26 DE MAIO DE 1999

1868-(37)

"VER DIÁRIO ORIGINAL"

CONVENTION BETWEEN THE GOVERNMENT OF THE PORTUGUESE REPUBLIC AND THE GOVERNMENT OF THE REPUBLIC OF INDIA 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 India, 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

t — This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its political or administrative subdivisions or local authorities, irrespective of the manner in which they are levied.

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

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

a) In the case of the Portuguese Republic:

i) Personal income tax (imposto sobre o rendimento das pessoas singulares — IRS);

ii) Corporate income tax (imposto sobre o rendimento das pessoas colectivas — IRC);

iii) Local surtax on corporate income tax (derrama);

(hereinafter referred to as «Portuguese tax»);

fc) In the case of the Republic of India:

The income tax including any surcharge thereon (hereinafter referred to as «Indian 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.

CHAPTER II Definitions

Article 3 General definitions

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

a) 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;

b) The term «India» means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone — in which India has sovereign rights, other rights and jurisdictions, according to the Indian law and in accordance with international law, including the UN Convention on the Law of the Sea, 1982;

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

d) The term «tax» means Portuguese tax or Indian tax, as the context requires;

e) The term «person» includes an individual, a company, a body of persons and any other entity which is treated as a taxable unit under the taxation laws in force in a Contracting State;

f) The term «company» means anybody corporate or any entity which is treated as a body corporate for tax purposes;

g) 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;

h) The term (international traffic» means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

i) The term «competent authority» means:

i) In Portugal: the Minister of Finance ot the Director General of Taxation (direc-