Resolução

Resolução da Assembleia da República n.º 89/2013

Aprova a Convenção entre a República Portuguesa e a República de Chipre para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o Rendimento, assinada em Bruxelas em 19 de novembro de 2012

Capítulo I - Âmbito de aplicação da Convenção

Artigo 1.º

Pessoas visadas

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

Artigo 2.º

Impostos visados

1 -A presente Convenção aplica-se aos impostos sobre o rendimento exigidos em benefício de um Estado Contratante, ou das suas subdivisões políticas ou administrativas ou 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 elementos do rendimento, incluídos os impostos sobre os ganhos derivados da alienação de bens mobiliários ou imobiliários, os impostos sobre o montante global dos vencimentos ou salários pagos pelas empresas, bem como os impostos sobre as mais-valias.
3 -Os impostos actuais a que a Convenção se aplica são, nomeadamente:
1. a)Em 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)As derramas;
    (a seguir referidos pela designação de «imposto português»);
2. b)No Chipre:
  1. i)O imposto sobre o rendimento das pessoas singulares;
  2. ii)O imposto sobre o rendimento das pessoas colectivas;
  3. iii)A contribuição especial para a defesa da República; e
  4. iv)O imposto de mais-valia;
    (a seguir referidos pela designação de «imposto cipriota»).
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 significativas introduzidas nas respectivas legislações fiscais.

Capítulo II - Definições

Artigo 3.º

Definições gerais

1 -Para efeitos da presente Convenção, a não ser que o contexto exija interpretação diferente:
1. a)O termo «Portugal» designa o território da República Portuguesa situado no continente europeu, os arquipélagos dos Açores e da Madeira, as suas águas interiores e o seu mar territorial, bem como a plataforma continental e qualquer outro espaço onde o Estado Português exerça direitos de soberania ou jurisdição, em conformidade com o direito internacional;
2. b)O termo «Chipre» designa a República de Chipre e, quando usado em sentido geográfico, compreende o seu território nacional, o respectivo mar territorial, bem como qualquer espaço exterior ao mar territorial, incluindo a zona adjacente, a zona económica exclusiva e a plataforma continental, que tenha sido ou venha doravante a ser designado, em conformidade com a legislação do Chipre e com o direito internacional, como um espaço onde o Chipre pode exercer direitos de soberania ou jurisdição;
3. c)As expressões «um Estado Contratante» e «o outro Estado Contratante» significam Portugal ou Chipre, 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 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 ou aeronave explorado por uma empresa de um Estado Contratante, excepto se o navio ou aeronave for explorado somente entre lugares situados no outro Estado Contratante;
8. h)A expressão «autoridade competente» significa:
  1. i)Em Portugal: o Ministro das Finanças, o Director-Geral da Autoridade Tributária e Aduaneira ou os seus representantes autorizados;
  2. ii)No Chipre: o Ministro das Finanças ou o seu representante autorizado;
9. i)O termo «nacional» designa:
  1. i)Qualquer pessoa singular que tenha a nacionalidade ou a cidadania 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 aí não definida terá, a não ser que o contexto exija interpretação diferente, o significado que lhe for atribuído nesse momento pela legislação desse Estado, para efeitos dos impostos a que a Convenção se aplica, prevalecendo a interpretação resultante da legislação fiscal sobre a que decorra de outra legislação desse Estado.

Artigo 4.º

Residente

1 -Para efeitos da presente 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, 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 esteja 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 se 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 de 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 seja nacional;
4. d)Se for nacional de ambos os Estados, ou 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, 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.

Artigo 5.º

Estabelecimento estável

1 -Para efeitos da presente 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; e
6. f)Uma mina, um poço de petróleo ou gás, uma pedreira ou qualquer outro local de extracção, prospecção ou exploração de recursos naturais.
3 -Um local ou um estaleiro de construção ou um projecto de construção ou de instalação, bem como as actividades de supervisão conexas, só constitui um estabelecimento estável se a sua duração exceder, no total, 12 meses.
4 -Não obstante as disposições anteriores do presente 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 de 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 quem é aplicável o n.º 6 - actue por conta de uma empresa e tenha e habitualmente exerça num Estado Contratante poderes para celebrar contratos em nome da empresa, considera-se que esta empresa possui um estabelecimento estável nesse Estado, relativamente a quaisquer actividades que essa pessoa exerça para a empresa, a não ser que as actividades dessa pessoa se limitem às referidas no n.º 4, as quais, se fossem exercidas através de uma instalação fixa, não permitiriam considerar essa instalação fixa como um estabelecimento estável, de acordo com as disposições desse número.
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 de 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 ou 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 e as aeronaves 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.
5 -As disposições anteriores do presente artigo aplicam-se igualmente aos rendimentos derivados de bens mobiliários conexos com bens imobiliários e aos rendimentos da prestação de serviços destinados à manutenção ou à exploração de bens imobiliários.

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 através 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 através 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 os encargos suportados para realização dos fins prosseguidos por esse estabelecimento estável, incluindo os encargos de direcção e os encargos gerais de administração, suportados com o fim referido, quer no Estado em que esse estabelecimento estável estiver situado quer fora dele.
4 -Se for usual num Estado Contratante determinar os lucros imputáveis a um estabelecimento estável com base numa repartição dos lucros totais da empresa entre as suas diversas partes, o disposto no n.º 2 não impedirá esse Estado Contratante de determinar os lucros tributáveis de acordo com a repartição usual; o método de repartição adoptado deve, no entanto, conduzir a um resultado conforme com os princípios enunciados no presente artigo.
5 -Nenhum lucro será imputado a um estabelecimento estável pelo facto da simples compra, por esse estabelecimento estável, de bens ou de mercadorias para a empresa.
6 -Para efeitos dos números anteriores, os lucros a imputar ao estabelecimento estável serão determinados, em cada ano, segundo o mesmo método, a não ser que existam motivos válidos e suficientes para proceder de forma diferente.
7 -Quando os lucros compreendam elementos do rendimento especialmente tratados noutros artigos da presente Convenção, as respectivas disposições não serão afectadas pelas disposições do presente artigo.

