CO."Vl:I\"TIOr-.

Bl:T\VEI2N 'l'liE ORIEI\'TAL REPUBUC OF

CRUGUAY A:-JD T ill: l'ORTUGUESE REI' CBLlC 1'0 1\ Till:
AVOIDANCE Of DOCBLE TAX ATION Ar-."D TIH; l' IŒVEN']'ION OF
FISCAL EVASION \VITH RESPECT TO TAXES Or-.' INCQ:\1E AND ON
CAI' ITAL.

Th~ Ori~ntal RC[Jllb l,e of C ruguay and 1h~ l' or1lJgu~s~ k.

j{~pub 1

D~siring to wncl llde a Convent ion for Ille i\voi,bnce of Do"bl~ T,nation and the
Prevention of Fiscal Evasion with re'pcct 10 Taxe, 011 Ineo11ll: and 011 Capilal:

Have agrccd as tollow~:

Cl tAt 'T ER 1
SCOI'E OF THE CONVENTIOl'<

ARTICLE 1
PERSQNS CQ VERED

This Co nvent ion shall ~pp l y to pcr"ms who ar~ rcs id~n ts of one or bOlh of Ihe
Contraeting States.

AR TICL E 2
TA X ES CO V ERED

1. l11is Convention ~hal l app ly 10 taxes (1n inçolll~ !lnd 011 cap itn l im)Xlscd on bchalf
of a Contraçting Stat~ or of ilS po iit icl i or administrative subdivis ions \lr I(,,-,al
authorities, irr~;; p<--'<:t i"e of the nW!\IK1' ill which tht)' arc kvinj.

2. There shal l be rcgaah:J us laxco on income ~nd on capitn l 1111 taxes il1lJXlscd on
tOlal ineom c, on tmal caritaL or on clemΠt, of inoomo, inclu<hng taxes 011 ga i n~ 1;-0111
the alienmion of movabh: or imlllOVJblc propcrty. tax~s on the tOlo l alllOUlllS ofwag~s
or ~ijluries paid hl' entcrpris~~ , as wdl u, t~" e, on cap,t,,1 upprœiati" 'L

J_ The aisling tuxes to whieh th~ Conv.:ntion shaH apJlly are in particular:

u) ln Portugal:

il the l'er~onal Incomc Tax (Illlposto wbre (I RcnJimcnlO da, h"<Ju:s

Singu lur,," - IRS);
 li) the CO rp:J fa lC In c')me Ta", (Imposto so!:>re 0 R<:n dimcnto da.> i'CSSOJS
Co locti vas - IKC): and
ii i) Ih ", local sunax on cOrp:Jml~ incol1lc lax (Dcrrama);

(hcrc in aftcr rcf<:ITcd to as «l'ol'1uguesc ta.\»): "nt!

b) ln Uruguay :

i) the ta.~ on busi nes~ in<:omc (lm pucSlo a las Rcnlu.\ de las AClivid"d~s
Eco[]om icas - IR Al:):
ii) lhe p~rsmml ;"co me ta" ( Imp lLcstn a las Rcntas de las Personas Fis;cas
- IRI'F);
iii) thc non-residcnt incomc tax (lm]lucsto ~ las R~nt;ls .le 10, No
Rçsidcntcs IRNR):
iv) thc tax l'Of >ocj~l se<:urity ~>s i stallw (Jmp llc,to de Asi ~ten ci,j ~ 1.1
S~curid~d Social IASS);
v) lh~ capital UlX (lmpucsto de l'atrimonio - 11'):

(hcrcinuller l'Cfcrrli:l to as (<<Uruguaylill ta:<:» J,

4. The Con vent ion ~hilll al'p ly also [(l any idcmical or ~ub~la[ltially sim ilar taxcs thal
arc im poscJ aftel" t he \lat e of sigll~lw re 01"111c Conv CnllOn in add ,l;oll to. 0r ln placc of.
thû existln g laxes. The com]X'Icllt Juthoritics of the C('ll1tr~c! i ng States shall no t; t)' each
other of signi ticimt ~hangc~ that ha vc bccn mad~ in tb cir ta:<:mion lilws.

CHAP T ER ][
DEFI N JTIOj\'S

ARTICLE 3
GENE RAL D EF Il\ IT ION S

1. For t h~ pUrp:J>cs () l' thi~ Con vcn t i(ln. un Ies;; the COrllc.x! ot herwi sc rcqu ircs:

a) the tenn «Portugah, mcans the territory of tbe POl'1ugll~se Rep li bli c situated
ln thc Europcan COnl incll1 ~nd tb~ ulcbipdugos of Azores and '\1a dci rJ,
incl ud ing Ihe inlalld waters and th~ tcrrill\rial sc," Iher('"(l t" aS wd l as Ih~
cont incntal shdf and uny (lth~r ar~as wh~rclll the l' ort ugJl cse State cxe rc iscs
sovndgn righls or j urisdiction ill ucoorduncc with inwrnation'II law;
 b1 the tcrlll « Uruguay!> mcans thc wrritory of thc Ea~t cm Republ ie of L"rugllay,
and whcn used in a geograph ical scn,,, IllcaM the tcrritory on which the tax
I ;"v~ arc "pplied, indudi ng the m'lriTimc nreas ulldc r Urugllayan S0vercign
rights or jurisdiction in accor(lanœ wi th intcmatiollat law un d nal l Ol\al l~w;
cl the tcmlS "a (Antmeli,lg Statc» and «the "ther C"ntmding StJki> 1llcan
Portuga l or Unlgllay as the COlltcxt r"'luire,;:
d) tli e tl'on '<tax>, n1~arl~ P"rtugue'ie t~x <ir lJrugu~yall t'IX as !h~ context
rcqul re;;;
e) the len" "persOl\)' Illelud e, ,In ;mliv,dua l, il ~ompJl1y Jnd ally other Ixxly of
pcroOJ1,:
il the term <!C01ll p;lIly" mc~ n s ~ny lx1dy ~orporatl' or any cm ity that i~ tn;ated
as a body corporate for tax purposc,;
g) the term~ "~nttrpris~ of ~ Cont rilding Smw!> and '<cntcrprisc of the other
Contmeling Statc» mcan rcspcctivety an cntcrpri~e carried on by ;1 rc~idcnt
of a Contra~t iJ1g Statc ~J1d ;on enterprj s~ ~,jtT;l-d on by a resident of tlle other
Contracting St~t ~;
h) the tcnn «intemationa l tratTle» llIcans an)' translKlrt hy a ship or <l ir~rafl
opcnllct! by an enttrprisc Ihul has its pbcc of cffccti.'c Illunagcmcm in a
CO lltraeting Statc. except whell the ship or aireraft is OperJkd S0ldy
bClwcen places in the othcr Contraeling Slalc;
il th~ tcnn "~(>lllpejçnl ~uthority» mCilns:

il lJ1Portugal. th~ Mini~lcr 0 1- Fin ançc, th~ Dircdor Gen~ral ofT~xation

(Directo r·G~ral dos ImpClstos1or thcir aut hori scd rcprcscntative; and
ii) in Lnlg lLay. tlw 'l,linistcr of EeOl1011ly Jlld Finarlc~ (rvlini~lro ,k
E~Oll()mia y Fi ll~ll /u~) or lw; aul hnn )(<1 rl' r r~~~nlal iv~:

J) the tCf1n «nalional», in rel ation 10 a Contraeti ng Statc, llleans:

il any ind ivi dual possess ing the n~t i on~lity 01" citi;;cn,hip of that
Contracting Statc; and
li) an.,. legn t pe rson, pilrtn~rshi ]l or assod,ltioll d~ri \'i ng its stalllS as sueh
fwm the law~ in force in tllat Conl racting Sta!c.

2. As regards the <lppl i ~'lti(11l of Ihe C(>nvention at .m )' timc by a COn! rJcting Stdlc,
ally tcrm not ddined thercin shall, llnlcss the context otb~rwisc requ ircs . have thc
Illcaning thal il has al that time ulldcr the taw ofthm Statc for the purpmes oflhe tn~cs
10 which the Convention npplics, any llle:ming under the app licab le tax Inws of th at
State prcvaihng ov~r J meani ng gl v~n to lh ~ lenH under olher bw~ Oflhii1 St"te.
 ARTICL E 4
RESIDE~T

1. Fur the pllrposes of Ihis Convcntion. the tcrm «rcs idcnt of a COlltrading SI~I~ "
IIlC3IlS ~ny pCrsOIl who, undcr thc I~ws oflhat Statc, is hab le 10 lax therc'in by n"'~()n of
his domicilc, rcsidtncc. place of managtmml. pla~c nI' incorporal ion or ,illY <;lther
çntcrion of u simllar nalur~, a",1 al!«) indud", lh<lt Sla t ~ Jnd any IXl lilkn l or
ndminislrat ive subdivi, ion or 10~,!1 ,nnhority th crl"of. I"his lCnll. howevcl", dOl""S Ilot
include olly pcrsoll who is li"blc 10 tax in th,lt StJtc in resp<.'Ct only of incom.: from
sollrces in that StJtc or ~,jpitJI situak""(ltherdn.

