Resolução da Assembleia da República n.º 22/2017 — Aprova a Convenção entre a República Portuguesa e o Principado de Andorra para Evitar a Dupla Tributação e Prevenir a…

1 - Els guanys que un resident d'un Estat contractant obté de l'alienació de béns immobles considerats en l'article 6, i situats en l'altre Estat contractant, poden ser imposables en aquest altre Estat.

2 - Els guanys procedents de l'alienació de béns mobles que formen part de l'actiu d'un establiment permanent que una empresa d'un Estat contractant té en l'altre Estat contractant, inclosos els guanys procedents de l'alienació d'aquest establiment permanent (sol o amb el conjunt de l'empresa), poden ser imposables en aquest altre Estat contractant.

3 - Els guanys procedents de l'alienació de naus o d'aeronaus explotades en trànsit internacional, o de béns mobles destinats a l'explotació d'aquestes naus o aeronaus només són imposables en l'Estat contractant on es troba situada la seu de direcció efectiva de l'empresa.

4 - Els guanys obtinguts per un resident d'un Estat contractant de l'alienació d'accions, o de drets similars, el valor dels quals procedeixi en més d'un 50 per cent, directament o indirecta, de béns immobles situats en l'altre Estat contractant poden ser imposables en aquest altre Estat. No obstant això, aquest apartat no s'aplica als guanys derivats de l'alienació d'accions d'una societat que cotitzi en un mercat de valors reconegut d'un o d'ambdós estats contractants quan aquestes accions no representen el 25 per cent o més del capital de la societat cotitzada.

5 - Els guanys procedents de l'alienació de qualsevol altre bé diferent dels esmentats en els apartats 1, 2, 3, i 4 només són imposables en l'Estat contractant en què resideixi el transmissor.

Article 14

Serveis personals dependents

1 - Sense perjudici del que disposen els articles 15, 17, 18, 19 i 20, els sous, salaris i altres remuneracions similars obtinguts per un resident d'un Estat contractant en concepte d'un treball assalariat només són imposables en aquest Estat a no ser que l'ocupació s'exerceixi en l'altre Estat contractant. Si l'ocupació s'exerceix d'aquesta manera, les remuneracions que se'n deriven poden ser imposables en aquest altre Estat.

2 - Malgrat el que disposa l'apartat 1, les remuneracions obtingudes per un resident d'un Estat contractant en concepte d'un treball exercit en l'altre Estat contractant només són imposables en l'Estat esmentat en primer lloc quan:

3 - Malgrat les disposicions precedents d'aquest article, les remuneracions obtingudes en concepte de treball assalariat realitzat a bord d'una nau o aeronau explotades en trànsit internacional poden ser imposables en l'Estat contractant on es troba situada la seu de direcció efectiva de l'empresa.

Article 15

Remuneració de consellers

Les remuneracions en qualitat de conseller i altres retribucions similars que un resident d'un Estat contractant obtingui com a membre d'un consell d'administració o de supervisió o òrgan similar d'una societat resident de l'altre Estat contractant poden ser imposables en aquest altre Estat.

Article 16

Artistes i esportistes

1 - Malgrat les disposicions de l'article 14, les rendes que un resident d'un Estat contractant obté de l'exercici de la seva activitat personal en l'altre Estat contractant en qualitat d'artista, ja sigui actor de teatre, de cinema, de ràdio o de televisió, o en qualitat de músic, o com a esportista, poden ser imposables en aquest altre Estat.

2 - Quan les rendes derivades de les activitats realitzades per un artista o esportista personalment i en aquesta qualitat, s'atribueixin no a l'artista o esportista sinó a una altra persona, aquestes rendes, malgrat les disposicions dels articles 7 i 14, poden ser imposables en l'Estat contractant en què es realitzin les activitats de l'artista o esportista.

3 - Malgrat les disposicions de l'apartat 1 i 2, les rendes derivades de les activitats exercides, personalment i en aquesta qualitat, per un artista o un esportista resident d'un Estat contractant, en l'altre Estat contractant, només poden ser imposables en el primer Estat quan aquestes activitats desenvolupades en l'altre Estat són finançades principalment per fons públics del primer Estat, de les seves subdivisions polítiques o administratives o entitats locals o de qualsevol de les seves persones jurídiques de dret públic.

Article 17

Pensions

Sense perjudici de les disposicions de l'apartat 2 de l'article 18, les pensions i altres remuneracions similars que es paguen a un resident d'un Estat contractant en concepte d'un treball anterior només són imposables en aquest Estat.