Artigo 8.º

Transporte marítimo e aéreo

1 -Os lucros de uma empresa de um Estado Contratante provenientes da exploração de navios ou de aeronaves no tráfego internacional só podem ser tributados nesse Estado Contratante.
2 -Para efeitos do presente artigo, os lucros provenientes da exploração de navios ou de aeronaves no tráfego internacional compreendem os lucros provenientes do:
1. a)Aluguer de navios ou de aeronaves totalmente armados e equipados (por certo tempo ou por viagem);
2. b)Aluguer de navios ou de aeronaves em regime de casco nu, desde que tenha natureza acessória relativamente a essa exploração; e
3. c)Uso, manutenção ou aluguer de contentores (incluindo reboques, barcaças e equipamento conexo usado para o transporte de contentores) desde que tal uso, manutenção ou aluguer tenha natureza acessória relativamente a essa exploração.
3 -O disposto neste artigo 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 participe, directa ou indirectamente, na direcção, no controlo ou no capital de uma empresa do outro Estado Contratante; ou
2. b)As mesmas pessoas participem, 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 tributados em conformidade.
2 -Quando um Estado Contratante inclua nos lucros de uma empresa desse Estado - e tribute nessa conformidade - os lucros pelos quais uma empresa do outro Estado Contratante foi tributada nesse outro Estado, e os lucros incluídos deste modo constituam lucros que teriam sido obtidos pela empresa do primeiro Estado mencionado, se as condições estabelecidas entre as duas empresas tivessem sido as condições que teriam sido estabelecidas entre empresas independentes, esse outro Estado procederá ao ajustamento adequado do montante do imposto aí cobrado sobre os lucros referidos, se esse outro Estado Contratante considerar o ajustamento justificado. Na determinação deste ajustamento serão tomadas em consideração as outras disposições da presente 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 -No entanto, esses dividendos podem 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 10 % do montante bruto dos dividendos.
As autoridades competentes dos Estados Contratantes estabelecerão, de comum acordo, a forma de aplicar este limite. Este número não afecta a tributação da sociedade pelos lucros dos quais os dividendos são pagos.
3 -O termo «dividendos», usado no presente artigo, significa os rendimentos provenientes de acções, acções ou bónus de fruição, partes de minas, partes de fundador ou de 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. Em Portugal, o termo «dividendos» inclui também os lucros atribuídos nos termos de um contrato de associação em participação.
4 -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, através de um estabelecimento estável aí situado, ou exercer nesse outro Estado uma profissão independente, através 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.
5 -Quando uma sociedade residente de um Estado Contratante obtiver lucros ou rendimentos provenientes do outro Estado Contratante, esse outro Estado não poderá exigir nenhum imposto sobre os dividendos pagos pela sociedade, excepto na medida em que esses dividendos sejam pagos a um residente desse outro Estado ou na medida em que a participação relativamente à qual os dividendos são pagos esteja efectivamente ligada a um estabelecimento estável ou a uma instalação fixa situada 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 10 % do montante bruto dos juros. As autoridades competentes dos Estados Contratantes estabelecerão, de comum acordo, a forma de aplicar este limite.
3 -O termo «juros», usado no presente 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 outros títulos de crédito, incluindo prémios atinentes a esses títulos. Para efeitos do presente artigo, não se consideram juros as penalizações por pagamento tardio.
4 -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, através de um estabelecimento estável aí situado, ou exercer nesse outro Estado uma profissão independente, através 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.
5 -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, tenha num Estado Contratante um estabelecimento estável ou uma instalação fixa em relação com o qual 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 estiver situado.
6 -Quando, em virtude de 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 do presente artigo são aplicáveis apenas a este último montante. Nesse caso, a parte excedente continua a poder ser tributada de acordo com a legislação de cada Estado Contratante, tendo em conta as outras disposições da presente 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 excederá 10 % do montante bruto das royalties. As autoridades competentes dos Estados Contratantes estabelecerão, de comum acordo, a forma de aplicar este limite.
3 -O termo «royalties», usado no presente 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 e 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, 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, através de um estabelecimento estável aí situado, ou exercer nesse outro Estado uma profissão independente, através 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, tenha num Estado Contratante um estabelecimento estável ou uma instalação fixa em ligação com o qual haja sido contraída a obrigação pela qual as royalties são pagas, e esse estabelecimento estável ou essa instalação fixa suporte o pagamento dessas royalties, tais royalties consideram-se provenientes do Estado em que o estabelecimento estável ou a instalação fixa estiver situado.
6 -Quando, em virtude de relações especiais existentes entre o devedor e o beneficiário efectivo 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 do presente artigo são aplicáveis apenas a este último montante. Nesse caso, a parte excedente continua a poder ser tributada de acordo com a legislação de cada Estado Contratante, tendo em conta as outras disposições da presente Convenção.

Artigo 13.º

Mais-valias

1 -Os ganhos que um residente de um Estado Contratante aufira da alienação de bens imobiliários referidos 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 ou aeronaves explorados no tráfego internacional, ou de bens mobiliários afectos à exploração desses navios ou aeronaves, só podem ser tributados nesse Estado.
4 -Os ganhos que um residente de um Estado Contratante obtenha da alienação de partes de capital cujo valor resulte, directa ou indirectamente, em mais de 50 % de bens imobiliários situados no outro Estado Contratante podem ser tributados nesse outro Estado.
5 -Os ganhos provenientes da alienação de quaisquer outros bens diferentes dos mencionados nos n.os 1, 2, 3 e 4 só podem ser tributados no Estado Contratante de que o alienante é residente.

Artigo 14.º

Profissões independentes

1 -Os rendimentos obtidos por um residente de um Estado Contratante pelo exercício de uma profissão liberal ou de outras actividades de carácter independente só podem ser tributados nesse Estado, a não ser que esse residente disponha, de forma habitual, no outro Estado Contratante, de uma instalação fixa para o exercício das suas actividades. Neste último caso, os rendimentos podem ser tributados no outro Estado Contratante, mas unicamente na medida em que sejam imputáveis a essa instalação fixa.
2 -A expressão «profissão liberal» 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.

