CHAIR OF THE COUNCIL OF MINISTERS

Proposal for Resolution No 17 /XII

The Portuguese Republic and the Republic of Panama signed, on August 27, 2010, in the

Panama City, a Convention to Prevent Double Taxation and Prevent Evasion

Tax in Matter of Taxes on the Throughput.

The Convention between the Portuguese Republic and the Republic of Panama to Avoid the Double

Taxation and Preventing Tax Evasion in Income Taxes on the Yield Visa,

fundamentally, eliminate or mitigate international double taxation in the different

categories of income earned by residents of both states, as well as

prevent tax evasion.

The said Convention represents an important contribution to the creation of a

stable and favourable fiscal framework for the development of trade and trade

investment flows between both states, eliminating tax barriers to the movement of

capitals, technologies and people. On the other hand, it constitutes an instrument of the largest

importance for bilateral cooperation in tax matters, notably through the exchange

of information, with a view to preventing and combating tax evasion.

This Convention applies to taxes on the income required by each of the

Contracting states, their political or administrative subdivisions and their local authorities,

regardless of the system used for your charging.

It thus covers all tax incidents on total income or on installments

of income, including taxes on gains derived from the disposal of goods

securities or real estate, the taxes on the overall amount of wages paid by the

companies, as well as taxes on the most-valuable ones.

CHAIR OF THE COUNCIL OF MINISTERS

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:

To approve the Convention between the Portuguese Republic and the Republic of Panama to Prevent the

Double Taxation and Preventing Tax Evasion in Income Taxes on the Throughput,

signed in Panama City, August 27, 2010, the text of which, in the authenticated versions

in the Portuguese, Spanish and English languages, it publishes in attachment.

Seen and approved in Council of Ministers of January 12, 2012

The Prime Minister

The Minister of State and Foreign Affairs

The Deputy Minister and Parliamentary Affairs