Key Benefits:
MOTION FOR RESOLUTION No. 21 /X
Considering that the Council Directive No 2003 /48/CE of June 3, 2003,
on the taxation of income from savings in the form of interest (which aims to
enable those income, paid in a Member State of the European Union to
actual beneficiaries who are natural persons with a tax residence in another
Member State, shall be subject to effective taxation in accordance with
legislation of the latter Member State) establishes that the implementation of the provisions
internal transposition depends on the conclusion of agreements or other arrangements that
define that all dependent territories or relevant associates of states-
Members adopt equivalent or identical measures to those of the said Directive;
Considering that the Agreement entered into with Anguilla enshrines the normative framework for
that this territory adopts the said measures, particularly those relating to
automatic transmission of information on interest payments to persons
singular residents in Portuguese territory, and which constitutes an essential element for
the achievement of the objectives of Directive No 2003 /48/CE;
Thus:
Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the
Assembly of the Republic the following motion for a resolution:
Approves the Agreement between the Portuguese Republic and the Dependent Territory of the Crown
British from Anguilla, by Exchange of Letters, respectively December 29-
2004 and of January 21, 2005, Relative to the Taxation of Savings Income,
whose text, the Convention between the Portuguese Republic and Anguilla Concerning Troca
Automatic Information in Matter of Savings from Savings under the Form of
Payment of Interest by those approved and respective Attachment, in the authenticated versions
in the Portuguese and English languages, if they publish in attachment.
Seen and approved in Council of Ministers of July 22, 2005
The Prime Minister
The Minister of the Presidency
The Minister of Parliamentary Affairs
AGREEMENT
IN THE FORM OF AN EXCHANGE OF LETTERS
ON THE TAXATION OF SAVINGS INCOME
A. Charter of the Portuguese Republic
Excelent Lord,
I have the honour to refer to the text of the model proposal of " Convention between
Anguilla and the Portuguese Republic concerning the automatic exchange of information in
income matters from savings 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, June 22, 2004.
In the face of the said text, I have the honour of
propose to V. Ex the "Agreement on the taxation of savings income"
constant from Appendix 1 to this letter,
to propose that the said agreement to enter into force on the date of implementation of the Directive
2003 /48/CE of the Council of June 3, 2003 on taxation of the
income from savings in the form of interest, the date of which is subject to the provisions of
n Article 17º (2) of the Directive, subject to the reciprocal notification that they have been
satisfied the internal constitutional formalities relating to the entry into force of the
present agreement;
To propose the mutual commitment to ultimarms as soon as possible
such internal constitutional formalities and of proceeding without delay to the
reciprocal notification through the formal channels that these formalities are
completed.
I have the honour to propose, if the above is acceptable by the Government of V. Ex. th, that the
this letter with the respective Appendix 1 and your confirmation constitute, in
set, the reciprocal acceptance and the conclusion of the Agreement between Portugal and Anguilla.
Want to accept, Excellent Lord, the protests of our highest regard,
By the Government of the Portuguese Republic
Minister of Finance and Public Administration
Made in Lisbon, in, in the Portuguese and English languages, in three
exemplars.
B. Proposal for a response from the Government of Anguilla
Excelent Lord,
I have the honour to acknowledge the receipt of your letter of Your Excellency with date of [...], of the
following content:
" Excellent Lord,
I have the honour to refer to the text of the model proposal of " Convention
between Anguilla and the Portuguese Republic concerning the automatic exchange of information
in matters of income from savings 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 of June 22, 2004.
In the face of the said text, I have the honour of
to propose V. Ex. the " Agreement on taxation of income of the
savings " constant from Appendix 1 to this letter,
to propose that the said agreement to enter into force on the date of implementation of the Directive
2003 /48/CE of the Council of June 3, 2003 on taxation of the
income from savings in the form of interest, the date of which is subject to the
provisions of Article 17º (2) of the Directive, subject to the notification
reciprocating that the internal constitutional formalities have been met
relating to the entry into force of this Agreement;
propose the mutual commitment of ultimarms with the greatest possible brevity
the said internal constitutional formalities and of proceeding without
delay to the reciprocal notification through the formal channels of which such
formalities are completed.
I have the honour to propose, if the above is acceptable by the Government of V. Ex. th,
that the present letter with the respective Appendix 1 and your confirmation
constitute, together, the reciprocal acceptance and the conclusion of the Agreement between
Portugal and Anguilla.
Want to accept, Excellent Lord, the protests of our highest
consideration. "
I can confirm that the Government of Anguilla is in accordance with the content of the letter of V.
Ex. th, from [...].
Want to accept, Excellent Lord, the protests of my highest
consideration,
[name, title and signature of individuality in Anguilla competent for the
signature]
Made in [...], in the Portuguese and English languages, in three exemplars.