') Wher<: by reawn of the provisiOlls o r p"ragraph 1 ail ind lvl(lual is J rcsid~nt of
ooth ContracliIlg SlatcS. lhcn his status shal l bc dctcnn incd as foll ows :

al he shall oc dcelllcd 10 bc J rc~idcnt only of the Swte in whkh hc has a

permanent home nvni l nb l ~ 10 him; if he ha s 11 permancn t homc availablc to
h"1\ i" bmh St~tcs, h~ "hall be dccm,"Xlto he a fc"i dtLlt only of the Stak with
which his persüllJI and l"wnlllll ic rdations arc doser (centrc of vital
intcrests):
b) if the Slate ill which he ha, hi~ ~"ntrc of vital inkrc,qs cmUlol b~ (k l~'T1 n in~'(l.
or if he has nOl ~ permilnent hOlllc av,lilable to him in ci thcr St,lte, hc sh~l1
be decmcd \0 bc ~ rc"idcnt on ly of thc Stak in which he ha~ an habituai
abodc:
cl ifhc lms an habituai abode in both States or in Ilcithcl" ofthcm, he shull bc
deemed to bc a rc~;dcnt only ()ftl,~ State "fwh,eh he is a nationul:
d) if he is il nat ional of both Staws or of Il~ i thcr of them. the co m["ICten t
<luth<lritie~ of the Contraeting States shall sCille the qucst ion by n,utu~1
" gr~ell1cnl.

3. Whcrc by rcaSDIl of the prov Isions of pa mgm ph 1 a pcrS01\ other th an an

ind,v i d~lii\ is a rtsidcnt of b<lth Contractillg Stat es. th~n it shall he dœn,cJ 10 h~ a
residcnt onl y of the Stat~ in wh i ~h il, pbçc ù r cneetive m~I"'g""'Cn1 is ~ituated.

ARTICLE 5
l' ER MAN ENT ESTABLlSIIM Er\T

1. For th" pufJXlsc~ 0 l' this Convent ion, the lcm\ «pen\\~1\c,,1 cSiab 1ishmel \t» )1)(lJns Il
jixcd plaec of busincss through wbich the bus inc>s of an cnterprise i<; wholly or partly
curried on.

2. Thc tenn «pennJIlcnt establishmcnt» ind\,des ~sp~ci Jl l y :

 ~) a place of mar1ilgcment:
bl a bnlllch:
e) aIl o!lice:
d) a facto!)':
c) a workshop; :lI\d
1) a IHin", an oil or gus w<:ll, a quarry or (Illy olher pla~c of~~l raclion ofnJtum l
reSOllrees,

3, A bui ldlllg ~i t c or construction or lnst;lll.,lioll pmj ..'<:t CQl1,titllle, " p~rm"l1el1t

establ ishm~nt cml y l r it la,'<lS llIore than 9 (n i IlC) 1Il0nths.

4. Notwi th standing Ihe prcccding provisiolls of thi~ A'ti d ~, lhe term "pu l'nal1cn t
establishment» ,h,,1t be ,kclllnJ not to incl udc:

il) the use of faci li1i..,,; su lcly l'o r th~ pUT]1ose ofstoragc, disphy or dcl ivery (Jf
goods or mcrch:mdise bclonging: to Ihe ~llkrpn,c;
bl lhe mainknance of a stock of goods or mcrchandise be longillg 10 t h ~
cnlcrprisc so lcly l'or l h~ purpos~ of ~wnlg~, disp luy or dcli wry;
c) the l1l~intell an cc of a slock of goods or mel'ch:lIld is~ b<.: longing to the
enwrprise so Ici y 101' ih~ purr<lSC ,,l'l'roccssing by anothcr cntcrprisc:
d) Ihc maintenance of J ti~~"{1 pla~e uf busillc~s snldy lilr th~ p ll rpo;;~ <lI'
purçh~si l1g gooos or mcrchdndisc or of collcctin g in tu ll""tion, lor the
cnterprise:
c) th~ maint"nancc of 3 fixcd plac~ of b\Jsinc,s so lcly tor the pUrp0M: of
carrying on, tin t h~ ~ nl ~rpri~<:, ~l1y othcr adi"i!y of a preraratory or
<luxili ary charaCkr:
f) the llluintcnJl1ce vI a lixed placc of husiness soldy for :my com bi nation of
aetivities Illcntioncd in sub-pJrJgr"phs J) tu ~), prov i,kd thal Ih~ ()v"mll
ad ivity o f the lixcd place ofbu sincss rcsulting fnll11 th is ~ol1lhi"'ltiol1 i, ofa
prcparUIDry ,,1' ~uxilimy ,',harach:r,

5_ Notwith,tanding the pf0visiollS ofparagrilphs 1 and 2 wlwrc a pcrson - Olher thun

un ~g~nt or al, imlepcndcnt ~tJIUS to whom pJr:lgrllph 6 app lles - i~ ,j~ling on bch an of
an enterprisc llild ha> ,md habitu~l1y ~xerci~es in a Cont racting Statc an Juthority 10
cOl1d udc co n!racts in the naille o fth~ cntcrpr i"", thJt ~n l çrpri;;() shall be dœmed 10 have
a pcnnanent est uhli shment in thm State in rcspl'<:t of an}' açliviti", wh i ~h Ihat pCf$Oll
un(lcrt akes for the enteT]1ri se, ul\lt~S th~ ~ctjvilics of ~uch person ,I re limi tcd to those
Illcntioncd in paragraph 4 which, if ex~r~i s~d thrvugh a tixcd place of busin ess, would
not make thl S lix"d pluçe of busi ness a permancnt ~stabli 5hm~nl unJcr 1he provlsions ul
lhat pJragraph,
6. An ~nterpri~ e sh,,11 nOI Ile d ~c'Ill Cd lU hav~ H pennal1~nt estal:>l ishmcnt in a
Contract ing S(ak m~rcly Ix><:uu,c Il ~~rrics on b~"1I1 ~S> 'n I h~1 Statc through a brok~r,
gcncrnl commiss ion agent or Jlly othcr agent of an indepcndent status , provided Ihat
~uch IlCrsOllS arc Jcting in thc ordinary course oftheir bll~iness.

7. Th~ bd lhat a ~o"'paL1y which 1S a re,ide,l t of a COlltrading Slal~ COlltrols or is

controllc<! by il company which i ~ il r~~idenl of Ih~ otber COnlra~tillg Stntc. or which
cnrrie~ on business in thm otbcr Stmc (whether Ihrough n pCl'lllanclll cSlablishmcnl or
othe",üc), shall Ilot of itsclf C<lI1stitute ~i ther company :1 pcnnancnt estah lishment oi"
Ihe other.

CHAPTER IIi
TAXATIOr-- OF I"COME

ART ICLE 6
I;-.JCOME FROM IM .vtOVABLE l'ROI'ERTY

1. Incomc \kriv~d I:>y a rcsidcnt of a Contracting Statc from imrnovahIc rropcny

(inciuding incorne from agr i cultur~ or for~lry) situated in th~ uther Cpmraçling Statc
may b~ taxcd ut thot (1111er Stnle _

2. The lem, "ill1rllovablc propcny) shall have the Illcaning which il has undcr thc
law of the Contraçt;ng Stalc in whi~h the pn)pcny in y ue,timl ' ~ "luiltcd_Th~ ICTl1l ,hall
in any case incl ll d~ prorcrty acccssory 10 imlnovabIc prop<;rty. livcstock (lnJ cq~, i pl1lell1
u,çd in agriculture and forc~try, rights to Wl1ich the provisions ofgcneml law respœl1 ng
landcd property upply, u>uli-ucl of ;m",,,vable propeny ami righls to 'Niable or lixoo
paymcnts as consideration for the working 01: or the right lO worl, m i n~n!l d~pos;ts,
süurc~~ nml othcr nalural rc~ourccs; ships and airemfl shaH not be rcgardcd as
iml1lovabk property_

3_ 11\0 provisions of pnragraph 1 shall app ly to illcomc dcrive.:! t'rom the dirœl use,
Icttlng. «"parçerin". or u~c ill any ot her foml ofil\lnlOVabIc prorcrty.

4. Tho provisions of paragraphs 1 J[Jd 3 shall al so apply to Ihe inwlllc Hum

immovablc j1rop~rty of an ~lllç'T'risc and 10 ,,,COmC ftom Hlln 1<wablû propcrly u~cd lür
lhe pcrfonnancc of indepcndent persona l serviœs.

5. Th~ fürcgoing provision, ,han ,tI~o "l'ply to inl'tlTrle 11'011\ !11o\'ubk propcrly
reIawd 10 illl11lOVable propçr!y and l1'olll thc provision of scrvices for the maintenancc or
operation ofimmovablc propcny.
 AKTICLE 7
BUSINESS PROFITS

1. The prolil~ of an entcrprisc of n COrllraCling Stale sl>:JlI be la.luhle uni)' În Ihal

Slale unlcss lhe CI1lerpri~ camcs on businC:ls in the other Contracling Slute Ihruugh a
)"II.m13nClll establishment silU<lll"tllhercin. If lhe enlcrprisc carries on or lUIs <':urricd on
bl,lsînes~ :as :afon:saîd, Ihe profil~ of the enll"rprir.c lI1uy be la.lOO in Ihe othcr SI;l!c bUI
Qlll)' 50 Illu<;h of ,hem us is anribl,llable 10 th;1\ p.:nnancnl ("1ltubhshlllen1.

