9 DE JANEIRO DE 1999

790-(31)

Article 22

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, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of articje 7 or article 14, as the case may be, shall apply.

CHAPTER IV Methods for elimination of double taxation

Article 23 Elimination of double taxation The double taxation shall be eliminated as follows:

a) In the case of Hungary:

i) Where a resident of Hungary derives income which, in accordance with the provisions of this Convention may be taxed in Portugal, Hungary shall, subject to the provisions of subparagraphs ii) and Hi), exempt such income from tax;

») Where a resident of Hungary derives items of income which, in accordance with the provisions of articles 10, 11 and 12 may be taxed in Portugal, Hungary shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Portugal. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from Portugal;

Hi) Where in accordance with any provision of the Convention income derived by a resident of Hungary is exempt from tax in Hungary, Hungary may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income;

b) In the case of Portugal:

i) Where a resident of Portugal derives income which, in accordance with the provisions of this Convention may be taxed in Hungary, Portugal shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Hungary. 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 Hungary; u) Where in accordance with any provision of the Convention income derived by a resident of Portugal is exempt from tax in this State, Portugal 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 24

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, or paragraph 6 of article 12, 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 subjcted 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 25

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