities are limited wholly to the activities described 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
2. b)He has no such authority but habitually maintains in the first-mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise and conducts any other activity that contributes to the sale of goods or merchandise.
6 -An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
7 -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.
CHAPTER III
Taxation of income
Article 6
Income from immovable property
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 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 (including the breeding and cultivation of fish) 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, aircraft and road vehicles shall not be regarded as 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 property of an enterprise and to income from immovable property used for the performance of independent personal services.
Article 7
Business profits
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 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 -In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.
4 -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.
5 -Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.
Article 8
Shipping, air and land transport
1 -Profits of an enterprise of a Contracting State from the operation of ships, aircraft or road vehicles in international traffic shall be taxable only in that State.
2 -The provisions of paragraph 1 shall also apply to profits derived from the participation in a pool, a joint business or an international operating agency.
Article 9
Associated enterprises
1 -Where:
1. 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
2. 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 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, if the other Contracting State considers the adjustment justified. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other.
Article 10
Dividends
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 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:
1. a)5 per cent of the gross amount of the dividends paid if the beneficial owner is a company (other than a partnership) that, for an uninterrupted period of two years prior to the payment of the dividends, or if the company paying the dividends has existed for less than two years during the lifetime of the company, holds directly at least 25 per cent of the capital (capital social) of the company paying the dividends; or
2. b)15 per cent of the gross amount of the dividends, in all other cases.
  The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these limitations. This paragraph shall 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» shares or «jouissance» rights, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.
4 -Profits of a company of a Contracting State carrying on business in the other Contracting State through a permanent establishment situated therein may after having been taxed under article 7, be taxed on the remaining amount in the Contracting State in which the permanent establishment is situated and in accordance with the provisions of domestic law of that State, but the tax so charged shall not exceed 5 per cent of that amount.
5 -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.
6 -Subject to the provision of paragraph 4, 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 establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the 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.
Article 11
Interest
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 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:
1. a)10 per cent of the gross amount of the interest if it is paid on a loan made for a period of more than two years;
2. b)15 per cent of the gross amount of the interest, in all other cases.
3 -Notwithstanding the provisions of paragraph 2:
1. a)The Central Bank of Turkey shall be exempt from Portuguese tax with respect to interest arising in Portugal;
2. b)The Central Bank of Portugal shall be exempt from Turkish tax with respect to interest arising in Turkey;
3. c)The Government, the political or administrative subdivisions or the local authorities of one of the Contracting States shall be exempt from tax in the other Contracting State with respect to interest arising in that other State.
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.
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 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 case the provisions of article 7 or article 14, as the case may be, shall apply.
6 -Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or 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 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 Convention.
Article 12
Royalties
1 -Royalties 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 royalties 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 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.
3 -The term «royalties» as used in this article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, and films or recordings for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, 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 royalties 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 -Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by that permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
6 -Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 13
Capital gains
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 a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or 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 of an enterprise of a Contracting State from the alienation of ships, aircraft or road vehicles operated in international traffic or movable property pertaining to the operation of such ships, aircraft or road vehicles shall be taxable only in that State.
4 -Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the Contracting State of which the alienator is a resident.
5 -The provisions of paragraph 4 shall not affect the right of a Contracting State to levy according to its own law a tax on gains derived by a resident of the other State from the alienation of shares that represent a participation of more than 25 percent of the capital stock of a company which is resident of the first-mentioned State if the alienation takes place to a resident of the first-mentioned State, and if the period between acquisition and alienation does not exceed one year.
Article 14
Independent personal services
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. However, such income may also be taxed in the other Contracting State if such services or activities are performed in that other State and if:
1. a)He has a fixed base regularly available to him in the other State for the purpose of performing those services or activities; or
2. b)He is present in that other State for the purpose of performing those services or activities for a period or periods amounting in the aggregate to 183 days or more in any continuous period of 12 months.
  In such circumstances, only so much of the income as is attributable to that fixed base or derived from the services or activities performed during his presence in that other State, as the case may be, may be taxed in that other State.
2 -Income derived by an enterprise of a Contracting State in respect of professional services or other activities of a similar character shall be taxable only in that State. However, such income may also be taxed in the other Contracting State if such services or activities are performed in that other State and if:
1. a)The enterprise has a permanent establishment in that other State through which the services or activities are performed; or
2. b)The period or periods during which the services are performed exceed in the aggregate 183 days in any continuous period of 12 months.
