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Approving The Agreement Between The Portuguese Republic And The British Crown Dependent Territory Of The Cayman Islands, By Exchange Of Letters Respectively To 29 December 2004 And 1 April 2005, On The Taxation Of Savings Income

Original Language Title: Aprova o Acordo entre a República Portuguesa e o território dependente da Coroa Britânica das Ilhas Caimão, por Troca de Cartas, respectivamente de 29 de Dezembro de 2004 e de 1 de Abril de 2005, relativo a Tributação dos Rendimentos da Poupança

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MOTION FOR RESOLUTION No. 15 /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 concluded with the Cayman Islands devotes the framework

normative for this territory to adopt the said measures, particularly the

concerning the automatic transmission of information on interest payments to

natural persons residing in Portuguese territory, and which constitutes an element

essential 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 of the Cayman Islands, by Exchange of Letters, respectively December 29

of 2004 and of April 1, 2005, Relative to the Taxation of Savings Income,

whose text and respective Annex, in the authenticated versions in the Portuguese languages and

english, if published 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 proposed model of " Agreement concerning the

taxation of income from savings between the Cayman Islands and the Republic

Portuguese ", 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

 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 the Islands

Caimao.

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 by the Government of the Cayman Islands

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 for " Relative Agreement

to the taxation of income from savings between the Cayman Islands and the Republic

Portuguese ", approved by the High-Level Working Group (Taxation of the

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 the Cayman Islands.

Want to accept, Excellent Lord, the protests of our highest

consideration. "

I can confirm that the Government of the Cayman Islands 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 the Cayman Islands competent for the

signature]

Made in [...], in the Portuguese and English languages, in three exemplars.

AGREEMENT ON THE TAXATION OF INCOME OF THE

SAVINGS BETWEEN THE CAIMAN ISLANDS AND THE PORTUGUESE REPUBLIC

CONSIDERING THE FOLLOWING:

1. Preview Article 17 of Directive 2003 /48/CEE of the Council of the European Union

("the Council") on the taxation of income from savings, published in the

Official Journal of the European Union with a date of 6/26/2003 ("the Directive"), which

before January 1, 2004 Member States adopt and publish the

legislative, regulatory and administrative provisions necessary to give

compliance with that Directive, whose provisions will be applied to

of January 1, 2005, provided that:

" (i) the Swiss Confederation, the Principality of Liechtenstein, the Republic of Saint

Marino, the Principality of Monaco and the Principality of Andorra apply the

from that same date measures equivalent to those established in the present

Directive, in accordance with the agreements concluded between these countries and

the European Community, following a unanimous decision of the

Advice;

(ii) all agreements or other arrangements have been concluded that

establish that all dependent territories or relevant associates

will apply, from that same date, the automatic exchange of information in the

molds provided for in Chapter II of that Directive, (or, during the period of

transition defined in Article 10, will apply a withholding tax in the

conditions laid down in Articles 11 and 12) ";

2. Under the terms of the commitments made in respect of accession, Cyprus,

Slovakia, Slovenia, Estonia, Hungary, Latvia, Lithuania, Malta, Poland and

Czech Republic, before May 1, 2004, should adopt and publish the

legislative, regulatory and administrative provisions necessary to give

compliance with that Directive, whose provisions will be applied to

of January 1, 2005, with the proviso of the provisions of paragraph 1 above.

3. The basis of the Cayman Islands association with the EU is planned in Part 4 of the

Treaty establishing the European Community. Part 4 establishes certain

bonds that bind the Member States of the European Union and the Islands

Caimao.

4. In accordance with the terms of association of the Cayman Islands with the EU, the Islands

Caimao are not located in the EU's fiscal territory. However, within the spirit of

cooperation and taking into consideration the terms of the Treaty establishing the Community

European, the Cayman Islands have agreed to give assistance to the Member States of the

EU upon the provision of certain information in the terms below.

5. The Cayman Islands have legislation in respect of investment bodies

collective that is presumed equivalent as to its effect to the EC legislation referred to

in Articles 2 and 6 of the Directive.

The Cayman Islands and the Portuguese Republic, hereinafter referred to as the "Contracting Party"

or "Contracting Parties", unless the context otherwise requires,

Have agreed to conclude the following Agreement which contains obligations that bind

solely the Contracting Parties and provides for the automatic exchange of information by the

competent authority of the Cayman Islands to the competent authority of Portugal in the

molds predicted to follow.

Article 1º General Scope

1. The present Agreement applies to interest payments (defined in Article 6º of the

this Agreement), carried out by a paying agent (defined in Article 5º of the

present Agreement), established in the territory of the Cayman Islands, to beneficiaries

actual (defined in Article 3º of this Agreement) that are persons

singular residents in Portugal.

2. The scope of this Agreement 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 Communication of information on the part of paying agents

1. Where interest payments are made, set out in Article 6º of the

this Agreement, by a paying agent established in the Cayman Islands a

actual beneficiaries, as defined in Article 3º of this Agreement, which

are residents of Portugal, the paying agent shall communicate to the authority

competent of the Cayman Islands:

a) the identity and residence of the beneficial owner, determined in

compliance with Article 4º of this Agreement;

b) name or denomination and address of the paying agent;

c) account number of the beneficial owner or, in his absence, identification of the

credit generator credit;

d) information in respect of the interest payments specified in paragraph 1 of the

Article 6º of this Agreement. However, the Cayman Islands may limit the

minimum content of the information that the paying agent must communicate in the

that refers to the payment of interest, to the total amount of interest or the

income and the total amount of the product of the assignment, of the rescue or of the

refund.

2. In the six months subsequent to the end of the calendar year, the competent authority of the

Caimão Islands shall communicate to the competent authority of Portugal,

automatically, the information referred to in points (a) to (d) of paragraph 1 of the present

Article, in relation to all the interest payments made during that year.

Article 3º Definition of beneficial owner

1. For the purposes of this Agreement, by "beneficial owner" means any

natural person who receives a payment of interest or any natural person to

who is assigned an interest payment, unless it makes proof that the interest

have not been paid to you or assigned to your advantage. It is assumed that a person

singular is not beneficial owner whenever:

a) act on the quality of paying agent within the meaning of Article 5º of the present

Agreement;

b) act on the account of a legal person, of an entity with profits

taxed in the framework of common law provisions on taxation of the

companies, an authorized UCITS of harmony with the willing

Council Directive 85 /611/CEE or an investment body

equivalent collective established in the Cayman Islands, or one of the entities a

referred to in Article 5 (2) of this Agreement and, in the latter case,

reveal the name or denomination and the address of that entity to the operator

economic responsible for the payment of interest, and the latter communicates

next such information to the competent authority of your Party

Contractor of establishment;

c) act on the account of another natural person who is the beneficial owner and

to communicate to the paying agent the identity of the beneficial owner.