Article 18

Funció pública

1 - Els sous, salaris i altres remuneracions similars pagats per un Estat contractant o per una de les seves subdivisions polítiques o administratives o entitats locals a una persona física en concepte de serveis prestats a aquest Estat o a aquesta subdivisió o entitat només són imposables en aquest Estat. Nogensmenys, aquests sous, salaris i altres remuneracions similars només són imposables en l'altre Estat contractant si els serveis que es presten ho són en aquest Estat i la persona física que és un resident d'aquest Estat:

2 - Malgrat les disposicions de l'apartat 1, les pensions i altres remuneracions similars, pagades directament o amb càrrec a fons constituïts per un Estat contractant o per una de les seves subdivisions polítiques o administratives o entitats locals, a una persona física en concepte de serveis prestats a aquest Estat o a aquesta subdivisió o entitat només són imposables en aquest Estat. No obstant això, aquestes pensions i remuneracions anàlogues només són imposables en l'altre Estat contractant quan la persona física és un resident i posseeix la nacionalitat d'aquest Estat sense posseir al mateix temps la nacionalitat del primer Estat.

3 - Les disposicions dels articles 14, 15, 16 i 17 s'apliquen als sous, salaris, pensions i altres remuneracions similars, pagats en concepte de serveis prestats en el marc d'una activitat econòmica exercida per un Estat contractant o per una de les seves subdivisions polítiques o administratives o entitats locals.

Article 19

Professors i investigadors

Sense perjudici de les disposicions de l'article 18 una persona física que és o ha estat un resident d'un Estat contractant immediatament abans d'arribar a l'altre Estat contractant, únicament amb la finalitat d'ensenyar o de fer recerca científica en una universitat, institut, escola o altres institucions similars educatives o de recerca científica reconegudes sense caràcter lucratiu pel Govern d'aquest altre Estat, o de participar a un programa oficial d'intercanvi cultural, per un període que no superi els dos anys a partir de la data de la primera entrada en aquest altre Estat, està exempt d'impost sobre la seva remuneració com a ensenyant o investigador en aquest altre Estat.

Article 20

Estudiants

Els imports que rep, un estudiant o un aprenent en pràctiques que és o hagi estat just abans d'arribar a un Estat contractant, resident de l'altre Estat contractant i que sojorna al primer Estat contractant amb l'única finalitat de continuar els seus estudis o la seva formació pràctica, per cobrir les seves despeses de manutenció, d'estudis o de formació pràctica no poden ser imposables en aquest Estat, sempre i quan provinguin de fonts situades fora d'aquest Estat.

Article 21

Altres rendes

1 - Les rendes d'un resident d'un Estat contractant, vinguin d'on vinguin, no previstes en els articles precedents d'aquest conveni només són imposables en aquest Estat.

2 - Les disposicions de l'apartat 1 no s'apliquen a les rendes altres que les rendes procedents de béns immobles tal com es defineixen a l'apartat 2 de l'article 6, quan el beneficiari d'aquestes rendes, resident d'un Estat contractant, exerceix en l'altre Estat contractant una activitat econòmica mitjançant un establiment permanent situat en aquest altre Estat, i quan el dret o el bé generador de les rendes està vinculat efectivament a aquest establiment permanent. En aquest cas, s'apliquen les disposicions de l'article 7.

3 - Quan, per raó de les relacions especials entre la persona esmentada en l'apartat 1 i una altra persona, o de les que un i altre mantenen amb una tercera persona, l'import de la renda esmentada en l'apartat 1 excedeix l'import (si n'hi ha) que haurien convingut entre elles en l'absència d'aquesta relació, les disposicions d'aquest article només s'apliquen per aquest darrer import. En aquest cas, la part excedentària de l'import és imposable de conformitat amb la legislació de cada Estat contractant i tenint en compte les altres disposicions d'aquest conveni.

Capítol IV

Mètodes per eliminar la doble imposició

Article 22

Eliminació de la doble imposició

1 - Quan un resident d'un Estat contractant obté una renda que, de conformitat amb les disposicions d'aquest conveni, pot ser taxada en l'altre Estat contractant, el primer Estat contractant permet una deducció de l'impost sobre la renda d'aquest resident en una quantia equivalent a l'import de l'impost pagat en l'altre Estat. Aquesta deducció no excedeix, però, la part de l'impost sobre la renda tal com calculada abans de la deducció que s'atorga, i que s'atribueix a la renda que pot ser imposada en aquell altre Estat.

