5 DE MAIO DE 2016 43

Article 4

Application of FATCA to Portuguese Financial Institutions

1. Treatment of Reporting Portuguese Financial Institutions. Each Reporting Portuguese Financial

Institution shall be treated as complying with, and not subject to withholding under, section 1471 of the U.S.

Internal Revenue Code if Portugal complies with its obligations under Articles 2 and 3 of this Agreement with

respect to such Reporting Portuguese Financial Institution, and the Reporting Portuguese Financial Institution:

a) identifies U.S. Reportable Accounts and reports annually to the Portuguese Competent Authority the

information required to be reported in subparagraph 2(a) of Article 2 of this Agreement in the time and manner

described in Article 3 of this Agreement;

b) for each of 2015 and 2016, reports annually to the Portuguese Competent Authority the name of each

Nonparticipating Financial Institution to which it has made payments and the aggregate amount of such

payments;

c) complies with the applicable registration requirements on the IRS FATCA registration website;

d) to the extent that a Reporting Portuguese Financial Institution is (i) acting as a qualified intermediary (for

purposes of section 1441 of the U.S. Internal Revenue Code) that has elected to assume primary withholding

responsibility under chapter 3 of subtitle A of the U.S. Internal Revenue Code, (ii) a foreign partnership that has

elected to act as a withholding foreign partnership (for purposes of both sections 1441 and 1471 of the U.S.

Internal Revenue Code), or (iii) a foreign trust that has elected to act as a withholding foreign trust (for purposes

of both sections 1441 and 1471 of the U.S. Internal Revenue Code), withholds 30 percent of any U.S. Source

Withholdable Payment to any Nonparticipating Financial Institution; and

e) in the case of a Reporting Portuguese Financial Institution that is not described in subparagraph 1(d) of

this Article and that makes a payment of, or acts as an intermediary with respect to, a U.S. Source Withholdable

Payment to any Nonparticipating Financial Institution, the Reporting Portuguese Financial Institution provides to

any immediate payor of such U.S. Source Withholdable Payment the information required for withholding and

reporting to occur with respect to such payment.

Notwithstanding the foregoing, a Reporting Portuguese Financial Institution with respect to which the

conditions of this paragraph 1 are not satisfied shall not be subject to withholding under section 1471 of the U.S.

Internal Revenue Code unless such Reporting Portuguese Financial Institution is treated by the IRS as a

Nonparticipating Financial Institution pursuant to subparagraph 2(b) of Article 5 of this Agreement.

2. Suspension of Rules Relating to Recalcitrant Accounts. The United States shall not require a Reporting

Portuguese Financial Institution to withhold tax under section 1471 or 1472 of the U.S. Internal Revenue Code

with respect to an account held by a recalcitrant account holder (as defined in section 1471(d)(6) of the U.S.

Internal Revenue Code), or to close such account, if the U.S. Competent Authority receives the information set

forth in subparagraph 2(a) of Article 2 of this Agreement, subject to the provisions of Article 3 of this Agreement,

with respect to such account.

3. Specific Treatment of Portuguese Retirement Plans. The United States shall treat as deemed-compliant

FFIs or exempt beneficial owners, as appropriate, for purposes of sections 1471 and 1472 of the U.S. Internal

Revenue Code, Portuguese retirement plans described in Annex II. For this purpose, a Portuguese retirement

plan includes an Entity established or located in, and regulated by, Portugal, or a predetermined contractual or

legal arrangement, operated to provide pension or retirement benefits or earn income for providing such benefits

under the laws of Portugal and regulated with respect to contributions, distributions, reporting, sponsorship, and

taxation.

4. Identification and Treatment of Other Deemed-Compliant FFIs and Exempt Beneficial Owners. The

United States shall treat each Non-Reporting Portuguese Financial Institution as a deemed-compliant FFI or as

an exempt beneficial owner, as appropriate, for purposes of section 1471 of the U.S. Internal Revenue Code.

5. Special Rules Regarding Related Entities and Branches That Are Nonparticipating Financial Institutions.

If a Portuguese Financial Institution, that otherwise meets the requirements described in paragraph 1 of this

Article or is described in paragraph 3 or 4 of this Article, has a Related Entity or branch that operates in a

jurisdiction that prevents such Related Entity or branch from fulfilling the requirements of a participating FFI or