Protocol - Protocol - Portuguese Republic

PROTOCOL At the moment of signing the Convention between the Republic of India and the Portuguese Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following which shall be an integral part of the Convention. Ad article 3 For the purposes of paragraph 3, the reference to the time of application of the Convention shall mean the time when the income which is the subject-matter of this Convention arises. Ad articles 3 and 23 For the purposes of paragraph 1, d), of article 3 and article 23, the expression tax shall not include any amount which is payable in respect of any default or omission in relation to the taxes to which this Convention applies or which represents a penalty imposed relating to those taxes. Ad article 5 For the purposes of paragraph 2, a warehouse in relation to a person providing storage facilities for others will be considered as constituting a permanent establishment. Ad article 6 For the purposes of paragraph 1, it is agreed that the Contracting State of which the person deriving income from property is a resident is also entitled to tax such income. Ad article 7 For the purposes of paragraph 3, it is agreed that the provisions of the domestic tax laws referred to therein relate, in the case of India, to section 44C of the Income Tax Act, 1961. It is further agreed that in no event the conditions and limits referred to in section 44C shall not be less favourable than those in force on the date of the signing of this Convention. Ad article 13 For the purposes of paragraphs 1 and 4, it is agreed that the Contracting State of which the person deriving the capital gains is a resident is also entitled to tax such capital gains. Ad article 23 It is understood that the term economic development used in paragraph 5 of article 23 would mean industrial development or development of infrastructural facilities. Ad article 24 1. The provisions of article 24 do not preclude the application of any provision of the tax law of the Contracting States dealing with thin capitalisation problems. 2. The provisions of article 24 shall be construed in the sense that insofar as the deductibility of the incurred disbursements is concerned, each Contracting State may apply its own procedures regarding the burden of proof. 3. The provisions of paragraph 2 shall not be construed as preventing a Contracting State from charging the profits of a permanent establishment which a company of the other Contracting State has in the first-mentioned State at a rate of tax which is higher than that imposed on the profits of a similar company of the first-mentioned Contracting State subject to the difference between the two rates not being more than 10%. 1 [Ad article 26 The supplying and the receiving agencies shall be obliged to take effective measures to protect the personal data supplied against unauthorised access, unauthorised alteration and unauthorised disclosure. ] IN WITNESS whereof, the undersigned, duly authorised thereto, have signed this Protocol. DONE in duplicate, at Lisbon this September 11th day of 1998 in Hindi, Portuguese and English languages, each text being equally authentic, the English text prevailing in case of doubt. *************** NOTES: - 1 . Inserted vide Notification No. 43/2018 dated 11-09-2018