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with the other Party on an automatic basis pursuant to the provisions of Article 28 of the Convention.

2. The information to be obtained and exchanged is:

a) In the case of Portugal with respect to each U.S. Reportable Account of each Reporting Portuguese

Financial Institution:

(1) the name, address, and U.S. TIN of each Specified U.S. Person that is an Account Holder of such account

and, in the case of a Non-U.S. Entity that, after application of the due diligence procedures set forth in Annex I,

is identified as having one or more Controlling Persons that is a Specified U.S. Person, the name, address, and

U.S. TIN (if any) of such entity and each such Specified U.S. Person;

(2) the account number (or functional equivalent in the absence of an account number);

(3) the name and identifying number of the Reporting Portuguese Financial Institution;

(4) the account balance or value (including, in the case of a Cash Value Insurance Contract or Annuity

Contract, the Cash Value or surrender value) as of the end of the relevant calendar year or other appropriate

reporting period or, if the account was closed during such year, immediately before closure;

(5) in the case of any Custodial Account:

(A) the total gross amount of interest, the total gross amount of dividends, and the total gross amount of

other income generated with respect to the assets held in the account, in each case paid or credited to the

account (or with respect to the account) during the calendar year or other appropriate reporting period; and

(B) the total gross proceeds from the sale or redemption of property paid or credited to the account during

the calendar year or other appropriate reporting period with respect to which the Reporting Portuguese Financial

Institution acted as a custodian, broker, nominee, or otherwise as an agent for the Account Holder;

(6) in the case of any Depository Account, the total gross amount of interest paid or credited to the account

during the calendar year or other appropriate reporting period; and

(7) in the case of any account not described in subparagraph 2(a)(5) or 2(a)(6) of this Article, the total gross

amount paid or credited to the Account Holder with respect to the account during the calendar year or other

appropriate reporting period with respect to which the Reporting Portuguese Financial Institution is the obligor or

debtor, including the aggregate amount of any redemption payments made to the Account Holder during the

calendar year or other appropriate reporting period.

b) In the case of the United States, with respect to each Portuguese Reportable Account of each Reporting

U.S. Financial Institution:

(1) the name, address, and Portuguese TIN of any person that is a resident of Portugal and is an Account

Holder of the account;

(2) the account number (or the functional equivalent in the absence of an account number);

(3) the name and identifying number of the Reporting U.S. Financial Institution;

(4) the gross amount of interest paid on a Depository Account;

(5) the gross amount of U.S. source dividends paid or credited to the account; and

(6) the gross amount of other U.S. source income paid or credited to the account, to the extent subject to

reporting under chapter 3 of subtitle A or chapter 61 of subtitle F of the U.S. Internal Revenue Code.

Article 3

Time and Manner of Exchange of Information

1. For purposes of the exchange obligation in Article 2 of this Agreement, the amount and characterization

of payments made with respect to a U.S. Reportable Account may be determined in accordance with the

principles of the tax laws of Portugal, and the amount and characterization of payments made with respect to a

Portuguese Reportable Account may be determined in accordance with principles of U.S. federal income tax law.

2. For purposes of the exchange obligation in Article 2 of this Agreement, the information exchanged shall

identify the currency in which each relevant amount is denominated.

3. With respect to paragraph 2 of Article 2 of this Agreement, information is to be obtained and exchanged