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Throughout last recent years, Portugal has been successfully signing with other States new Treaties to avoid International Double Taxation, as such increasing the Country’s and Madeira’s International Business Centre’s international competitiveness, as well as its capacity to attract foreign investment. The purpose herewith is to update the situation, thus sending an up-to-date list of the 53 Treaties signed with Portugal and the respective reduced rates applicable in respect of dividends, interests and royalties.
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Updating with regard to Double Taxation Treaties signed by Portugal
The Double Taxation Treaties (DTT’s) constitute a major tool of international tax law. Given the existence of comparable taxes in two or more States, the same tax payer, on the basis of the same generating fact and across an identical period of time, may be subject to international double taxation in respect of income that is connected to more than one jurisdiction, namely one State that is not the one of his/her residence or domicile.
In view of such reality, as a way to reduce or even eliminate such phenomenon and in the sense of what is praised by the universal principles of freedom of movement of goods, services, capitals and of single persons as well the free establishment of corporate entities, many States have signed and continue signing amongst themselves bilateral agreements – the DTT’s – in the majority of cases following the OECD Model Convention, attaining through it a generalized standardization of same.
Portugal, and Madeira as an Autonomous Region of Portugal, is one of such States that have kept, throughout last years, successfully signing new Agreements with other States, stimulating as such the accrued development of its economic and trade relations, at the same time increasing the international competitiveness of Portugal and of the International Business Centre of Madeira, as well as its capacity of attracting inward foreign investment.
To see an up-to-date list of the 53 Treaties signed with Portugal and the respective reduced applicable rates in respect of dividends, interests and royalties, click here. To consult the respective texts, click here.
In this context, we shall be very pleased to give you, in more detail, any further specific information with reference to such Agreements, in particular when conjugating the same with the tax regime of the International Business Centre of Madeira, acting as a serious and safe international tax planning tool that offers, to the best of our knowledge and belief, the more competitive tax regime of the European Union.
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