Artigo 15.º

Profissões dependentes

1 -Com ressalva do disposto nos artigos 16.º, 18.º, 19.º e 20.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 são tributáveis exclusivamente 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; e
2. b)As remunerações forem pagas por uma entidade patronal ou por conta 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 do presente artigo, as remunerações de um emprego exercido a bordo de um navio ou de uma aeronave explorado no tráfego internacional por uma empresa de um Estado Contratante só podem ser tributadas nesse Estado.

Artigo 16.º

Percentagens de membros de conselhos

As percentagens, senhas de presença e outras remunerações similares obtidas por um residente de um Estado Contratante na qualidade de membro do conselho de administração ou do conselho fiscal, ou de outro órgão similar, de uma sociedade residente do outro Estado Contratante 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.

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.

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 a essa subdivisão ou autarquia, só podem ser tributados nesse Estado.
1. b)Contudo, esses salários, vencimentos e outras remunerações similares são tributáveis exclusivamente no outro Estado Contratante, se os serviços forem prestados nesse Estado e se a pessoa singular for um residente desse Estado que:
  1. i)Seja seu nacional; ou
  2. ii)Não se tenha tornado seu residente unicamente com o fim 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 eles constituídos, a uma pessoa singular, em consequência de serviços prestados a esse Estado ou a essa subdivisão ou autarquia, só podem ser tributados nesse Estado.
1. b)Contudo, essas pensões são tributáveis exclusivamente 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 ligação com uma actividade comercial ou industrial exercida por um Estado Contratante ou por uma sua subdivisão política ou administrativa ou autarquia local.

Artigo 20.º

Professores e investigadores

Uma pessoa que seja, ou tenha sido, residente de um Estado Contratante imediatamente antes de se deslocar ao outro Estado Contratante, com vista unicamente a ensinar ou realizar investigação científica numa universidade, colégio, escola ou outra instituição similar de ensino ou de investigação científica, reconhecida como não tendo fins lucrativos pelo Governo desse outro Estado, ou no âmbito de um programa oficial de intercâmbio cultural, durante um período não superior a dois anos, a contar da data da primeira chegada a esse outro Estado, fica isenta de imposto nesse outro Estado pelas remunerações recebidas em consequência desse ensino ou investigação.

Artigo 21.º

Estudantes

As importâncias que um estudante ou um estagiário que seja, ou tenha sido, imediatamente antes da sua permanência num Estado Contratante, residente do outro Estado Contratante, e cuja permanência no primeiro Estado mencionado tenha como único fim aí prosseguir os seus estudos ou a sua formação, receba para fazer face às despesas com a sua manutenção, estudos ou formação não serão tributadas no primeiro Estado mencionado, desde que provenham de fontes situadas fora desse 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 aos rendimentos, que não sejam rendimentos de bens imobiliários tal como são definidos no n.º 2 do artigo 6.º, se o beneficiário desses rendimentos, residente de um Estado Contratante, exercer no outro Estado Contratante uma actividade industrial ou comercial, através de um estabelecimento estável nele situado, ou exercer nesse outro Estado uma profissão independente através de uma instalação fixa nele situada, estando o bem ou direito em relação ao qual os rendimentos são pagos 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.

Capítulo IV - Eliminação da dupla tributação

Artigo 23.º

Eliminação da dupla tributação

1 -Quando um residente de um Estado Contratante obtiver rendimentos que, de acordo com o disposto na presente Convenção, possam ser tributados no outro Estado Contratante, o primeiro Estado mencionado deduzirá do imposto sobre os rendimentos desse residente uma importância igual ao imposto sobre o rendimento pago nesse outro Estado.
A importância deduzida não poderá, contudo, exceder a fracção do imposto sobre o rendimento, calculado antes da dedução, correspondente aos rendimentos que possam ser tributados nesse outro Estado.
2 -Quando, de acordo com o disposto na presente Convenção, os rendimentos obtidos por um residente de um Estado Contratante estiverem isentos de imposto nesse Estado, esse Estado poderá, não obstante, ao calcular o quantitativo do imposto sobre os restantes rendimentos desse residente, ter em conta os rendimentos isentos.

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 nas mesmas circunstâncias, em particular 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 -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 que a das empresas desse outro Estado que exerçam as mesmas actividades. Esta disposição não poderá ser interpretada no sentido de obrigar um Estado Contratante a conceder aos residentes do outro Estado Contratante quaisquer deduções pessoais, abatimentos e reduções para efeitos fiscais, atribuídos em função do estado civil ou dos encargos familiares, concedidos aos seus próprios residentes.
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, nas mesmas condições como se tivessem sido pagos a um residente do primeiro Estado mencionado.
4 -As empresas de um Estado Contratante cujo capital, total ou parcialmente, directa ou indirectamente, seja detido 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 empresas similares do primeiro Estado mencionado.
5 -Não obstante o disposto no artigo 2.º, as disposições do presente artigo aplicar-se-ão aos impostos de qualquer natureza ou denominação.

Artigo 25.º

Procedimento amigável

1 -Quando uma pessoa considerar que as medidas tomadas por um Estado Contratante ou por ambos os Estados Contratantes conduzem ou poderão conduzir, em relação a si, a uma tributação não conforme com o disposto na presente 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 autoridade competente do Estado Contratante de que é nacional. O caso deverá ser apresentado dentro de três anos a contar da data da primeira comunicação da medida que der causa à tributação não conforme com o disposto na Convenção.
2 -A 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 a 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 as 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 que sejam previsivelmente relevantes para a aplicação das disposições da presente Convenção ou para a administração ou a aplicação das leis internas relativas aos impostos de qualquer natureza ou denominação cobrados em benefício dos Estados Contratantes ou das suas subdivisões políticas ou administrativas ou autarquias locais, na medida em que a tributação nelas prevista não seja contrária à presente Convenção. A troca de informações não é restringida pelo disposto nos artigos 1.º e 2.º
2 -As informações obtidas nos termos do n.º 1 por um Estado Contratante serão consideradas confidenciais 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 da liquidação ou cobrança dos impostos referidos no n.º 1, ou dos procedimentos declarativos ou executivos, ou das decisões de recursos, relativos a esses impostos, ou do seu controlo. Essas pessoas ou autoridades utilizarão as informações assim obtidas apenas para os fins referidos. Essas informações poderão ser reveladas no decurso de audiências públicas de tribunais ou em decisões judiciais. Não obstante as disposições anteriores, as informações recebidas por um Estado Contratante podem ser usadas para outros fins desde que a legislação de ambos os Estados o permita e desde que tal uso seja autorizado pela autoridade competente do Estado que as fornece.
3 -O disposto nos n.os 1 e 2 não poderá em caso algum ser interpretado no sentido de impor a um Estado Contratante a obrigação:
1. a)De tomar medidas administrativas contrárias à sua legislação e 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 nas 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.
4 -Se forem solicitadas informações por um Estado Contratante em conformidade com o disposto no presente artigo, o outro Estado Contratante utilizará os poderes de que dispõe a fim de obter as informações solicitadas, mesmo que esse outro Estado não necessite de tais informações para os seus próprios fins fiscais. A obrigação constante da frase anterior está sujeita às limitações previstas no n.º 3, mas tais limitações não devem, em caso algum, ser interpretadas no sentido de permitir que um Estado Contratante se recuse a prestar tais informações pelo simples facto de estas não se revestirem de interesse para si, no âmbito interno.
5 -O disposto no n.º 3 não pode em caso algum ser interpretado no sentido de permitir que um Estado Contratante se recuse a prestar informações unicamente porque estas são detidas por um banco, outra instituição financeira, um mandatário ou por uma pessoa agindo na qualidade de agente ou fiduciário, ou porque essas informações são conexas com os direitos de propriedade de uma pessoa.

Artigo 27.º

Membros de missões diplomáticas e 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 de regras gerais de direito internacional ou de disposições de acordos especiais.

Artigo 28.º

Protocolo

O Protocolo anexo é parte integrante da presente Convenção.

Capítulo VI - Disposições finais

Artigo 29.º

Entrada em vigor

1 -Os Estados Contratantes notificarão um ao outro por escrito, por via diplomática, de que os procedimentos exigidos pela sua legislação para a entrada em vigor da presente Convenção foram cumpridos. A Convenção entrará em vigor 30 dias após a data da recepção da última notificação.
2 -A presente Convenção produzirá efeitos:
1. a)Em Portugal:
  1. i)Quanto aos impostos devidos na fonte cujo facto gerador ocorra em ou depois de 1 de Janeiro do ano civil imediatamente seguinte ao ano da entrada em vigor da presente Convenção;
  2. ii)Quanto aos demais impostos, relativamente aos rendimentos produzidos em qualquer ano fiscal com início em ou depois de 1 de Janeiro do ano civil imediatamente seguinte ao ano da entrada em vigor da presente Convenção;
2. b)No Chipre:
  1. i)Quanto aos impostos devidos na fonte, relativamente aos rendimentos obtidos em ou depois de 1 de Janeiro do ano civil imediatamente seguinte ao ano da entrada em vigor da presente Convenção;
  2. ii)Quanto aos demais impostos sobre o rendimento, relativamente aos impostos devidos em qualquer ano fiscal com início em ou depois de 1 de Janeiro do ano civil imediatamente seguinte ao ano da entrada em vigor da Convenção.

Artigo 30.º

Vigência e denúncia

A presente Convenção permanecerá em vigor enquanto não for denunciada por um Estado Contratante. Qualquer dos Estados Contratantes pode denunciar a Convenção, por via diplomática, mediante notificação da denúncia, por escrito, pelo menos seis meses antes do fim de qualquer ano civil posterior a um período inicial de cinco anos a contar da data da entrada em vigor da Convenção. Nesse caso, a Convenção deixará de produzir efeitos:

