Portugal

Under a government decree (finance ministry, April 13 1998) a commission has been created to prepare a report on the status of Portuguese international tax laws. The report will:

• present proposals regarding the review of Portuguese tax laws connected with international business; and
• identify countries which should be part of the Double Taxation Convention (DTC) network of Portugal.

In preparing its report, the commission is to consider the following government intentions:

• the reinforcement of the competitiveness of the Portuguese economy, particularly with respect to the taxation of financial products; and
• the creation of a better environment for foreign investors in Portugal and Portuguese investors abroad.

Further to this Decree, the commission has issued guidelines regarding the DTC network of Portugal with a view to another government decree (finance ministry, August 4 1998), the intention of which is:

• to enlarge the DTC network of Portugal, to include, among other things, the African Portuguese speaking countries, Macau, and countries with a strong Portuguese immigration presence (South Africa, Canada, Australia); and
• to create an internal committee to accelerate the internal procedures of the government administration regarding the negotiation process and the coordination of the Portuguese ministries involved in the execution of a DTC.

The commission is expected to produce its report by the end of November 1998.

Miguel Teixeira de Abreu

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