3 DE MAIO DE 1999

1710-(31)

2 — The provisions of paragraph 1 of this article shall not apply to income from research if such research is undertaken not in the public interest but for the private benefit of a specific person or persons.

Article 21 Students and trainees

1 — Payments which a student or trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.

2 — Remuneration paid to a student or trainee resident of a Contracting State for the purposes referred to in paragraph 1 and derived from employment in that other State shall not be taxed in that other State if it doesn't exceed US$ 3000 per annum during a period not exceeding two years from the day of his first arrival, provided that such employment is directly related to his studies.

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 article 7 or article 14, as the case may be, shall apply.

3 — Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State not dealt with in the foregoing articles of this convention and arising in the other Contracting State may be taxed in that other State.

Article 23

Capital

1 — Capital represented by immovable property referred to in article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.

2 — Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base.available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services,, may be taxed in that other State.

3 — Capital represented by ships, aircraft and road vehicles operated in international traffic and by movable property pertaining to the operation of such ships, aircraft and road vehicles, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4 — All other elements of capital of a resident of a Contracting State shall be taxable only in that State.

Article 24 Elimination of double taxation

1 — Where a resident of a Contracting State derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first-mentioned State shall allow:

a) As a deduction from the tax on the income of that resident, an amount equal to the income tax paid in that other State;

b) As a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in that other State.

Such deduction in either case shall not, however, exceed that part of the income tax or capital tax, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in that other State.

2 — Where in accordance with any provisions of the Convention income derived or capital owned 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 or capital of such resident, take into account the exempted income or capital.

Article 25 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 oí a Contracting State to