2. Case posits information that suffuded that the natural person who received a

payment of interest or who has been assigned an interest payment may not be the

beneficial owner and case do not apply to ( a) nor the point b) of paragraph 1 of the

this Article, the paying agent shall take the reasonable steps to

determine the identity of the beneficial owner. If you cannot identify the

beneficial owner, the paying agent shall consider the natural person concerned

as the beneficial owner.

Article 4º Identification and determination of the place of residence of the beneficiaries

actual

1. The Cayman Islands 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 purpose of the present

Agreement. Such procedures must comply with the established minimum standards

in paragraphs 2 and 3.

2. The paying agent shall determine the identity of the beneficial owner of the agreement

with minimum standards that vary depending on the date of commencement of relations between the

paying agent and the receiver of the interest payment, namely:

a) for contractual relations established before January 1, 2004, the

payer agent shall determine the identity of the beneficial owner,

expressed by its name or denomination and address, on the basis of the

information available to it, particularly in application of the regulations

in force in the Cayman Islands concerning the prevention of the use of the system

financial for the purpose of money laundering;

b) for established contractual relationships, or for transactions carried out

in the lack of contractual relationships, as of January 1, 2004 the agent

payer shall determine the identity of the beneficial owner, expressed by the

your name or denomination, address and, in case there is, identification number

tax allocated by the Member State of residence for tax purposes. These

elements must be determined on the basis of the passport or the ticket of

official identity presented by the beneficial owner. If not the record of the

passport nor the official identity card, the address is determined

on the basis of any other supporting document presented by the

beneficial owner. If the tax identification number does not appear in the

passport, official identity card or any other

supporting document, including, eventually, the attestative of

tax residence, presented by the beneficial owner, the identity will be

completed by the mention of the date and place of birth of the beneficiary

effective, determined on the basis of your passport or identity card

officer.

3. The paying agent shall determine the residence of the beneficial owner of the agreement

with minimum standards that vary depending on the date of commencement of relations between the

paying agent and the receiver of the interest payment. Subject to the exposed below,

it is considered that the residence is located in the country in which the beneficial owner has the

your permanent domicile:

a) for contractual relations established before January 1, 2004, the

payer agent must determine the residence of the beneficial owner with

basis in the information available to it, particularly in application of the

legislation in force in the Cayman Islands concerning the prevention of the use of the

financial system for the purpose of money laundering;

b) for established contractual relationships, or for transactions carried out

in the lack of contractual relationships, as of January 1, 2004, the agents

payers must determine the residence of the beneficial owner on the basis of

at the address mentioned in your passport or official identity card

or, if necessary, in any other supporting document presented

by the beneficial owner, in accordance with the following procedure: for the

natural persons who present a passport or a ticket from

official identity issued by a Member State and declaron to be residents

in a third country, the residence shall be determined on the basis of an attestative

of tax residence issued by the competent authority of the third country in

that the natural person declars residir. In the lack of presentation of that

attestative, the residence is deemed to be situated in the Member State which

has issued the passport or any other official identity document.

Article 5º Definition of paying agent

1. For the purposes of this Agreement, by "paying agent" means any

economic operator who pays interest or assigns the payment of interest to the advantage

immediate from the beneficial owner, regardless of whether that operator is the

debtor of the interest generator credit or the operator in charge of the debtor or

by the beneficial owner of paying or assigning the payment of the interest.

2. Any entity established in a Contracting Party to which interest is paid

or attributed the payment of interest to the benefit of the beneficial owner must

also be considered as a paying agent at the time of that payment or the

allocation of the same. This provision does not apply if the operator

economic has reason to believe, on the basis of supporting elements

officers presented by the entity, which:

a) is a legal person, with the exception of legal persons

referred to in paragraph 5 of this Article; or

b) your profits are taxed in application of common law provisions

in matters of corporate taxation; or

c) it is an authorized UCITS of harmony with the willing in

Directive 85 /611/CEE of the Council or of an investment body

equivalent collective established in the Cayman Islands.

An economic operator established in the Cayman Islands, who pays or assigns the

payment of interest to an entity of this type established in the other Party

Contractor who is considered as a paying agent in the terms of the present

number shall communicate the name or denomination and the address of the entity, well

as the total amount of interest paid or assigned to the entity, to the authority

competent of its Contracting Party of establishment, which shall communicate in

followed this information to the competent authority of the Contracting Party of

establishment of the said entity.

3. The entity referred to in paragraph 2 of this Article shall, however, have the possibility

of being treated for the purposes of this Agreement as an UCITS or body

equivalent referred to in ( c) of paragraph 2. The resource to this possibility will be

object of a certificate issued by the Contracting Party of establishment of the

entity and delivered by that entity to the economic operator. The Contracting Party

must set the specific rules regarding that possibility for the entities

established in their territory.

4. Case the economic operator and the entity referred to in paragraph 2 of this Article

are established in the same Contracting Party, the latter shall take the

measures necessary to ensure that the entity complies with the provisions of the

present Agreement when acting in the quality of paying agent.

5. Legal persons excluded from the application of the paragraph a) of paragraph 2 of the present

Article are:

a) in Finland: avoin yhtio (Ay) and kommandiittiyhtio (Ky) /oppet bolag and

kommanditbolag;

b) in Sweden: handelsbolag (HB) and kommanditbolag (KB).

Article 6º Definition of interest payment

1. For the purposes of this Agreement, "payment of interest" means:

a) the interest paid or credited to account in respect of claims from any

nature, with or without a mortgage guarantee and with a right or not to participate

in the profits of the debtor, and, in particular, the income of the public debt and

of loan obligations, including premiums achievable to such securities;

the penalties for late payment are not considered to be

payment of interest;

b) the interest accrued or capitalized carried out at the time of the assignment, of the

reimbursement or the ransom of the credits referred to in paragraph a) ;

c) income from interest payments, whether these are

performed directly, either through an entity referred to in the

n Article 5º (2) of this Agreement, distributed by:

i) an authorized UCITS of harmony with the provisions of the

Council Directive 85 /611/CEE;

ii) an equivalent collective investment body established in the

Cayman Islands;

iii) entities that benefit from the possibility provided for in paragraph 3 of the

Article 5º of this Agreement;

iv) collective investment bodies established outside the territory a

that applies to the Treaty establishing the European Community by force

of its Article 299 and outside the Cayman Islands;

d) income realized at the time of the assignment, the refund or the rescue of

parts or units of participation in the following bodies and entities,

if they have invested, directly or indirectly, through other

collective investment bodies or authorities below, more

of 40% of its asset in credits referred to in paragraph a) :

i) an authorized UCITS of harmony with the provisions of the

Council Directive 85 /611/CEE;

ii) an equivalent collective investment body established in the

Cayman Islands;

iii) entities that benefit from the possibility provided for in paragraph 3 of the

Article 5º of this Agreement;

iv) collective investment bodies established outside the territory a

that applies to the Treaty establishing the European Community by force

of its Article 299 ° and outside the Cayman Islands.

