3 DE MAIO DE 1999

1710-(25)

prevention of fiscal evasion with respect to taxes on income and on capital, have agreed 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 and on capital imposed on behalf of a Contracting State or of its political or administrative subdivisions, local authorities or administrative-territorial units irrespective of the manner in which they are levied.

2 — There shall be regarded as taxes on income and on capital all taxes imposed on total income or capital or on elements of income or capital including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

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

o) In the case of Romania:

i) The tax on income derived by individuals; /'/') The tax on profit;

Hi) The tax on salaries and other similar remuneration;

iv) The tax on agricultural income; and

v) The tax on dividends (hereinafter referred to as «Romanian tax»);

b) In the case of Portugal:

/) The personal income tax;

ii) The corporate income tax; and

iii) The local surtax on corporate income tax (hereinafter referred to as «Portuguese tax»).

4 — 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 any substantial changes which have been made in their respective taxation laws.

Article 3 General definitions

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

a) The term «Romania» means Romania and, used in a geographical sense, indicates the territory of Romania including its territorial sea as well as the exclusive economic zone over which Romania exercises sovereignty, sovereign rights and jurisdiction, in accordance with its internal law and with the international law, concerning the exploration and exploitation of the natural, biological and mineral resources existing in the sea waters, sea bed and subsoil of these waters;

b) The term «Portugal» means the territory of the Portuguese Republic situated in the European continent, the archipelagoes 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;

c) The terms «a Contracting State» and «the other Contracting State» mean Romania or Portugal, 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 other Contracting State;

g) The term «international traffic» means any transport by a ship, aircraft or road vehicle operated by an enterprise which has its place of effective management in a Contracting State, except when such transport is operated solely between places in the other Contracting State;

h) The term «competent authority» means:

¿) In the case of Romania, the Minister of Finance or his authorized representative;

ii) In the case of Portugal, Minister of Finance or the director general of Taxation or their authorized representative;

i) The term «national» means:

i) Any individual possessing the nationality of Portugal, in the case of Portugal, and any individual possessing the citizenship of Romania, in the case of Romania;

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

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 any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State, or capital situated therein.