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II SÉRIE — NÚMERO 63

2 — the Convention shall apply also to any identical cr 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.

CHAPTER II Definitions ARTICLE 3

General definitions

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

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

other Contracting State» mean the Portuguese Republic or the Federal Republic of Germany as the context requires;

b) The term «Portugal» used in a geographical

sense means the territory of the Portuguese Republic situated in the european continent and the archipelagoes of Azores and Madeira and includes any area outside the territorial sea of Portugal which, 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 which the rights of Portugal with respect to the sea-bed and sub-soil and their natural resources may be exercised;

c) The terrn «Federal Republic of Germany»,

when used in a geographical sense, means the territory an which the Basic Law for the Federal Republic of Germany is in force, as well as any area adjacent to the territorial waters of the Federal Republic of Germany designated, in accordance with international law, as releted to the rights which the Federal Republic of Germany may exercise with respect to the sea-bed and sub-soil and their natural resources, as domestic area for tax purposes;

d) The term «person» includes an individual and

a company;

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

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

/> 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 «intemational 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;

h) The term «national» means:

0 In the case of Portugal:

aa) Any individual possessing the Portuguese nationality;

bb) Any legal person, partnership and association deriving its status as such from the laws in force in Portugal;

//) In the case of the Federal Republic of Germany any German in the meaning of paragraph (1) of Article 116 of the Basic Law for the Federal Republic of Germany and any legal person, partnership and association deriving its status as such from the law in force in the Federal Republic of Germany:

0 The term «competent authority» means:

0 In the case of Portugal; the Minister of Finance, the director-general of taxation (director-geral das Contribuições e Impostos) or their authorized representative;

ii) In the case of the Federal Republic of Germany the Federal Minister of Finance.

2 — As regards the application of the Convention by a Contracting State any term not defined therein shall, unlesi the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Convention applies

ARTICLE 4

Resident

1 — For the purposes of this Convention, the term «recadera of a Contracting State» means any person who, under .the laws of that State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. But this term does not include any person who is liable to rax in that State in respect only of income from sources in that State or capital situated therein.

2 — Where by reason of the provisions of paragraph 1 an individual is a resident of both Conta-acting States, then his status sail be determined as follows:

a) He shall be deemed to be a resident of the

State in whioh he has a permanent home available .to him in both States, he shall be deemed to be a resident of the State with which his .personal and economic relations are closer (centre of vital interests);

b) If the Etate in which he has his centre of vital

interest cannot be determined, or if he has not permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode;