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Application of the MLI to the Tax Treaty between Japan and Portugal

 The MLI enters into force for Japan on January 1, 2019, and for Portugal on June 1, 2020.
 Based on the reservations and notifications submitted by Japan on September 26, 2018 and by Portugal on February 28, 2020, the MLI applies to the tax treaty between Japan and Portugal as described below. 

1. Tax treaty covered by the MLI
  -“Convention between Japan and the Portuguese Republic for the Avoidance of Double Taxation and the
    Prevention of Fiscal Evasion with respect to Taxes on Income”
    Date of signature: December 19, 2011
    Date of entry into force: July 28, 2013

2. Provisions of the MLI applicable to the tax treaty
  - Article 6(1) (Preamble language describing the intent of the Contracting Jurisdictions that the tax treaty will not
    create opportunities for non-taxation or reduced taxation)
  - Article 7(1) (Provisions that deny the benefits under the tax treaty where the principal purpose or one of the principal
    purposes of any arrangement or transaction was to obtain those benefits)
  - Article 9(4) (Provisions for taxation on capital gains from alienation of shares or interests of entities deriving their
    value principally from immovable property)
  - Article 13(4) (Provisions for combining business activities carried on by closely related persons for the purpose of
    determining whether a permanent establishment exists)
  - Article 15 (Provisions for the definition of a person closely related to an enterprise)
  - Article 17(1) (Provisions regarding corresponding adjustments to taxation in accordance with arm’s length principle)

3. Entry into effect
 The provisions of the MLI shall have effect in each Contracting Jurisdiction with respect to the tax treaty between Japan and Portugal: 
(a) with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving
     rise to such taxes occurs on or after January 1, 2021; and
(b) with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with respect to taxable periods
     beginning on or after December 1, 2020.