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II SÉRIE — NÚMERO 53

Convention between the Portuguese Republic and the Czechoslovak Socialist Republic for the Avoidance of Double Taxation with Respect to Taxes on Income.

The Portuguese Republic and the Czechoslovak Socialist Republic being aware of the need to facilitate trade and to encourage economic co-operation in conformity with the Final Act of the Conference on Security and Co-operation in Europe, have decided to conclude the Convention for the Avoidance of Double Taxation with Respect to Taxes on Income. For this purpose they have agreed upon as follows:

ARTICLE 1 (Personal scope)

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 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, as well as taxes on capital appreciation.

3 — The existing taxes to which the Convention shall apply are:

a) In Czechoslovakia:

1) The taxes on profits (odvod ze zisku a

dafi ze zisku);

2) The wages tax (daft ze mzdy); .

3) The tax on income from literary and

artistic activities (daft z pfijmu z literámí a umélecké õinnosti);

4) The agricultural tax (daft zemédélská);

5) The tax on population income (daft z

pfíjmú obyvatelstva);

6) The house tax (daft domovni) (herein-

after referred to as ((Czechoslovak tax»).

b) In Portugal:

1) The property tax (contribuição pre-

dial);

2) The agricultural tax (imposto sobre a

indústria agrícola);

3) The industrial tax (contribuição in-

dustrial;

4) The tax on income from movable ca-

pital (imposto de capitais);

5) The professional tax (imposto profis-

sional);

6) The complementary tax (imposto com-

plementar);

7) The tax on capital gains (imposto de

mais-valias);

8) The tax on income from oil (imposto

sobre o rendimento do petróleo);

9) Any surcharges on the preceding taxes; 10) Other taxes charged by reference to the preceding taxes for the benefit of local authorities and the corresponding surcharges (hereinafter referred to as ((Portuguese tax»).

4 — This 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. At the beginning of each year, the competent authorities of the Contracting States shall - notify each other of substantial changes which have been made in their respective taxation laws during the preceding year.

ARTICLE 3 (General definitions)

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

a) The term ((Czechoslovakia)) means the Cze-

cholovak Socialist Republic;

b) The term «Portugal» used in a geographical

sense means the territory of Portugal situated in the european continent and the archipelagoes of Azores and Madeira and includes any area outside the territorial sea of Portugal wich, in accordance with international law, has been or may hereafter be designated, under the laws of Portugal concerning the continental shelf, as an area, within wich the rights of Portugal with respect to the sea-bed and sub-soil and their natural resources may be exercised;

c) The terms «a Contracting State» and «the

other Contracting State» mean Czechoslovakia and Portugal as the context requires;

d) The term «person» includes an individual, a

company and other body of persons;

e) The term «company» means any body corpor-

ate or any entity which is treated as a body corporate for tax purposes;

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;

g) The term ((international traffic)) means any

transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; k) The term ((competent authority» means:

i) In the case of Czechoslovakia, the Minister of Finance of the Czechoslovak Socialist Republic or his authorized representative;

if) In the case of Portugal, the Minister of Finance, the Director-General of Taxation (director-geral das Contribuições e Impostos) or their authorized representative.