2. Subj ..·-ct 10 the provh;oll~ 01" p~lrngm()h J, where an cntcrprisc 01" a ("ulltmding
St"l<: ~'lITies on bllsin~s.s in Ih e (llher C"ntracting State throll gh [1 pe nn ,IIl!;llt
e,tnbli shlllclI l ~Ilu al cd lherein, there sh,1I1 in ","ch C\\I1t raeli ng Slale Ile ilnribllt.x110 Ihm
pennancnt eSI<tb lishlllclll the ),,"{)tils Wlliel! il might bc e~p·eetcd 1() I1lilkc if il w<,:n; a
distinct and separalc cnt~1llri>e ~ngagcd in the salllC or similar ac1ivitks under th~ S:lIne
or sirllilar condilions and dcali nI: wholl)' indqx:nllClltly with lite cnwrprisc of \\hio,;l1 il IS
.. pennunem cstablishTllelll.

3. In dctennining the prolilS ofa pcnnmlCllt cslabl i~hml."T1t, thcru shall bc allowcd as
dcduelîoos ""'penses which arc inl."tJm.-d for Ihe purposcs of Ihe ~."n3ncnt cslnbl isllTllI.'I11
IJ1doomg c.u:o,;ulivc and gcm:l"lIl atimUll5trahvc """pcnses so incnrred, whl.1hcr in Ihe
Slale in which Ihc pcnnancl11 CSl3blîshmcnt is ~ilu;11~...1 01" clSl;wh"....c.

4. lnsol"r as il has becn CUSllll1lur)' in li c.mtraclÎng StalC to dct~n11ll1c the prolits to

bc a!trihut",d 10 ~ pennancnl establi ~hl11 C I1l on the hasis ofan apportiunl11cnt ofl he tol<11
1"·(Jfi ts \,1" the ~nt(·rJlr i se to its var iOllR p(lrt ~. nothlllg ;n paragrallh 2 sh:l ll pre~ l \J(\c th,,1
COllt r"eti ng S'ilt., l'mm dctcnniTlll1g the profI ts ln he laxcd hy '; Ucll :11\ apportiO!lI1\Cl11 as
may lx: cuslo"';>ry; the m~1hüd of npportionmenl "dOpK...1 shall, howcvcr. hc such thal
Ihe rt:suh shall be in acronlancc with Ihe Ilrinciples oontaincd in Ihis Ar1idc.

5. No profits shall be aUribulet1 \() a pcnnanent establishment by TC:lsun urlhe 111en;

purchas<: by thal pemlnncnl establishment of goods or Tlll."rrhandisc lor the eUl<"l11rise..

6. For the purposcs o f Ihe pnx:edmg Im"'.Jgr:aphs, Ihe profits 10 lx: nllribull.... l to th",
pt-'rtnancnl establishment sh:l.lI lx: dctcT111inal by the same ml.'thod ycar by ycar unlcss
there is gooll ;md surlicicllt rcason to the wntr..U")'.

7. Wh erc prolits indwde ite!\l~ of income wh ieh arc dcalt w\lh ~cpamlcl~ in nl her
Artic1 ~'S of lhi ~ Convention, then tb e provis ions of thos<: Arlicle~ ~ha ll not be "n"ch.xl by
the provisions ofthi~ Article.
 ART IC LE 8
l''TEHNA TIO:--iAL TRAFFIC

1. l'rolit~ t"rom the operati on of ~hip' or aircmft in ill tcmati onal traftïe sh all he
taxable only in the Co ntrJcti ng STatc ln wh]çh the plaçc of dTcctivc m ,]]]agçm~nt or the
cnkrpriw is sitllatcd.

2. If the pl:\çc 01" dledive r1lanag~t1\cnt of a ~h ip ping cnlcrp1" i ~c is "board " ~lt i p.
thCll it s hu ll b~ decmtxl li] he ,ituatc,1 Hl the COl1lracti ng Slmc in wh ieh ([te hOt1\~
harbol1r of thc shi p i ~ Si 1U~!<."<l. ur, iflh~rc]$ nO $ll~h 1t0tn~ harbo ur, u1 th..:: Co]t1ractin g
Stalo of wltich the opcrmor of the ship is ~ rcs idtnl .

3. The provisions llfparagraph 1 :;hal l also ~ppl y 10 prolïts IrO\n the parti cipat ion in
a pool, ajoint busincss or all illtCnl<ltional upcraling agenc y.

ARTICLE <)
ASSOC1ATED ENTE1{!'f{ISES

1. Whcre

al an entcrpri se of il COllt racti ll g Stak )lartieipalCs di reet ly or ind ircctly in Ihc

managcmmt, cont ro l or capital of an cnterprisc of Ihc oth~r Contrading
Stme, or
bl the same pcrsons p"rti~ip,lte di redly or mdiredly in th~ rnanagpncnl ,
çuntrol or capital of an entcrprisc of a Cont rJding State " nt! an ~1l1çrp ri :;c of
the ot her Contradin g StalC,

ami ]n citllcr case cond itions arç made or illlp0S<.\1 b~1w~en th ç two Œ terpris~s in th~i r
çOlnlllçrç]al or fin31tcial relations whidt diftèr from t ho~~ wbiel] would bc made
betwccn inde p~nd~nt e]ttçrpri~es, l\t~n uny proti ls which wou Id, but for those
çond i lio n~ , have accrucd to onc of the ente rpri~es, bllt. by rC'I>ot1 "r Ihose cond i1ions,
have not so açn uc,l, mal' be ,ndudcd in the profi ts of th at entcrprisc and taxcd
"ccordingly.

2. Where a Cont racting StJte ill d udcs in th~ pro lits \lI' all çnlerl'ri sc ofl!tal Slal~­
lUit! I;ŒCS a~<:Qrdingl y - profits Olt \\i hich an ent ~rpr i,~ of Ihe olh~r Conlraclillg Slak
hil~ becn chargcd 10 I:lX in tha! other Swte and Ihe pro il ls \-\) mdu(kd ilr~ proll ts whidl
wouM hav e ~ccrUt."d to thc entcrprise of IltC lirst ·rtlcntiotlcd StaW if the conditions made
hClwccn the IWO enlcrpriscs had been thœe whidl wuu l(i have bcçn ",ad!; betw~cn
indep~1ldcll t enK'rpriscs, tlt!;n lhal other State, ifit agrocs thm the adjustlllellt madc by
lhe first -nlcntioncd Stat e is jusli tï cd both ill principle Im d ilS r~gard> Ih~ amount. shaH
Illake an ;Ippropriate adjustment to the <l IllOUIl1 of the tax chargûd theTl:in OH thos~
profits. In dctcmlining sucb adjustmcllt, duc regard ~hull h.;_lIud 10 III,; other prov ision,
of Ihi~ Conv~ntion and thc COl\lp,;t~nt aut horitic, of 1h~ Contrading States shull iI-
Ilcttssary ~()nsult ~a.;h ()th~r.

ARTICLE 10
DIV lDENDS

1. Div,\kn(\s pli" l by a ~()I11j1al\y wh]dl ]~ U r~sidell1 of a C<.>mrac1ing .51<\1e to u

rcsidcnt of the 01her C<.>ll1ract i ng SWlC 1l1ay be taxed in 1hat othel" Stnte.

2_ How~vcc ~ueh dlVidends may also he tuxnl in Ihe ['ontraeting St,,(c ofwh ich the
com pilny paying th,; ,\ivi(\end, , <; a resi,k"l ~"d a~~"rtling 10 lh e law~ " flhat Slale. but
if the bcnefidal owner of the dividcl\d, ,,<1. r~sid~nl orthe other COlltraçling SWtc, thc
ta x so ehargcd sha llnot ~xce<Xl:

a) 5% of Ihe gross mnount ,,1' the dividcnds if the ocndicial owner is a

WmpilTl}' lhat ho ld5 dirt.:~tly al ka,t 25% ot' the ~<1pitJI of the ~OlTIpJl1y
pay in!),thc dividcnds;
b) t 0% oflhe gross ~lllounl ofth~ " ivid~n(h, in ail ,)!h~ r ca,;~"

TII~
cornpdOnt aUlh(1ritics of the Contracting States shal l by mutual agreement sdtk the
mode of;'pplication ofthe,;~ limitation~_

3. lllis paragraph shaIJ not affect thc taxat i"n uf the company in r~specl of the
pro lits OUI 0 t wh ici, the d, vidcnds arc pailL

4. The tcl'm «dividcnds» Ils lIscd in this "nicle mC,l1ls inwlllc from sh um.,
"Joui~sancc» shan...,; of «jouissa.IC@ right~, mining ;harcs, found~rs' ,har~, Or ()lh~r
righ1s, not being d~hl-da LlIl~, pa rtieip~li ng in profLIS, as weil a1; income !;-om other
corjX>mte rights whk h is su bj~"<:t<.Xi to the SJmc tant ion trcatmell t as ineollle from
sh;tres by Ihe law~ of the Stntc of which the company muk ing the d i ~tr;hut i OJ] i, a
rcsidcllt.

