llETWEt:N rll.

L:RUGUAY A:-.D Till: 1'0RTt)GUESE REl'l; BUC Tilt:
The Oriental Republ,c OI'Crugllay and Ihe rlepublk.
Desiring to concliidc n Convcntion for tilC ,hoidarlcc of Double Taxation and the
Proevcrltion of Fiscal Eva,ion with re'f>Cet to Taxc, 011   ,,,,d OEi Capi( al:
Have agroecd as
'nlis Convcll1iol1 shall apply (0 pcrYms who arc res idents of une or both of tile
Contracting StutoCs,
I , '111is COl1vention "pply to laxes ('11 @dullcapitni imposed on behalf
of u Cuntracting Slate or of its politicll or a(lminist rativc suhdi\'ision, \)T 1"",,1
"fth" .. 1' in whid\ they an; Ievic'd.
2, There shal l be us !axeo OJ1 incomc on cQpitnl ull t<lxes impos<XI on
lOlal incomc, on tOlnl capital. or on clemcnt< of inc.)me. including laxes OI l Ii-om
the alienmioll ufmovable or inmlO"Jble property, on luta l mnuullts
or salm-;es paid hy enterprises, a, well a, la,xcs On arprc-.::ia!iul1.
3. Thc aistill!> taxes I,) which the   shall apply arc in
In Portugal:
i) the I'cr"onul Income Tax (Imposto sobre n das
Singular,," - IRS);
Ii) the CO'lX'rate Tax (Imposto 0 Rcndiment0 das I'CSSOJS
Colutivas - 11K): and
ii i) th", sunax on lax
(hereinafter referred 10 as «I'{1I'tugucsc ta.,»): .md
b) In Ur ltguay:
i) the ta.\ on bll$inC$S i",;"me (lmpuesto a las Rentas de las
Ecollomicas - lRAE):
ii ) th" il ,eOtlle ta:t (Impllesto a las Rentas de las Fisicas
- IRI'F);
iii) the non-residcm income lax (lmpuesto " h; d" los No
iv) the tax lor   '\,istcnci,] 1,1
v) the capital tax (lmpuesto I'ntrirnonio - 11');
(hercinuhcr rcferrl'd to JS ("Un'gu;'YIIn tJX») .
4. The apply also 10 any idmlicdl M ,illlilar taxes
arc imposed t he \latc or ,ignature or tile Convtlllion in mlditioll to, or in place of:
th" cxistl11g taxcs. The oolll)X-'1cnt ;luthoritics of the Contrading St"te$
of signi tle,mt l il:mg,,-'; that lIu ve been in taxation I<lws.
I . For pUrp<J>cs () I· Con ion, un k" the contcxt otherwi se reqUircs:
a) the tenn «Portugal>, means the territory of situated
in Cont inent und tlw of Azor"s ,lIld
including the inl and waters and ,ell ther"o!" wdl the
comincntal shcl r ,Inri wiler", n the State exercises
s{)v"rdgn rights or j urisdiction ill acoordunee with imernatioJ),l ll aw;
b) the term «Uwguay» means the territory of the of L: ruguay,
and when used in a gC(lgraphiea l sense mean, the territory on wbieh the tax
IJwo arc   including: the mJritime nrcas under Uruguayan sovereign
rights or jurisdiction in accordance with intcmational bw ami
e) the tCJ1llS Contracting Statb) UEld «the "ther Cont nlding StJk» mean
Portugal or L'nlgllay as the COllkxt  
uJ tlie tL'l1n «tax>,   tax pr tax ilS the context
c) thc [em1 «pcrs(11» ll1Cilldu; ,In in(\iv, dlllli, a and lilly othcr body of
i) the term «comp;my" means any bDdy C(lrPQratc or any ent ily i, treated
a ilOdy corporate for tax purpose,;
gl   of a C'-Dnt ra<:t ing SWtc» JnJ «cnterprise of lhe other
Contracting State» mewl respectively an carried 011 by a
of a Contrading State und ;m   on by a rL-sidcnt of the other
Contracting Smtc;
hl thc tcnn «intemalional traffic» means any IranslK,rl hy a ship or
operatcd by an cnttrprise thul hit:! its pbcc of Illunugcmcm ill a
Cotltra<:t ing Statc. except WhCll the ship or airerntl is sDlcly
between places in other Cont racting Slate:
i) lcnll   aulhontp'
i) 111 P() rtugai, (JI- the ofTaxmion
(Dirl"ClOr ·Ceral dos Impostos) or thdr representative: and
ii) in CnlglLny. of Economy (r>,.tinistn> de
Ecollum;a y or hi, authon ive:
j) the tcrm '<Il3tiotHll», in relation to a Contracting State, means:
i) any individual possessing the na1ionality or citizenship of tllat
Contrading and
ii) any legul person, or a,socilltioll its status as sueh
fmLT\ the in force i1lthat C01ltracting Stak_
2. As of Ihe Convention "t "Ily time by I'
any knn not defined therein shull , the context requires, have the
moaning that it has at that limc undcr the law oftha! Stat e for the 0ftltc
to which the Convcntion applies, any mellning under the applicable tax taw, of tlim
State pr<:vailing   to un(kr othn lawo ol"(h,,1 St'lle.