However, the Contracting Parties may limit the inclusion of the income referred to in the

point ( d) of paragraph 1 of this Article in the definition of interest only in the proportion in

that these yields correspond to income that, directly or indirectly,

provenham of a payment of interest within the meaning of the ( a) and b) of paragraph 1 of the

present Article.

2. As far as the points are concerned c) and d) of paragraph 1 of this Article, if an agent

payer does not have any information relating to the part of income

coming from interest payments, the total amount of income must be

considered as payment of interest.

3. As far as the point is concerned d) of paragraph 1 of this Article, if a paying agent

do not have any information regarding the percentage of the asset invested in

credits or in parts or units of participation as defined in that paragraph,

it should be considered that that percentage is more than 40%. When it can't

determine the amount of income realized by the beneficial owner,

it is considered that the yield is the product of the assignment, refund or ransom

of the parties or units of participation.

4. When they are paid or credited to the account of an entity referred to in paragraph 2 of the

Article 5º of this Agreement Interest, as set out in paragraph 1 of the present

Article, and that entity does not benefit from the possibility provided for in paragraph 3 of the

Article 5º of this Agreement, such interest shall be considered as a

payment of interest carried out by that entity.

5. As far as the points are concerned b) and d) of paragraph 1 of this Article, the Parties

Contractors may require paying agents located on their territory to

annualization of interest in relation to a period that may not exceed one year, and

treat these annualized interest as a payment of interest even if not if

has verified any assignment, refund or rescue during that period.

6. By way of derogation from the provisions of the c) and d) of paragraph 1 of this Article, the

Contracting Parties may exclude from the definition of payment of interest any

income referred to in those provisions from bodies or entities

established in their territory whenever the investments of these entities in the

credits referred to in paragraph a) of paragraph 1 of this Article do not exceed 15% of the

your asset. Similarly, by way of derogation from the provisions of paragraph 4 of the present

Article, the Contracting Parties may decide to exclude from the definition of payment of

constant interest in paragraph 1 of this Article the interest paid or credited to a

account of an entity referred to in Article 5º (2) of this Agreement which does not

benefit from the possibility provided for in Article 5º (3) of this Agreement and

is established in its territory, whenever the investments of these entities

in the credits referred to in paragraph a) of paragraph 1 of this Article do not exceed 15%

of your asset.

The use of this option by a Contracting Party makes it binding on the

another Contracting Party.

7. As of January 1, 2011, the percentage referred to in para. d) of paragraph 1 and in the

n. 3 of this Article shall pass from 25%.

8. The percentages referred to in paragraph d) of paragraph 1 of this Article and in paragraph 6 of the

this Article shall be determined in relation to the investment policy such

as defined in the regulation of the fund or in the constitutive documents of the

organisms or entities concerned or, in their absence, depending on the composition

effective of the assets of such bodies or entities.

Article 7º Transitional provisions for negotiable debt securities

1. During the transitional period referred to in Article 10º (2) of the Directive, but

by December 31, 2010 at the latest, national obligations and

international and other negotiable debt securities whose initial issuance is

previous to March 1, 2001 or whose initial prospectuses have been targeted

before that date by the competent authorities within the meaning of the

Directive 80 /390/CEE of the Council or by the responsible authorities of countries

third parties should not be considered credits within the meaning of paragraph a) of the n ° 1 of the

Article 6º of this Agreement, provided that no new issue is carried out

of these negotiable debt securities as of March 1, 2002. However, case

the transition period continues to invigorate after December 31, 2010, the

provisions of this Article will only continue to apply to debt securities

negotiable:

a) that include "totality" and early-redemption clauses; and

b) in cases where the paying agent is established in a Party

Contractor who applies the withholding tax and in which such paying agent

pay interest or ascribe the payment of interest in immediate advantage of a

beneficial owner resident in the other Contracting Party.

If, as of March 1, 2002, new issuance of one of the securities of

tradable credit referred to above issued by a public administration or

afim entity, acting in the quality of public authority, or whose function is

recognized in an international treaty, as defined in the Annex to the present

Agreement, all emissions from that title, i.e. the initial issue and any issuance

additional, should be considered as an issue of a credit title in the

meaning of the point a) of Article 6º (1) of this Agreement.

If, as of March 1, 2002, new issuance of one of the securities of

tradable credit listed above issued by any entity not covered

by the second paragraph, such a new issue shall be considered an issue of

a credit title within the meaning of the ( a) of Article 6º (1) of the present

Agreement.

2. No provision of this Article shall prevent the Contracting Parties from

to tax the income from the tradable debt securities referred to in paragraph 1 of

harmony with the respective internal right.

Article 8º Procedure of mutual agreement

Whenever they overcome between the Parties difficulties or doubts regarding the

application or interpretation of this Agreement, the Contracting Parties

diligencies in the sense of solving the issue by mutual agreement.

Article 9º Confidentiality

1. The confidentiality of all information provided and received must be preserved

by the competent authority of a Contracting Party.

2. The information provided to the competent authority of a Contracting Party shall not

may be used for any effect other than for the effects of taxation

direct without prior written consent of the other Contracting Party.

3. The information provided should only be disclosed to persons or authorities

interested in the purpose of direct taxation, and used by such persons or

authorities only for these purposes or for supervisory purposes, which may

include the introduction of an eventual appeal. For this purpose, the information may

be disclosed in a public hearing or in a court decision.

4. When the competent authority of a Contracting Party considers that the

information that it has received from the competent authority of the other Contracting Party

may be useful to the competent authority of another Member State, may

transmit you such information with the agreement of the competent authority which

provided the information.

