The states of Portugal and Australia celebrated a tax treaty on Thursday, which will allow for the removal of tax barriers between the two countries. The double taxation agreement was signed by the Australian Ambassador to Portugal, Indra McCormick, and the Secretary of State for Fiscal Affairs, Nuno Santos Félix (both pictured).
The now signed agreement has been under negotiation between the two countries since 2021. This convention aims to facilitate the completion of business between Australian and Portuguese companies, through more attractive tax conditions, protected by appropriate legal standards for commercial exchanges between the two states.
In this way, the double taxation treaty provides, for example, for the reduction of withholding tax on dividends, interest and dividends royalties – which will reduce tax barriers to investment and the associated costs for businesses in accessing capital and technology.
The agreement also includes the Base Erosion and Profit Shifting (BEPS) recommendations – formulated by the G20 and the OECD –, aligning the treaty with the fight against tax evasion and ensuring that multinationals “do their fair share pay taxes”.
“The treaty signed today is of enormous importance, as it will facilitate investments and trade between the two countries, at a time when economic relations between Portugal and Australia have been growing,” notes Nuno Santos Félix, quoted in a statement from the ministry of Foreign Affairs. Finances.
“The treaty represents an important milestone in removing fiscal barriers, facilitating trade and investment between the two countries and further strengthening ties between the two peoples,” Indra McCormick said in a statement published by the Australian embassy, sent to essay.
The Ambassador highlighted that “there is growing momentum in economic relations between Australia and Portugal,” with bilateral investments totaling €700 million per year since 2017. “Bilateral investments have more than doubled in the last six years,” and “ bilateral trade is up 55% to 423 million euros,” said McCormick.
Indra McCormick says Australian companies have not only “increased their interest in investing in Portugal”, for example in the energy and tourism sectors, but there is also “a growing demand for Portuguese products in Australia”.
“Portugal and Australia are secure countries and stable democracies, with a strong commitment to the rule of law, and are attractive and competitive destinations for foreign investment,” concluded the Australian Ambassador to Portugal.
Portugal currently has 78 tax treaties in force with other states (you can consult them here).
Dinheiro Vivo journalist
Source: DN