I. For the purposes of this COlwel ltion. Ihe term «resident of a Contract ing
any person who, tinder the laws of til a! is liahle to lax therc-in hy of
his domicile. rcsidtncc. plate of managcment. place (If incorporatioll 0" ,my other
cn\<:rion of a similar and al!«) indudc-> Ih<lt Jnd Imy IXJl i1icil i or
administ rative subdivi, ivll vr locill ,nnhority thcroof rhis teml. however. <10,,'3 not
include ony pi:rson whv is li"blc to in thot StJtc ill resp<.-ct on ly of income from
sourccs in that StJtc or c,lpitJI
) \Vhere by rcawn of the provisions of 1 all indlvldu;o] is J resi(km of
both Contracting States. then his status shal l be delCnnincd as follows :
a) he shall be dccmed 10 be ,I resident only of tbe in which he hi's a
permanent homc avaibbk to him; if hc has homc avai lable to
]1I[ll ill both States, he shall he a only oftloe with
his pcrsoll JI i1 ntl twnl)mi c rdati ons closer of vital

b) ; f th.., Slat.., ;11 which h.., ha, his of v;tal ;"km;ts h-t;
or if he has not home avai lable to him in either he
be deemed (0 be a only of the Stat" in whieh he an habitual
e) ifhc has an habitual abode in both Statcs or in neithcr of them, he shull be
to OJ only ()I' tll e State ()("which he;s
d) if he is :1 nat ional of both or of vf them. the COIllp<.;tcnt
of Ihc Cont raet;"g States shall settle the questi on hy  
3. Whcre by reason of thc prOV1SIons of p;trugntph I a pi:fson than an
inJlviiluul is a rc"iilenl of b.)(b C()<lt ractll1g Stat es. (ben it shall be to a
vnly of the St,l\C in whi it> PbLC 0 r dkctivc situat.:d.
I . For the 0 I' Ihis Convention, the lcnn I mcan, II
place of busincss through which the bu,ine<;s of an enterprise i<; wholly Qr partl y
cllrried on.
2. Thc term «pennUllcnt ind\,dcs
a) place ofmanilgt:menl:
b) a bral1ch:
c) a[loffice:
d) a faclory:
c) a workshop; and
t) 3 aLl oil ()r gus a quarry or olher ofn(ltunl i
3. A bui lding si te or con,truCliol1 or projed  
cstllbl nnl y , f it more than 9 (ni ne) months.
4. Notwi thstanding the preced ing pnwi:;iol1s of tll i:; A,l ide. Ih" !enn "permanent
establishmcnt» >h"lt be not to include:
a) the usc of s()lely li)r thi! ofst(lrage, display or dclivery III
goods oj' mcrchandise belonging: t() Ih" Cll kT]1n>c;
b) the maintenance of a stock of goods or mcrchandisc belonging t<J
enterpr ise $Oldy ti)r tlw 01' dl>play or deli wry;
c) 1he Illain\enanct: of a stock of goods or bel(Jtlging t() the
enterprise s() lei y tQr "f proccssing by another enterprise:
d) Ille maimenance of a of ,;oldy I,)r thc ,)f
purch;!sing gooos or merchandise or of eollcdi ng , nf()ml;otion, lor thc
e) the 1llnil1(ennnCc of n fixed of blJsine>s s()lcly tQr the purpo:;c or
canying on, t,n ally "tilcr nc!ivily of preparatory or
<iUxi linry charactcr:
f) the InJ intenJllce ()f lixed place of hUSIL1CS;; soldy for :lIIy combination of
activities mcntioned in sub-PJragr"phs J) 10 e), provi(kd that ovemll
adivity otUIC l,xed place of business resulting fn)lll c()mhimltiull i, ol' a
prcp;'nilory or auxi li :Jry ,'.harach.:r.
5. Notwithstatlding the pr<Jvisiolls of par"gr"phs I and:O a rcrson - other lhan
In of Ul ' il1dq){;ndent to whom 6 appli es - on bdlillf ()f
an enterprise 1111<1 ;",,1 habitually in a Contracting State all authority 10
concl ude L'O., !racts in tbe nilille ort ht: th"t bc to havc
a pcnWlllent eSluhlishment in that State in rcs poct of :my :!Clivi(ic> whk h Ihat pers()l1
ull (iertakes for the entooT]1rise, of person lire limit[:d to
" ,cntioncd in paragraph 4 which, if through a iixcd place would
not make lixcd plilce of busin<lss a rcriliancm the uf
lhat paragraph.
6, An shal l nOI be 10 have H p'-'flnallem cst;>l:>l ishmcn\ 11\ a
C-Ontract il1g S(uk merdy II on ,n Ihal State through a
gencrnl commission agcnt or Jily other agent of all independent status, that
IK.rsO,IS arc acting in the ordinary of their
7. bd that a which r",idcll t ()fa COlltracti ng cOlltro ls or is
controllo.xl by a company which of tlw other   Stale, or which
on bllsiness in thm olher Stme (whether through a permJllent eswbli,hment or
llthor",isc), shall nOI of itself o.xlllstitule company :1 pcnnanent establishmCl1t "j'
the othn.
I. Income I:>y " resident or a Qmtracting State from immovable pmpcrty
(including income from agriculture o[ for..,,; try) situ"kd in Ulher Cont racting Stale
I:>e in lho! other Statc_
2. The lem, "illln)()va\>le property" shall liavc the meaning whieh it has under tlw
law Contracting Staic in propc,1y in   The lem1 ,h,,11
in any include properly to il11lnovablc prop.:rty, livestock :IIIJ equipmcnt
u:)Cd ill agriculture alld rights to which thc pro\'isions of general law rcsp<.X:hng
prop.:rty upply, u>uli-ud of immo\'able propt:l1Y ami ri ghl' to variable or li xoo
payments JS eonsidcfution for the working ot: or the right 10 w(>rk,
s()urces am! olher natural ships and nireraft shall not I:>c rcgnrdcJ as
immovabk prop<."fty_
3_ 11\0 provisions ofpJragraph 1 shal l apply to illcome dcrivo.xl Ii-om the dirtx:l usc,
letting,     OT 111 ,IllY other f()ml ofilllJ1lova\l1c pl"Ilpcrty.