a)Em Portugal:
1. i)Quanto aos impostos devidos na fonte cujo facto gerador ocorra em ou depois de 1 de Janeiro do ano civil imediatamente seguinte ao ano especificado no referido aviso de denúncia;
2. ii)Quanto aos demais impostos, relativamente aos rendimentos produzidos em qualquer ano fiscal com início em ou depois de 1 de Janeiro do ano civil imediatamente seguinte ao ano especificado no referido aviso de denúncia;
b)No Chipre:
1. i)Quanto aos impostos devidos na fonte, relativamente aos rendimentos obtidos em ou depois de 1 de Janeiro do ano civil imediatamente seguinte ao ano especificado no referido aviso de denúncia;
2. ii)Quanto aos demais impostos sobre o rendimento, relativamente aos impostos devidos em qualquer ano fiscal com início em ou depois de 1 de Janeiro do ano imediatamente seguinte ao ano especificado no referido aviso de denúncia.
  Em testemunho do qual, os signatários, devidamente autorizados para o efeito, assinaram a presente Convenção.
  Feito em Bruxelas, aos 19 dias do mês de Novembro de 2012, em dois originais, nas línguas portuguesa, grega e inglesa, sendo todos os textos igualmente autênticos. Em caso de divergência de interpretação da presente Convenção, prevalecerá o texto inglês.
  Pela República Portuguesa:
  Paulo Sacadura Cabral Portas, Ministro de Estado e dos Negócios Estrangeiros.
  Pela República de Chipre:
  Dr. Erato Kozakou Marcoullis, Ministro dos Negócios Estrangeiros.
  PROTOCOLO À CONVENÇÃO ENTRE A REPÚBLICA PORTUGUESA E A REPÚBLICA DE CHIPRE PARA EVITAR A DUPLA TRIBUTAÇÃO E PREVENIR A EVASÃO FISCAL EM MATÉRIA DE IMPOSTOS SOBRE O RENDIMENTO.
  No momento da assinatura da Convenção entre a República Portuguesa e a República de Chipre para evitar a dupla tributação e prevenir a evasão fiscal em matéria de impostos sobre o rendimento, os signatários acordaram nas disposições seguintes, que fazem parte integrante da Convenção:
1 -Relativamente ao artigo 10.º («Dividendos»), ao artigo 11.º («Juros») e ao artigo 12.º («Royalties»):
Entende-se que as disposições destes artigos não prejudicarão a aplicação do direito europeu.
2 -Relativamente ao artigo 26.º («Troca de informações»):
1. 2.1 -Quando efectuar um pedido de informações nos termos do artigo 26.º, o Estado Contratante requerente fornecerá as seguintes informações a fim de demonstrar a relevância previsível das informações solicitadas:
2. a)A identidade da pessoa objecto de controlo ou de investigação;
3. b)Uma declaração contendo as informações solicitadas, incluindo a sua natureza e a forma como o Estado Contratante requerente pretende receber as informações do Estado Contratante requerido;
4. c)A finalidade tributária com que as informações são solicitadas;
5. d)Os motivos que levam a supor que as informações solicitadas são detidas no Estado Contratante requerido ou se encontram na posse ou sob o controlo de uma pessoa que releva da jurisdição do Estado Contratante requerido;
6. e)Na medida em que sejam conhecidos o nome e a morada de qualquer pessoa em relação à qual exista a convicção de estar na posse das informações solicitadas;
7. f)Uma declaração de que o pedido está em conformidade com a legislação e a prática administrativa do Estado Contratante requerente; de que, se as informações solicitadas estivessem na jurisdição do Estado Contratante requerente, a autoridade competente do Estado Contratante requerente poderia obter as informações com base na legislação do Estado Contratante requerente ou no âmbito da sua prática administrativa normal; e de que o pedido está em conformidade com a Convenção;
8. g)Uma declaração de que o Estado Contratante requerente utilizou todos os meios disponíveis no seu próprio território a fim de obter as informações, exceptuando aqueles susceptíveis de causar dificuldades desproporcionadas.
9. 2.2 -As informações solicitadas por um Estado Contratante não serão fornecidas a não ser que o Estado requerente tenha disposições para fornecer as informações solicitadas, com carácter de reciprocidade, e ou uma prática administrativa apropriada a essa finalidade.
  Em testemunho do qual, os signatários, devidamente autorizados para o efeito, assinaram o presente Protocolo.
  Feito em Bruxelas, aos 19 dias do mês de Novembro de 2012, em dois originais, nas línguas portuguesa, grega e inglesa, sendo todos os textos igualmente autênticos. Em caso de divergência de interpretação do presente Protocolo, prevalecerá o texto inglês.
  Pela República Portuguesa:
  Paulo Sacadura Cabral Portas, Ministro de Estado e dos Negócios Estrangeiros.
  Pela República de Chipre:
  Dr. Erato Kozakou Marcoullis, Ministro dos Negócios Estrangeiros.
  (ver documento original)
  CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE REPUBLIC OF CYPRUS 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 Cyprus, 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;
  2. ii)The corporate income tax; and
  3. iii)The surtaxes on corporate income;
    (hereinafter referred to as «Portuguese tax»);
2. b)In the case of Cyprus:
  1. i)The personal income tax;
  2. ii)The corporate income tax;
  3. iii)The special contribution for the defence of the Republic; and
  4. iv)The capital gains tax;
    (hereinafter referred to as «Cyprus tax»).
4 -The Convention shall apply also to any identical or substantially similar taxes which 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 significant changes which have been made in their respective 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 territory of the Portuguese Republic situated in the European Continent, the archipelagos of Azores and Madeira, the territorial sea and inland waters thereof as well as the continental shelf and any other area wherein the Portuguese State exercises sovereign rights or jurisdiction in accordance with the rules of international law;
2. b)The term «Cyprus» means the Republic of Cyprus and, when used in a geographical sense, includes the national territory, the territorial sea thereof as well as any area outside the territorial sea, including the contiguous zone, the exclusive economic zone and the continental shelf, which has been or may hereafter be designated, under the laws of Cyprus and in accordance with international law, as an area within which Cyprus may exercise sovereign rights or jurisdiction;
3. c)The terms «a Contracting State» and «the other Contracting State» mean Portugal or Cyprus 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 or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft 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 the Tax and Customs Authority or their authorized representative;
  2. ii)In Cyprus: the Minister of Finance or his authorised representative;
9. i)The term «national» means:
  1. i)Any individual possessing the nationality or citizenship 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 which 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, 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 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 State in which its place of effective management is situated.
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, exploration or exploitation of natural resources.
3 -A building site, or construction or installation project or supervisory activities in connection therewith, constitutes a permanent establishment only if such site, project or activities continue for a period or periods exceeding in the aggregate 12 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 on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
6 -An enterprise 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 or 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 and aircraft shall not be regarded as immovable property.
3 -The provisions of paragraph 1 shall apply to income derived from the direct use, letting, 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.
5 -The preceding provisions of this article shall also apply to income from associated movable property and from the provision of services for the maintenance or operation of immovable property.
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 -Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.
5 -No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
6 -For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
7 -Where profits include items of income which are dealt with separately in other articles of this Convention, then the provisions of those articles shall not be affected by the provisions of this article.
Article 8
Shipping and air transport
1 -Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.
2 -For the purposes of this article profits from the operation of ships or aircraft in international traffic include profits from:
1. a)The rental of ships or aircraft on a full (time or voyage) basis;
2. b)The rental of ships or aircraft on a bare-boat basis if ancillary to such operation; and
3. c)The use, maintenance or rental of containers (including trailers, barges and related equipment used for the transport of containers) if such use, maintenance or rental is ancillary to such operation.
3 -The provisions of this article shall also apply to profits from the participation in a pool, a joint business or an international operating agency.
Article 9
Associated enterprises
1 -Where:
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 10 per cent of the gross amount of dividends.
The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation. 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, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. In Portugal the term also includes profits attributed under an arrangement for participation in profits (associação em participação).
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
5 -Where a company which is a resident of a Contracting State derives profits or income 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 10 per cent of the gross amount of the interest.
The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
3 -The term «interest» as used in this article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this article.
4 -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.
5 -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.
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 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.
The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
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 tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, 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 obligation 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 derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.
4 -Gains derived by a resident of a Contracting State from the alienation of shares deriving more than 50 per cent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State.
5 -Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident.
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 unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributable to that fixed base.
2 -The term «professional services» includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent personal services
1 -Subject to the provisions of articles 16, 18, 19 and 20, 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 or aircraft operated in international traffic by an enterprise of a Contracting State shall be taxable only 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 or of another similar organ of a company which is a resident of the other Contracting State 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.
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.
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 recognized 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
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.
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 -Where a resident of a Contracting State derives income which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first-mentioned State shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in that other State.
Such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in that other State.
2 -Where in accordance with any provision of the Convention income derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
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 -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. Nothing in this provision shall 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.
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 -The provisions of this article shall, notwithstanding the provisions of article 2, apply to taxes of every kind and description.
Article 25
Mutual agreement procedure
1 -Where a person considers that the actions of one or both of the Contracting States result 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 foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by article 1 and 2.
2 -Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorises such use.
3 -In no case shall the provisions of paragraph 1 and 2 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).
4 -If information is requested by a Contracting State in accordance with this article, the other Contracting State shall use its information gathering measures to obtain the requested information even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3, but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
5 -In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.
Article 27
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
Protocol
The attached Protocol shall form an integral part of the present Convention.
Article 29
Entry into force
1 -The Contracting States shall notify each other in writing, through diplomatic channels, that the procedures required by its law for the entry into force of this Convention have been satisfied. The Convention shall enter into force thirty days after the date of receipt of the last notification.
2 -This Convention shall be applicable:
1. a)In Portugal:
  1. i)In respect of the taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the calendar year next following the year in which this Convention enters into force;
  2. ii)In respect of the other taxes, as to income arising in any fiscal year beginning on or after the first day of January of the calendar year next following the year in which this Convention enters into force;
2. b)In Cyprus:
  1. i)In respect of taxes withheld at source, to income derived on or after the first day of January of the calendar year next following the year in which this Convention enters into force;
  2. ii)In respect of other taxes on income, to taxes chargeable for any taxable year beginning on or after the first day of January of the calendar year next following the year in which the Convention enters into force.
    Article 30
    Duration and termination
    This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year following an initial period of five years from the date on which the Convention enters into force. In such event, the Convention shall cease to have effect:
3. 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 calendar 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;
4. b)In Cyprus:
  1. i)In respect of taxes withheld at source, to income derived on or after the first day of January of the calendar year next following that specified in the said notice of termination;
  2. ii)In respect of other taxes on income, to taxes chargeable for any taxable year beginning on or after the first day of January of the calendar year next following that specified in the said notice of termination.
    In witness whereof the undersigned, duly authorized thereto, have signed this Convention.
    Done at Brussels this 19 day of November 2012, in duplicate, in the Portuguese, Greek and English languages, all texts being equally authentic. In case of any divergence of interpretation of this Convention, the English text shall prevail.
    For the Portuguese Republic:
    Paulo Sacadura Cabral Portas, Minister of State and Foreign Affairs.
    For the Republic of Cyprus:
    Dr. Erato Kozakou Marcoullis, Minister of Foreign Affairs.
    PROTOCOL TO THE CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE REPUBLIC OF CYPRUS FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.
    On signing the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income between the Republic of Cyprus and the Portuguese Republic the signatories have agreed that the following provisions shall form an integral part of the Convention.
1 -With reference to article 10 («Dividends»), article 11 («Interest») and article 12 («Royalties»):
It is understood that the provisions of these articles shall not affect the application of legal acts of the European Community.
2 -With reference to article 26 («Exchange of information»):
1. 2.1 -The requesting Contracting State shall provide the following information when making a request for information under article 26 to demonstrate the foreseeable relevance of the information to the request:
2. a)the identity of the person under examination or investigation;
3. b)a statement of the information sought including its nature and the form in which the requesting Contracting State wishes to receive the information from the requested Contracting State;
4. c)the tax purpose for which the information is sought;
5. d)grounds for believing that the information requested is held in the requested Contracting State or is in the possession or control of a person within the jurisdiction of the requested Contracting State;
6. e)to the extent known, the name and address of any person believed to be in possession of the requested information;
7. f)a statement that the request is in conformity with the law and administrative practices of the requesting Contracting State, that if the requested information was within the jurisdiction of the requesting Contracting State then the competent authority of the requesting Contracting State would be able to obtain the information under the laws of the requesting Contracting State or in the normal course of administrative practice and that it is in conformity with the Convention;
8. g)a statement that the requesting Contracting State has exhausted all means available in its own territory to obtain the information, except those that would cause excessive difficulties.
9. 2.2 -Information requested by a Contracting State shall not be provided unless the requesting State has reciprocal provisions and/or applies appropriate administrative practices for the provision of the information requested.
  In witness whereof the signatories, duly authorised to that effect, have signed this Protocol.
  Done at Brussels, this 19 day of November 2012, in duplicate, in the Portuguese, Greek and English languages, all texts being equally authentic. In case of any divergence of interpretation of this Protocol, the English text shall prevail.
  For the Portuguese Republic:
  Paulo Sacadura Cabral Portas, Minister of State and Foreign Affairs.
  For the Republic of Cyprus:
  Dr. Erato Kozakou Marcoullis, Minister of Foreign Affairs.