Article 10º Entry into force

This Agreement shall enter into force on the thirtieth day after the last of the dates on which

the respective Governments notify each other, in writing, that the respective

constitutionally required formalities have been met, and its provisions

produce effect from the date on which the Directive is applicable in the terms of the

provisions of Article 17º and 3 of Article 17º of the Directive.

Article 11º Denpronunciation

1. The present Agreement shall remain in force until it is denounced by a Party

Contractor.

2. Any of the Contracting Parties may denounce the present Agreement by

notice in writing to the other Contracting Party, in a notification specifying the

circumstances that led to that same notification. In this case, the present

Agreement cede no effect of 12 months after notification.

Article 12º Application and suspension of application

1. The application of this Agreement shall be conditional on the adoption and application by

all Member States of the European Union, by the United States of America,

Switzerland, Andorra, Liechtenstein, Monaco and Saint Marino, and by all territories

dependent and relevant associates of the Member States of the Community

European, respectively, of measures that conform to or be equivalent

to those contained in the Directive or in this Agreement, and provide for the same dates as

application.

2. Subject to the mutual agreement procedure provided for in Article 8º of the present

Agreement, the application of this Agreement or parts of the Agreement may be suspended

by any of the Contracting Parties with immediate effect upon notification to the

another that specifies the circumstances that led to this notification, in the case of

the Directive shall cease to be applicable, on a temporary or permanent basis, in

compliance with Community law or in the case of a Member State

suspend the application of its transposition legislation. The implementation of the Agreement

will be resumed as soon as they cease to check the circumstances that led to the

suspension.

3. Subject to the mutual agreement procedure provided for in Article 8º of the present

Agreement, any of the Contracting Parties may suspend the application of the present

Agreement by notification to the other that specifies the circumstances that

led to such notification in the case of one of the territories or third countries

referred to in paragraph 1 shall subsequently leave to apply the measures referred to in that

number. Suspension of application will not be allowed to occur less than two months after the

notification. The implementation of the Agreement will be resumed as soon as the measures are

repurposed by the third country or territory concerned.

Article 13º competent authorities

For the purposes of this Agreement, the expression "competent authority" when

applied to the Cayman Islands means the Financial Secretary and when applied to

Portugal means the Minister of Finance or an authorized representative.

Article 14º Transposition

By January 1, 2005, the Contracting Parties shall adopt and publish the

legislative, regulatory and administrative provisions necessary to give

compliance with this Agreement.

Made in the Portuguese and English languages, making both texts equally authentic.

/Annex: list of related entities

Annex: List of related entities

For the purposes of the provisions of Article 7º of this Agreement, they shall be deemed to

" afim entity, acting in the quality of public authority, or whose function is

recognized in an international treaty " , the following entities:

ENTITIES OF THE EUROPEAN UNION:

Belgium

-Vlaams Gewest (Flamenga Region)

-Région wallonne (Valan Region)

-Région bruxelloise / Brussels Gewest (Brussels Region)

-Communauté française (French Community)

-Vlaamse Gemeenschap (Flamenga Community)

-Deutschsprachige Gemeinschaft (German-speaking Community)

Spain

-Xunta de Galicia (Junta da Galicia)

-Junta de Andalucía (Junta of Andalusia)

-Extremadura Joint (Junta of the Extremadura)

-Junta of Castilla-La Mancha (Junta de Castela-Mancha)

-Junta of Castilla-León (Wedding of Castile-Lion)

-Gobierno Foral of Navarra (Regional Government of Navarra)

-Govern de les Illes Balears (Government of the Balearic Islands)

-Generalitat de Catalunya (Autonomy Government of Catalonia)

-Generalitat de Valencia (Autonomic Government of Valencia)

-Diputación General de Aragón (Regional Council of Aragon)

-Gobierno de las Islas Canarias (Government of the Canary Islands)

-Gobierno de Murcia (Government of Murcia)

-Gobierno de Madrid (Government of Madrid)

-Gobierno de la Comunidad Autónoma del País Vasco / Euzkadi (Government of the

Autonomous Community of the Basque Country)

-Diputación Foral de Guipúzcoa (Provincial Council of Guipuzcoa)

-Diputación Foral of Vizcaya / Bizkaia (Provincial Council of Biscay)

-Diputación Foral de Alava (Provincial Council of Alava)

-Ayuntamiento de Madrid (Municipality of Madrid)

-Ayuntamiento de Barcelona (Municipality of Barcelona)

-Gran Canaria Insular Cabildo (Insular Council of the Canary Gran)

-Cabildo Insular of Tenerife (Insular Council of Tenerife)

-Institute of Official Credit (Official Credit Institute)

-Catalán Institute of Finanzas (Catalan Institute of Finance)

-Valencian Institute of Finanzas (Valencian Institute of Finance)

Greece

-ργανισμός tions ηλεπικοινωνιών Ελλάδος (Organism of Telecommunications of the

Greece)

-γργανισμός Σιδηροδρόμων Ελλάδος (Organism of the Iron Paths of Greece)

-Δημόσια Επιχείρηση ΛεκτρισμούXX_ENCODE_CASE_CAPS_LOCK_Off (Public Electricity Company)

France

-La Caisse d' amortissement de la dette sociale (CADES) (Amortization Box of the

Social Debt)

-L' Agence française de développement (AFD) (French Agency for

Development)

-Réseau Ferré de France (RFF) (Network of the Iron Paths of France)

-Caisse Nationale des Autoroutes (CNA) (National Self-Road Box)

-Assistance publique Hôpitaux de Paris (APHP) (Public Assistance Hospitals of

Paris)

-Charbonnages de France (CDF) (Mines of Coal of France)

-Entreprise minière et chimique (EMC) (Mineira and Chemistry Company)

Italy

-Regions

-Provinces

-Municipalities

-Cassa Depositi e Prestiti (Box of Deposits and Loans)

Latvia

-Pašvaldības (Local Governments)

Poland

-gminy (commune)

-powiaty (precincts)

-województwa (provinces)

-związki gmin (associations of communes)

-powiatów (association of districts)

-województw (association of provinces)

-miasto stołeczne Warszawa (capital of Warsaw)

-Agencja Restrukturyzacji i Modernizacji Rolnictwa (Agency for Restructuring

and Modernization of Agriculture)

-Agencja Nieruchomości Rolnych (Agricultural Property Agency)

Portugal

-Autonomous Region of Madeira

-Autonomous Region of the Azores

-Municipalities

Slovakia

-mis the obce (municipalities)

-Železnice Slovenskej republiky (Company of the Iron Paths of Slovakia)

-Štátny fond cestného hospodárstva (State Fund of Management Viaria)

-Slovenské elektrárne (Electrical Companies of Slovakia)

-Vodohospodárska výstavba (Water Economy Building Company)

INTERNATIONAL ENTITIES:

-European Bank for Reconstruction and Development

-European Investment Bank

-Asian Development Bank

-African Development Bank

-World Bank / BIRD / IMF

-International Financial Society

-Inter-American Development Bank

-Social Development Fund of the Council of Europe

-EURATOM

-European Community

-The Andina de Fomento Corporation (CAF)

-Eurofima

-European Coal and Steel Community

-Nordic Investment Bank

-Caribbean Development Bank

The provisions of Article 7º shall be without prejudice to any obligations which the Contracting Parties

may have assumed in respect of the international entities referred to above.