  In such circumstances, only so much of the income as is attributable to that permanent establishment or to the services or activities performed in that other State, as the case may be, may be taxed in that other State. In either case, the enterprise may elect to be taxed in that other State in respect of such income in accordance with the provisions of article 7 of this Convention as if the income were attributable to a permanent establishment of the enterprise situated in that other State. This election shall not affect the right of that other State to impose a withholding tax on such income.
3 -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, and other activities requiring specific professional skill.
Article 15
Dependent personal services
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 Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
1. 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 calendar year concerned, and
2. b)The remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
3. c)The remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
3 -Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment exercised aboard a ship, aircraft or road vehicle operated in international traffic by an enterprise of a Contracting State may be taxed in that State.
Article 16
Directors' fees
Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or supervisory board of a company which is a resident of the other Contracting State or as a member of any other organ which performs the same functions in the company may be taxed in that other State.
Article 17
Artistes and sportsmen
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 sportsman, from his 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 sportsman in his capacity as such accrues not to the entertainer or sportsman himself 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 sportsman are exercised.
3 -Income derived by an entertainer or a sportsman from activities exercised in a Contracting State shall be exempt from tax in that State, if the visit to that State is supported wholly or mainly by public funds of the other contracting state a political or administrative subdivision or local authority thereof.
Article 18
Pensions
Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State. This provision shall also apply to life annuities paid to a resident of a Contracting State.
Article 19
Government service
1 -a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political or administrative 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;
1. b)However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
  1. i)Is a national of that State; or
  2. ii)Did not become a resident of that State solely for the purpose of rendering the services.
2 -a) Any pension paid by, or out of funds created by, a Contracting State or a political or administrative 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.
1. b)However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.
3 -The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State or a political or administrative subdivision or a local authority thereof.
Article 20
Professors and researchers
An individual who is or was a resident of a Contracting State immediately before visiting the other Contracting State solely for the purpose of teaching or scientific research at an university, college, school or other similar educational or scientific research institution which is recognised as non-profitable by the Government of that other State, or under an official programme of cultural exchange, for a period not exceeding two years from the date of his first arrival in that other State, shall be exempt from tax in that other State on his remuneration for such teaching or research.
Article 21
Students
1 -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 his education or training receives for the purpose of his maintenance, education or training shall not be taxed in the first-mentioned State, provided that such payments arise from sources outside that State.
2 -Remuneration which a student or a trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State derives from an employment which he exercises in the first-mentioned State for a period or periods not exceeding 183 days in a calendar year in order to obtain practical experience related to his education or formation shall not be taxed in that State.
Article 22
Other income
1 -Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing articles of this Convention shall be taxable only in that 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.
CHAPTER IV
Elimination of double taxation
Article 23
Elimination of double taxation
1 -In the case of Portugal, double taxation shall be avoided as follows:
1. a)Where a resident of Portugal derives income which, in accordance with the provisions of this Convention, may be taxed in Turkey, Portugal shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Turkey. 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 Portugal;
2. b)Where in accordance with any provisions of this Convention income derived by a resident of Portugal is exempt from tax in this State, Portugal may nevertheless, in calculating the amount of tax on the remaining income of such resident take into account the exempted income;
3. c)Notwithstanding the provision of sub-paragraph a), where a company (other than a partnership) which is resident of Portugal receives dividends from a company which is resident of Turkey and which is not exempt from corporation tax in Turkey, Portugal shall allow a deduction for 95 per cent of such dividends included in the tax base of the company receiving dividends, provided that the company which is resident of Portugal is a company that, for an uninterrupted period of two years prior to the payment of the dividends, or if the company paying the dividends has existed for less than two years during the lifetime of the company, holds directly at least 25 per cent of the capital (capital social) of the company paying the dividends.
2 -In the case of Turkey, double taxation shall be avoided as follows:
1. a)Subject to the provisions of the laws of Turkey regarding the allowance as a credit against Turkish tax of tax payable in a territory outside Turkey, Portuguese tax payable under the laws of Portugal and in accordance with this Convention, in respect of income (including profits and chargeable gains) derived by a resident of Turkey from sources within Portugal shall be allowed as a deduction from the Turkish tax on such income. Such deduction, however, shall not exceed the amount of Turkish tax, as computed before the deduction is given, attributable to such income;
2. b)Where in accordance with any provisions of this Convention income derived by a resident of Turkey is exempt from tax in Turkey, Turkey may nevertheless, in calculating the amount of tax on the remaining income of such resident take into account the exempted income.
  CHAPTER V
  Special provisions
  Article 24
  Non-discrimination
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 -Subject to the provisions of paragraph 4 of article 10, 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.
