3 If, pursuant to paragraph 1, a person other than a natural person is domiciled in the territory of both Contracting States, the competent authorities of the Contracting States shall endeavour, by mutual agreement, to settle the matter and to determine the manner in which the Convention is to be applied to that person. In the absence of such an agreement, that person shall be deemed not to reside in one of the two Contracting States for the purpose of receiving the benefits provided for in the Convention. Canada has concluded double taxation treaties (DTAs) with the following countries: (d) If the person is a national of both or both States, the competent authorities of the Contracting States shall settle the matter by mutual agreement. 1 This Convention shall not affect the fiscal privileges of members of diplomatic or consular missions in accordance with the general rules of international law or the provisions of special conventions. 3 The competent authorities of the States Parties shall endeavour to resolve by mutual agreement any difficulties or doubts arising from the interpretation or application of the Convention. 4 For the purposes of paragraph 3 (Consultation) of Article XXII of the General Agreement on Trade in Services, the States Parties agree that, notwithstanding this paragraph, any dispute between them as to whether a measure falls within the scope of this Convention may not be referred to the Council for Trade in Services under that paragraph, with the consent of both States Parties. Any doubt as to the interpretation of this paragraph shall be resolved in accordance with article 24, paragraph 3, or, in the absence of agreement in the present proceedings, by any other procedure agreed upon by both States Parties. (b) By any other agreement concluded by a State Party. 2 The competent authority referred to in paragraph 1 of this Article shall endeavour to resolve the matter by mutual agreement with the competent authority of the other Contracting State if it considers that the objection is justified and if it is unable to reach a satisfactory solution itself.
(a) a trade or activity carried on in that State, the sale of goods or goods in that State or the provision of services, other than the services referred to in subparagraph (b), in that State; or. 1. Subject to Articles 16, 18 and 19, salaries, wages and other remuneration received by a resident of a Contracting State for employment may be taxed only in that State, unless the employment is performed in the other Contracting State. If the employment is carried out in this way, the resulting remuneration may be taxed in that other State. . P – T Pakistan – Papua New Guinea – Peru – Philippines – Poland – Portugal – Romania – Russia – Senegal – Serbia – Singapore – Slovak Republic – Slovenia – South Africa – Spain – Sri Lanka – Sweden – Switzerland – Taiwan2 – Tanzania – Thailand – Trinidad and Tobago – Tunisia – Turkey. 3 Notwithstanding Article 4, a company or other body entitled to benefits under the laws and other measures relating to the tax-exempt areas of a Contracting State or to benefits similar to those accorded to such tax-exempt areas and which are made available to legislation or other measures adopted after the date of signature of the Convention; shall not be deemed to reside in that State for the purposes of the Convention. However, this paragraph shall not apply to companies or other bodies which derive income:. . 2 Gains from the sale of movable property forming part of the commercial assets of a permanent establishment held by an enterprise of a Contracting State in the other Contracting State or movable property belonging to a fixed base disposed of by a resident of a Contracting State of the other Contracting State for the supply of independent personal services, including gains from the sale of that permanent establishment (solely or with the company as a whole), or such a fixed tax base may be taxed in that other State. (a) the use of facilities solely for the purpose of storing, displaying or supplying goods or property of the undertaking; (b) the remuneration is paid by or on behalf of an employer who is not established in the other State; and (i) income tax (Imposto sobre o Rendimento das Pessoas Singulares — IRS) 3 In the circumstances referred to in paragraph 1, a Contracting State may not alter the income of an enterprise after the expiry of the periods provided for by its national law and, in any event, after the expiration of a period of five years from the end of the year in which the income ceases; which would be subject to such an amendment, but which have returned to that undertaking for the conditions referred to in paragraph 1. .
Foreign tax relief in the Canadian system is achieved through a tax credit and a deduction mechanism. A foreign tax credit of up to 15% for all foreign taxes withheld at source on real estate income (excluding real estate income) is permitted, although the credit cannot exceed the Canadian tax payable on foreign income. If the foreign tax exceeds 15% of the income, the excess of foreign taxes may be allowed as a deduction from the property income. This provision may harm foreign citizens who have foreign property income and live in Canada. (a) (i) in the case of dividends distributed by a company established in Canada, with the exception of dividends paid by a non-resident investment company, 10% of the gross amount of the dividends, where the beneficial owner is a company established in Portugal that holds directly or indirectly at least 25% of the voting rights of the company paying the dividends; controlled; 1 Income received by a resident of a Contracting State in respect of professional services or other activities as a self-employed person may be taxed only in that State. However, such income may also be taxed in the other Contracting State in the following cases: F – J Finland – France – Gabon – Germany – Greece – Guyana – Hong Kong – Hungary – Iceland – India – Indonesia – Ireland – Israel – Italy – Côte d`Ivoire – Jamaica – Japan – Jordan 11 With regard to Article 16, the remuneration paid by a company to a member of its management body for the pursuit of an uninterrupted activity shall be deemed to be: In accordance with Article 15( 1), nationals of a Contracting State may not be subject in the other Contracting State to any tax or regulation other than taxation and to the related requirements to which nationals of that other State are or may be subject in the same circumstances, in particular as regards residence. Without prejudice to Article 1, this provision shall also apply to persons who are not resident in one or both Contracting States. .
4 Profits made by a resident of a Contracting State as a result of the sale of: 4 The provisions of paragraph 3 shall not affect the application of a provision of the tax laws of a Contracting State: 9 With regard to Article 13(6), it is agreed that, if the Canadian legislation on the taxation of former residents within the meaning of the Canadian Notice of 23 December is amended, In 1998 (Communiqué No. 98-134), Article 13(6) was automatically replaced by the following: This Convention shall apply to persons residing in one or both Contracting States. 2 The Convention cannot be interpreted as precluding a Contracting State from levying tax on amounts included in the income of a State resident in that State in respect of a partnership, trust or controlled foreign subsidiary in which that resident has an interest. 5 If a company resident in a Contracting State derives profits or income from the other Contracting State, that other State may not levy tax on dividends distributed by the company unless such dividends are distributed to a resident of that other State or to the extent that the holding for which the dividends are distributed is effectively linked to a permanent establishment or a fixed base. in that other State, the company`s retained earnings are not subject to a tax on retained earnings, even if the dividends distributed or the retained profits consist in whole or in part of profits or income generated in that other State. . (b) Where, under a provision of the Convention, income received by a resident of Canada is exempt from tax in Canada, Canada may nevertheless take into account the exempt income in computing the amount of tax on other income. .
(2) Taxation of a permanent establishment owned by an enterprise of a Contracting State in the other Contracting State may not be levied less favourably in that other State than taxation levied on companies of that other State carrying on the same activities. This provision shall not be interpreted as requiring a Contracting State to grant to residents of the other Contracting State tax allowances, reliefs and reductions in respect of civil status or family obligations which it grants to its own residents. (a) subject to the existing provisions of Canadian law relating to the deduction of tax paid in a territory outside Canada from tax payable in Canada and any subsequent modification thereof, which do not affect the general principle of that right, and provided that the laws of Canada do not provide for a significant deduction or levy, the tax payable in Portugal on profits from Portugal; Income or profits will be deducted from Canadian tax payable on such profits, income or profits; 2 The Convention shall enter into force 30 days after the exchange of instruments of ratification and its provisions shall take effect: (d) the term “person” shall include a natural person, a trust, a company and any other body of persons;. .