ENTITIES IN THIRD COUNTRIES:

The entities that fulfil the following criteria.

1. The entity is clearly considered a public entity in accordance with the

national criteria.

2. A public entity of that kind to be a non-market producer that administers and

funds a group of activities, which essentially consist of providing goods

and non-market services intended for collectivity, and which are effectively

controlled by public administrations.

3. Such a public entity to issue debt securities on a regular basis and in large

quantity.

4. The State concerned shall be in a position to ensure that such a public entity does not

proceed to the early repayment in case there are clauses of

ressarcement ( gross-up ).

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 " Agreement on the Taxation of Savings Income

between the Cayman Islands and the World's Republic " 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 the Cayman

Islands.

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 and World languages in three copies.

B. Proposed reply from the Government of the Cayman Islands

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 " Agreement on the Taxation of Savings Income

between the Cayman Islands and the World's Republic " 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 the Cayman

Islands.

Please accept, Sir, the assurance of our highest consideration "

I am able to confirm that the Government of the Cayman Islands 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 the Cayman Islands competent for

signature]

Done at [], on in the English and World languages, in three copies.

AGREEMENT ON THE TAXATION OF SAVINGS INCOME BETWEEN

THE CAYMAN ISLANDS AND THE WORLD REPUBLIC

WHEREAS:

1. Article 17 of Directive 2003 /48/EEC of the Council of the European Union (" the

Council ") on taxation of savings income as published in the Official Journal of the

European Union dated 6/26/2003 ("the Directive"), provides that before 1 January

2004 Member States shall adopt and publish the laws, regulations and

administrative provisions necessary to be made with this Directive

provisions shall be applied from the 1 st January 2005 provided that-

" (i) the Swiss Confederation, the Principality of Liechtenstein, the Republic of

San Marino, the Principality of Monaco and the Principality of Andorra

apply from that same date measures equivalent to those contained in this

Directive, in accordance with agreements entered into by them with the

European Community, following unanimous decisions of the Council;

(ii) all agreements or other arrangements are in place, which provide that all the

relevant dependent or associated territories apply from that same date

automatic exchange of information in the same manner as is provided for in

Chapter II of this Directive, (or, during the transitional period defined in

Article 10, apply a withholding tax on the same terms as are contained in

Articles 11 and 12) ".

2. to be made to their undertakings in relation to the accession, Cyprus, Czech Republic,

Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic and Slovenia

shall no later than 1 May 2004 adopt and publish the laws, regulations and

administrative provisions necessary to be made with this Directive

provisions shall be applied from the 1 st January 2005 subject to the provisos set

out in 1 above.

3. The basis of association of the Cayman Islands with the EU is set out in part 4 of

the Treaty Establishing the European Community. Part 4 sets out certain

obligations which bind the Member States of the European Union and the Cayman

Islands.

4. Under the terms of the association of the Cayman Islands with the EU, the

Cayman Islands is not within the EU fiscal territory. However, in the spirit of

cooperation and in consideration of the terms of the Treaty Establishing the

European Community, the Cayman Islands has agreed to assist the Member States

of the EU through the provision of certain information as set out hereafter.

5. The Cayman Islands has legislation relating to undertakings for collective

investment that is to be equivalent to its effect in its effect to the EC legislation

referred to in Articles 2 and 6 of the Directive.

The Cayman Islands and [the Member State] referred to as a "

party "or the" the "contracting parties" unless the context otherwise requires,

Have agreed to enter the following Agreement which contains obligations on the

part of the contracting parties only and provides for the automatic provision of

information by the competent authority of the Cayman Islands to the competent

authority of Portugal upon the terms and in the manner set out below.

Article 1 General Scope

(1) This Agreement shall apply to interest payments, (as defined in Article 6 of this

Agreement), made by a paying agent, (as defined in Article 5 of this Agreement),

established within the Cayman Islands to beneficial owners (as defined in Article

3 of this Agreement), who are individuals resident in Portugal.

(2) The scope of this Agreement 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 Reporting of Information by Paying Agents

(1) Where interest payments, as defined in Article 6 of this Agreement, are made by a

paying agent established in the Cayman Islands to beneficial owners, those defined in

Article 3 of this Agreement, who are residents of Portugal, the paying agent shall

report to the competent authority of the Cayman Islands:

(a) the identity and residence of the beneficial owner established in accordance

with Article 4 of this Agreement;

(b) the name and address of the paying agent;

(c) the account number of the beneficial owner or, where there is none,

identification of the debt claim giving rise to the interests;

(d) information concerning the interest payment specified in Article 6 (1) of this

Agreement. However, the Cayman Islands may restrict the minimum amount

of information concerning interest payment to be reported by the paying

agent to the total amount of interest or income and to the total amount of the

banned from sale, redemption or refund.

(2) Within six months following the end of the calendar year, the competent authority

of the Cayman Islands shall communicate to the competent authority of Portugal,

automatically, the information referred to in paragraph 1 (a)-(d) of this Article,

for all interest payments made during that year.

Article 3 Definition of beneficial owner

(1) For the purposes of this Agreement "beneficial owner" shall mean any individual

who convicted an interest payment or any such individual is convicted an interest

payment is secured, unless such individual can provide evidence that the interest

payment was not received or secured for his own benefit. An individual is not

reveals to be the beneficial owner when he:

(a) acts as a paying agent within the course of Article 5 of this Agreement;

(b) acts on behalf of a legal person, an entity which is taxed on its profits under

the general arrangements for business taxation, an UCITS authorised in

accordance with Council Directive 85 /611/EEC or an equivalent

Undertaking for collective investment established in the Cayman Islands, or

an entity referred to in Article 5 (2) of this Agreement and, in the last

mentioned case, discloses the name and address of that entity to the

economic operator making the interest payment and the latter communicates

such information to the competent authority of its contracting party of

establishment.