3 -Except where the provisions of paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12, apply, interest, royalties 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.
4 -Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
5 -These provisions 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.
6 -The provisions of this Article shall apply to the taxes covered by this Convention.
Article 25
Mutual agreement procedure
1 -Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of article 24, to that of the Contracting State of which he is 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 the Convention.
2 -The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. 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 agreement any difficulties or doubts arising as to the interpretation or application of the Convention.
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 necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. Any information received 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, or the determination of appeals in relation to, the taxes covered by the Convention. 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.
2 -In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:
1. a)To carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
2. 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;
3. 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).
  Article 27
  Members of diplomatic missions and consular posts
  Nothing in this Convention 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.
  CHAPTER VI
  Final provisions
  Article 28
  Entry into force
1 -Each Contracting State shall notify to the other Contracting State the completion of the procedures required by its law for the bringing into force of this Convention. This Convention shall enter into force on the date of the later of these notifications.
2 -The provisions of this Convention shall have effect:
1. a)In Portugal:
  1. i)In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the year next following the year in which this Convention enters into force;
  2. ii)In respect of other taxes as to income arising in any fiscal year beginning on or after the first day of January of the year next following the year in which this Convention enters into force;
2. b)In Turkey - in respect of taxes for the taxable period beginning on or after first day of January next following the date upon which this Convention enters into force and subsequent taxable periods.
  Article 29
  Termination
1 -This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year after the expiration of five years from the date of entry into force of the Convention.
2 -In such event, the Convention shall cease to have effect:
1. a)In Portugal:
  1. i)In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the year next following that specified in the said notice of termination;
  2. ii)In respect of other taxes, as to income arising in the fiscal year beginning on or after the first day of January of the year next following that specified in the said notice of termination;
2. b)In Turkey - for taxes with respect to every taxable period beginning on or after the first day of January of the year next following that specified in the said notice of termination.
  In witness whereof the undersigned, duly authorised thereto, have signed this Convention.
  Done in duplicate at Lisbon this eleven day of May, 2005 in the Portuguese, Turkish and English languages, all texts being equally authentic. In case of any divergence of interpretation or application of this Convention, the English text shall prevail.
  For the Portuguese Republic:
  Luís Campos e Cunha, Minister of State and Finance.
  For the Republic of Turkey:
  Ali Tuygan, Undersecretary of the Ministry of Foreign Affairs.
  PROTOCOL
  At the moment of signature of the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income concluded this day between the Portuguese Republic and the Republic of Turkey, the undersigned have agreed upon the following additional provisions, which form an integral part of the Convention.
  Ad Article 6
  With reference to article 6, it is understood that the provisions described therein shall also apply to income from associated movable (personal) property and from the provision of services for the maintenance or operation of immovable property (real property).
  Ad Article 8
  For the purposes of paragraph 2 of article 8, it is understood that the provisions of that paragraph include profits of a consortium or a similar form of association as corresponds to the participation held in the consortium or association by a company that is resident of a Contracting State.
  Ad Article 10
  With reference to paragraph 3 of article 10, it is understood that the term «dividends» also includes: in the case of Portugal, profits attributed under an arrangement for participation in profits (associação em participação); in the case of Turkey, income derived from an investment fund and investment trust.
  Ad Article 12
  For the purposes of paragraph 3 of article 12, it is understood that the term «royalties» includes gains derived from the use of such right or property in the case of an alienation of such right or property to the extent that such gains are contingent on the productivity, use, or disposition thereof.
  Ad Article 14
  With reference to paragraph 2 of article 14, it is understood that if the enterprise of a Contracting State elects to be taxed in the other Contracting State in accordance with the provisions of article 7 of this Convention, the tax withheld in that other State on the income of that enterprise may be deducted from the tax calculated on income which is determined in accordance with the provisions of article 7 of this Convention.
  Ad Article 25
  With respect to paragraph 2 of article 25, it is understood that the taxpayer must claim the refund resulting from such mutual agreement within a time period provided by the domestic law after the tax administration has notified the taxpayer of the result of the mutual agreement.
  In witness whereof the undersigned, duly authorised thereto, have signed this Protocol.
  Done in duplicate at Lisbon this eleven day of May, 2005 in the Portuguese, Turkish and English languages, all texts being equally authentic. In case of any divergence of interpretation or application of this Protocol, the English text shall prevail.
  For the Portuguese Republic:
  Luís Campos e Cunha, Minister of State and Finance.
  For the Republic of Turkey:
  Ali Tuygan, Undersecretary of the Ministry of Foreign Affairs.