2 - Quan, de conformitat amb qualsevol disposició d'aquest conveni, les rendes obtingudes per un resident d'un Estat contractant estiguin exemptes d'impostos en aquest Estat, aquest Estat pot, no obstant això, prendre en consideració les rendes exemptes per calcular l'impost sobre la resta de les rendes d'aquest resident.

CAPÍTOL V

Disposicions especials

Article 23

No discriminació

1 - Els nacionals d'un Estat contractant no han d'estar sotmesos en l'altre Estat contractant a cap imposició o obligació que s'hi refereixi, i que no s'exigeixi o que sigui més costosa que la que tenen o a la que podrien estar sotmesos els nacionals d'aquest altre Estat que es troben en la mateixa situació, en particular pel que fa referència a la residència. Malgrat les disposicions de l'article 1, aquesta disposició també s'aplica a les persones que no siguin residents d'un o de cap dels estats contractants.

2 - Els establiments permanents que una empresa d'un Estat contractant té a l'altre Estat contractant no poden ser imposables en aquest Estat de manera menys favorable que les empreses d'aquest altre Estat que exerceixen la mateixa activitat. Aquesta disposició no és pot interpretar en el sentit d'obligar a un Estat contractant a concedir als residents de l'altre Estat contractant les deduccions personals, desgravacions i reduccions fiscals que concedeix als seus propis residents en funció de l'estat civil o de les càrregues familiars.

3 - A no ser que s'apliquin les disposicions de l'apartat 1 de l'article 9, de l'apartat 7 de l'article 11, de l'apartat 6 de l'article 12 o de l'apartat 3 de l'article 21, els interessos, cànons i altres despeses pagades per una empresa d'un Estat contractant a un resident de l'altre Estat contractant són deduïbles per determinar els beneficis imposables d'aquesta empresa, en les mateixes condicions que si s'haguessin pagat a un resident del primer Estat esmentat.

4 - Les empreses d'un Estat contractant, que tenen un o diversos residents de l'altre Estat contractant que posseeixen o controlen el seu capital, directament o indirectament, en la seva totalitat o en part, no estan sotmeses, en el primer Estat esmentat, a cap imposició o obligació que s'hi refereixi, que no s'exigeixi o que sigui més costosa que la que tenen o a la que podrien estar sotmeses altres empreses similars del primer Estat esmentat.

5 - Malgrat les disposicions de l'article 2, les disposicions d'aquest article s'apliquen a tots els impostos de qualsevol naturalesa o denominació.

Article 24

Procediment d'arranjament amistós

1 - Quan una persona considera que les mesures preses per un Estat contractant o ambdós estats contractants comporten o poden comportar per a ella una imposició no conforme a les disposicions d'aquest conveni, pot amb independència dels recursos que preveu el dret intern d'aquests estats, sotmetre el seu cas a l'autoritat competent de l'Estat contractant d'on és resident o, si el seu cas s'ajusta a l'apartat 1 de l'article 23, a la de l'Estat contractant d'on té la nacionalitat. El cas s'ha de sotmetre durant els tres anys que segueixen a la primera notificació de la mesura que comporta una imposició no conforme a les disposicions del conveni.

2 - L'autoritat competent, si considera que la reclamació està fonamentada i no està en condicions ella mateixa d'aportar-hi una solució satisfactòria, ha de fer el possible per resoldre el cas mitjançant un arranjament amistós amb l'autoritat competent de l'altre Estat contractant, amb la finalitat d'evitar una imposició no conforme amb el conveni. L'arranjament s'ha d'aplicar siguin quins siguin els terminis previstos pel dret intern dels estats contractants.

3 - Les autoritats competents dels estats contractants, mitjançant un arranjament amistós, han de fer el possible per resoldre les dificultats o aclarir els dubtes a què pot donar lloc la interpretació o l'aplicació del conveni. També es poden concertar amb la finalitat d'evitar la doble imposició en els casos no previstos pel conveni.

4 - Les autoritats competents dels estats contractants poden comunicar-se directament entre elles, inclòs a través d'una comissió conjunta composta per elles mateixes o pels seus representants, amb la finalitat d'arribar a un arranjament tal com estipulat en els apartats anteriors.

Article 25

Intercanvi d'informació

1 - Les autoritats competents dels estats contractants intercanvien informació previsiblement rellevant per aplicar les disposicions d'aquest conveni o per a l'execució o l'aplicació del dret intern relativa als impostos de qualsevol naturalesa o denominació exigibles pels estats contractants, per les seves subdivisions polítiques o entitats locals en la mesura que la imposició així exigida no sigui contrària al conveni. L'intercanvi d'informació no està restringit pels articles 1 i 2.