5. The pmvisions uf pa ril graphs l, 2 ,111d 3 sha ll Ilot apply if t h~ bcndicial ownCf of
the divid~nd" bein:,; u resid~nt of a ContractiLlg SIHlC, carries on business in the oth~r
COlllractillg State of whidl th~ ~ompany payillg Ih~ Jividellds i, a r<:1;iJenL Ihrough a
permanent estab lishment situat<.Xi IherclIl, ur pcrform> in th ,lt other State indepcmknt
p~rwn;,1 8erviœ~ t'rom a tixed ha,c situatcd lhercin, and the holding in respect of whiçh
the dividends arc paid is ctfcdivdy cOllllc d ed "ith sllch ]JCnnilllcnt estah lishment or
li xnl base. In sueh easc thc provisions of Article 7 or Article 14, as the casc mal' he,
shall 'Ipply.
6 Where il ~"lllpall y which is a residcll1 of u Contracling Slaw dcrives protils or
incolllc from the other Con lr~ding Sta l~_ that othcr Stme may 'lot impose any la \. 011 lhe
diviJe",1;; )laid by the eOlll pnny, exccpl inwl;\[ a, s\,~h (hviJend~ ;ore p~,,1 to l' resident
oft h.n Olhcr Slntc or insofnr as the holding in resp<.-",! ofwhich the div" I@ r!sare paidi s
etlècti vcly wnnœlcJ with a pcnnancnt c,tllblishillent or ~ Iix~xI base sillJ<l1cJ in that
olher St~I~, 110r subjeel lhe company's lIndislriblltlxl proiits 10 a tax on the <:ümpany's
undistribukd profits, even if lhe r!i\'id~!l(b l'aid or Ihc undistribulw prolits consist
wholl y or partly of prolits or i ncomc ~ri8illg in sud, othcr Statc.

ARTICLE 11
INTEREST

1. Intere~1 ~TL~ing "1 a Cont radi ng StJk and paid to il rc,idcnl or th<' olher
Contracting SI'lte Illay b~ tax<~l tll that olber Stme.

2. How~ver, ,ueh intereSI may also be tilx~xI in the ClllllractHlg Stal<' in wbich it
arises and according to thll l iI\\'~ uf tlmt Stute, hll t if the henctidal ()wn~r of th~ inter~st
i5 (1 resiJ~nt of the ()ther CmltrJctin g Stllte, thewx su ~harg(.'(1 ~hnl l llOl cxcccd 10% 01]
Ihe gross umount of the inll'fC;;1. The competent authorilil"s of Ihe Contraçtiug States
sh"tl by mutual agreement setlle the mode of appllcatiOIl (lf thi, limi tmion.

3. The tenu {(intcres() as uscd in th is Artl clc lll~~n~ i"wme from debt daims of
every kind, whcthcr or nOI sœun.xl by lllottgagc "nd whclher or [lot ~arrying ~ nghl 10
participate in thç dcbtor' s pmlils, Jud in particular. income l'rom go v~mlllent ~eç\lrities
and income from bonds or debcllt urc~ , inçlU(ling prcmiums and prizes alt"ching to such
~cç\lrilics, bonds or debcnt\'rcs. as w~1I "" mC()Jn~ whid, is subjl"Cllxl ln the same
taxation IrC~llllent as income from money len t by the I~w~ o f Ih~ St~lC in whid, Ihe
income arises. J>enalty chilrges for laie paymcnl shall not be regmdc<1 as interest for Ihc
purpose ofthis Article.

4 Tho provisions of p:o ragraphs 1 an,l2 >;hall no! ~pply if the bendicial owner of lhe
interest. bci ng " re~iJcnl of a Con traning St.lte, cames 011 husinc~> in thc other
Cnntraeting StalC in whlÇh the mln~,l aris~s, through a pcrrnullent est il blishme nt
sit,,~lcd thcrdll, or perfonns in thilt other Stale illdcjlClldcllt pcrson~1 services l'rom a
lix<.-,,! bal;~ ,ltll~tcd thercin, and the .lobt daim in respcct ofwh lCh tne interest i~ l'nid i~
cfTcctivcly connedoo with such pmnilllcnt establishment or lixw hase. ln such c~>c the
provisions of Artide 7 or Articlc loi , ilS the case may be, shall apply.

5. Intercst shall be J~~mw 10 "riso in .1 Contracting Sratc when Ihe payer IS a

rc~ident of that St .. tc. Whcrc. howcvcr, the jl~rs()n paying Ihe intcr~st, whether he i, a
resiJcnt of ,1 Contraetin g Statc or Ilot. h", or] ~ COlltrueting Statc a p~rmallent
estab l i~hment or a fixeJ base in co,mcct ion with whieh the indcbtcJnc~s on ",hich the
imerest is p_nù wa~ ,nçurr~"I; and such interest i$ borne hy such perm",,~nt
establishmem or lixcd bnse, then sueh inkn--st ~h;!ll b<.' (k..,m~Ù tv ariw in the Slale in
wh ,ch the [l'Crmancnt establishment Of fixcd bas~ i8 ~i luat~"l.

(j. Wlwr~, hy rcasün of a '[l'Ccial rclatiollship Oc\wecn the payer and the benelicial
owner or bd wcen bulh of th~m ,inti somc o!lwr [l'Crs01I, lhe arnount of thc intCtc:l1
Imving rcgarJ tv the dd:>t-claim I,)r whid, il is raid , ~XCC~,,13 thc amount which would
h~vc bcen agrl~d upoll by the pay~r a"d lhe heneliçial ownCr 111 the ab,k"œ vr such
rdaliollShip, thc provisivm; of thi s An ick shall apply (\n ly 10 th~ 1 "~' - I11~ntion~d
Ulll0tm1. In sueh case, the exœss part of the payments shall r~lnain laxab le a~çonli!lg to
the laws of eaeh Cont r;lCl1l1g Slalc, du~ regard being hml 10 lhe othcr provisio1ls of th is
Cvnven tion.

ARTICLE Il
]{OYA LTtëS

1. Royalt ies arislng tn u Contfilcting Stulc alld )J<Jid 10 a rùsident of thù Ollwr
COlltractillg Stil\c may he laxed in that other Statc,

2. Howevcr, such rOyillti~s may ,,100 be lMW in lh~ C"ntracl;ng State in which they
arise ~1ld ;K~ord iIl g to the LJws of th at Sut<.:, bUl if th~ b~ndki ;lI OWT1er of the royultie>
;8 a rcsidcnt of the other Con tr;IC l;ng Slale. the tax ,0 charged ,hall not cxcœd 10";" of
the gr()~S il1\lOUIll of the roya lti~"S, The COtll]Xtent authonti~~ of lhe Contract,ng Slaks
shaH by Tl1 utuat "g rc~ment ,~Illc thc mode of app licat ion of this lim itation .

3, The tL'Iln «roya lties» as lISW in this Al1ick means l'~yments ofimy kmd R,<:cived
as a Ç()n~ider"ti()n for the use of. or the right to usc, <lny copyright of lit~ral)', anistic or
seic1ltifie work, indud;ng ~inemat()graph films, ally patent, tradc mark, d~"Sign or modcl.
plan, secret formli la or prOCC5S, or lor in lormatio n ~oneemi"g iT1Justrial, commercial Or
scien t; li ç e,'p~nenœ.

4. The p rov t~ion~ (,fp:Jragraph~ t an(! 2 shaH not appl)' if the bendida l oWllerofthe
royalties, being a r~"SiJcnt of a ContraçBllg Statc, ~arr;d On busi ness in the olher
Com raç(;ng S\ate in wllieh the riJyalties ari se, till'ough J p~rma lK11 t ~stab li shtnell t
situat~xI th.crci n, or p"r lonn~ in lhat othcr S!ak tnù~pentlent persoll:t l serv ice, from :t
([xcJ base situated thcr~ill, ami the ri g.hl vr rmp~rty in rcspect of wh ich the royJlt j c~ arc
paid i ~ cf1ixtivdy C()J1J1œtcJ with sll~h pellllalient establishmcnt Of tixcd base, III ~uch
case the provisions of Article 7 or Artiek 14. 1!.~ (Jw ~a-"e may be, shall apply.

5. Royalties shaH bc d~emt'tllO ans~ ill (1 Contracting State whcn thc payer,s a
R'Sidem of lhat St"te, Wlt~>rc, however, the person paying thc roya ltics, wh~ih~r he i5 a
re~idell t of a COl\tracll ng Statc or not, has lU a (t)]\tractin g SI~t\l ,1 pcrman~nl
e~t"b lishmenl (Jr :1 li _,ed b,,~e iJi ~"ùll<led i oJi wilh whleh th e ohhgali(Jll 10 pny the
roya lties wu, ;1l~urre<1, ami sueh r<J yalti~., ~ re home hy su eh p~ nllallcnt c~tab l ishtllent or
fixcd bJ~c, th"n ,ueh [()yaltie~ ,hall be d"emL~1 h) ~n~ i" the St"t ~ in which !lw
pCffilanent \lswbl ;shtlle~ t or ti~e<J ba,e is s;tuatcd,

6. Wkre. by rcason of a spceial rdari<lnship bctwecn Ihe p1iyer and thc bUlCliçial
owncr or lx1w<,,,," both (JI' them ô",d WlllC <JlllL'T pcr~,,". th e "lllounl of th e royalties
ha,'ing regard 10 the use, right or infonnatioll tor whkh the)' nre paid, excecds the
alUount whieh wo"l d have been Hgrccd l' POil by the payer und the benef,d31 owncr in
the ôjb~\l"ce or sueh rcl:llionship_ the provisions of this Artick sha ll arrly only () th~
last- mellt i on~d 1!J"01.mt. In such C~$C. tlle ex~ ~'>JS part 01' the p ul'meJ1t~ ~h,,11 r"main
taxable aecording to the laws of cacb Contmcting State. due rega rd being Iwd to the
otlwr prov,siml" of tins Con vent;o[l.

