Key Benefits:
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.