Approving The Agreement Between The Portuguese Republic And The British Crown Dependent Territory Of Anguilla, By Exchange Of Letters Respectively To 29 December 2004 And 21 January 2005 Concerning The Taxation Of Savings Income, Approving

Original Language Title: Aprova o Acordo entre a República Portuguesa e o Território Dependente da Coroa Britânica de Anguilla, por troca de cartas, respectivamente de 29 de Dezembro de 2004 e de 21 de Janeiro de 2005, Relativo à Tributação dos Rendimentos da Poupança, que aprova

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Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c316776644756346447397a4c334277636a49784c5667755a47396a&fich=ppr21-X.doc&Inline=false

MOTION for a RESOLUTION paragraph 21/X whereas Directive No 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments (which aims to allow such income, paid in a Member State of the European Union to beneficial owners who are individuals with resident for tax purposes in another Member State, be subject to effective taxation in accordance with the legislation of the latter Member State) establishes that the application of the internal rules implementation depends on the conclusion of agreements or other arrangements that define that all the relevant dependent or associated territories of Member States to adopt measures equivalent or identical to those of the said directive; Whereas the agreement concluded with Anguilla establishes the regulatory framework for this territory to adopt such measures, particularly those relating to the automatic transmission of information on interest payments to individuals resident in Portuguese territory, and which constitutes an essential element for the achievement of the objectives of Directive No. 2003/48/EC; So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following resolution: Approving the agreement between the Portuguese Republic and the British Crown dependent Territory of Anguilla, by Exchange of letters respectively to 29 December 2004 and 21 January 2005 concerning the taxation of savings income , the text of the Convention between the Portuguese Republic and Anguilla concerning the automatic exchange of Information regarding savings income in the form of interest payments for those approved and its annex, authenticated versions in Portuguese and English, published in the annex.



Seen and approved by the Council of Ministers of 22 July 2005 the Prime Minister the Minister of Parliamentary Affairs Minister Presidency AGREEMENT in the FORM of an exchange of letters concerning the TAXATION of SAVINGS INCOME a. Letter of the Portuguese Republic Sir, I have the honour to refer to the text of the proposed Convention model between Anguilla and the Portuguese Republic concerning the automatic exchange of information regarding savings income in the form of interest payments ", approved by the high-level Working Group (taxation of savings) of the Council of Ministers of the European Union, 22 June 2004.

In the face of that text, I have the honour of  propose you the «agreement on taxation of savings income ' in the Appendix 1 to this letter,  propose that this agreement enters into force on the date of application of Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments , whose date is subject to the provisions of paragraph 2 of article 17 of the Directive, subject to the reciprocal notification that they were satisfied the constitutional requirements regarding internal entry into force of this agreement;

 propose the mutual commitment to finalizing as soon as possible the abovementioned constitutional formalities and we notified each other without delay through the formal channels of these formalities are completed.

I have the honour to propose that, if the above is acceptable by you, that this letter with its Appendix 1 and your confirmation form, together, mutual acceptance and the conclusion of the agreement between Portugal and Anguilla.

Please accept, Sir, the assurances of our highest consideration, by the Government of the Portuguese Republic Minister of finance and public administration Made in Lisbon, in Portuguese and English languages, in triplicate. B. proposal for response of the Government of Anguilla Sir, I have the honour to acknowledge receipt of your letter dated [...], which reads as follows: ' Sir, I have the honour to refer to the text of the proposal for a model of "Convention between Anguilla and the Portuguese Republic concerning the automatic exchange of information regarding savings income in the form of interest payments" approved by the high-level Working Group (taxation of savings) of the Council of Ministers of the European Union, 22 June 2004.

In the face of that text, I have the honour of  propose you the «agreement on taxation of savings income ' in the Appendix 1 to this letter,  propose that this agreement enters into force on the date of application of Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments , whose date is subject to the provisions of paragraph 2 of article 17 of the Directive, subject to the reciprocal notification that they were satisfied the constitutional requirements regarding internal entry into force of this agreement;

 propose the mutual commitment to finalizing as soon as possible the abovementioned constitutional formalities and we notified each other without delay through the formal channels of these formalities are completed.

I have the honour to propose that, if the above is acceptable by you, that this letter with its Appendix 1 and your confirmation form, together, mutual acceptance and the conclusion of the agreement between Portugal and Anguilla.

Please accept, Sir, the assurances of our highest consideration.»

I can confirm that the Government of Anguilla is according to the content of the letter from you, [...].

Please accept, Sir, the assurance of my highest consideration, [name, title and signature of individuality in Anguilla responsible for signature] Done in [...], in Portuguese and English, in triplicate.

CONVENTION BETWEEN ANGUILLA and the Portuguese Republic concerning the AUTOMATIC EXCHANGE of INFORMATION REGARDING SAVINGS INCOME in the form of INTEREST PAYMENTS the Government of Anguilla and the Government of the Portuguese Republic, desiring to conclude a Convention which enables savings income in the form of interest payments made in one of the Contracting Parties the beneficial owners , who are individuals resident in another Contracting Party, shall be subject to effective taxation in accordance with the laws of the latter Contracting Party, in accordance with Council Directive 2003/48/EC of the Council of the European Union of 3 June 2003 on taxation of savings income in the form of interest payments, have agreed as follows: article 1 general scope 1. The present Convention shall apply to interest paid by a paying agent established on the territory of either Contracting Party with a view to enable savings income in the form of interest payments made in one of the Contracting Parties to beneficial owners who are individuals resident in another Contracting Party, shall be subject to effective taxation in accordance with the legislation of the last Contracting Party. 2. The scope of application of this Convention shall be limited to taxation of savings income in the form of interest payments on loans, excluding, inter alia, of the issues relating to the taxation of pension and insurance benefits.

Article 2 definitions 1. For the purposes of this Convention, unless the context otherwise requires: a) the expression "a Contracting Party» and «the other Contracting Party ' means Anguilla or Portugal, as the context requires; b) the term ' Directive "means Directive 2003/48/EC of the Council of the European Union of 3 June 2003 on taxation of savings income in the form of interest payments, applicable at the date of signature of this Convention; (c)) the term «Portugal» means the territory of the Portuguese Republic situated in the European continent, the archipelagoes of Azores and Madeira, the internal waters and the territorial sea, as well as the continental shelf and any other space, where the Portuguese State exercises sovereign rights or jurisdiction in accordance with the rules of international law; d) ' beneficial owner ' means the beneficial owner in accordance with article 2 of the directive; e) ' paying agent ' means the paying agent in accordance with article 4 of the directive; f) the term "competent authority" means: i) in the case of Anguilla: the Comptroller of Inland Revenue; II) in the case of Portugal: the Minister of finance or an authorised representative; g) the term "interest" means the interest payment in accordance with article 6, taking into account the provisions of article 15 of that directive; h) any term or expression does not otherwise defined have the meaning is assigned by the directive. 2. For the purposes of this Convention, the provisions of the directives to which this Convention refers instead of ' Member States ' shall be read: Contracting Parties.

Article 3 identification and determination of the place of residence of the beneficial owners


Each Party shall adopt and ensure the application in their territory, of the procedures necessary to allow the paying agent to identify the beneficial owners and their residence for the purposes of article 4. These procedures must comply with the minimum standards established in paragraphs 2 and 3 of article 3 of the Directive, with the exception that, in respect of Anguilla and in relation to subparagraph (a)) of such numbers, identification and residence of the beneficial owner shall be determined according to the information available to the paying agent by virtue of the application of the relevant provisions of the laws in force in Anguilla on prevention of the use of the system finance for the purpose of money laundering.

Article 4 automatic exchange of information 1. The competent authority of the Contracting Party where the paying agent is established, shall communicate the information referred to in article 8 of the Directive to the competent authority of the other Contracting Party of residence of the beneficial owner. 2. the communication of information shall be automatic and shall take place at least once a year, within six months following the end of the fiscal year of the Contracting Party of the paying agent, for all interest payments made during that year. 3. The exchange of information pursuant to this Convention shall be treated by the Contracting Parties in a way consistent with the provisions of article 7 of Directive 77/799/EEC.

Article 5 Implementation before 1 January 2005, the Contracting Parties shall adopt and publish the laws, regulations and administrative provisions necessary to comply with this Convention.

Article 6 Annex the text of the directive and article 7 of Directive 77/799/EEC of 19 December 1977 concerning mutual assistance by the competent authorities of the Member States in the field of direct and indirect taxation, applicable at the date of signature of this Convention and for which this Convention refers, are attached as Appendix e form an integral part of this Convention. The text of article 7 of Directive 77/799/EEC in annex shall be replaced by the text of the said article on review of Directive 77/799/EEC if this revised directive enters into force before the date from which the provisions of this Convention shall produce effect.

Article 7 entry into force 1. This Convention shall enter into force on the thirtieth day after the latter of the dates on which the respective Governments notify each other in writing that their respective formalities constitutionally required have been complied with, and its provisions produce effect from the date on which the directive is applicable pursuant to paragraphs 2 and 3 of article 17 of the Directive. 2. The provisions of article 4 of this agreement does not produce effects in Portugal in the absence of direct taxation in Anguilla.

Article 8 Termination this Convention shall remain in force until terminated by a Contracting Party. Any Contracting Party may denounce the Convention, through diplomatic channels, by giving prior notice of at least six months before the end of any calendar year after the expiry of a period of three years from the date of its entry into force. In such event, the Convention shall cease to have effect in respect of periods starting after the end of the calendar year in which the notice of termination was done.

Done in the Portuguese and English languages, both texts equally authentic doing.

/Anexo: text of article 7 of Directive 77/799/EEC Annex: text of article 7 of Directive 77/799/EEC provisions relating to secrecy 1. All the information a Member State becomes aware under this directive are considered secret in that State in the same manner as information obtained under their national legislation.

In any case, such information will be made available only to persons  directly linked to the establishment of the tax or in the administrative control of the establishment of the tax;

 will only be disclosed, on the other hand, in the course of judicial proceedings or of proceedings involving the application of administrative sanctions, put in place for establishing or reviewing of the tax or related to it, and only to people involved directly in these processes; may, however, disclose the information in public hearings or trial, if the competent authority of the Member State providing the information raises no objection;

 shall not be used, under any circumstances, for purposes other than for the purposes of taxation or legal process or process that involves the application of administrative sanctions, put in place for establishing or reviewing of the tax, or related to it.

In addition, Member States may provide that the information referred to in the first subparagraph to be used for the establishment of other levies, duties and taxes referred to in article 2 of Directive 76/308/EEC 1 2. The provisions of paragraph 1 does not require a Member State whose legislation or administrative practice, for internal purposes, more stringent limitations than the 1 OJ L73 of 19.3.1976, p. 18. contained in the said paragraph 1, to provide information if the State concerned does not undertake to comply with any such restrictions.

3. By way of derogation from paragraph 1, the competent authority of the Member State providing the information may permit the use of this information for other purposes in the requesting State, provided that, according to its own legislation, their use is possible for the same purposes, in the same circumstances.

4. When the competent authority of a Member State consider that the information obtained from the competent authority of another Member State are likely to be useful to the competent authority of a third Member State, it may transmit it to the latter with the agreement of the competent authority which has provided.



















AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS ON THE TAXATION OF SAVINGS INCOME a. Letter from the Portuguese Republic Sir, I refer to the text of the proposed model "Convention between Anguilla and the Portuguese Republic concerning the Automatic Exchange of Information about Savings Income in the form of Interest Payments" that was approved by the High Level Working Party (Taxation of Savings) of the Council of Ministers of the European Union on 22 June 2004.

In view of the above mentioned text, I have the honour to propose to you  the Agreement on the taxation of savings income at Appendix 1 to this letter;

 to propose that the said arrangements may come into effect on the date of application of Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments, which date shall be subject to the conditions set out in Article 17 (2) of the Directive, subject to the notification to each other that the internal constitutional formalities for the coming into effect of these arrangements are completed;

 to propose our mutual commitment to comply at the earliest date with our said internal constitutional formalities and to notify each other without delay through the formal channels when such formalities are completed.

I have the honour to propose that, if the above is acceptable to your Government, this letter together with its Appendix 1 and your confirmation shall together constitute our mutual acceptance and making of the arrangements between the Portuguese Republic and Anguilla.

