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II SÉRIE-A — NÚMERO 44

application of the limits imposed by the taxation at source of dividends, interest, and royalties by articles 10, «Div-idends», 11, «Interest», and 13 «Royalties», respectively. 4 — The competent authorities of the Contracting States

may communicate with each other directly for the purpose of reaching agreement in the sense of the preceding paragraphs.

Article 28

Exchange of Information

1 —The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out die provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by article 1, «Personal scope». Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment, collection, or administration of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

2 — In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:

a) To cany out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

b) To supply information that is not obtainable under the laws or in the normal course of the administration of that or the other Contracting State;

' c) To supply information that would disclose any trade, business, industrial, œmmercial, or professional secret or trade process, or information the disclosure of which would be contrary to public policy.

3 — If information is requested by a Contracting State in accordance with this article, the other Contracting State shall obtain the information to which the request relates in the same manner and to die same extent as if the tax of the first-mentioned State were the tax of that other State and were being imposed by that other State. If specifically requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall provide information under this article in the form of depositions of witnesses and authenticated copies of unedited original documents (including books, papers, statements, records, accounts, and writings), to the same extent such depositions and documents can be obtained under the laws and adrniriistrative practices of that other State with respect to its own taxes.

4 — For the purposes of this article, the Convention shall apply, notwithstanding the provisions of article 2, «Taxes Covered*, to taxes of every kind imposed at the national level by a Contracting State.

Article 29 Diplomatic agents and consular officers

Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.

Article 30 Entry Into force

1 — This Convention shall be subject to ratification in

accordance with the applicable procedures of each Contracting State and instruments of ratification shall be exchanged at Lisbon as soon as possible.

2 — The Convention shall enter into force upon the exchange of instruments of ratification and its provisions shall have effect:

a) In respect of taxes withheld at source, for amounts paid or credited on or after the first day of January next following the date on which the Convention enters into force; and

b) In respect of other taxes, for taxable years beginning on or after the first day of January next following the date on which the Convention enters into force.

Article 31 Termination

This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention at any time after 5 years from the date on which the Convention enters into force, provided that at least 6 months, prior notice of termination has been given through diplomatic channels. In such event, the Convention shall cease to have effect:

a) In respect of taxes withheld at source, for amounts paid or credited on or after the first day of January next following the expiration of the 6-month period;

b) In respect of other taxes, for taxable years beginning on or after the first day of January next following the expiration of the 6-month period.

In witness whereof, the undersigned, being duly authorized by their respective Governments, have signed this Convention.

Done at Washington, in duplicate, in the Portuguese and english languages, both texts being equally authentic, this 6th day of September, 1994.

For The Portuguese Republic:

Francisco Knopfli, Ambassador of Portugal.

For The United States of America:

John Kornblum, Deputy Assistant Secretary of State.

PROTOCOL

At the signing today of the Convention between the Portuguese Republic and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, the Contracting States have agreed upon the following provisions, which shall form an integral part of the Convention:

1 —With reference to article 1, «Personal Scope»: ä) — i) It is understood that the Convention will not impose a tax that is-hot otherwise imposed under the laws of the Contracting State concerned.' This means that the Convention shall not restrict in any manner any exclusion, exemption, deduction, credit, other.allowance, orrtax incen-