CONVENTION BETWEEN ANGUILLA AND THE PORTUGUESE REPUBLIC
ON THE AUTOMATIC EXCHANGE OF INFORMATION IN RESPECT OF
INCOME FROM SAVINGS IN THE FORM OF PAYMENTS FROM
INTEREST
The Government of Anguilla and the Government of the Portuguese Republic, wishing to conclude a
Convention that allows the income from savings in the form of payments of
interest, carried out in one of the Contracting Parties to actual beneficiaries, who are
natural persons residing in the other Contracting Party, be subject to taxation
effective in harmony with the legislation of the last Contracting Party mentioned, in
compliance with Directive 2003 /48/CE of the Council of the European Union of 3 of
June 2003 on the taxation of income from savings in the form of
interest payments, agreed on the following:
Article 1º General Scope
1. This Convention applies to the interest paid by a paying agent
established in the territory of one of the Contracting Parties with a view to enabling
that the income from savings in the form of interest payments, made
in one of the Contracting Parties to actual beneficiaries, who are persons
natural residents in the other Contracting Party, be subject to taxation
effective in harmony with the legislation of the last mentioned Contracting Party.
2. The scope of this Convention shall be limited to the taxation of the
income from savings in the form of interest payments on credits, with
deletion, inter alia , of the matters relating to the taxation of pensions and the
benefits of insurance.
Article 2º Definitions
1. For the purposes of this Convention, unless the context requires interpretation
different:
a) The expression "a Contracting Party" and "the other Contracting Party" means
Anguilla or Portugal, depending on the context;
b) The term "Directive" means Directive 2003 /48/CE of the Council of the
European Union of June 3, 2003 on the taxation of income
of the savings in the form of interest payments, applicable to the date of
signature of this Convention;
c) The term "Portugal" means the territory of the Portuguese Republic situated
on the European continent, the archipelagos of the Azores and Madeira, the waters
interiors and the respective territorial sea, as well as the continental shelf
and any other space, where the Portuguese state exercises rights to
sovereignty or jurisdiction, according to the standards of international law;
d) The expression "beneficial owner" means the beneficial owner of
agreement with Article 2º of the Directive;
e) The expression "paying agent" means the paying agent in accordance with the
Article 4º of the Directive;
f) The expression "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 a representative
authorized;
g) The expression "payment of interest" means the payment of interest in agreement
with Article 6º, having regard to the provisions of Article 15º of the Directive;
h) Any undefined term or expression of another mode will have the
meaning that is assigned to it by the Directive.
2. For the purposes of this Convention, in the provisions of the Directives for the
present Convention refers instead to "Member States" shall read: Parties
Contractors.
Article 3º Identification and determination of the place of residence of the beneficiaries
actual
Each of the Parties shall adopt and guarantee the application, in its territory, of the
procedures required to allow the paying agent to identify the
actual beneficiaries and the respective place of residence for the purposes of Article 4º.
Such procedures shall comply with the minimum standards set out in paragraphs 2
and 3 of Article 3º of the Directive, with the proviso that, as far as Anguilla is concerned and
in relation to the point a) of the said numbers, the identification and residence of the
Beneficial Owner will be determined in accordance with the information that
have the Agent Pagador by virtue of the application of the relevant provisions of the
legislation in force in Anguilla concerning the prevention of the use of the system
financial for the purpose of money laundering.
Article 4º Automatic exchange of information
1. The competent authority of the Contracting Party where the paying agent is located
established shall communicate the information referred to in Article 8º of the Directive to
competent authority of the other Contracting Party of the residence of the beneficiary
effective.
2. Communication of the information will be automatic and will take place at least once
per year, within the six months subsequent to the end of the fiscal year of Part
Contractor of the paying agent, regarding all interest payments
performed during that year.
3. The exchange of information pursuant to this Convention shall be dealt with by the
Contracting Parties in molds consistent with the provisions of Article 7º of the
Council Directive 77 /799/CEE.
Article 5º Transposition
Prior to January 1, 2005, the Contracting Parties shall adopt and publish the
legislative, regulatory and administrative provisions necessary to
compliance with this Convention.
Article 6º Annex
The text of the Directive and Article 7º of the Council Directive 77 /799/CEE 19
of December 1977 on mutual assistance by the competent authorities
of the Member States, in the area of direct and indirect taxation, applicable to the date of
signature of this Convention and for which the present Convention refers,
are apse as Annex and form an integral part of this Convention. The
text of Article 7º of Directive 77 /799/CEE of the Constant Council of the Annex will be
replaced by the text of the said Article in the revision of Directive 77 /799/CEE of the
Advice if this revised Directive comes into force before the date from which the
provisions of this Convention produce effect.
Article 7º Entry into force
1. This Convention shall enter into force on the thirtieth day after the last of the dates in
that the respective Governments notify each other, in writing, that the
respective constitutionally required formalities have been satisfied, and their
provisions produce effect from the date on which the Directive is applicable in the
terms of paragraphs 2 and 3 of Article 17º of the Directive.
2. The provisions of Article 4º of this Agreement shall not produce effect in Portugal on the
absence of direct taxation in Anguilla.
Article 8º Denpronunciation
This Convention shall remain in force until it is denounced by a Party
Contractor. Any Contracting Party may denounce the Convention by way of
diplomatic, upon minimum advance notice of 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 a case, the Convention will cease to apply relatively
to the periods commencing after the end of the calendar year in which the notice of denunciation was
done.
Made in the Portuguese and English languages, making both texts equally authentic.
/Annex: text of Article 7º of Directive 77 /799/CEE
Annex: Text with Article 7º of Directive 77 /799/CEE
Provisions on secrecy
1. All the information that a Member State takes notice of in
application of this Directive are considered secret, in that state, of the same
mode that the information obtained in application of its national legislation.
In any case, the said information
Gains will only be provided to those directly connected to the establishment of the tax
or to the administrative control of the establishment of the tax;
Lawsuit will only be disclosed, on the other hand, on the occasion of court proceedings, of proceedings
penal or process that involves the application of administrative sanctions,
instituted for the establishment or control of the establishment of the tax
or with it related, and solely to the persons who intervene directly
in such proceedings; they may, however, disclose the said information in the course
of public hearings or on trial, if the competent authority of the State
Member providing the information not to submit objections;
Shall not be used, in any case, for other purposes other than tax or
for the purposes of judicial process, criminal procedure or process involving the
application of administrative sanctions, instituted for the establishment or the
control of the establishment of the tax, or with it related.
In addition, the Member States may provide that the information referred to in the
first sub-paragraph are used for the establishment of other levies,
rights and taxes referred to in Article 2º of Directive 76 /308/CEE 1
2. The provisions of paragraph 1 shall not impose on a Member State, whose legislation or practice
administrative establish, for internal purposes, more constrained limitations than those
1 JO L73 of 3/19/1976, p. 18.
contained in the said paragraph 1, which provides information if the State concerned does not
commit to respecting such restrictions.
3. By way of derogation from the provisions of paragraph 1, the competent authority of the Member State
which provides the information may authorize the use of such information for others
purposes, in the requesting State, provided that, in accordance with its own legislation, its
use is possible for the same purposes, under the same circumstances.
4. When the competent authority of a Member State considers that the
information that you have obtained from the competent authority of another Member State are
likely to be useful to the competent authority of a third State
Member, may pass them on 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 World's Republic
Sir,
I refer to the text of the proposed model " Convention between Anguilla and the
World 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 changes for the coming into effect of these
arrangements are completed;
to propose our mutual commitment to enhancing at the earliest date with our said
internal constitutional mixture and to notify each other without delay through the
formal channels when such heated 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 receive 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 World Jewish Republic
Minister of Finance and Public Administration
Done at Lisbon, on in the English an English language 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
World 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 changes for the coming into effect of these
arrangements are completed;
to propose our mutual commitment to enhancing at the earliest date with our said
internal constitutional mixture and to notify each other without delay through the
formal channels when such heated 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 receive 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 person in Anguilla competent for signature]
Done at [], on [], in the English an English language languages in three copies
CONVENTION BETWEEN ANGUILLA AND THE WORLD REPUBLIC
REGARDING THE AUTOMATIC EXCHANGE OF INFORMATION ABOUT
SAVINGS INCOME IN THE FORM OF INTEREST PAYMENTS
The Government of Anguilla and the Government of the World's Republic, desiring
to have a Convention which has increased 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 "a 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, the 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 sovereignty and Madeira, the territorial
sea and inland waters served as well as the continental shelf and any other area
wherein the World 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;
e. 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 been given to it in the
Directive.
2. For the purposes of this Convention, in the provisions of the general 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 be answered with the
minimum standards established in Article 3, paragraphs 2 and 3 of the Directive, with
the proviso that, with respect to Anguilla and in relation to meaning (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 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 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 tax year of the year
Party of the paying agent, for all interest payments made during that year.
3. Information exchange under this Convention shall be accessible 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 be made 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 mutual assistance by the
competent authorities of the Member States in the field of direct and indirect taxation,
the 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 proceedings 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
required constitutionally required have been kissed 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 any effect in Portugal in the diameter 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 World and English languages all texts being equally authentic.
/Annex: text of Article 7 of Directive 77 /799/EEC
Namely: 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 the 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 with a view to,
or relating to, the making or reducing 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 has detailed the information raises
on the objection,
-shall in no proceedings be used other than for taxation purposes or in
connection with judicial proceedings or administrative proceedings involving
sanctions that are with a view to, or in relation to, the making or
Obstacle the tax assessment.
In addition, Member States may provide for the information referred to in the
first obstacle to be used for assessment of other obstacle, 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 least to respect those narrower limits.
3. 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 manner, be used in the informing State for similar purposes.
4. Where the competent authority of a 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. "
2 OJ L 73, 3/19/1976, p. 18.