Please accept, Sir, the assurance of our highest consideration, For the Government of the Portuguese Republic Minister of Finance and Public Administration Done at Lisbon, on in the English an Portuguese languages in three copies (B). Proposed reply from the Government of Anguilla Sir, I have the honour to acknowledge receipt of your letter of [] date, which reads as follows: "Sir , I refer to the text of the proposed model "Convention between Anguilla and the Portuguese Republic concerning the Automatic Exchange of Information about Savings Income in the form of Interest Payments" that was approved by the High Level Working Party (Taxation of Savings) of the Council of Ministers of the European Union on 22 June 2004.

In view of the above mentioned text, I have the honour to propose to you  the Agreement on the taxation of savings income at Appendix 1 to this letter;

 to propose that the said arrangements may come into effect on the date of application of Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments, which date shall be subject to the conditions set out in Article 17 (2) of the Directive, subject to the notification to each other that the internal constitutional formalities for the coming into effect of these arrangements are completed;

 to propose our mutual commitment to comply at the earliest date with our said internal constitutional formalities and to notify each other without delay through the formal channels when such formalities are completed.

I have the honour to propose that, if the above is acceptable to your Government, this letter together with its Appendix 1 and your confirmation shall together constitute our mutual acceptance and making of the arrangements between Portugal and Anguilla.

Please accept, Sir, the assurance of our highest consideration "I am able to confirm that the Government of Anguilla is in agreement with the contents of your letter dated [...].


Please accept, Sir, the assurance of my highest consideration, [name, title and signature of the competent person in Anguilla for signature] Done at [], [], in the English an Portuguese languages in three copies CONVENTION BETWEEN ANGUILLA AND THE PORTUGUESE REPUBLIC CONCERNING THE AUTOMATIC EXCHANGE OF INFORMATION ABOUT SAVINGS INCOME IN THE FORM OF INTEREST PAYMENTS The Government of Anguilla and the Government of the Portuguese Republic , desiring to completion date the Convention which enables savings income in the form of interest payments made in one of the Contracting Parties to beneficial owners who are individuals resident in the other Contracting Party, to be made subject to effective taxation in accordance with the laws of the latter Contracting Party in conformity with Directive 2003/48/EC of the Council of the European Union of 3 June 2003 on taxation of savings income in the form of interest payments , have agreed as follows: Article 1 General Scope 1. This Convention shall apply to interest paid by a paying agent established within the territory of one of the Contracting Parties with a view to enable savings income in the form of interest payments made in one Contracting Party to beneficial owners who are individuals resident for tax purposes in the other Contracting Party to be made subject to effective taxation in accordance with the laws of the latter Contracting Party.

2. The scope of this Convention shall be limited to taxation of savings income in the form of interest payments on debt claims, to the exclusion, inter alia, of the issues relating to the taxation of pension and insurance benefits.

Article 2 Definitions 1. For the purposes of this Convention, unless the context otherwise requires: a The term "Contracting Party" and "the other Contracting Party" mean Anguilla or Portugal as the context requires;

b. The term "Directive" means the Directive 2003/48/EC of the Council of the European Union of 3 June 2003 on taxation of savings income in the form of interest payments, applicable at the date of signing this Convention;

c. The term "Portugal" means the territory of the Portuguese Republic situated in the European Continent, the archipelagos of Azores and Madeira, the territorial sea and inland waters copies thereof as well as the continental shelf and any other area wherein the Portuguese State exercises sovereign rights or jurisdiction in accordance with the rules of international law;

d. the term "beneficial owner" means the beneficial owner according to article 2 of the Directive;

and the term "paying agent" means the paying agent according to article 4 of the Directive;

f the term "competent authority" means: i) in the case of Anguilla: the Comptroller of Inland Revenue; II) in the case of Portugal: the Minister of Finance or an authorised representative;

(g) the term "interest payment" means the interest payment according to article 6, due account being taken of article 15, of the Directive;

h. any term not otherwise defined herein shall have the meaning given to it in the Directive.

2. For the purposes of this Convention, in the provisions of the Directives to which this Convention refers, instead of "Member States" has to be read: Contracting Parties.

Article 3 Identity and residence of beneficial owners Each Contracting Party shall, within its territory, adopt and ensure the application of the procedures necessary to allow the paying agent to identify the beneficial owners and their residence for the purpose of Article 4. These procedures shall comply with the minimum standards established in Article 3, paragraphs 2 and 3 of the Directive, with the provision that, with respect to Anguilla and in relation to subparagraph (a) of each of these paragraphs, the identity and residence of the Beneficial Owner shall be established on the basis of the information which is available to the Paying Agent by virtue of the application of the relevant provisions of legislation in force in Anguilla on prevention of the use of the financial system for the purpose of money on Farmville.

Article 4 Automatic exchange of information 1. The competent authority of the Contracting Party where the paying agent is established, shall communicate the information referred to in Article 8 of the Directive to the competent authority of the other Contracting Party of residence of the beneficial owner.

2. The communication of information shall be automatic and shall take place at least once a year, within six months following the end of the tax year of the Contracting Party of the paying agent, for all interest payments made during that year.

3. Information exchange under this Convention shall be treated by the Contracting Parties in a manner consistent with the provisions of Article 7 of Directive 77/799/EEC.

Article 5 Transposition Before 1 January 2005 the Contracting Parties shall adopt and publish the laws, regulations and administrative provisions necessary to comply with this Convention.

Article 6 Annex The text of the Directive and of Article 7 of the Directive 77/799/EEC of the Council of the European Union of 19 December 1977 concerning mutual assistance by the competent authorities of the Member States in the field of direct and indirect taxation, applicable at the date of signing this Convention, and to which this Convention refers , are appended as an Annex to, and form an integral part of this Convention. The text of Article 7 of Directive 77/799/EEC in this annex shall be replaced by the text of the said Article in the revised Directive 77/799/EEC if this revised Directive enters into force before the date from which the provisions of this Convention shall take effect.

Article 7 Entry Into Force 1. This Convention shall enter into force on the thirtieth day after the latter of the dates on which the respective Governments have notified each other in writing that the formalities constitutionally required have been complied with, and its provisions shall have effect from the date from which the Directive is applicable according to Article 17, paragraph 2 and 3, of the Directive.

2. Article 4 of this Agreement shall not have effect in Portugal in the absence of direct taxation in Anguilla.

Article 8 Termination This Convention shall remain in force until terminated by one of the Contracting Parties. Either Party may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year after the expiration of a period of three years from the date of its entry into force. In such event the Convention shall cease to have effect for periods beginning after the end of the calendar year in which the notice of termination has been given.

Done in the Portuguese and English languages, all texts being equally authentic.

/Annex: text of Article 7 of Directive 77/799/EEC Annex: Text of Article 7 of Directive 77/799/EEC Provisions relating to secrecy 1. All information made known to a Member State under this Directive shall be kept secret in that State in the same manner as information received under its national legislation. In any case, such information:-may be made available only to the persons directly involved in the assessment of the tax or in the administrative control of this assessment,-may be made known only in connection with judicial proceedings or administrative proceedings involving sanctions undertaken with a view to, or relating to, the making or reviewing the tax assessment and only to persons who are directly involved in such proceedings; such information may, however, be disclosed during public hearings or in judgements if the competent authority of the Member State supplying the information raises the objection, – shall in general circumstances be used other than for taxation purposes or in connection with judicial proceedings or administrative proceedings involving sanctions undertaken with a view to, or in relation to, the making or reviewing the tax assessment.

In addition, Member States may provide for the information referred to in the first subparagraph to be used for assessment of other levies, duties and taxes covered by Article 2 of Directive 76/308/EEC 2.

2. Paragraph 1 shall not oblige a Member State whose legislation or administrative practices lays down, for domestic purposes, narrower limits than those contained in the provisions of that paragraph, to provide information if the State concerned does not undertake to respect those narrower limits.

3. Notwithstanding paragraph 1, the competent authorities of the Member State providing the information may permit it to be used for other purposes in the requesting State if, under the legislation of the informing State, the information could, in similar general circumstances, be used in the informing State for similar purposes.

4. Where the competent authority of the Member State considers that information which it has received from the competent authority of another Member State is likely to be useful to the competent authority of a third Member State, it may transmit it to the latter competent authority with the agreement of the competent authority which supplied the information. "OJ L 73, 19.3.1976 2, p. 18.