Artigo 30.º

Vigência e denúncia

a)Em Portugal:
1. i)Quanto aos impostos devidos na fonte cujo facto gerador ocorra em ou depois de 1 de Janeiro do ano civil imediatamente seguinte ao ano especificado no referido aviso de denúncia;
2. ii)Quanto aos demais impostos, relativamente aos rendimentos produzidos em qualquer ano fiscal com início em ou depois de 1 de Janeiro do ano civil imediatamente seguinte ao ano especificado no referido aviso de denúncia;
b)No Chipre:
1. i)Quanto aos impostos devidos na fonte, relativamente aos rendimentos obtidos em ou depois de 1 de Janeiro do ano civil imediatamente seguinte ao ano especificado no referido aviso de denúncia;
2. ii)Quanto aos demais impostos sobre o rendimento, relativamente aos impostos devidos em qualquer ano fiscal com início em ou depois de 1 de Janeiro do ano imediatamente seguinte ao ano especificado no referido aviso de denúncia.
  Em testemunho do qual, os signatários, devidamente autorizados para o efeito, assinaram a presente Convenção.
  Feito em Bruxelas, aos 19 dias do mês de Novembro de 2012, em dois originais, nas línguas portuguesa, grega e inglesa, sendo todos os textos igualmente autênticos. Em caso de divergência de interpretação da presente Convenção, prevalecerá o texto inglês.
  Pela República Portuguesa:
  Paulo Sacadura Cabral Portas, Ministro de Estado e dos Negócios Estrangeiros.
  Pela República de Chipre:
  Dr. Erato Kozakou Marcoullis, Ministro dos Negócios Estrangeiros.
  PROTOCOLO À CONVENÇÃO ENTRE A REPÚBLICA PORTUGUESA E A REPÚBLICA DE CHIPRE PARA EVITAR A DUPLA TRIBUTAÇÃO E PREVENIR A EVASÃO FISCAL EM MATÉRIA DE IMPOSTOS SOBRE O RENDIMENTO.
  No momento da assinatura da Convenção entre a República Portuguesa e a República de Chipre para evitar a dupla tributação e prevenir a evasão fiscal em matéria de impostos sobre o rendimento, os signatários acordaram nas disposições seguintes, que fazem parte integrante da Convenção:
1 -Relativamente ao artigo 10.º («Dividendos»), ao artigo 11.º («Juros») e ao artigo 12.º («Royalties»):
Entende-se que as disposições destes artigos não prejudicarão a aplicação do direito europeu.
2 -Relativamente ao artigo 26.º («Troca de informações»):
1. 2.1 -Quando efectuar um pedido de informações nos termos do artigo 26.º, o Estado Contratante requerente fornecerá as seguintes informações a fim de demonstrar a relevância previsível das informações solicitadas:
2. a)A identidade da pessoa objecto de controlo ou de investigação;
3. b)Uma declaração contendo as informações solicitadas, incluindo a sua natureza e a forma como o Estado Contratante requerente pretende receber as informações do Estado Contratante requerido;
4. c)A finalidade tributária com que as informações são solicitadas;
5. d)Os motivos que levam a supor que as informações solicitadas são detidas no Estado Contratante requerido ou se encontram na posse ou sob o controlo de uma pessoa que releva da jurisdição do Estado Contratante requerido;
6. e)Na medida em que sejam conhecidos o nome e a morada de qualquer pessoa em relação à qual exista a convicção de estar na posse das informações solicitadas;
7. f)Uma declaração de que o pedido está em conformidade com a legislação e a prática administrativa do Estado Contratante requerente; de que, se as informações solicitadas estivessem na jurisdição do Estado Contratante requerente, a autoridade competente do Estado Contratante requerente poderia obter as informações com base na legislação do Estado Contratante requerente ou no âmbito da sua prática administrativa normal; e de que o pedido está em conformidade com a Convenção;
8. g)Uma declaração de que o Estado Contratante requerente utilizou todos os meios disponíveis no seu próprio território a fim de obter as informações, exceptuando aqueles susceptíveis de causar dificuldades desproporcionadas.
9. 2.2 -As informações solicitadas por um Estado Contratante não serão fornecidas a não ser que o Estado requerente tenha disposições para fornecer as informações solicitadas, com carácter de reciprocidade, e ou uma prática administrativa apropriada a essa finalidade.
  Em testemunho do qual, os signatários, devidamente autorizados para o efeito, assinaram o presente Protocolo.
  Feito em Bruxelas, aos 19 dias do mês de Novembro de 2012, em dois originais, nas línguas portuguesa, grega e inglesa, sendo todos os textos igualmente autênticos. Em caso de divergência de interpretação do presente Protocolo, prevalecerá o texto inglês.
  Pela República Portuguesa:
  Paulo Sacadura Cabral Portas, Ministro de Estado e dos Negócios Estrangeiros.
  Pela República de Chipre:
  Dr. Erato Kozakou Marcoullis, Ministro dos Negócios Estrangeiros.
  (ver documento original)
  CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE REPUBLIC OF CYPRUS 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 Cyprus, 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;
  2. ii)The corporate income tax; and
  3. iii)The surtaxes on corporate income;
    (hereinafter referred to as «Portuguese tax»);
2. b)In the case of Cyprus:
  1. i)The personal income tax;
  2. ii)The corporate income tax;
  3. iii)The special contribution for the defence of the Republic; and
  4. iv)The capital gains tax;
    (hereinafter referred to as «Cyprus tax»).
4 -The Convention shall apply also to any identical or substantially similar taxes which 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 significant changes which have been made in their respective 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 territory of the Portuguese Republic situated in the European Continent, the archipelagos of Azores and Madeira, the territorial sea and inland waters thereof as well as the continental shelf and any other area wherein the Portuguese State exercises sovereign rights or jurisdiction in accordance with the rules of international law;
2. b)The term «Cyprus» means the Republic of Cyprus and, when used in a geographical sense, includes the national territory, the territorial sea thereof as well as any area outside the territorial sea, including the contiguous zone, the exclusive economic zone and the continental shelf, which has been or may hereafter be designated, under the laws of Cyprus and in accordance with international law, as an area within which Cyprus may exercise sovereign rights or jurisdiction;
3. c)The terms «a Contracting State» and «the other Contracting State» mean Portugal or Cyprus 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 or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft 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 the Tax and Customs Authority or their authorized representative;
  2. ii)In Cyprus: the Minister of Finance or his authorised representative;
9. i)The term «national» means:
  1. i)Any individual possessing the nationality or citizenship 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 which 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, 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 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 State in which its place of effective management is situated.
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, exploration or exploitation of natural resources.
3 -A building site, or construction or installation project or supervisory activities in connection therewith, constitutes a permanent establishment only if such site, project or activities continue for a period or periods exceeding in the aggregate 12 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 on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
6 -An enterprise 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 or 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 and aircraft shall not be regarded as immovable property.
3 -The provisions of paragraph 1 shall apply to income derived from the direct use, letting, 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.
5 -The preceding provisions of this article shall also apply to income from associated movable property and from the provision of services for the maintenance or operation of immovable property.
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 -Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.
5 -No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
6 -For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
7 -Where profits include items of income which are dealt with separately in other articles of this Convention, then the provisions of those articles shall not be affected by the provisions of this article.
Article 8
Shipping and air transport
1 -Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.
2 -For the purposes of this article profits from the operation of ships or aircraft in international traffic include profits from:
1. a)The rental of ships or aircraft on a full (time or voyage) basis;
2. b)The rental of ships or aircraft on a bare-boat basis if ancillary to such operation; and
3. c)The use, maintenance or rental of containers (including trailers, barges and related equipment used for the transport of containers) if such use, maintenance or rental is ancillary to such operation.
3 -The provisions of this article shall also apply to profits from the participation in a pool, a joint business or an international operating agency.
Article 9
Associated enterprises
1 -Where:
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 10 per cent of the gross amount of dividends.
The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation. 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, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. In Portugal the term also includes profits attributed under an arrangement for participation in profits (associação em participação).