ARTICLE 13
CAPITA L GAINS

1. Gnins derivcd by a res ident of a Contracting State from the alienatioll of

immovablc property rdàn;d to in Artiek (, ~"d siluatcd in the othcr Contfacting St~tl'
mal' be tHxcd in that other St~!c.

2. Gains from the alienatJ<JJl of movable propcrty f(mning part of the hu~inc>;~
propcrty of a perma ncnt estab lishmcnt whic h an cnterprise of a C0"t rJ~ling Stil t ~ has in
the othl'r Contr~d i ng Stalc or "fmovHble pmpcrty p;;rt:üning to a tL xcd base aVHilabk
to ~ resident of u Com rJ~tlllg Stale in the othçr Commet"'g Stak tor Ihe purpo,c or
I:><;rloml in g indepcndcnt personal services, inclu ding snch gains t'Will the alicnatioll or
sueh a pcn";tIl~>J,t establi~hmént (alo ,,~ or with the WllOlc c1,lerprise) or of sudl a fixetl
base. 1ll3y be taxed in thm other Statc.

3, Guin~ l'rom the alicnHtion of ships 01' airerait o~cmtcd in international trallie or
Irom mov<lbk prol:><;rty p\lrt;iilling tll the operation nI' sud\ ,hips or ai rcra ll shaH b~
(auhle only in the COl\traeting StJte in whlch the place of effective mJl\agemem of the
cmerprisc is situatcd,

4, Gains derived by a resi dent ofa Contl'<lcti ng Statc fr011lthe alicnôl t; ol1 of shmes or
of a comparabk intere;;l deriving more lhan 50% of tbcir va luc direct ll' or indirce!ly
from imillovable propcrty si\UJted in the other ContrJcting Stat c ma)' be taxcd in thm
other Statc.
5, Gains Irom the ali~nalioll of a"y prop~rty. ()Ih~r Ihan Ihal r~ ICrred 10 in
paragraphs L 2, 3 and 4, shilll b~ taxable only in the Conl rad ing StJte of which the
alicnalor is n resident ,

ARTICLE 14
INDEI'El\' DENT PERSONAL SERVICES

l, IncolTIc der ivcd by <1 rcsident of " Cont ra~ting St"te in r~spcd of pro!i:ssionll]
>;erviœs or othcr aeti viti cs of an ind~f'<.11delll ch~l'aclCr shall be taxable on ly in Iimt Swte
unleu hç has ~ I,xed ha~e regu larly availahlc 10 him in the other Conlrading SI::!IC for
Ihe purpose of pcrfomling his a~tivit i e" Ifhe hil8 8uch a li~e<.I b,IS~, the income m,IY he
tax~"{l in the othl'T Contracl;ng Slatc bul only .~o much ofit as is attr iblllabic to thm iixcd
hase.

2. The tenn ,,!)rofcssionu l serviçes» inclmks cspl'<:i" ll y indepcndell1 scicll1itk

lite rary. ;lrtistic, l"{lucat;onnl or leaehi ng aetiviti cs as wd l as Ihe indcl}Cnden t nctivit ics
ofphysiciJns, lawyc"", cnginccr:-; , iirdll tcd~, dcnll ~ts and acoolLntant"

ARTICLE 15
DEPENDENT PERSONAL SERVICES

1. Suhjcct to the provisi o~s of Ar1i d e~ 16, IR, 19,20 and 21, s3lariCS. W3gl'S 3n(]
01her remunerati on dcrive<.l by n rcs ident of a Comracting Stat ~ in resp~ct of an
~il1\i l ar
~Jl1ploymcnt shu ll be taxable only in that Slate lInlcss the eillploylll~nt is exereiscd in
the other Contracting State, If the cmployrncnt is ,,"' cxereised. sueh rcmunçration;.l, i,
derived Iherefmm may be tnxcd inthat other Stute,

2. Notw ilhslanding the pro\" i si oll~ of paragniph l, rLllluneratlO!\ dçriv~d by il

resalent of a Cll1llr"cting State in respect of 'Ul ~mp loylllem excrcis(x\ in the olher
Contracting Slalc shal l b~ t3xahlc on ly irltbc lir<;I'I\l ~nt i oned Siaie if:

al the recipicnt is present in the othcr Stlilc for a pCl'iod or ]x:riods nOI
c~çccding in the aggregatc Ig3 day, in ,my twdvc month peri,>d
eomlllcll~ i ng or c"ding in the iisçal y""r c()]l~em", L "n(]
b) the rcmuncration is paid by, or on bchalf 01; 'Ill employer who is Ilot 11
rcsidcllt Mthe other Slate, and
e) the rcmuncratioll is Ilot bome by <1 pcml<ln~nt cst~bhshrn~llt or li fix~d basc
which the employer hJ5 III Ihe oth~r SliltC.

3. Nütwithslandl11g the prcCL--.:l ing rrovi~ions of this Article, rcmuneration dcrived III
respecl of nn employmcnt exerci,ed abo"rd .1 ship or alrcrJIl opcratL"{j in intemut iollal
 may be taxed il1 th~ COl1l rJetin g
tr~ftie Stal~ in whieh the place of ctT""t,v~
managc1ncnt of the cnterpris~ is situatcd.

ARTICI.E lri
DIREC.1·ORS· FEES

D,,~dors' kc~ and otlier simibr paymcnts ,k,-ivl"tl by a r""~id,,nt ofa COl1lradil1g
St:lt~
in hi~ ~ilp,,~ity "" il m~~nb~r ül" the b-o~rd of dir~do,",. <((hreclori ü». ~up~rvi>ory
board or of "nüth~r simil;'r ürg:m of ~ ~\)mpally wh ' ch is a r~sid~nt of the other
Contracting Stnte ma.,. be tJxl"<:1 in thJt oth~r State.

ARTICLE 17
ARTISTES AKD SPORTSMEN

1. NotwithSWl1ding th~ provi~ion~ of Artictc~ 14 a",1 15. income ,krivcd by a

rcsidcnt ofa Contmcting StJk as al1 ~]lkrtail1~r. ~uch;15 a lhe"tr~. motion pk\U r~. r:ld io
or tclcv,sion nrtistc, or a musician, or as a sportsman, from his pcr>ünal (letiviti~s as
such cx,,·n;i;;t.:d in th~ ()Ih~r Contracling Stnle Illa)' Ire laXtx] in tha! Olhcr SlalC.

2. Wilcre income in rcspœt of person~ 1 activitics cxcrc ised b.,. :111 cllIenainer or a
sponsman in !lis ~;Ipnclly;\,'; such il~cru~s nOI to the Qnlcrtiliner or ~portsm'lrIlll msclrb(lt
10 ~noth"r rcrson. Ihat i ncome may, Ilotwithstandi ng the provisions of Articles 7. 14 and
15, bc taxoo in Ihe COlltract ing Slut" in which Ih" ~ctivities of lh~ ~nlt.:rtain"r or
sportsmitn arc cxacis<x1.

ARTICLE 18
1'l:."SIO~S

Subjcel 10 th~ proVl';io]\s of paragraph 2 of Article l 'J, pensions a"d olhcr sinular
rCllluncration paid 10 u rcsidcllt of u Cont rad;ng Stak in COll,i<kration of pilst
~ l l1p l oyment shal1 Ile taxable on l.,. ill that S131c.

,\RT ICLE 19
GOVER'\JMENT SERVICE

1. a) Salarit.:s. w~gl-;; aod other s;m ilar rctnUIl~riltion. other th;ln <1 pension, p~i d by
a Con tractin g Slale or a JXllilical or administrat ive subd ivis ion or a local
autlionty thercof 10 an indlvid liai i0 respect of services rendell-d to that Smtc
or subdiv ision or authorily ~hnll oc w"able only in thal Stilk
b) Ho\V~\"~r, weh salarie::;, wages ~nd othcr similar rcmullcration ~ilall hc
ta~able on 1.,. in th e other Contracti ng S!nte i flhe services art.: rcndcred in that
St~lc and Ihe individllal is a resident of!hat Slate who:
 i) \Sa nat iOl\al of tllat Statc; or
ii) did nQt bCUlmc a residcnl of that Stat" sol.:ly for the purposc of
rendcnng the st.-r.'iccs,

2. ,) 1\ (Ilw ;t h~ta n d in!; thc pnwis ions <JI' p'IrI!!;raph l, pensions IInd ot h<-1' simi lar
remuncrntioll paid by, or oui <Jf fUllds crcated by, u CuntrnCl;llg State ur a
polilical or adminislrdcilc subdivision or a local authorily thcn..'t)f !O an
Illdividuni III n..'Specl of scrvi<-'es n..~,dcrcd to Ihat Smte or subdivision or
aUlhori ty slwll b" taxable {lnly in thm $l:lte.
b) Ilowewf, slJch )l'.'n:;;o ns anJ OI}K'f ,imi]ar rcm ~lIler'JtiOIl shllil he taxab le
only in the other ComrJetiug Scate if Ihe individu;11 is a rcsid'-~ll or and a
national of, that Stalc.