(c) acts on behalf of another individual who is the beneficial owner and

discloses to the paying agent the identity of that beneficial owner.

(2) Where a paying agent has information reveals that the individual who has been

an interest payment or for an interest payment is secured may not be the

beneficial owner, and where neither paragraph 1 (a) nor 1 (b) of this Article apply,

it shall take reasonable steps to establish the identity of the beneficial owner. If the

paying agent is unable to identify the beneficial owner, it shall treat the individual

in question as the beneficial owner.

Article 4 Identity and residence of beneficial owners

1. The Cayman Islands, within its territory, shall adopt and ensure the application of

the procedures necessary to allow the paying agent to identify the beneficial

owners and their residence for the purposes of this Agreement. Such procedures

shall be charged with the minimum standards established in paragraphs 2 and 3;

2. The paying agent shall establish the identity of the beneficial owner on the basis

of minimum standards which vary according to when relations between the paying

agent and the recipient of the interest are entered into, as follows:

(a) for contractual relations entered into before the 1 st January 2004, the

paying agent shall establish the identity of the beneficial owner, shall

of his name and address, by using the information at its disposal, in

particular to the legislation in force in the Cayman Islands on

prevention of the use of the financial system for the purpose of money

laundering;

(b) for contractual relations entered into, or transactions carried out in the

against a degree of contractual relations, on or after the 1 st January, 2004 the

paying agent shall establish the identity of the beneficial owner, shall

of the name, address and, if there is one, the tax identification number

allocated by the Member State of residence for tax purposes. These details

should be established on the basis of the passport or of the official identity

card has died by the beneficial owner. If it does not appear on that

passport or official identity card, the address shall be established on the

basis of any other documentary proof of identity corrected by the

beneficial owner. If the tax identification number is not mentioned on the

passport, on the official identity card or any other documentary proof of

identity, including, possibly the certificate of residence for tax purposes,

helpful by the beneficial owner, the identity shall be helpful by a

reference to the latter's date and place of birth established on the basis of

his passport or official identification card.

3. The paying agent shall establish the residence of the beneficial owner on the basis

of minimum standards which vary according to when relations between the paying

agent and the recipient of the interest are entered into. Subject to the conditions set

out below, residence shall be considered to be situated in the country where the

beneficial owner has his permanent address:

(a) for contractual relations entered into before 1 st January, 2004 the paying

agent shall establish the residence of the beneficial owner by using the

information at its disposal, in particular to the legislation in force

in the Cayman Islands on prevention of the use of the financial system for

the purpose of money laundering;

(b) for contractual relations entered into, or transactions carried out in the

against a degree of contractual relations, on or after the 1 st January, 2004, the

paying agents shall establish the residence of the beneficial owner on the

basis of the address mentioned on the passport, on the official identity card

or, if necessary, on the basis of any documentary proof of identity

helpful by the beneficial owner and according to the following

procedure: for individuals to have a passport or official identity card

issued by a Member State who declare themselves to be resident in a third

country, residence shall be established by means of a tax residence

certificate issued by the competent authority of the third country in which

the individual claims to be resident. Failing the presentation of such a

certificate, the Member State which issued the passport or other official

identity document shall be considered to be the country of residence.

Article 5 Definition of paying agent

(1) For the purposes of this Agreement, 'paying agent' means any economic operator

who pays interest to or secures the payment of interest for the immediate benefit

of the beneficial owner, whether the operator is the debtor of the debt claim which

discuss the interest or the operator charged by the debtor or the beneficial owner

with paying interest or securing the payment of interest.

(2) Any entity established in a contracting party to which interest is paid or for which

interest is secured for the benefit of the beneficial owner shall also be considered a

paying agent upon such payment or securing of such payment. This provision

shall not apply if the economic operator has reason to believe, on the basis of

official evidence produced by that entity that:

(a) it is a legal person with the exception of those legal persons referred to in

paragraph 5 of this Article; or

(b) its profits are taxed under the general arrangements for business taxation; or

(c) it is an UCITS recognised in accordance with Council Directive 85 /611/EEC

or an equivalent undertaking for collective investment established in the

Cayman Islands.

An economic operator established in the Cayman Islands paying interest to, or

securing interest for, such an entity established in the other contracting party

which is considered a paying agent under this paragraph shall communicate the

name and address of the entity and the total amount of interest paid to, or secured

for, the entity to the competent authority of its contracting party of establishment,

which shall pass this information on to the competent authority of the contracting

party where the entity is established.

(3) The entity referred to in paragraph 2 of this Article shall, however, have the option

of being held for the purposes of this Agreement as an UCITS or equivalent

undertaking the referred to in sub-paragraph (c) of paragraph 2. The exercise of this

option shall require a certificate to be issued by the contracting party in which the

entity is established and has to be established to the economic operator by that entity. The

county party shall lay down the detailed rules for this option for entities

established in their territory.

(4) Where the economic operator and the entity referred to in paragraph 2 of this

Article are established in the same contracting party, that a party shall be

take the necessary measures to ensure that the entity is exploring with the provisions

of this Agreement when it acts as a paying agent.

(5) The legal persons insured from sub- paragraph (a) of 2 of this Article

are

(a) in Finland: avoin yhtio (Ay) and kommandiittiyhtio (Ky) /oppet bolag and

kommanditbolag;

(b) in Sweden: handelsbolag (HB) and kommanditbolag (KB).

Article 6 Definition of interest payment

(1) For the purposes of this Agreement "interest payment" shall mean:

(a) interest paid, or credited to an account, relating to debt claims of every kind,

whether or not secured by mortgage and whether or not carrying a right to

participate in the debtor's profits, and, in particular, income from

government securities and income from bonds or debentures, including

ans and prizes attaching to such securities, bonds or debentures;

penalty charges for late payment shall not be imposed on interest payment;

(b) interest accrued or capitalised at the sale, refund or redemption of the debt

claims referred to in (a);

(c) income deriving from interest payments either directly or through an entity

referred to in Article 5 (2) of this Agreement, distributed by-

(i) an UCITS authorised in accordance with Council Directive

85 /611/EEC; or

(ii) an equivalent undertaking for collective investment established in the

Cayman Islands;

(iii) entities which qualify for the option under Article 5 (3) of this

Agreement;

(iv) undertakings for collective investment established outside the territory

to which the Treaty applies the European Community applies by

virtue of Article 299 protests and outside the Cayman Islands.

