background image
Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 2

Taxes Covered

(1) This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its political or administrative subdivisions or a local government or other local authorities, irrespective of the manner in which they are levied.

(2) There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

(3) The existing taxes to which this Convention shall apply are in particular:

  • (a) in Portugal:
    • (i) the personal income tax (imposto sobreo rendimento das pessoas singulares--IRS);
    • (ii) the corporate income tax (imposto sobreo rendimento das pessoas colectivas--IRC); and
    • (iii) the local surtax on corporate income tax (derrama);
  • (hereinafter referred to as "Portuguese tax");
  • (b) in case of the United Arab Emirates:
    • (i) the income tax; and
    • (ii) the corporate tax;
  • (hereinafter referred to as "United Arab Emirates tax"),

(4) The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their taxation laws.