2 - La informació rebuda en virtut de l'apartat 1 per un Estat contractant és tractada de forma confidencial, de la mateixa manera que la informació obtinguda en aplicació del dret intern d'aquest Estat, i únicament pot ser revelada a les persones o autoritats (inclosos tribunals i òrgans administratius) encarregades de la gestió o recaptació dels impostos esmentats a l'apartat 1, de la seva aplicació efectiva o de la persecució de l'incompliment en relació amb aquests impostos, de la resolució dels recursos relatius a aquests impostos, o de la supervisió d'aquestes activitats. Aquestes persones o autoritats únicament poden emprar aquesta informació per a les finalitats esmentades. Poden revelar-la en el marc d'audiències públiques dels tribunals o de les sentències judicials. obstant això, la informació rebuda per un Estat contractant es pot emprar amb altres finalitats quan, de conformitat amb el dret d'ambdós estats es pugui emprar per aquestes altres finalitats i l'autoritat competent de l'Estat que proporciona la informació n'autoritzi aquest ús.

3 - Les disposicions dels apartats 1 i 2 no poden, en cap cas, ser interpretades en el sentit d'obligar a un Estat contractant a:

4 - Si un Estat contractant sol·licita informació de conformitat amb aquest article, l'altre Estat contractant utilitza les mesures de les quals disposa per obtenir la informació, amb la finalitat d'obtenir la informació sol·licitada, independentment de que l'altre Estat no necessiti aquesta informació per a finalitats tributàries pròpies. L'obligació precedent està restringida per les disposicions de l'apartat 3, però en cap cas, els estats contractants poden interpretar aquestes restriccions com a base per denegar l'intercanvi d'informació únicament per l'absència d'interès nacional en la informació sol·licitada.

5 - En cap cas les disposicions de l'apartat 3 s'interpreten en el sentit de permetre a un Estat contractant denegar l'intercanvi d'informació únicament perquè aquesta informació es troba en possessió d'un banc, d'una altra institució financera, o de qualsevol persona que actuï en qualitat de mandatària o fiduciària, inclosos els agents designats o perquè aquesta informació està relacionada amb els drets de propietat d'una persona.

6 - Els estats contractants han de complir les directrius per a la reglamentació dels fitxers informàtics que continguin les dades personals de conformitat amb la resolució de l'Assemblea General de les Nacions Unides A/RES/45/95, aprovada el 14 de desembre de 1990.

Article 26

Ús i transferència de dades personals

1 - Les dades utilitzades i transferides en l'àmbit d'aquest conveni i de conformitat amb la legislació aplicable, han de ser:

2 - Si una persona, les dades de la qual han estat transferides, sol·licita l'accés, l'Estat contractant requerit haurà d'autoritzar l'accés directe d'aquesta persona a aquestes dades i la seva rectificació, excepte quan la sol·licitud pugui ser rebutjada de conformitat amb la legislació aplicable.

3 - Les dades obtingudes per les autoritats competents dels estats contractants en l'àmbit d'aquest conveni no poden ser transferides a tercers sense l'autorització prèvia de l'Estat contractant requerit i les garanties jurídiques adequades per a la protecció de les dades personals, de conformitat amb la legislació aplicable.

Article 27

Membres de missions diplomàtiques i d'oficines consulars

Les disposicions d'aquest conveni no perjudiquen els privilegis fiscals de què gaudeixen els membres de missions diplomàtiques o oficines consulars i els membres de delegacions permanents davant d'organismes internacionals de conformitat amb els principis generals del dret internacional o en virtut de les disposicions d'acords especials.

Article 28

Dret a acollir-se als beneficis del conveni

1 - Les disposicions d'aquest conveni no s'han d'interpretar de forma a impedir l'aplicació per part d'un Estat contractant de les disposicions antiabús establertes en la legislació nacional.

2 - Aquest conveni no impedeix els estats contractants d'aplicar les seves normes internes relatives a la transparència fiscal internacional «normes Controlled Foreign Company (CFC)».

3 - Els beneficis prevists en aquest conveni no es concedeixen a un resident d'un Estat contractant que no és el beneficiari efectiu de les rendes procedents de l'altre Estat contractant.

4 - Les disposicions d'aquest conveni no són aplicables si l'objectiu principal o un dels objectius principals de qualsevol persona interessada en la creació o l'adquisició d'un bé o d'un dret generador d'una renda és beneficiar-se d'aquestes disposicions mitjançant aquesta creació o adquisició.

