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