3. T he provisions of Arti cle:; 15, 16, 17 1!IIt! IS sh:11I apl' ly to sa l mi~s. wag~s,
IlCmiuns, and uthcr similar rcmullCfation in I"CSpo..'t.1 of .'lCrviCCll relldcrcd in (.'t)uncc!ion
with Il businClis carricd on br n Colltrn~l ing State or n politienl or ndmlllistratile
~ubdivision or;L local authority Ihcroof.

A RTICLE 20
l'ROFESSORS AJ\O RESEARCIIERS

An in(hvidllal who is or "'as a rcsidenl of a C:olltrJ.cting St~tc imrncdiatc1y bet;'re

vbiting the ulli~r Colltracting Swte, :><.Jlcly for the jlurpo~c of tcaching or , cicmi fic
rcscarch at an university, coll<:g<.!, ~chool. ur other similar cdU~Jlion:,1 or scÎentitic
r~arch institution whieh îs rccogm/.l-d as non-profitable by thc Govcllllllenl of Ihat
other State, or under an otlîcial prOllr~n" nc of cultural cxchm'Ilc, fûr a po..'liod nOt
cxcccd ing two yC<lrs fr(1)\ t li~ datç of his ti r s! arr ivld in ,hat other St"tc, ~ha l l ~ ÇXCtl1 [lt
from {a~ in that othçr Stnte on hi~ rCIl1UIl~'Jati<Jn for ~uch tc~çhillg or rcso:arch,

ARTICLE21
STUDE NTS

Paym~'TIts ",hich a s!uden! or business npprcntiœ wbo is or \Vas immcdiatc1y

bcfore visihllil a Contra~1illg Statc a ll.'l;idClLt of the uthcr ConlrJehng State und who is
present in the fir.;1-In"l\t i,~n~'(1 State solcly lur the p\lr[l<J~e of his cdu~atiOI! or IT'Jin;n!;
rcccivC'l for the purposc ofhis mai!lWIl(mœ, cdllGati ul1 or trilining shal l Ilot be 13xcd in
that SIaIC, pru\'idcd thut such payment$ misc from sources out~idc thm SUHe.
 ARTICLE 22
OTH ER 1NCO),Œ

Inçurne dcriv cd by u rcsident of a Cont ractlllg Stutc. n01 d~alt witll in tlle
fo rcgoing Art ,~ks o f tI,;s Couvcnlion. and arising in t h~ other Contract ;ng State Il\~y be
wx~"{1 in lhilt ()th~r Stak

CHAPTER IV
TAXATIO ~ OF C/\I' ITAL

ARTICLE 23
CA PiTAL

1. C up ita l r~ple,~ntcd h)' irnmovable property rcîerred to in Articl e &, OWllcd bl' n
rcsidcl\l of n C()1](mct,ng S (~(c nlld si (llate<1 in the olher COlltrading Stak. ma)' h~ laxçd
,n thnl other Stat e.

2. Capiwl reprcscn tL~i hl' n1o\'ah1c propcrty fonning part of the business propeny of
u p~l1n3ncnt cSlubli sh mcllt which an enterpriw 01' a COlllradmg Statc has in tlle olhcr
Co nt ract ing St'lte. or by movab le pro peny pcl1uining 10 a fi .xcd basc which a residcnt of
u CO lltrad lng Statc has in the other Cont racling Swte fo r the perti mnilnçc 01'
indcpcndcnt professiona l serviçes. mily lx; taxed in lhal "Iller SlillC.

3. C~pi l~ l repr~~entnJ hy ship , and airnafi opcratcd ill illtem~ tio n,jl trafti.:_ Jnd by
mov<lhk prOfX'ny pertai,üng 10 the operatioll ofs ilch >hi p~ ilml airerait ,h~lIlX' laxahle-
unl y in the Contracting S t~t e in whiçh th~ pl ~œ of cflè::cti\'~ managemcnt of thc
clltc rpri se is , itu ilwd.

4. Ail ot her clcmen l~ o r '-"lpital of ~ residGnt of n Contmcting Stale shaH bc IlIxa blc
onl}' in th~1 St~ lc.

CHAnER V
ELI MI NA T ION OF DO UBLE TAXAllO N

ART ICLE 24
EUMI'\JATI ON OF DOULlLE T AXATI ON

l, ln th" case of Portugal. double tax<l tio n slMIi he il\o1(k\! ilS ti,ll()ws:
 al Whcrc a rcsidcnt of l'Oriugal derives income or OWI1~ c~pi!'1 1 which, ln
aœ"nb'lœ with the provisions of this Convcnt ion , may be tilxcd 11\
l:rugu~y, Porillgal ,hall all"w:

i) as ~ ,kdUdion l'rom the tax lm th~ 1 11~(nI1C "rthat rc,idcnt. an all1vunt

cqualto the inco rne tax p,lii! Hl UrugUily;
li) 3S ~ dcdllctioll from the tax on the ç~pilal ofthJl r~,,,kl1t. an ilmount
cqual to lhe capital tax pnid in Uroguay .

Such dcduetion in eithcr cuse shaH not. howcver, c~œcd th"t Il:!rt of lh~ ;ncome
tax or the CilP Lla l l'L". a" computc" hclDre the dcduction is givcll, whieh is
"ttributable, as the case mny he . 10 tbe illcom ~ or lhe c~pit~1 wh idl m~y be tax~-d
in Uruguay.

b) \Vhere in aeeord"tl ~ç w;th al1y l'mv;~i()llS 0 l' lhis COll"Cllliotl incorne derivtXl
or capital owncd by J rcsidcnt o f Portuga l l~ ex~mpl IrOlll tax 111 lh,s Statc.
l'orlugal may ncvcrthelcss. in calculating tb~ Jn1O!mt ort~x 0111h<: r~m,,;nillg
incomc or capital vi wcb rcsidem. take lllln accoum the cxclllplcd incol1lc or
<:r<pilill.

2. In lhe case of Uruguay, dO!Jble lil~all<)11 sh,,11 b" iivoid~xl aS 1'·'Uows:

li) Rc~"lcIll> in UrugU:.ly, d~riv ill!; income which bas. in a~cordan~c with
!' orlugllc>c bw ~nd Ilnd~". Ih~ pr()visio\ls orthis Convention. bccn subjccllo
la.,aliol1 ill POrillgal, mn)' n<Xlit the tax 50 paid against uny Urllgl'~yim tax
payabk in rcsp<:d ul'lh~ s(!n ,~ ;llCOI11~, SUbjCCI 10 th~' arpl icnblc provisions
01" lhe law of Ur uguay. The same shall also Jpp ly in r<:spl""Çl of capital which
bns, in accofda~ œ w,th l'urtugll~:;e litw il nd "",kr lh~ pnwisiol lS of lltis
COl1vent ion, bccn subjcct 10 taxation in l'ol1l1ga l: th~ ~~p i tal tux so pa;,! mal'
b<: cr~"{l i kd ;lg"iTl~l any l;rugllayrmla., p3yablc in respect ofthc smne capital,
subjcct to th<: applicabk rf()ViSl() l1~ ofllw law of Uruguay. Sueh doollction
,hall nO! . howcvcr, excœd thal part of the Unlgll<lyilll tilX ()Il ineume ur
c;Jpit,iI, a~ ù)mpulcd before the dcdlleli on is giv<:n
b) Wh<:r<:. i11 ;Jcconlanœ with ally rro vi sioll of lhe Convention . income dcriv<:d
or capi tal own~'{1 by ~ r~sid~llt o f Urugu~y i, cxC'Upl l'rom la\ ln Uruguay.
lJruguny may ncvenhdcss, in c;!iculming lh<: <\m()unt of tax on th~
œmmmng ITtcome or capita l of sueh resident, tak<: into ~ceoum th~ <:x<:mptcd
ineume or Cilpilul.
 CHAPTER VI
SPECIAL l'IWVIS IOI\S

,'\RTICI. E 25
:-.ION-DlSCR IMI~ATION

1. Nalion~ls of a Conlr"nil1g Slalc ,hilll 1101 b~ subjœl~d in lhe Ol her Co ntrading

Stntc to any taxaI ion or ~ny requ irC!ncnt runn~'<:tcd Ih~rewith, wbieh is other or more
burdens.omc than the taxat ion and conncçtcd rcqllircmcnts to whieh nationals of Ihat
other State in thc saIllC circumstanccs, in punicu lar with rCspDCt to rcsidcnec, me or !nuy
he ~ubJect~d . ThIS provision slmlL nOlwithstanding the provisions of i\rtidc 1. ais"
aprl y W pcl':'ions who arc nOI rc,ident s of one or bOlh of the Contracti ng State"

