Double Taxation Agreement With Portugal

For more information on how to avoid double taxation, you can contact our law firm in Portugal. Record what`s echoing, set up an information library, and share content for your network of contacts. Tax rates, scope and relief may change. All tax returns are based on our understanding of current tax laws and practices, which may change. Tax information has been aggregated; A person should be counselled in person. Currently, the application of double taxation and ways to avoid legal and economic harm are governed by the standards of the tax code. Two legislative provisions to avoid double taxation can thus be envisaged: first, national legislation and, second, international treaties ratified by Portugal. It is advisable to speak with our lawyers in Portugal and ask for legal aid if you set up a business in Portugal or to better understand the tax structure of that country. In international practice, there are three basic methods for eliminating double taxation: in addition, certain specific provisions concerning labour income collected in Portugal may apply: all the information contained in this publication is affiliated with KPMG – Associados – Sociedade de Revisores Oficiais de Contas, S.A., the Portuguese member company that is affiliated with KPMG International Cooperative (KPMG International) , a Swiss unit, summary. , based on the Portuguese tax code of 1989 and subsequent changes, the website of the Portuguese tax administration, the social security code of 2009 and subsequent changes, the website of the social security administration. On the other hand, the exception to this mandatory rule is the situation in which the non-resident does not meet the conditions set out in a bilateral agreement or where such an agreement does not exist, so that only the State of origin (in which the income obtained is taxable) applies internal tax policy to the income of non-residents operating on its territory. The scheme also exempts income from foreign sources collected by the individual. For example, foreign-source income is exempt as long as one of the following conditions is met: from the point of view of national tax legislation, in parallel with international tax law, the provisions agreed in bilateral tax treaties prevail over those of domestic law in the event of conflict.

The Convention on the Prevention of Double Taxation will apply primarily to national law where a non-resident subject meets the application of the convention. In this case, the State of residence is solely responsible for the taxation of the resident`s income, including income collected in the state in the territory from which the subject is foreign to the territory.