Once the MLI takes effect for this Convention (see the Preamble), Option A of Article 5 of the MLI chosen by Switzerland is expected to apply to the Swiss exemption in paragraph 3 (notified by Switzerland as “Art. 23, par. 3”): Switzerland would not exempt income or capital that Portugal, under the Convention, exempts or taxes only at a limited rate, and would give a credit instead. Portugal chose Option C (credit method), but Switzerland reserved under Article 5(9) of the MLI the right not to permit the other State to apply Option C, so Portugal’s side (paragraphs 1 and 2) would remain unchanged.
1. Where a resident of Portugal derives income which, in accordance with the provisions of this Convention, may be taxed in Switzerland, Portugal shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Switzerland. Such deduction shall not, however, exceed that part of the Portuguese tax, as computed before the deduction is given, which is attributable to the income taxed in Switzerland.
1. Quando um residente de Portugal obtiver rendimentos que, de acordo com o disposto nesta Convenção, possam ser tributados na Suíça, Portugal deduzirá do imposto sobre os rendimentos desse residente uma importância igual ao imposto sobre o rendimento pago na Suíça. A importância deduzida não poderá, contudo, exceder a fracção do imposto português, calculado antes da dedução, correspondente aos rendimentos tributados na Suíça.
2. Where in accordance with any provision of this Convention income derived by a resident of Portugal is exempt from tax in Portugal, Portugal may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
2 - Quando, de acordo com o disposto na presente Convenção, os rendimentos auferidos por um residente de Portugal estejam isentos de imposto em Portugal, ao calcular o quantitativo do imposto sobre os restantes rendimentos desse residente, Portugal poderá, contudo, ter em conta os rendimentos isentos.
3. Where a resident of Switzerland derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Portugal, Switzerland shall, subject to the provisions of paragraph 3 [now paragraph 4], exempt such income or capital from tax, but may, in calculating tax on the remaining income or capital of that resident, apply the rate of tax which would have been applicable if the exempted income or capital had not been so exempted. However, such exemption shall apply to gains referred to in paragraph 3 of Article 13 only if actual taxation of such gains in Portugal is demonstrated.
3. Quando um residente da Suíça obtiver rendimentos ou for proprietário de capital que, em conformidade com o disposto nesta Convenção, possam ser tributados em Portugal, a Suíça isentará de imposto esse rendimento ou esse capital, observado o disposto no n.º 3; mas para calcular o quantitativo do imposto sobre o resto do rendimento ou do capital desse residente poderá aplicar a taxa que aplicaria se tais rendimento ou capital não tivessem sido isentos. No entanto, essa isenção só é aplicável aos ganhos referidos no n.º 3 do artigo 13.º se for demonstrada a tributação efetiva desses ganhos em Portugal.
4. Where a resident of Switzerland derives income which, in accordance with the provisions of Articles 10, 11 and 12, may be taxed in Portugal, Switzerland shall, upon request, allow relief to such resident. The relief shall consist of:
4. Quando um residente da Suíça obtiver rendimentos que, de acordo com o disposto nos artigos 10.º, 11.º e 12.º, possam ser tributados em Portugal, a Suíça concederá um desagravamento a este residente, a seu pedido. Este desagravamento consistirá:
(a) the deduction from the Swiss tax on the income of that resident of the tax paid in Portugal in accordance with the provisions of Articles 10, 11 and 12; such deduction shall not, however, exceed that part of the Swiss tax, as computed before the deduction is given, which is appropriate to the income taxed in Portugal; or
a) Na dedução do imposto pago em Portugal, de acordo com o disposto nos artigos 10.º, 11.º e 12.º, do imposto suíço sobre os rendimentos desse residente. A importância deduzida não poderá, contudo, exceder a fracção do imposto suíço, calculado antes da dedução, correspondente aos rendimentos tributados em Portugal; ou
(b) a lump-sum (forfaitaire) reduction of the Swiss tax, calculated according to predetermined rules which take into account the general principles of relief set out in subparagraph (a); or
b) Numa redução convencional (forfaitaire) do imposto suíço, calculada segundo as normas preestabelecidas que tenham em conta os princípios gerais do desagravamento enunciados na alínea precedente; ou
(c) a partial exemption of the income concerned from Swiss tax, consisting at least of the deduction of the tax paid in Portugal from the gross amount of the income received from Portugal.
c) Numa isenção parcial dos rendimentos em causa do imposto suíço, que consistirá, pelo menos, numa dedução do imposto pago em Portugal, do montante bruto dos rendimentos recebidos de Portugal.
Switzerland shall determine the type of relief and regulate the procedure in accordance with the provisions on the implementation of international conventions concluded by the Confederation for the avoidance of double taxation.
A Suíça determinará o género de desagravamento e regulará o procedimento, segundo as disposições relativas à execução das convenções internacionais concluídas pela Confederação com vista a evitar as duplas tributações.
5. A company which is a resident of Switzerland and receives dividends from a subsidiary which is a resident of Portugal shall be entitled, for the purposes of Swiss tax on such dividends, to the same relief as it would be entitled to if the subsidiary paying the dividends were a resident of Switzerland.
5. Uma sociedade residente da Suíça que recebe dividendos de uma sociedade filial residente de Portugal beneficia, no que respeita ao imposto suíço sobre os referidos dividendos, das mesmas vantagens de que beneficiaria se a sociedade filial que atribui ou paga os dividendos fosse um residente da Suíça.
Paragraph numbers 3–5 updated to the 2012 renumbering (printed in 1974 as 2–4); paragraph 2 and the sentence added to paragraph 3 are 2012 wording; otherwise 1974 text.
We apply tax treaties to dividends, interest, royalties, salaries and gains, prepare the relief-at-source form and refund claims, and check structures against the treaty’s anti-abuse rules. A written answer and a fixed quote within one working day.
Unofficial English translation prepared by BCA Portugal for reference. The Convention was done in Portuguese and French and only those texts are authentic. The Portuguese text is reproduced from the official publication. Editorial notes are ours and are not part of the Convention.