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
5 -Where a company which is a resident of a Contracting State derives profits or income 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 10 per cent of the gross amount of the interest.
The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
3 -The term «interest» as used in this article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this article.
4 -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.
5 -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.
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 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.
The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
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 tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, 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 obligation 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 derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.
4 -Gains derived by a resident of a Contracting State from the alienation of shares deriving more than 50 per cent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State.
5 -Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident.
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 unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributable to that fixed base.
2 -The term «professional services» includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent personal services
1 -Subject to the provisions of articles 16, 18, 19 and 20, 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 or aircraft operated in international traffic by an enterprise of a Contracting State shall be taxable only 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 or of another similar organ of a company which is a resident of the other Contracting State 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.
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.
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 recognized 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
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.
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 -Where a resident of a Contracting State derives income which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first-mentioned State shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in that other State.
Such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in that other State.
2 -Where in accordance with any provision of the Convention income derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
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 -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. Nothing in this provision shall 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.
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 -The provisions of this article shall, notwithstanding the provisions of article 2, apply to taxes of every kind and description.
Article 25
Mutual agreement procedure
1 -Where a person considers that the actions of one or both of the Contracting States result 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 foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by article 1 and 2.
2 -Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorises such use.
3 -In no case shall the provisions of paragraph 1 and 2 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).
4 -If information is requested by a Contracting State in accordance with this article, the other Contracting State shall use its information gathering measures to obtain the requested information even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3, but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
5 -In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.
Article 27
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
Protocol
The attached Protocol shall form an integral part of the present Convention.
Article 29
Entry into force
1 -The Contracting States shall notify each other in writing, through diplomatic channels, that the procedures required by its law for the entry into force of this Convention have been satisfied. The Convention shall enter into force thirty days after the date of receipt of the last notification.
2 -This Convention shall be applicable:
1. a)In Portugal:
  1. i)In respect of the taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the calendar year next following the year in which this Convention enters into force;
  2. ii)In respect of the other taxes, as to income arising in any fiscal year beginning on or after the first day of January of the calendar year next following the year in which this Convention enters into force;
2. b)In Cyprus:
  1. i)In respect of taxes withheld at source, to income derived on or after the first day of January of the calendar year next following the year in which this Convention enters into force;
  2. ii)In respect of other taxes on income, to taxes chargeable for any taxable year beginning on or after the first day of January of the calendar year next following the year in which the Convention enters into force.
    Article 30
    Duration and termination
    This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year following an initial period of five years from the date on which the Convention enters into force. In such event, the Convention shall cease to have effect:
3. 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 calendar 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;
4. b)In Cyprus:
  1. i)In respect of taxes withheld at source, to income derived on or after the first day of January of the calendar year next following that specified in the said notice of termination;
  2. ii)In respect of other taxes on income, to taxes chargeable for any taxable year beginning on or after the first day of January of the calendar year next following that specified in the said notice of termination.
    In witness whereof the undersigned, duly authorized thereto, have signed this Convention.
    Done at Brussels this 19 day of November 2012, in duplicate, in the Portuguese, Greek and English languages, all texts being equally authentic. In case of any divergence of interpretation of this Convention, the English text shall prevail.
    For the Portuguese Republic:
    Paulo Sacadura Cabral Portas, Minister of State and Foreign Affairs.
    For the Republic of Cyprus:
    Dr. Erato Kozakou Marcoullis, Minister of Foreign Affairs.
    PROTOCOL TO THE CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE REPUBLIC OF CYPRUS FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.
    On signing the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income between the Republic of Cyprus and the Portuguese Republic the signatories have agreed that the following provisions shall form an integral part of the Convention.
1 -With reference to article 10 («Dividends»), article 11 («Interest») and article 12 («Royalties»):
It is understood that the provisions of these articles shall not affect the application of legal acts of the European Community.
2 -With reference to article 26 («Exchange of information»):
1. 2.1 -The requesting Contracting State shall provide the following information when making a request for information under article 26 to demonstrate the foreseeable relevance of the information to the request:
2. a)the identity of the person under examination or investigation;
3. b)a statement of the information sought including its nature and the form in which the requesting Contracting State wishes to receive the information from the requested Contracting State;
4. c)the tax purpose for which the information is sought;
5. d)grounds for believing that the information requested is held in the requested Contracting State or is in the possession or control of a person within the jurisdiction of the requested Contracting State;
6. e)to the extent known, the name and address of any person believed to be in possession of the requested information;
7. f)a statement that the request is in conformity with the law and administrative practices of the requesting Contracting State, that if the requested information was within the jurisdiction of the requesting Contracting State then the competent authority of the requesting Contracting State would be able to obtain the information under the laws of the requesting Contracting State or in the normal course of administrative practice and that it is in conformity with the Convention;
8. g)a statement that the requesting Contracting State has exhausted all means available in its own territory to obtain the information, except those that would cause excessive difficulties.
9. 2.2 -Information requested by a Contracting State shall not be provided unless the requesting State has reciprocal provisions and/or applies appropriate administrative practices for the provision of the information requested.
  In witness whereof the signatories, duly authorised to that effect, have signed this Protocol.
  Done at Brussels, this 19 day of November 2012, in duplicate, in the Portuguese, Greek and English languages, all texts being equally authentic. In case of any divergence of interpretation of this Protocol, the English text shall prevail.
  For the Portuguese Republic:
  Paulo Sacadura Cabral Portas, Minister of State and Foreign Affairs.
  For the Republic of Cyprus:
  Dr. Erato Kozakou Marcoullis, Minister of Foreign Affairs.