Once the MLI takes effect for this Convention (see the Preamble), the principal purpose test of Article 7(1) of the MLI is expected to replace paragraph 3 (both States notified it under Article 7(17)(a); Switzerland identifies it as “Art. 27, par. 3”): “Notwithstanding any provisions of the Convention, a benefit under the Convention shall not be granted in respect of an item of income or capital if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of the Convention.” Neither State chose the simplified limitation-on-benefits provision.
1. It is understood that the domestic rules and procedures of the Contracting States regarding abuse of law may be applied to counter such abuse in respect of the provisions of the Convention.
1 - Entende-se que as normas e procedimentos internos dos Estados Contratantes relativos a um uso abusivo da lei podem ser aplicados para o combater, no que respeita às disposições da Convenção.
2. It is understood that the benefits of the Convention shall not be granted to a resident of a Contracting State who is not the beneficial owner of the income derived from the other Contracting State.
2 - Entende-se que os benefícios previstos na Convenção não serão concedidos a um residente de um Estado Contratante que não seja o beneficiário efetivo dos rendimentos auferidos no outro Estado Contratante.
3. It is understood that the provisions of the Convention shall not apply if the main purpose of any person concerned with the creation or assignment of the property or right in respect of which the income is paid was to take advantage of those provisions by means of that creation or assignment.
3 - Entende-se que as disposições da Convenção não serão aplicáveis, se o objetivo principal de qualquer pessoa associada à criação ou à atribuição de um bem ou de um direito em relação ao qual o rendimento é pago for o de beneficiar das referidas disposições por meio dessa criação ou atribuição.
2012 Protocol wording.
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.