2. Thc tax;ltio~ on ~ p~rm;m~lll çS li1bh,lmwl\l whi~h an ~nl"rpnse or il C<J [1lr~ding

St~le ha, in thc oth~1' COlltraeting State shalillot bc less tilvoL,rably kvi<Xi in tlwt other
31<He Ihan thü l:lxmion \cvicd un entcrpriscs of Ihut ()thcr Slate c~lTying on tlie same
aetivities. Tllis provision ~h ~lI ~Ol bc co~~lnJ~d,,~ ob liging J COlltradmg Stilk to grJI1l
to r~sitlt;l~ts of Ihe olher Conlracting Statc any persona l allolvanecs. rcl iet~ and
reductions for tuxation purpose> on a~Cüul1t of c)vil st~lll> or fJ ,ni ly re5pon~ibi lities
which il Y""b 10 il;; own residcn l~ ,

3. Ex~cpl ",horo the provisions of paragraph 1 of Article 9. parugrapb 6 of Article

II, or pJragraph 6 of Article 12, apply. intere,l, r"yul ll~~ "nd O1her(hsllLln;cment~ paid
by an enterprise of a Contmcti ng Stnk to u rCSilkni l,f the othe r C"ntracl ing State shaH.
fur the pU'1wse of ,\clennining the taxab le profi ts of ,uch ~ntcrprisc. be dcd"et iblc undor
the saille ~onditi ons aS irlh~y hm! hccn paill hl ~ resillent orthe lir~Hn~ntioned SI:,le,

4, En tcrprises ofa ContrJcting StalC. the capital of which is wholly ()r part ly OWllcd
or con1rolkd. dire~tly or mdircdly, hy Olle or more r~sidclll, of Ih~ olh~r C()nlra~tln g
Slato, ,hall not bc subjcct<Xi in thc jj rst-m~nt iO'K-d St<lte to !ln)' laxalion or :lIly
requir"rn~lI! connecled thcrew ilh whieh is other Of more hurd~nsome thall the tuxation
~l1d çonnedcd rcqu"cme,ll, to whieh olhcr simibr ullcrpri~es of the til':'i l- mCn lioncd
Smte arc or may be subjec\l·<J

5. The provi~ion;; ollhi;; Article shaH, r10lwilhstunllillg lhe provi~io,,~ ni' Articl~ 2.
upply to taxes of every kind ;Ind d~~çription.
 ARTICLE 26
MUTlAL AGREEMF.~T PROCEDURE

1. Where 1l1>ÇrBon ~on~idero lhat th" ;l~t i ons ofon" 0r both of the COnlntcting State,
rcsult Of will ,.esult tor him in taxation not in a~~Orda)K-'; with the provisions of this
Convention, he mJy. irrespcctive of the remedies providcd by lhe domestie law of thœ<l
States. ]lrcs~nt his case to the competent Juthorily orthe Contraeting Shne (Jf w l,, ~h Il<'
is a r.:sident or. if his case eomes undtr ]laragmrh 1 of Article 25. hl thilt (Jf the
r Contrncting Stale of wbidl he is u naliollal. The c= mm;t bc prcsentcd within thrœ
ycars l'rom the tirst notification of the action rl.-'Slliting in taxation not in aœorda"ce wllh
the proviSl on~ of the COll venliml.

2. The competent authority sha ll endeavour, if the ubjDCtiun appears to it to be

jUSlitied and ifll is not itself able to arrivc Ht a satisl;1clorl' so lu tion, 10 rc,olvc lhe eu~e
by mutl1al ag.n."t:n1tmt with lhe cornpdent authorily of lhe olher Contraeling Slalc, wilh li
vicw to the avoid;m ~" 01" taxali on wh ieh i~ nOlln açcortbnœ wl lh Ihe Co nvenlion. Atly
agreement rcached shu ll be implementcd Ilutwithstanding 3ny time limi!s 11\ the
dotncstic luw olthe Contracting State,.

3. The com pelent autiloritics of the Cont raeting States shall endea . . OHr 10 rcs" lvc il y
lllu1Llal ag.rcemen! uny d itliculti c~ or dOllblo ilrising ilS 10 th~ in\~rpretation or
apphemion of the Convention.

4. nIe competent authorit ies of the CDnlracting States may commlillieate with cach
othcr dircctly for the purpose of reaehing an agreement in the sense of the proccdillg
paragraphs. Whcn it StlClllS adviSilble in order 10 roaçh agreem~nt 10 hilve an oral
cxchJng~ of opin ions, SUdl e"dtangc mul' 1.3ke place throl1gil a Commissiolt con5i~li ng
of rcpresentali ves of the competent altlhol"iti cs of tlle Contracting Stal cs.

ARTICLE 27
EXCIIANGE OF I~FORMATION

1. Th~ C()mpel~]]t authorilie~ of the Conlr~ding Stales shall cxehang~ ~u ch

inforillmioll Ils is fü r~see"bl y rd~v 'I ~1 for ~'trr)'i]]g QUI the provi~i(l]]s of this Con v~nt ion
or to the administ ration or cnfore11l1cnt of rhe dOlllestic laws cOllccrning taxes of everl'
ki nd und d<:sniplion il1lpo~"d on bchal f ,l l' the Conlraeli ng Staks. or 0 r tItcir ]101] lieal or
adtninistralivc subdivisinns or local a llthor it i~s, insofar as the taxation thcrcunder is not
conlrat)' 10 the lAl nvcntion. Th~ exchangc of information is not rcslricted by Articles 1
aEld 2.

2. Any infonllation rccclvl-d l1nder p~lragraph 1 bl' a Cont raCling St;lle shaH be
treat~'(1 us s~'CrCI in the "Hne ma""n as i"f0onatioEl obtaincd unde]" tlt~ dom~stie la,,", "f
that StalC and sha ll be Jisclosed only w per,on, or authorlltco (;ndudi ng wurts and
ildmin l ~tr~live hOllles) COllr<:med wilh Hw aS>e~~m;;nt or collection o[ the ,;nli)rccmŒt
or pro~cçUl ion ;11 r;;,p<.,<:t ot: 1~e dewnninmion of appcals in rclmioll to tlw ta xe;; rekrr~d
to in paragraph l, or the ovcrsight of the abovc. Sueh pcrsons or auth"rities ,hil ll use the
infonnation only for sudl purpos<:s. They LIlay dl~clo;;(; \h~ inlOn"atioll in public court
proœedings or in jlldicial dœisions,

3. In no case shJlI lhe provisions of )JJI'agmphs 1 and 2 be construul so as 10

imposc on u Comraet ing Statc the obligation:

a) to carry Olll administrative I\lcasun.:s al variance ",ith lh~ la"" and

adm;n ist rati ve practice of thm or of t h~ other Contl'Jcting Statc;
b) to suppll' inlbnnat,on wll1~h b nO! obwinabk !mdcr thc laws or in the
normal cO!lrse of the adm inistrat ion of tha! or of the otJwr (:ontr"cling SWle:
c) tv ~uppl y inibrmnt]()11 wh,cb wlluld di>elose ,on}' lrade, busin~ss. industrial.
C<lmmcrcial or profes,ional ~œrct or trade pmeC$s, or i"loml" tion, the
disclos!!rc ofwhicb would he contrary to pub lic po liel' (ordre puhli~)_

4, Ifinfonll<\lion " r~q u~stçd by a Cunl fJding Slate in 'içcordancc \Vith tllis Article.
the "ther Conlmcl iug Stat" ~hall uSe ü, inliJnllation lpth ~ring mea,ur~, to obtain the
requ~stcd information, evcn tllOugb tbat other St~te may not nccd sueh infonnali(]]] for
its U\V]) la~ purp\lo;~$_ Th~ oh ligatt(\Jl ç()ntai ll~'{1 in the pK'<:eding ~entençe is subjœt lO
the limitations of paragraph J but in no case shall such limil~tiort~ hü co]],tru~~1 tu
pern';t a Con tract;ng State to <leçline to supply inform<lt;un so leil' bcçause it has no
dOlllestic inten.:st in slich infonnation,

5. 111 no case sbaH the provisiom (lf paragrapll 3 be construnl lu p<;nlltl ;1

COll1racting State 10 dcdinc lü supply intonnmion soleil' occause the infonnali Oll iô
Ilcld b)' a bank, other financia l institution. nom inee or pcrs.on acting in an agenel' or a
tiduei:lry CilPUç.ity or b~ci!uW it r~Lu~s 10 own~r>h; p ; ntere\Cl> ;n il j)Crsoll.

ARTICLE 2R
MEMBERS or DII'LOYIATIC MISSIO~S AND
COt\'SCLA1( J'OSTS

~othing in this Co nvcntion sha ll an~;,:t the lisçal privilcgcs 01' 11l~l1lber, of
diplomatie missiolls or consular posts under the gGneral ru les of intcmmio!\al law or
under tlle provisions of sJX'<:ial Jgrecmcnts.
 CHArTER VII
1'11\/\.1, PROV ISIO\lS

ARTICLE 2 ~
E\lTR Y INTO FORCE

l, This Conveillion shall cnlcr IIllO fo r~c thiny dilyS ;!ller the ù~te ofr~c~pl l()n orthe
Illttcr of thl:,l: nolifi cali on~, hl' giving notice. in wriling and lhrollgh the diplomatie
çhanncls, Ihm thc proccdur~s r~qll lrl'{l hy 1;IW 1[1 CJçh Conlracling St"l~ h~vc bœn
comp ldcd tvr ~u ch purposc,

2, The provi~ions oftllis Convent ion shall hJVC etli:ct:

a) ln Uruguay:

il ln respecl of taxes of a periodic nature. ;IS 10 inwl1le !;lxes rclating to

thl: fisçal yeur bcginni ng (>r} or atkr tlle date on which Ihe Convention
cnters into for~c;
ii) ln "II (, thn ça,es. on Ihe dale on whieh the COllvclll ioll en tcrs into
force: and

h) In Portugal:

il In respect of 1,lXCS withh d d iil S0urte, the f"ct giving rise to t h~m
appc~ring on or after the 1si day of January of the c~lend~ r ycar next
following tha l lll w)"dt 111\5 COllvenl\()\\ cnter!< into force;
ii) ln respect of other tnx~'S, us to incotllc ari, ing ln any fi "",,,1 yCM
bcgnming on or allcr the lst day of Janu~ry of the cal cndar yl:ar ncxt
following that in wh i~h this C()nv~nti()\\ C\\t~rs i1l10 tùrcc ,

ARTICLE 30
TE R \ll~t\ T IO~

1. "1"":: Convcnt ioll shilH rcm;tin in lvrœ indeI init cly.

2. Either Contrileting Slate may tcnn inat e the Convention afl~r d period of fi ve ycars
from thc datl: on which the Con vcnt ion enters into force, by giving notice of
tcnninat ion, in writing iln d through dip lomatie eh annds, mccivcd no laler than the 30"'
day of June of ally calcndar yCôlr

3. In ~u~h I:vcnt. the Convent ion sha ll ccasc to h~vc d'fi:~t :

 a) III Urugu;ly:

i) ln respect oftaxl.,'S of a periodic naturc, as to incomc taxes rcluting to

the tio~~1 yCM bcginnillg on or "fier Ih~ I ~ day of January of the
calcnJar ycur ncxl followillg that in which the noti~c of termination is
gl\'çn:
ii) ln ail oth~r cuscs, on or "tkr the 1" day of January o r th~ c~kndar
ycar next 10110\\'ing tlld t in which th e notice of tcnninat ion is g ivcn:
alld

b) ln Portug,!I:

\) ln rcspect of taxes wi thhdd al S<.'urcc. the t;l ~t givlng fisc to thclll

"ppcaring on or aflcr thc [ st day of Janumy of the calcnd<lr ycar ncxt
!vllowm g that ~pccificJ in the s.aid Tloti~c of tcnnination;
ii) I~ rc>pcd of (lIhcr (axe" ~s to inCOlTle arising in any fiscal ycar
bcginning on or Jtkr the 1:;1 day of JJnU ill)' ot Ih ~ ça lenda r yt;<lr next
to1l0w,ng that spceilied in the sai d notice of wrmillJlÎoll.

l:-l WITl\ESS \VHEREOI' the signatories, duly authorisC<.1 to tha t d"fccl, have s ignC{]
th is Convc"t ion.

DONE AT 0;J-oAl , thi dc'l""Jay of 0~.!t-SW" of 2007 , in dupl icat~.

in the
Portuguese, SpJnish and Engl i,h langu ~g~o, aille >: " heing ~quall y ~ullwnlÎc. In case 01·
uny divergence. tllc Engl ish text shall prevai l.

For the Oriental Hcpubi1 c of Cruguay For !lie Por!uguc"Sc Repu hl ic

 PROTOCOL TO T II E CONVi,J,T[ON I3ETWëEN THE OR[EI\TAL
REPUI3L1 C OF URUGUAY AND THE PORTUGUESE REPU BLIC l'O R
THE AVO[DAI\CE OF DOUBLf: Ti\XAT[ON AND THE PREVE~T[ON
OF F[SCA I. EVAS[O~ WUH RESP ECT TO TAX ES 01\' [ ~' COM ë AND
ON CAI'IT AL

On signing the Convention belwccn lhe Ori~ll1al R~p Llb[ i ~ of Un,s "ay am[ lhe
Portllgucsc RCl'ub l ic I\lr (]w Avoidanec or Doubk T~xali()n and lh ~ Pr~vel11 ion of Fisca l
Evas ion with ReSl' l"Çl 10 Taxcs 0n I n~om c and ()11 C'pit<ll the ,ign at0ries huve agl'cod
that the fo llowing prov isions sha[1 fOl'm nn in tcgral part of the Convcntion.

1. Ad Artidc 2, paragraph 4 (T ax~, c"{) v~red)

Notwithst3[lding thc provision of pJr~graph 4 of Article 2 nf the C{)[lvCflti()ll. if

P0rtUg~[ intrvduCûs a tux 011 worhlwiJc capital unJcr its dornüsl' c bw, Ihe p()rtugu~sc
Juthoritie~ will l101ily t<) the Ur"g"ay~1l authmities 01 i l~ bringi11g Hl t\> 10re~, ami ",i [1
discuss with CHch othcr the inclusion of sl1ch tax with in the scopc of the Co nvent ion.

2. Ad Artic1~ 8 (International Tra f1i~)

Wh~ncver <:ompa11i c~ trom (\illi;r~l1l l"<Junln~> hiive ugn:cd 10 ca rry 011 an air
tran~pürtiltion husiness togcliler in the fon n of il co nsortium or a silllilar foml o f
association, the provi~ions 0 r pimlgraph 1 <l f Art iç l ~ 8 of Ihe Conwnt iOIl l'hal l ilPp ly 10
sueh part of the profits of the cOllwrti llm or nssocÎation as co rrc:s pünds to the
particlpal1011 hdd in Ihut consort ium or (ts s.ociation bl' a <;0l1lpnny that '" a r.:,Ülcn t ofa
Contruct ing Smte.

3. /Id Article 10, paragra ~h 4 (D ividcnds)

ln \h~ cas~ of Portugal, it is \lnderolood th,ll the t~rrn «Dividend,,, also indud cs
l'rolit~ atlrihutcd un dcr an nrrangcll1Ünt for part icipation in profIts ( "' US.I'(K;Ùl{ÛO "m
parlicipaçiw J.
4. Ad Article 16 (D ircctors' l' ces)

11"le ternI "Dir~clorio» appl i~s in th.., C<l~e of Urug u~y Jnd I1leJIlS ~ Board of
Dlrector;,

5. Ad Atticle 27 (Exchange of Inlonllllllon)

 The COl1tn,d in g Stak~ ~hall comply with thc guiddil1l'> t,,,
the r~gul"t i on ,,1'
tomputer files contil inin g pc rsonul data "~ ~>I~bl ishL~1 by the l]rH I<.~ 1 Nat'ol1~ Gen ~rJj
A~scrnll1y Resol ution A/Rl'S/45/9S, adopwd on the 14'0 1)çccmber 1990.

6. Ild Artiele 27, p~rngraph 5 (ExcJwngc ofln t,'mlat ioll)

Notwnh,;taHdmg a"y restriction to the aœess to in fornwtion lll~nlioLl~tl '"

par"grJph 5 of Aniek 27 of the C'AlIl"cnt ion cstab lished by Ihe Inws in force in eithcr
Contrncling SWIC. to thc cxtUH that thi~ Convçmion h", ocell r~tifjcd Ily the \Xllllpeknt
Legislativc Power, Jnd en ter~d mto tur~~, 1l will cOllsli tut~ th~ k gal bas is t'lr
\Xlmplying with any inforillation n:'1uest. ineluding ;nfonnatio n held by a Iinal]ci~1
instit ulion. ",i thin the seop{~ of Ihe Co nvention .

7. Entit lcment 10 the bcneiilS "flhc Crmvcnt io]l:

;1) It ;s um1cr:slood llw t the provi,ioLl, ofthc Convention shallnol oc conslrllC<J

sn as to ]l r"v~1l1 the ~p]lll ~ation by u C<)iltra~lirlg Stalt of tht ,Hlli<,voi d~",cc
provisions prcl\:idcxl for in its domcstic laI-\':
ll) [1 is un<1ersl()(){1 that the bcndi" turcsœn in the C(lllv~n ll< )ll ,h all not 1><__
gran tod tn a residcnt of a Contfll~t ing StiitC who is no t t h~ bcndicial own~r
of i n~(lnl~ (k n \'~d in t he Olh~r C(llItra~t LIIg Stntc.

IN WITNESS WllEREOI' th~ signat0li'-'S. duly authoriSl'd

th is l'roto~o L

DONE AT t:,+O-r,~ ,
this 3d\ lay of J NlIM~u nf200l, in dU[ll icutc, in the
Portugucsc, Spanish and English In ngll;!g"s, ant~xlS being c'lually ~uthent i c. ln ~a,~ of
~ny divergence, Ihe English tcx t shaH prcvnil.

For the Oricnt~ 1 Repub l ie (lI' Uruglluy For the P,.)ftugu~sc R~puh li e