(d) income from the sale, refund or redemption of shares or units in the

following undertakings and entities, if they invest directly or indirectly, via

other undertakings for collective investment or entities referred to below,

more than 40% of their assets in debt claims as a referred to in (a):

(i) an UCITS authorised in accordance with Council Directive

85 /611/EEC; or

(ii) an equivalent undertaking for collective investment established in the

Cayman Islands;

(iii) entities which qualify for the option under Article 5 (3) of this

Agreement;

(iv) undertakings for collective investment established outside the territory

to which the Treaty applies the European Community applies by

virtue of Article 299 protests and outside the Cayman Islands

However, the contracting parties shall have the option of including income

mentioned under paragraph (1) (d) of this Article in the definition of interest only

to the extent that such income was to be directly or indirectly derived from

from interest payments within the banned of paragraphs (1) (a) and (b) of this

Article.

(2) The regard (1) (c) and (d) of this Article, when a paying agent has no

information concerning the proportion of the income which derives from interest

payments, the total amount of the income shall be considered an interest payment.

(3) The Amendments (1) (d) of this Article, when a paying agent has no

information concerning the percentage of the assets of the assets in debt claims or in

shares or units as defined in that paragraph, that percentage shall be considered to

be above 40%. Where he cannot determine the amount of income by the

beneficial owner, the income shall be helpful to the benefits of the study of the

sale, refund or redemption of the shares or units.

(4) When interest, as defined in paragraph (1) of this Article, is paid to or credited to

an account held by an entity referred to in Article 5 (2) of this Agreement, such

entity not having qualified for the option under Article 5 (3) of this Agreement,

such interest shall be considered an interest payment by such entity.

(5) The following paragraphs (1) (b) and (d) of this Article, a party's party shall have

the option of paying agents in its territory to annualise the interest over a

period of time which may not exceed one year, and excellent such annualised

interest as an interest payment even if no sale, redemption or refund occurs during

that period.

(6) By way of populations from paragraphs (1) (c) and (d) of this Article, the

party shall have the option of excluding from the definition of interest payment

any income referred to in those provisions from undertakings or entities

established within its territory where the investment in debt claims referred to in

paragraph 1 (a) of this Article of such entities has not exceeded 15% of their

assets. Banned, by way of a 4 percent of this Article, a

party shall have the option of excluding from the definition of interest

payment in paragraph 1 of this Article interest paid or credited to an account of an

entity referred to in Article 5 (2) of this Agreement which has not qualified for the

option under Article 5 (3) of this Agreement and is established within its territory,

where the investment of such an entity in debt claims referred to in paragraph 1 (a)

of this Article has not exceeded 15% percent of its assets.

The exercise of such option by one contracting party shall be binding on the other

party-party.

(7) The percentage referred to in paragraph 1 (d) of this Article and paragraph 3 of this

Article shall from 1 st January 2011 be 25%.

(8) The percentages referred to in paragraph 1 (d) of this Article and in paragraph 6 of

this Article shall be determined by reference to the investment policy as laid down

in the fund rules or instruments of incorporation of the undertakings or entities

concerned or, failing which, by reference to the current composition of the assets of

the undertakings or entities concerned.

Article 7 Transitional provisions for negotiable debt securities

(1) During the transitional period as defined in Article 10 (2) of the Directive, but until

the 31 st December, 2010 at the latest, domestic and international bonds and other

negotiable debt securities which have been first issued before the 1 st March, 2001

or for which the original originating prospectuses have been approved before that date

by the competent authorities within the course of Council Directive 80 /390/EEC

or by the responsible authorities in third countries shall not be considered as a debt

claims within the opposition of Article 6 (1) (a) of this Agreement, provided that in the

further issues of such negotiable debt securities are made on or after 1 st March,

2002. However, should the transitional period continue beyond 31 st December,

2010, the provisions of this Article shall only continue to apply in respect of such

negotiable debt securities:

a) which contain gross up and early redemption clauses and;

b) where the paying agent is established in a contracting party to

withholding tax and that paying agent pays interest to, or secures the payment of

Interest for the immediate benefit of a beneficial owner resident in the other

party-party.

If a further issue is made on or after 1 st March, 2002 of an estimated

negotiable debt security issued by a Government or a related entity acting as a

public authority or whose role is recognised by an international treaty, as defined

in the Annex to this Agreement, the entire issue of such security, investigations of the

original issue and any further issue, shall be considered a debt claim within the

Thereof of Article 6 (1) (a) of this Agreement.

If a further issue is made on or after 1 st March, 2002 of an estimated

negotiable debt security issued by any other issuer not covered by the second sub-

paragraph, such further issue shall be considered a debt claim within the whole

of Article 6 (1) (a) of this Agreement.

(2) Nothing in this Article shall prevent the contracting parties from taxing the income

from the negotiable debt securities referred to in paragraph 1 in accordance with

their national laws.

Article 8 Mutual agreement procedure

Where difficulties or doubts arise between the parties regarding the

implementation or interpretation of this Agreement, the contracting parties shall

use their best endeavours to resolve the matter by mutual agreement.

Article 9 Confidentiality

(1) All information provided and received by the competent authority of a contracting party

party shall be kept confidential.

(2) Information provided to the competent authority of a contracting party may not be

used for any purpose other than for the purposes of direct taxation without the

prior written consent of the other contracting party.

(3) Information provided shall be disclosed only to persons or authorities concerned

with the purposes of direct taxation, and used by such persons or authorities only

for such purposes or for oversight purposes, including the determination of any

appeal. For these purposes, information may be disclosed in public court

proceedings or in judicial proceedings.

(4) Where the competent authority of a contracting party considers that information

which it has received from the competent authority of the other contracting party

is likely to be useful to the competent authority of another Member State, it may

transmit it to the latter competent authority with the agreement of the competent

authority which supplied the information.

Article 10 Entry into force

This Agreement 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

paragraphs 2 and 3 of Article 17 of the Directive.

Article 11 Termination

(1) This Agreement shall remain in force until terminated by either the contracting party.

(2) Non-deal party may terminate this Agreement by giving notice of

termination in writing to the other contracting party, such notice to specify the

circumstances leading to the giving of such notice. In such a case, this Agreement

shall cease to have effect 12 months after the serving of notice.

Article 12 Application and suspension of application

(1) The application of this Agreement shall be conditional on the adoption and

implementation by all the Member States of the European Union, by the United

States of America, Switzerland, Andorra, Liechtenstein, Monaco and San Marino,

and by all the relevant dependent and associated territories of the Member States

of the European Community, probability, of measures which conform with or are

equivalent to those contained in the Directive or in this Agreement, and providing

for the same dates of implementation.

(2) Subject to the mutual agreement procedure provided for in Article 8 of this

Agreement, the application of this Agreement or parts enhancing may be suspended

by either a contracting party with immediate effect through notification to the other

Growing the leading to such notification should the Directive

cease to be applicable either temporarily or permanently in accordance with

European Community law or in the event that a Member State should suspend the

application of its implementing legislation. Application of the Agreement shall

sums up as soon as the promises leading to the suspension no longer apply.

(3) Subject to the mutual agreement procedure provided for in Article 8 of this

Agreement, either a contracting party may suspend the application of this

Agreement through notification to the other mixture the leading leading

to such notification in the event that one of the third countries or territories

referred to in paragraph 1 should cease to apply the measures

referred to in that paragraph. Suspension of application shall take place in the earlier

than two months after notification. Application of the Agreement shall resume the

soon as the measures are reinstated by the third country or territory in question.

Article 13 Competent Authorities

For the purposes of this Agreement the term 'competent authority' when applied

to the Cayman Islands means the Financial Secretary, and when applied to

Portugal means the Minister of Finance or an authorised representative.

Article 14 Implementation

Before 1 January 2005 the Contracting Parties shall adopt the laws, regulations

and administrative provisions necessary to be made with this Agreement.

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

/Annex: list of related entities

Namely: List of related entities

For the purposes of Article 7 of this Agreement, the following entities will be

considered to be a " related entity acting as a public authority or whose role is

recognised by an international treaty ":

ENTITIES WITHIN THE EUROPEAN UNION:

Belgium

Vlaams Gewest (Flemish Region)

Région wallonne (Walloon Region)

Région bruxelloise / Brussels Gewest (Brussels Region)

Communauté française (French Community)

Vlaamse Gemeenschap (Flemish Community)

Deutschsprachige Gemeinschaft (German-speaking Community)

Spain

Xunta de Galicia (Regional Executive of Galicia)

Joined by Andalucía (Regional Executive of Andalusia)

Extreme Board of Extremadura (Regional Executive of Extremadura)

Joint of Castilla-La Mancha (Regional Executive of Castilla-La Mancha)

Joint of Castilla-León (Regional Executive of Castilla-León)

Gobierno Foral de Navarra (Regional Government of Navarre)

Govern of les Illes Balears (Government of the Balearic Islands)

Generalitat de Catalunya (Autonomous Government of Catalonia)

Generalitat de Valencia (Autonomous Government of Valencia)

Diputación General de Aragón (Regional Council of Aragon)

Gobierno de las Islas Canarias (Government of the Canary Islands)

Gobierno de Murcia (Government of Murcia)

Gobierno de Madrid (Government of Madrid)

Gobierno de la Comunidad Autónoma del País Vasco / Euzkadi (Government of the

Autonomous

Community of the Basque Country)

Diputación Foral de Guipúzcoa (Regional Council of Guipúzcoa)

Diputación Foral of Vizcaya / Bizkaia (Regional Council of Vizcaya)

Diputación Foral de Alava (Regional Council of Alava)

Ayuntamiento de Madrid (City Council of Madrid)

Ayuntamiento de Barcelona (City Council of Barcelona)

Cabildo Insular of Gran Canaria (Island Council of Gran Canaria)

Capabildo Insular de Tenerife (Island Council of Tenerife)

Institute of Official Credit Institution (Public Credit Institution)

Catalán Institute of Finanzas (Finance Institution of Catalonia)

Valencian Institute of Finanzas (Finance Institution of Valencia)

Greece

Оργανισμός πηλεπικοινωνιών Ελλάδος (National Telecommunications Organisation)

Оργανισμός Σιδηροδρόμων Ελλάδος (National Railways Organisation)

Δημόσια Επιχείρηση ΗλεκτρισμοΩ (Public Electricity Company)

France

La Caisse d' amortissement de la dette sociale (CADES) (Social Debt Redemption Fund)

L' Agence française de développement (AFD) (French Development Agency)

Réseau Ferré de France (RFF) (French Rail Network)

Caisse Nationale des Autoroutes (CNA) (National Motorways Fund)

Assistance publique Hôpitaux de Paris (APHP) (Paris Hospitals Public Assistance)

Charbonnages de France (CDF) (French Coal Board)

Entreprise minière et chimique (EMC) (Mining and Chemicals Company)

Italy

Regions

Provinces

Municipalities

Cassa Depositi e Prestiti (Deposits and Loans Fund)

Latvia

Pašvaldības (Local government)

Poland

gminy (communes)

powiaty (districts)

województwa (provinces)

związki gmin (associations of communes)

powiatów (association of districts)

województw (association of provinces)

miasto stołeczne Warszawa (capital city of Warsaw)

Agencja Restrukturyzacji i Modernizacji Rolnictwa (Agency for Restructuring and

Modernisation of Agriculture)

Agencja Nieruchomości Rolnych (Agricultural Property Agency)

Portugal

Autonomous Region of Madeira (Autonomous Region of Madeira)

Autonomous Region of the Azores (Autonomous Region of surrounding)

Municipalities

The

mis the obce (municipalities)

Železnice Slovenskej republiky (Slovak Railway Company)

Štátny fond cestného hospodárstva (State Road Management Fund)

Slovenské elektrárne (Slovak Power Plants)

Vodohospodárska výstavba (Water Economy Building Company)

INTERNATIONAL ENTITIES:

European Bank for Reconstruction and Development

European Investment Bank

Asian Development Bank

African Development Bank

World Bank / IBRD / IMF

International Finance Corporation

Inter-American Development Bank

Council of Europe Social Development Fund

EURATOM

European Community

Corporación Andina de Fomento (CAF) (Andean Development Corporation)

Eurofima

European Coal & Steel Community

Nordic Investment Bank

Caribbean Development Bank

The provisions of Article 7 are without prejudice to any international obligations that

the Contracting Parties may have entered into with respect to the above mentioned

international entities.

ENTITIES IN THIRD COUNTRIES:

The entities that meet the following criteria:

1) The entity is exploring considered to be a public entity according to the national

criteria.

2) Such public entity is a non-market producer which adheres and finances a

group of activities, providing providing non-market goods and services, intended

for the benefit of the community and which are effectively controlled by general

government.

3) Such public entity is a large and regular issuer of debt.

4) The State concerned is able to guarantee that such public entity will not exercise

early redemption in the event of gross-up clauses.