440-(36)

II SÉRIE-A — NÚMERO 29

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

The Government of the Portuguese Republic and the Government of the Republic of Venezuela, 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

Personal scope

This Convention shall apply to persons who are residents of one or both of the Contracting States.

Article 2 Taxes covered

1 — The existing taxes to which the Convention shall apply are in particular:

a) In the case of Portugal:

i) The personal income tax [imposto sobre o rendimento das pessoas singulares (IRS)];

ii) The corporate income tax [imposto sobre o rendimento das pessoas colectivas (IRC)]; and

Hi) The local surtax on corporate income tax (derrama);

(hereinafter referred to as «Portuguese tax»);

b) In case of Venezuela:

i) The income tax, even if levied by way of withholding at source;

ii) The tax on business assets;

(hereinafter referred to as «Venezuelan tax»).

2 — 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 substantial 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:

a) The term «PortugaI» means the territory of the Portuguese Republic situated in the European Continent, the archipelagos of Azores and Madeira, the respective territorial sea and any

other zone in which, in accordance with the laws of Portugal and international law, the Portuguese Republic has its jurisdiction or sovereign rights with respect to the exploration and exploitation of the natural resources of the sea bed and subsoil, and of the superjacent waters;

b) The term «Venezuela» means the Republic of Venezuela;

c) The terms «a Contracting State» and «the other Contracting State» mean Portugal or Venezuela, as the context requires;

d) The term «person» includes an individual, a company and any other body of persons;

e) The term «company» means any body corporate 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 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;

h) The term «national» means:

i) Any individual possessing the nationality of a Contracting State;

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

i) The term «competent authority» means:

i) In Portugal: the Minister of Finance, the director general of Taxation (director-geral das Contribuições e Impostos) or their authorized representative;

ii) In Venezuela: the superintendent of the Integrated National Service of Tax Administration [Servicio Nacional Integrado de Administración Tributaria (SENIAT)], his authorized representative or the authority which is designated by the Minister of Finance as a competen t authority for the purposes of the Convention.

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:

a) In the case of Portugal, any person who, under the laws of that State, is liable to tax therein