5 - Sense perjudici de les altres disposicions d'aquest conveni, quan el conveni estableix que un element de la renda només és imposable en un Estat contractant, aquest element de renda pot nogensmenys ser imposable en l'altre Estat, però només si aquest element de la renda no està sotmès a imposició en el primer Estat contractant.

6 - Sense perjudici de les altres disposicions d'aquest conveni, quan, de conformitat amb qualsevol disposició d'aquest conveni, un Estat contractant redueix el percentatge de l'impost o exempta d'impost un element de la renda d'un resident de l'altre Estat contractant, i, de conformitat amb les lleis en vigor en aquest altre Estat contractant, aquest resident, està sotmès a imposició, en relació amb aquest element de la renda, en aquest altre Estat, només sobre una fracció d'aquesta renda i no sobre l'import total, aleshores la reducció o l'exempció només s'aplica a la part de la renda que està sotmesa a imposició en aquest altre Estat.

7 - Pel que fa a l'aplicació de les disposicions anteriors, les autoritats competents dels estats contractants es poden consultar conjuntament amb l'objectiu d'aplicar les disposicions esmentades, prenent en compte les circumstàncies particulars del cas.

CAPÍTOL VI

Disposicions finals

Article 29

Entrada en vigor

1 - Aquest conveni entrarà en vigor transcorregut un termini de trenta dies a comptar de la data de recepció de la darrera notificació, per escrit, mitjançant la via diplomàtica, que informa de la finalització dels procediments interns requerits per a cadascun dels estats contractants.

2 - Les disposicions d'aquest conveni tenen efecte:

Article 30

Durada i denúncia

1 - Aquest conveni roman en vigor per un període de temps indeterminat.

2 - Transcorregut el venciment d'un període inicial de cinc anys, qualsevol dels estats contractants pot denunciar aquest conveni, mitjançant una notificació, per escrit, per la via diplomàtica, abans del primer dia de juliol del calendari de l'any corrent.

3 - En cas de denúncia, aquest conveni deixa de tenir efecte:

Article 31

Registre

L'Estat contractant en el territori del qual s'hagi signat aquest conveni l'ha de transmetre al Secretariat de les Nacions Unides per a registre, d'acord amb l'article 102 de la Carta de les Nacions Unides, tan aviat com sigui possible després de la seva entrada en vigor, i ha de notificar a l'altre Estat contractant la finalització d'aquest procediment, així com el número de registre.

A aquest efecte els signataris, degudament autoritzats, signen aquest conveni.

Nova York, 27 de setembre del 2015, fet en dos exemplars, en les llengües portuguesa, catalana i anglesa. En cas de divergència en la interpretació, preval el text en anglès.

Per la República de Portugal:

Rui Chancerelle de Machete, Ministre d'État et d'Afers Exteriors.

Pel Principat d'Andorra:

Gilbert Saboya Sunyé, Ministre d'Afers Exteriors.

PROTOCOL

En el moment de procedir a la signatura del Conveni entre la República de Portugal i el Principat d'Andorra per evitar la doble imposició i prevenir l'evasió fiscal en matèria d'impostos sobre la renda (d'ara endavant «el conveni»), els signataris han convingut les disposicions següents que formaran part integrant del conveni.

I) En relació a l'article 4 («residència»):

Les persones que s'acullin al règim especial considerat per la disposició transitòria tercera de la Llei 5/2014 del 24 d'abril sobre la renda de les persones físiques no tenen dret a l'aplicació del conveni.

II) En relació a l'article 25 («Intercanvi d'informació»):

1 - En relació amb l'intercanvi d'informació mitjançant una sol·licitud prèvia regulat a l'article 25 d'aquest conveni, s'aplica el que disposa l'Acord entre el Principat d'Andorra i la República de Portugal per a l'intercanvi d'informació en matèria fiscal signat el 30 de novembre del 2009, fins que aquest conveni entri en vigor. A partir d'aquesta data, les disposicions de l'acord esmentat quedaran substituïdes per les disposicions d'aquest conveni.

