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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.

PROTOCOL

PROTOCOL TO THE CONVENTION BETWEEN THE REPUBLIC OF SAN MARINO AND THE PORTUGUESE REPUBLIC FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

When signing the Convention concluded today between the Republic of San Marino and the Portuguese Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the following additional provisions forming integral part of this Convention have been agreed upon.

It is understood that:

(1) The provisions of the Convention shall not prevent the application of the Agreement between the European Community and the Republic of San Marino providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments signed at Brussels on 7 December 2004.

(2) With respect to paragraph 3 of Article 8, whenever companies from different countries have agreed to carry on an air transportation business together in the form of a consortium or a similar form of association, the provisions of paragraph 1 of the same Article shall apply to such part of the profits of the consortium or association as corresponds to the participation held in that consortium or association by a company that is a resident of a Contracting State.

(3) With respect to Article 24, it is understood that the provisions of the Convention shall not be interpreted so as to prevent the application by a Contracting State of the anti-avoidance provisions provided for in its domestic law, especially regarding the deductibility of expenses and thin capitalization rules.

(4) The competent authorities of the Contracting States shall decide by mutual agreement the mode of application of this Convention.

IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have signed this Protocol.

DONE in duplicate at San Marino, this eighteenth day of November 2010, in the Portuguese, Italian and English languages, all texts being equally authentic. In case of any divergence of interpretation of this Protocol, the English text shall prevail.

FOR THE REPUBLIC OF SAN MARINO:

FOR THE PORTUGUESE REPUBLIC: