Portugal: Portuguese government approves deals with Guinea Bissau and Mozambique to avoid double taxation

31 December 2008

Lisbon, Portugal, 31 Dec – A Portuguese Cabinet Meeting Tuesday approved agreements with Guinea Bissau and Mozambique to Prevent Double Taxation and Tax Evasion on the income of residents in any of the three states.

The Convention with Guinea Bissau and the Protocol between Portugal and Mozambique were signed on 17 October and 24 March, 2008 and will now be put forward for approval to the Republican Assembly, Portugal’s parliament.

The convention with Guinea Bissau sets out the rules that outline the jurisdiction of each state in terms of taxation, namely on income from real estate assets, business activities, dividends, interest, royalties, income from working for third parties and pensions.

In terms of the protocol signed with Mozambique, the document notes that it aims to allow for the correct application of standards to eliminate double taxation and prevent tax evasion by individuals and companies that carry out their business in both countries.(macauhub)