2 - Les sol·licituds d'informació efectuades en el marc del conveni, i aquelles que estiguin pendents de resposta al moment d'entrada en vigor d'aquest conveni seran tramitades de conformitat amb el que disposa aquest conveni, d'acord amb les directrius incloses en els punts següents:

Les sol·licituds d'informació han de ser el més detallades possibles i han d'incloure la informació següent:

ii) El període a què la sol·licitud d'informació fa referència;

iii) Una declaració sobre el tipus d'informació sol·licitada en què consti la seva naturalesa i la forma en què l'Estat requeridor prefereix rebre-la;

iv) La finalitat tributària per a la qual se sol·licita la informació;

vi) Els motius pels quals es considera que la informació sol·licitada existeix en l'altre Estat contractant o que una persona sota la competència de l'altre Estat contractant la posseeix o la té sota control o pot obtenir-la;

vii) En la mesura que sigui possible, el nom i l'adreça de les persones sospitoses de posseir o tenir sota control la informació sol·licitada;

viii) Una declaració que certifiqui que la sol·licitud és conforme a la legislació i pràctiques administratives de l'Estat requeridor i que l'Estat requeridor està autoritzat a obtenir la informació d'acord amb la seva legislació o mitjançant la via administrativa convencional en circumstàncies similars, en resposta a una sol·licitud vàlida d'un Estat contractant en el marc d'aquest conveni;

ix) Una declaració que certifiqui que l'Estat requeridor ha esgotat tots els mitjans disponibles en la seva jurisdicció per obtenir la informació, llevat que això suposi dificultats desproporcionades.

Els requisits anteriors contenen requeriments de procediment que han d'interpretar-se de manera que no perjudiqui l'intercanvi d'informació efectiu;

3 - Andorra estarà en disposició d'intercanviar informació de manera automàtica, tan aviat com adopti de manera efectiva la norma comuna de l'OCDE en matèria d'intercanvi automàtic d'informació financera, en virtut d'un acord bilateral o multilateral per a l'aplicació plena de l'article 25 d'aquest conveni.

A aquest efecte, els signataris, degudament autoritzats, signen aquest protocol.

Nova York, 27 de setembre del 2015, fet en dos exemplars, en les llengües portuguesa, catalana i anglesa. En cas de divergència en la interpretació, preval el text en anglès.

Per la República de Portugal:

Rui Chancerelle de Machete, Ministre d'État et d'Afers Exteriors.

Pel Principat d'Andorra:

Gilbert Saboya Sunyé, Ministre d'Afers Exteriors.

CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE PRINCIPALITY OF ANDORRA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.

The Portuguese Republic and the Principality of Andorra:

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income;

Taking into account that the main purpose of this Convention is to eliminate international double taxation with regard to the different categories of income derived by residents of both States, as well as to prevent fiscal evasion;

Considering that its entry into force will create a more stable and transparent tax framework for investors and other taxpayers of both States and, by doing so, will have a positive impact on the development of the trade of goods and services, the capital flows, the technology transfers and the movement of persons between the two States:

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 all 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 this Convention shall apply are in particular:

ii) The corporate income tax (imposto sobre o rendimento das pessoas coletivas - IRC); and

iii) The surtaxes on corporate income tax (derramas);

(hereinafter referred to as "Portuguese tax");

ii) Personal income tax (impost sobre la renda de les persones físiques);

iii) Tax on income for fiscal non-residents (impost sobre la renda dels no residents fiscals); and

iv) Tax payable on the increase in value in immovable property transfers (impost sobre les plusvàlues en les transmissions patrimonials immobiliàries);

(hereinafter referred to as "Andorran tax").

4 - The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their taxation laws.

CHAPTER II

Definitions

Article 3

General definitions

1 - For the purposes of this Convention, unless the context otherwise requires:

ii) In Andorra: the Minister in charge of Finance or his authorised representative;

ii) Any legal person, partnership or association deriving its status as such from the laws in force in that Contracting State;

2 - As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

Article 4

Resident

1 - For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, 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:

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:

3 - A building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months.

4 - Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall be deemed not to include:

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 and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.

3 - The provisions of paragraph 1 shall apply to income derived from the direct use, letting, 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.

5 - The foregoing provisions shall also apply to income from movable property or income derived from services, which are connected with the use or the right to use the immovable property, either of which, under the taxation law of the Contracting State in which the property is situated, is assimilated to income from 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 - No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.

5 - 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.

6 - 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 from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

2 - If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.

3 - The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

4 - Whenever companies from different countries have agreed to carry on an air transportation business together in the form of a consortium or a similar form of association, the provisions of paragraph 1 shall apply to such part of the profits of the consortium or association as corresponds to the participation held in that consortium or association by a company that is a resident of a Contracting State.

Article 9

Associated enterprises

1 - Where:

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, if it agrees that the adjustment made by the first-mentioned State is justified both in principle and as regards the amount, shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this 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:

The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these limitations. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

3 - The term "dividends" as used in this article means income from shares, "jouissance" shares or "jouissance" rights, 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. 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 and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of article 7 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 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 - Notwithstanding the provisions of paragraphs 1 and 2, interest arising in a Contracting State shall be taxable only in the other Contracting State if the interest is paid by or beneficially owned by a Contracting State, a political or administrative subdivision or local authority thereof, the central bank of a Contracting State or any agency or instrumentality wholly owned by any of the foregoing.

4 - The term "interest" as used in this article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this article.

5 - The provisions of paragraphs 1, 2 and 3 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 and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of article 7 shall apply.

6 - Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the State in which the permanent establishment is situated.

7 - Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

Article 12

Royalties

1 - Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2 - However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 5 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, 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 and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case the provisions of article 7 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 in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the State in which the permanent establishment 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, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other State.

3 - Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4 - Gains derived by a resident of a Contracting State from the alienation of shares or of a comparable interest deriving more than 50 percent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State. However, this paragraph shall not apply to gains from the alienation of shares of company listed on recognised stock exchange of one or both of the Contracting States where such shares do not represent 25 percent or more of the capital of the listed company.

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

Dependent personal services

1 - Subject to the provisions of articles 15, 17, 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:

3 - Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

Article 15

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 16

Artistes and sportsmen

1 - Notwithstanding the provisions of article 14, 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 and 14, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3 - Notwithstanding the provisions of paragraphs 1 and 2, income derived from activities exercised personally and as such, by an entertainer or sportsman who is a resident of a Contracting State in the other Contracting State shall be taxable only in the first-mentioned State if the activities exercised in the other State are mainly financed by public funds of the first-mentioned State, by a political or administrative subdivision or a local authority thereof, or by any of their legal persons of public law.

Article 17

Pensions

Subject to the provisions of paragraph 2 of article 18, 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 18

Government service

1 - Salaries, wages and other similar remuneration 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. 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:

2 - Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration 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. However, such pensions and other similar remuneration 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 14, 15, 16, and 17 shall apply to salaries, wages, pensions, and other similar remuneration 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 19

Professors and researchers

Subject to the provisions of article 18 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 20

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 that State, provided that such payments arise from sources outside that State.

Article 21

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 and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case the provisions of article 7 shall apply.

3 - Where, by reason of a special relationship between the person referred to in paragraph 1 and some other person, or between both of them and some third person, the amount of the income referred to in paragraph 1 exceeds the amount (if any) which would have been agreed upon between them in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In such a case, the excess part of the income shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

CHAPTER IV

Methods for elimination of double taxation

Article 22

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 Contracting 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 this 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 23

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. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.

3 - Except where the provisions of paragraph 1 of article 9, paragraph 7 of article 11, paragraph 6 of article 12, or paragraph 3 of article 21, 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 24

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 23, 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. They may also consult together for the elimination of double taxation in cases not provided for in 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 25

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 or administrative subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by articles 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 paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:

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.

6 - The Contracting States shall comply with the guidelines for the regulation of computer files containing personal data as established by the United Nations General Assembly Resolution A/RES/45/95, adopted on the 14th December 1990.

Article 26

Use and transfer of personal data

1 - The data used and transferred within the framework of this Convention shall, in accordance with the applicable laws, be:

2 - If a person whose data are transferred requests access to them, the requested Contracting State shall grant that person direct access to those data and correct them, except where this request may be refused under the applicable laws.

3 - The data received by the competent authorities of the Contracting States within the framework of this Convention shall not be transferred to a third party without the prior consent of the requested Contracting State and the appropriate legal safeguards for the protection of personal data, in accordance with the applicable laws.

Article 27

Members of diplomatic missions and consular posts

The provisions of the Convention shall not affect the fiscal privileges of members of diplomatic missions or consular posts or permanent delegations to international organizations, under the general rules of international law or under the provisions of special agreements.

Article 28

Entitlement to the benefits of the Convention

1 - The provisions of this Convention shall not be interpreted so as to prevent the application by a Contracting State of the anti-avoidance provisions provided for in its domestic law.

2 - This Convention shall not prevent the Contracting States from applying their domestic rules regarding international fiscal transparency "Controlled Foreign Company (CFC) rules".

3 - The benefits foreseen in this Convention shall not be granted to a resident of a Contracting State which is not the beneficial owner of the income derived from the other Contracting State.

4 - The provisions of this Convention shall not apply if the main purpose or one of the main purposes of any person concerned with the creation or assignment of the property or right in respect of which the income is paid was to take advantage of those provisions by means of such creation or assignment.

5 - Notwithstanding any other provision of this Convention, where this Convention provides that an item of income shall be taxable only in a Contracting State, such item of income may nevertheless be taxed in the other State, but only if such item of income is not subject to tax in the first-mentioned Contracting State.

6 - Notwithstanding any other provision of this Convention, where under any provision of this Convention a Contracting State reduces the rate of tax on, or exempts from tax, an item of income of a resident of the other Contracting State and under the laws in force in that other Contracting State that resident in respect of that item is subject to tax in that other State only on that part of such income and not by reference to the full amount thereof, then the reduction or exemption shall apply only to so much of the income as is subject to tax in that other State.

7 - With respect to the application of the above provisions, the competent authorities of the Contracting States may consult together for the purpose of applying those provisions, taking into account the particular circumstances of the case.

CHAPTER VI

Final provisions

Article 29

Entry into force

1 - The present Convention shall enter into force thirty days after the date of receipt of the latter of the notifications, in writing, through diplomatic channels, conveying the completion of the internal procedures of each Contracting State required for that purpose.

2 - The provisions of the present Convention shall have effect:

Article 30

Duration and termination

1 - This Convention shall remain in force for an unlimited period of time.

2 - Following the expiration of an initial period of five years, either Contracting State may denounce the present Convention upon notification, in writing, through diplomatic channels, before the first day of July of the current calendar year.

3 - In case of denunciation, the present Convention shall cease to have effect:

Article 31

Registration

The Contracting State in whose territory this Convention is signed shall transmit it to the Secretariat of the United Nations for registration, in accordance with article 102 of the Charter of the United Nations, as soon as possible after its entry into force, and shall notify the other Contracting State of the completion of this procedure, as well as of its registration number.

In witness whereof the undersigned, duly authorized thereto, have signed this Convention.

Done at New York on the 27th Setember of 2015, in two originals, in the Portuguese, Catalan and English languages. In case of any divergence of interpretation, the English text shall prevail.

For The Portuguese Republic:

Rui Chancerelle de Machete, Minister of State and Foreign Affairs.

For The Principality of Andorra:

Gilbert Saboya Sunyé, Minister for Foreign Affairs.

PROTOCOL TO THE CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE PRINCIPALITY OF ANDORRA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.

On signing the Convention between the Portuguese Republic and the Principality of Andorra for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter referred to as "the Convention"), the signatories have agreed that the following provisions shall form an integral part of the Convention:

I) With reference to article 4 ("Residence"):

Persons under the special regime envisaged in the third transitional provision of the Andorran Law 5/2014 of 24 April 2014, of the personal income tax, are not entitled to the application of the Convention.

II) With reference to article 25 ("Exchange of information"):

1 - As regards the exchange of information upon request, as provided for in article 25 of the Convention, the provisions of the Agreement between the Portuguese Republic and the Principality of Andorra for the exchange of information on tax matters, signed on 30 November 2009, shall apply until the Convention enters into force. From that date on, the provisions of that Agreement shall be superseded by the provisions of the Convention.

2 - Requests for information made under the Convention and those pending on the date of entry into force of the Convention, shall be processed as provided in the Convention, in accordance with the guidelines contained in the following provisions:

Requests for information should be as detailed as possible, including the following information:

ii) The period to which the request of information refers;

iii) A statement of the information sought including its nature and the form in which the requesting State wishes to receive the information;

iv) The tax purpose for which the information is sought;

vi) Grounds for believing that the information requested is held in the requested State or is in the possession or control of a person within the jurisdiction of the requested State or can be obtained by such person;

vii) To the extent possible, the name and address of any person believed to be in possession or having under control the information requested;

viii) A statement that the request is in conformity with the laws and administrative practices of the requesting State, and that the requesting State is authorised to obtain the information under the laws of the requesting State or in the normal course of administrative practice in similar circumstances, in response to a valid request of a Contracting State under the Convention;

ix) A statement that the requesting State has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.

The above requirements contain procedural requirements that must be interpreted with a view not to frustrate effective exchange of information;

3 - Andorra will be ready to exchange information automatically as soon as it has effectively adopted the common standard of the OECD concerning the automatic exchange of financial information under a bilateral or multilateral agreement for the full implementation of article 25 of the Convention.

In witness whereof the undersigned, duly authorized thereto, have signed this Protocol.

Done at New York on 27th Setember of 2015, in two originals, in the Portuguese, Catalan and English languages. In case of any divergence of interpretation, the English text shall prevail.

For The Portuguese Republic:

Rui Chancerelle de Machete, Minister of State and Foreign Affairs.

For The Principality of Andorra:

Gilbert Saboya Sunyé, Minister for Foreign Affairs.