4. Tho provisions of paragraphs I atId 3 shJIl also apply 10 the trom
property"]' all and to iIlL"()11lt from 1[!llll<l\'uble propcrty lor
tho porfonnJnee of independent personal scrvius.
5. The fo[egoing , hall ;dw "pply 10   from ",ovable properly
to i,nn1ovahle property and from lhc proVi.,iOll of for the mai nlCllnnce Of
0lx-, ralion ofimmovablc propeny.
AK n('LI.! 7
I. Ille of an entcrprise of n Contructing 5';lIe shull be unl), III that
State unless the enterprise C3rr1eS on In the olheT Comruellng Ihmugh II
J1'I.m13ncIll c51ablishmcm silUml'(l Iherem. I r the carries 011 or lUIS earried on
as aforesaid, Ihe profilS of Ihe L"llICrpriSC may bi: 13.\<:d III the other Stute bUI
0111)' so oflhem as is nl\ribolnblc to thm p'.,'rmnnl'111
2. Subj.x:1 to the provj'i\lt1s or pnrngmllh 3, whclC an c11lerpnsc lJf:, ("011lmChng
SWI<.l carri es on in Ihe olher C",'tl1'lcling Slate thrOll gh 11 pcnl1:Ul cllt
e,tllhli shment siluated therein, Ihere shal l ill caell C[)ntraeli ng Slale be thaI
p'ennanenl establishmenl Ihe p['otits which It mighl be c\peetcd \() nwkc if il WLTC II
distille! Ilnd scpamte in the same or si milar activities under the s:mlC
or similar and deali ng wholly iru.lq)(:ltdently with Ihe cntl,,'fprisc of \\ hicll il t5
U pennmlem
3. In dctClTTlining the of a pcm1Dnent shall be 31101\ cd 3S
dl-duL1ions ""'pcuses which arc for the p"rpor.cs oflhe pcnn91lenl cslpblishnwJ1l
lllcllldlllg c.t ccutivc and I:c11I:1"111 admllll!.lralll'c expenses so llleum:d, whclher in the
Slule in which the permanl-"U is or dS/.-'whl're.
4. lnsnJi,r as il has beell ill:L State to detCrtlllllC the 10
be IJltributcd to a p..;nnanent l'Stnbl on the basi s lit" an apportionmenT or the toT" I
profits or Ihe to its P;lrts. nothing in l'aragral,h 2 11"11
Colttr.I!.:ti ng Slale rW!1l ,.ktcnnimng tl)(' t" be by such _"l upj)ortionmcJlt ns
may be custonlary; th" of opportionmem ml\'pteit Iwwevcr. he such
Ihe resul! shall be in accordance with the prinCIples contain¢'! in thIS Article,
s. 1'\0 profilll shull he anribulru 10 a pcnn:lnenl cstablishment h)' n:aS()ll vl"lhe mere
purchase by lhat peml:l.nenl of goods or ror the Cll1ttllrtsc.
6. For the purposes of the preL ... rmrugmphs, the profits to be Dtlnbuled 10 the
J)I-'nl10nl"llt l"Stabl ishlllC1l1 sh1l be detcnninl:tl by the same method year b)' )'l:3r unless
thttc is good and sufficiL'Ili l"Cll.;;on to rhe conlr.lfY.
7. Where protils include   of income wh ich arc dealt wilh in uther
Artiel of Ihis Convenlion, then the provisions 011 A not be ,Iffcctcd by
Ihe of this Article.
I. i'n,dits trom the operat ion of or alrcmti 11\ intcmatlonal trartie shall hu
taxabl e only in the ContrJc1ing State In the plaw 01' d1i:etive "r the
enkrpriw is situated.
1. If the pl"ce 01" of a shipping cnkrprise is abo<trd a
thcn it Shl, 11 decrn<x1 10 be "ituatc:d in the Contracti ng Stale in which ([ tC homc
harhol1r of thc ship or, if tiler" ",,0 such hariKlllr, 111 the Co,ttraeting
Stato of which thc operator of the ship is a
3. Thc provisiolls l1fparagruph I );hul l also to from the partieillatlon in
a PQol, ajoint business or <In intcrnutiOlliil <Jperaling agenty.
I. Where
a) an enterpri>e of iI COlltrac1i"g State or indirccli y in lit;:
ma"agement, cOJltrol or capital of an enterprise of the other Contructillg
Slale, or
b) the same persons partkip_lte dir""'tly 'Jr ,m\ircdi y in
contrvl or capital of att entl''llrisc of a ContrJcting Stale and all c1l1crprisc of
the ot h"f COlllri<cting Slale,
in eilllCr case conditions JrC or impooC(1 between tW(j in Iheir
COll1 merc,al llr fi nancial relat ions which differ from those whtd, would b<: made
b"twccn indqwndcnt tlien uny proli ts which wou ld. but for those
condi tions, hilVC aCCrtll'il to one of the ent erprises, bilL by rC'l >iJn ,,( condit ion"
haw nol so alXrucd, may be included i, 1 Ihe profits of that ent erprise and taxed
aecordi ,tgly.
2. Where a COn1racting i"dudc> i" the proll !s (>f a" enterprise or that -
IUld ucconlingly - profits m\ ,vhich an entcrpr i,c of the other Contract illg Stalt
has charged to tax in that ot h"r Slate the pruil ls ,,> inciu<bl are prot1 ts which
would   to the enterprise of the lirst-nwntiotlcd Statc if the conditions made
hctwren the two "merpriscs had those whkh w<Juld hav"
  then lhat OIher Stal", if 11 agrocs that the adjustmcnt made by
the lirst -mcnliollcd Stat e is justi licd both ill principle lind us amoullt. shall
make an ;Ippropriate adjust nK' lt 10 "Illount of the tax chargod the",in Ull
profi ts. In dctcnnilling sueh adjustment, du<: regard he ltud to th<: other provis ion,
of and lhe authoritic, of the Contracting States shull il'
consult other.
I. paid by a ' s u of a C()mraCling State to a
resident of the other C()ntracti ng Slate t'l xcd in that other Stnic.
'") However, sueh dividends may he taxed in the Contracling Sl"te ofwhieh Ow
compilny paying the ,\;vidcm\s " a resi,k"t "",\ I" lhe or lhat Slale. but
ift hc owner of the dividen,!> tS a_ res idcnt orthe other Cont racti ng StJIC, the
tax so charged shall not exceed:
a) 5% of the gross aillount 01' the dividends if the benefi cial owner is a
Wmpi!T1y thai holds   at lea:;1 25% IJf tht: (api ln] Ilr IIw (oillpatly
paying the dividends;
b) 10% of lhe gro," ",nount dividend" in al l ,)ther ca';n
The competent aUlhorities or the Conlracting Stale, shal l by mulual agreemenl sdtk the
Illode oL'pplication
3_ paragraph shall not aflCet the laxation uf the <1\ of thc
proii ts out 01 whielt the d,videmh are rai d_
4. The term (divi(knds» liS in this ,\l1iele llle,IIlS income from shar,""
sharl-"; or «jouissa"c@ Hli"i"g foullders' sh"res or olher
rights. nO! being dehl-claims. in prof<IS, well :1-' income Irom other
corporate rights which is to the SJ' nc tantion trCiltJ11C1l t incollw from
by t he of the Slate of which the company making the ;, a
5. The provisions of parilgraphs 1,2 ,lnd 3 shal l 110t :Ipply if the bcnctiei,, ] of
the being of a Conl racti,lg Stmc. <)n business in the
COlllrac!ing State of whidl the paying. the dividends i> a     through a
panmncn\   situakxi IherclIl, or pcrlolTIl:; in that other State
from u Ihcd huse si tuated therci n, and the holding in respect ol' which
the dividends arc paid is ctrcctivdy with eswblish mcnt or
lixcd In such casc the provisions of Article 7 or Arti cl e 14, as the case <Hay he,
shall "pply,
6 \Vhcrc " <'x""pauy wh ich is a of a Contracting protits or
income from Slate. lhal <lthcr SblC ]\lay "ot imposc any On the
paid by the compnny, inwl:n 'I, dividend:; I,,]id t() 1,
o1"t l1 ;l1 ()ther or i,\sot"r ftS holding in ()fwhich the arc paid is
ctTcctively with ]lennanent c,tl1blis hment or u sLtuilted in that
Other Stilte, nor subjeCt the company's lmdi wibutl'{] proiits to a tax 011 the
pm/its, even if (he I,aid <lr thc undistribLlK"{1 pwtils consist
wholly or partl y of protits or ; nc()me arising in miler State.
I. nl Contmding SIJk ami paid tQ 'I 01' tll" uther
Contracting Inay ill thut other Statc.
2. ,lIeh interest may also be in COll lract lng i" whi ch it
arises and to the (,If tim! StulC, but if thc bellctidal of interest
i5 ,I resident of the other Cont racting SUite, the wx Sl> c\1>lrgt:iI ,;lmll not exceed IO%, ()n
the gross () f the intl·rc,!. The aut horilil's of the CQntract iog SWtcs
by mutual tht of application \)1' this limitation.
3. The tenn {( i'1tcreSlil as used in Art]cle inc(ltne trom debt claims uf
every kind, wllCthn or n(lt seeunxl by mortgage ,lml whct her Qr [lot a right to
partici pat e in debtor's rmli ts, Jud in li'()m gQvemment s ..
and income from bonds or incl uding and prizes attaching \()
bonds or debentl]rcs. as well as whi d l is subjcctl'{] \(l the same
taxation income from money lent by   Qf in whi d l the
income arises.   for late payment shall not be regarded as lor thc
purlX's,;, "j' this Article.
4. TI1() provisions of puragraphs 1 an,! 2 "hall Tl ot irthe beneficial owner oflhe
itlteres\' being " of a Contracting on husinc":; 1Il the other
Contract ing State in whkh Ih" through a cst Jblishnlcnt
therein, or penOn1I$ in that other inde[>Cndent servi ces from a
tixL"{i thcrein. and the dcll1 claim in respect ofwhlCh pai d] s
dToclivcly cOllnL'CtL-.i with such pmnuIlcnt c,tahlishmcnt or tixcd hasc. In such the
provisions Qf Arlick 7 ur Article 14, the CHse may be, shall
5. Intcrcst shall be decmed IQ in ,1 Ol1ltracting State when paycr LS a
of that St;] le. however, the person paying the whcther hc i, a
resident ()f ;t Cont racting Stat e or not. hilS In Contract ing Stat e a
or a bas.;: in cOllllcct ion wi th which the inclcbtcdn.ess on whi.;:h the
intcrcst is p,ll J and such intcre'st is borne by such perm,mellt
.establishment or fixed bnse, then sueh inkn--st   h<' \0 in the Slale ill
willch the fl'Cnnanent .establishment or fixed is
6. Wlwrc. hy reason of a sfl'Ccial relat ionship Octween the payer and the beneficial
or buth of ,mil   otlwr person, th.;: amount of the intctc:<t
having fegarJ to dcbt -elaim I,,, whid, it is the tlJllUunt ",hid, would
been agrl"Cd upon by thc payer and the <lwl1Cr 111 Ihe of
rciiUiolls hi p, the provisions of this All ic\c shall apply only tu the
In such case, the excess part of the paymcl1ts shall taxable   to
the laws of Cont raCilng Slatc, regard being it;,,1 to the other provisions uf this
1. Royalties arisi ng tn a Coillfil cling State ili id paid to a resi dllrll of the other
Contracti ng Stille lIl ay he [axed in that other Stat..:.
2. However, such may ;Ibo be in (he Contracting State III whidl
arise and ;Kconl ing 10 th.;: laws of (hat Slaw. but if bcndki ;lI (""ncr oj" til..: roYJltics
\$ a rcsil!c1l1 of the other CUl1tr;!cl i\lg the (ilx >i' shall not excecd 10% of
the amount of the The lvmp<;lCnt of the SIatC5
shall by Tl1 Lltual settle the mode of applic.1t ioll of lhis limitation.
3. The lenn «royalties» 3S lISed in this Art icle me<ms payments of ;l!lY kiml received
as a   lor theu", M, or th.;: right to usc. <Illy of ,1l1 isti c or
scientific work, including fi lms, patent, trade llI ark, design or moocl.
plall . secret formli la or process, or for wnccming industri al, eummcrcial or
4. The I an(12 shall not apply iflhe bClldi dal uwn..:r()fthe
r()yalt i{'''';, being a resident of a COl1tr;Icllllg On business in the other
Contracting Slate in which the myalties arise, tluough  
situawd therein. or ill lhat olher Siak inJqwll<icnt services from
base situated and the ri ghl or in respect of which the roYJlt i.;:s arc
pJid cfti:elivcly with pemJal\cnt establ ishment Of basco 111
casc the provisions of Article 7 or 14. a.;; ilw lIlay be, shall apply.
5. Royalt ies shall
rcsid.;:nt (If that SUIte.
bc dCClllOO to in II COlltracling Stat.;: when the payer IS a
however. the person paying the royalties, \\ihethcr he is a
of :l Conlraeli ng Siale or nOI, has ill a Conlr.!eli ng Siale ,1
or " li.,cJ h"'" in eonnedi o" wllh winch Ihe obligation 10 pny the
royal!ic' such borne by such p"nnancnt or
then royalties ,hall be J"cm(J(1 !() in the ill which lhe
pcmwnent () r tiMxi ba>c is SitUo1M1.
6, Where. by reason of sp·eeial rdati'l<lship between th,; payer and lht henditial
owner or ix1w<.'tln oolh u!" Ihem ;mJ vtllL'!" IX''''lll. amount of thc
having regard to the usc, right or infonnat iol1 lor which arc p;lid, exceeds the
amount which would have been ngrccd llpon by the lluyer 'lI\d benefldal owncr in
the ubse!\cc of such relationship. Ihe provisions of thi s shall <lpply only 10 the
11"' 01.1111. In C<I';C, the part 01' Ihe puym<.lI1t'
taxable acoording to Ihe laws of cadl COll!racti ng StJt c. due regard bei ng had to the
of tillS
I. Gains derived by a rcsident of a Contractil1g State frO'll the ali cnati on of
immovable 10 in Article (, sil uateJ in thc ot her Contracting Slall'
may be taxoo in that other
2. Gains frolll of ml)vable prllpt;rly t'lnning part or tht
property of a permanent establishment which an enterprise of a S ha, ill
the other Stale or OflllOV:lblo property pert:lining tl) a t,,,cJ base
to n resident of;I Cont ract ing   ill the Coni metlll g Slale lor Ihc purrl<.'>t' of
])<' rlomling independent personal services, including snch gains from the Jlienation of
sueh a pcnll<Il1cnt (alone or wilh the whole or of such" fixed
base. may be !Jxed in thm other State.
3. from the al icllHlion of shi ps or aircraft in internatiol1al lratlte or
from prol}l; rty p<:rt ;oining 10 "f shi ps or shall
taxable onl y in the Contracting State ill which the place of effect ive mJllageme1l1 of the
c1l1erprisc is situ;!t"d.
4. derived by a residenl ora C01l1 r<lcting Slate from the 1IIicn;'!;l'n of shares 01'
(If J interest dcriving more lho.n 50% of thei r value directl y or indirectly
from immovi,ble property situ:ltcd in the other Contr:lcting Stat o may be taxed in thai
I)lher Stat e.
5, G"in:; Ii-om the 01' any properl:'_ than thut rd"rred to in
paragmpbs L 2, 3 and 4, be taxable o,lIy in the Contracting (tf which the
alienator is a resident ,
I, Irlcomc derived by a resident of it St:rte ' n of prokssionu l
>;(.'Tv ites or other aeti vitics of an indcp<.ildelll character sh:lli be taxable only in tlmt State
unless he regularl}' available \(l him in thc other Cont racting Stak for
the purpose of perfe rmil1g his adiviti c:; , Ifhe hilS such i!   the income mily be
in the Contracting but onl y so much of it as is attributable to thm iixed
2_ The tenn "professional servkes» inetlll!..:s cspociall y independell1 scientific.
literary, artislic, <-,<iucational or teachi ng act ivities as wd l ;IS the indcpendcnt ncti vities
of physici Jns, 1;lwycrs, cnginC!;,-,;, dcnllQs and aeOOlLtllnnt"
I, Subjoct to the provisions of 16, Iii, 19_ 2() and 21, wages ,_ til t!
si milar remunerati on dcrinxl by n resident of ,I Contfa d ing Staw ill resl>Cc! of ,Ill
shull bt taxable only in that State unless the cmploymcnt is cxercised in
the othcr ContrJct ing employment '" rClllullnation a:; i,
Ilerived therefrom mny be taxed inlhat other Stmc,
2_ Notwithstanding   of p'''agrilph 1, hy ,I
resalent of a Contracting in m;pcct of ,Ul ill the
('ontriKt illg Stak $hal1 be ta-"lbl e only in III C State if:
a) recipient i, pre,em in the other State for a pcriod or I}cl' iods nol
exceeding in the   Ig3 day' u1 :my lwdve month p"ri(><I
or ending in the fiscal  
h) the remuneration is paid by, or on behnlf an empl oyer who is not a
resi dent (,fthe other State, and
e) t he remullcration is 110t borne by ,I p;omwnent or
whidl thc employer has in tbe St;ltc_
3. the prcc<-'il ing of this Article, remulleratJon derived H1
resped of all cmployment exerei>ed ab(),lru .1 ship ()r mrcnlll Op"tatl'ti iu  
trunk may be taxed in Contracting Stil te which the pl:lce of
manag<.-1ncnt of the is sitU<ltcd.
  and otl,er similar payments ,kri vcd by a ofa ("ontrading
in his a ()i" the ooanl " f director.<.
i){)ard or of an()ther simil;' r ()rgan oi WhlCh a of the other
CilJltraeting Stnle may be ill thJt other Stat e.
I. NotwithSWllding of 14 15. income <krivcd by
resident of a Cont racting <1S an c] lkrtaincr. a lheatre.motion radio
or tcicvlsion ;<rtistc, or a musidall. or as 11 sport ,nwn, frum his pcr,onal II cti vitics as
such in tlw Contract ing Stale may he taxC{1 in that other S tatc.
2. Where ineome in resp(,'Ct of exercised by nn cntcn:amer or a
sportsman in his c;lpaci l y as such not to the .. r or 111 bllt
to pcrsOll , Ihat i neollle may, ng the provisions of Anicles 7. 14 and
15, be taxoo in the CQJltrading Slak in which the <,l1" Dr
Sponsmil n
10 or 2 "I' Article 19, pensions aml
remuncration paid to u of U Cont r"cting Stilk in CVll,i,kf;ilion of past
shall be taxable only ill that Stl tC.
I. a) wagl""S and other simil ar rCtHUI1Cr;ltion. ot her th'ln " pension , l':1i(1 by
;, Staw or a political or administrat ive subdivision or a local
thereof to IIll i1l(lIvi dllaJ in respect of services re ndered to that State
or subdivision or authority shall be w.\ilble oilly in that Slilk.
b) ... sal;l ries, nnd <t ther si milar rcmuneration shall he
taxi!bl e on ly in the other Contrneli ng Stl1e if the are inlhat
St;ltC and the is a oflhat St ote whQ:
i) is a "fthm StinC; ()r
Ii) did !lOt bc«mh.' a residenl of that State solcly for the purposc of
rendering the 5(.'r\·1cc;l.
2. a) olwith'lIln<ii11l> th.., pnwisiuns <)f p<l raj;raph I, Il<:nsiolls and ot h<-T simil ar
remuner:uiotl by, or (lUI uf funds er"':lled by, u Contract"l!; State or:,
political ur udministrdtl\e subdil·isiun or a [oc;al aUl hority t[u.Tt.'<)f to an
individunl U1 11--spect (l[ I\.'lldcrcd tu thol Smte or or
authori ty s)wll taxable on[ y in that SUIte.
b) Il ol'ew", such   and   si milar rcml11l cmti on shull he
only in the other ContrJelillg Scatc if the individl1:tl IS a rcsld<1u 01: and a
Ilotlonal of, thnt
J. The   of II rti cles IS, 16. 17 imd     10 >-aiancs. wages,
pensions, mill t,tit er slntilur remuncr:lli(m in TCli[)<;.'l.1 uf SCrviCdl rendered ill ... ·(lIl1lcction
wnh a bosinC:!ls GJrricd on by a Contrncting Slnte or n poli tical or ::ulmllllstrnti\c
subdivision or ,L local HUlhority t1Jcroo[
An in(li vidlla! who is or a Tl.'Sldc Il t of .. C:ot\trJ.el; 1LS Stille imllll·tHule!y bclf'n:
visi ling the oll lL'f Ciltl lmel ing SWt c, sol ely for or teaching or
n:scarch at un univer'1lity. wlkSt:. schooL ur mher $;rni!ar oooe;l1iol1,1I or scientilic
fCS<.".rrch instttution which IS rccognll.<'<i non-profitable by the Government or that
other Slute, or lind ..... an olliei:..! 1)l1)"rJ."' lllC of cultural uehllngc, fuf Q pt.-riod npt
uc<x:dil1 g two yeHr, from datil of his tir,t ill lhat other St"te. ohall he excll1 [l1
from tax in thaI ot her Stule on his re"tuIlCJat i"n fur such !\<a(hi Il!; or research.
Payml'llts which a stodent ur bosiness apprenlice who is or was immediutely
before visi lt l18 a Contmcting State a n.",idCtlt of the other Contf'dL1ing Sinle pm! who is
present in the fir.; Hnelltil>n ... ,l Stut ", solely ti,r ro r his or tmining
recei ves for Ihe purpose of hi s OOll (:dtiiJ tl or training shall \lot be taxed in
State, providoo thm paymentS :lriSC !rom sources olltside that SUlh::.
(icrived by 11 residcnt of a Cont ractl1lg $tate. not with in the
torcguing Artidcs 01 CD1,vclHion. and a ri sing in the olher CDlltracling State nwy be
ill that other Stak
I . r1.'prc,cntcd hy immovable properly referred 10 in Art icl e 6, owncd by n
residelll llf a COlllmcting und si tuatcd ill the 01 her CllT1trading S mal' taxed
in thul other State.
2. Capiwi hy movahle property forming part of the business property of
u I",nt,anc[il establi shmcnt which an 01';1 <011lradmg Stute in the other
Cont ract ing St;lte. or by 1T1 11vabk properly pCllaining to a fixed bose which 3 resident of
u Stat e in thc other Contracting SWlC Ivr Ih", or
independcnt prot(:ssional mil]" be in lhal othcr Slate.
3. Capital by ships and aircraft operated ill illternational trani<:. and by
mov<l ble property pcrtaining to the operation ofsu<:h iiircrulL ,hall be taxable
only in thc Contracting Stille in which Ihe of dfl'Cl iw management of the
CIllCrprl S", is , itllU\cd.
4. Al l ot her clements 01' '-"'pita] of a of a Contracting State shall be taxable
only in
!, III th" <If Portugal, doublc taxation shall be   ti)l ll)ws:
a) Wilerc a resident of )'Oriugal derives or OWnS which, III
with the pl"llvisiQns of this Convention, [Hay be taxed m
I'ortugal-,hali ali ow:
i) as a ,kdUdion from the tax on thl or that resident. an amount
equal to the incomc lax paid in Uruguay;
l i) as n dcduction from the tax on the capilal orlhal an ;!mount
cquallO the capital tax paid in Uruguay.
Such deduction in cither cusc shall not. however. th,,! pil rl of lhe incomc
tax Qr the !3.\, liS computcd beforc thc deduction is givcn. which is
ilttributablc, as the case may he. to the income or t he   whidl Illay be
in Uruguay.
b) ""'hcre in accordance wilh any Q f [his COllvcmion inoolnc (k"Tivc<1
or capital owncd by u resident of l'ortugal exempl Ii'om la.\ 111 lh]s Stntc;
Portugal may nevertheless. in calculating the JmOlml ofla.\ on th.., remaining
income or capital 01 sueh residenl. tuke Into account the exempted income or
2. In lhc ease of Uruguay, d"ubk $1\<111 b .. , ilv\liJ..x1 as
a) in Urugll:Jy. income which has, in with
Portuguc>c bw and Ull(k>r tlw l'rovi,io<ls Ilfthis CO<lvcn1i on. subjcctlo
taxalio" Lll POriugal, mil)' ta.\ so paid any
p"yabk in f .. ,>p..,d subject to Ihc provision,
oj" law (of Uruguay. The shal l also JPply in r..,sp·,,'Cl of capiwl which
hns, in wilh   h,w under of this
Convention, bcrn subJcct to luxat ion ill Portllgil l: Ihe tax so paid may
b.., uny l;tuguayall p:lyable in respect ofthc same capital.
to th.., appl ieabk or tlw law of Uruguay. Sueh ,\oouetioll
,hall not . however, excc!cd thJt p;'rt of the ti!'\ 0" income or
("{)l11putcd before thc deducti on is gtv..,n
b) Wh..,re.; n with :my rmvisio[] of lh.., CQIl "<:I1tioll. illcom.., deri v..,d
or capital own..,d by a lit" Uruguay exempt trQm la.\ i\1 UrugU:lY.
Uruguay llIay Ilcvclthckss, in cn\cu\millg lh.., amount 01" tax on
or 1 of s take inlo account eX\"1nptcd
incont.., or
.''IRTICI_E 25
I, of a Conlr,Holing Slale ,hill l ""I he subJed"d in lhc Ol lwr
State to any taxation or rullTIcde<J   whieh is othcr or morc
burtlens.omc than the taxation and conmx:te<J requirements to which national s of tbat
Stale in thc samc circumstanccs, in panicular with rcspoct to rcsidc"cc, arC or may
bc subjccted. This provision shall. notwithstanding the oj' Artiele I. abo
appl y to p<;r:;ons wilo arc nOl of one ur lxlth of the Contr3cting Stak,L
2. The on whid, Or;! C<J[1twc!ing
$tute h3s in othCl' Contracting State shall I\ot be Jilvollrably lcvie<J III othcl'
Slatc Iha" til" l3xulion kvied 011 enterprises of that other State canying nn tlie sallie
activities. Tilis provision shall nOI bt' obliging a Contr"d,ng SI;lte to grilllt
to rcsidtll\lS of the oIlier Contracting StatG any personal al lowances. and
reductions tor taxation PUIlX)Se, on aCC<.\llJlt of civil st alU> or tJlll ily
which it gr""b I(l iI, own
3, Except where the provisions of paragraph I of Article 9. paragraph (, of Article
II, or paragr<lph (, of Article 12, apply. illtcre,!, paid
by an entcrprise of a Contracti ng StJtc to u resilknt Df the Dther Contract i 11 g St.,te shall.
tur the purpose of ddennining the profil;; of ,uch ent erprise. be deducti ble under
the S;1I11C <1$ i r thuy had hccn paid 10 re,ident of the lir:;t-mentioned S tatc.
4. Enterpriscs of a Contracting State, the capital of which is wholly or part! y owncd
or contrulkd. directly or )lldiredl),. by one or ",um   of lbe ollwr
Slate, shall nOl be subjeete<J in the St"tc to !lny taxation or JI1Y
requirement eO!lJlcdcJ therewith which is <Jth",,. or more than the taxation
allC conne<;tcd requirement, to which other similar of the ti rsHl lCtl lio[)ed
Swte or may be oubjccto:d
5. The 01 this Article shall,   the oj Article 2.
apply to taxes of every ki nd anc
I . Where l' pCri;un thai Ihe ad ions uf une <Jr b01 h of ril e COnTnict i ng
resuh or will r<.-""Su ll tor him in taXJtion not in IIl'Cordanl"e with the provisions of thi,
Convemion, hc mJy. irrespective of the remedies provided by 1he domestic law of
States. present hi s case to the authority of the St at e of whid l he
is ;i. resident or. if case un(Ie!' parugr"ph I of Article 25. hi lil:,1 <)f the
ContrJct ing State of which he i, 1\ na1 i()I\u l. The case musl be prl"Sel1wd within three
years from the first Ilotiiication of the action r<.-'Suitmg in taxation not in accordance wilh
the proviSions of the Convenlion.
2. The oompetent authority shall endeavour, if Ihe objtxotion 10 il to he
j usriiied and ifit is not itself ablc 10 arrive 1\1 a s.atist;1elory solution, 10 the  
by nll.ltual agn."t-11wnt with the cOnlpdent authority of the olher Slate. wilh a
view to the   <)1" taxalion which not til   wLlh rhe Any
agr<x:ment reached sholl be   nul ..... ithstanding any time limits III the
luw 01" tile Contnlning Statu.
3. The oompelCOl of the Crmt racti ng States shal l endca .... ')ur 10 res"lv,," hy
mutual 3W"cemcnt UIlY or doubls <Irising ,IS h) Ihe intcrprct'llion or
application 0 f the Convention.
4. TIle authorities oflhc Contr3cting Staks conlllllUlIcntc with each
other dirCClly for the purpose of rcuehing all agR""CmCI1l ill the sense of the pnx:cdirlg
paragraphs. il adviS<lbk in order to reach agreement to h,lve an oral
of op,nioJls, such may take place through a Cor1H1llssion <:<.ll1,lSt\ll g
of ves of the competent alilhoriti es of the Contracting S
I . The autllorilid; of the States shall
informm ion liS y     f<)r lIut the provisio"s or t his   ion
or to the adrnini,tration or of the dOlllegtic laws taxes of every
kind 1,11<1   on bellal f ,) i' I he Conlracti ng or 0 r their pol, PI"
!l(ilninistmtive subdivisions or local allthQritiL"S, insofar as the taxation thereunder is not
contrary 10 the The exchange of information is not restricted by Articles I
arid 2.
2. Any infonnution rcceivl-d under 1 by a Conlractlng Stale shall be
us rhe "lrT'"   as i"f<lm"!ti,,rl "btaill<x1 unJ er" laws "f
that State nnd shall be. disclosed only to I>CNJU'i or (induding and
with tlte or wllection o[
or jJfO>ecut ion ill rc>pect oJ: t of appeals in rdmioll to the tuxe,
10 in paragraph I . Of the oversight ofthc ai>ovc, SUdl persons or Shil ll use thc
infonnalion only for such purposes, They ll iay int()fInati oll in public court
proccedi ngs or itl j lIdieial decision,_
3. In no casc shJII the provisions of PJfagraphs I and 2 be cOllstru",1 S0 as to
impose on n Contracting State obligation:
a) to carry Olll administrative I\lca;;urcs at wilh the Jild
admin ist rati ve practice of thm or of tile other Contracting State;
b) to supply inl'lTInatii,n will d l b n0\   the laws or in the
COIlfSC (If the administrat ion nf that or of the other l State:
e) to infomlaliol1 ",bid, woul d <lny trade. industrial.
c<lImllereial or or trade or inlUm' ;otiO!l. the
disclosure of which would he C011lfMY to policy (ordre puhlic) _
4. Ifinfom'<ltion i, by a Cotl1racling SW-te in with this Anielc.
1he olher Con!rac!iug Stalo.; ii, gathering mea,ure> to ()btain the
rCljuestcd inf()rmation. even though that other State may <lot nnx! such infonna!ion for
its OWII tax purp""'.s. The ohligation in pR'(:cding is subject to
lhe limitations of paragraph J hut in no case shall such b" 10
peml it <I COlltracti'Ig Stat" to dedinc to supply i<ltom1«t; o" solely bcca!'se il has no
domestic interest in such illfonnation.
5. In no C<lSC shall jlwvisions (I f pliragr'\l'h 3 be 10 p<:ll11it a
Contracting State to declinc to supply infonnmion solely hccause the infonnati o" i$
lield by a bank, othcr finHncia l institution. nominee or person acting in all agency or"
fi duci :iry or bccauw it rcLucs to p i nkrc>t> in i! person.
in this Convention shall atk.::t the " I' of
diplomatic missions or consular posh the general rules of intemmional law ()r
under the provisions of sJX"Cial agreements,
1. This Convctltion shall IlltiJ 1hi,1y dnY$ ;dkr thc ofrcccptH)n of the
1:ltter of thc>c   by givillg rj()ticc. in writing and through the diplomatk
channcis, thm the rC(jlll rl'{l hy j'l\" '"
completed Ivr
2, The of til is Convent ion simI! hnvc em:CI:
,,) In Uruguay:
i) In rcspwt of taxes of a IlJture, 'IS 10 income !:>xes relating 10
the ycur l>cginni ng (,11 or afkr the datc on whieh 1he Convention
enters into
ii) In "I! (J lhn e",cs. on the date on whieh the Convent ion into
forec: und
b) In Portugul:
i) In respect of !,lX""; withheld iil the Iud giving rise to
on or after the I st day of January of the year next
following   in whLd t till S Convent]()]i cntcrs into force;
ii) In respect of other as to inconle in any 1; ><:,, 1 ye"r
beginning Oll or alkr the I st day of <. )f the Gil cndar year nexT
following th,l\ in Ihis into turce,

I. ·111<:: Convemion II in i ndcli nit d y.
2, Ei ther Contrll(;ting Slate may tenninat the COllventioll a period of live years
from the datc on which the Conventi on enters into force, by giving notice or
tcnninat ion, in writing lilld Ihrough diplomatic chnnnds, mceivw no later thJnthc 30"'
day of JWlC of a.ny year
3. In event, the Convent ion slmll CCJ SC to h;Jve
a) 11\ Urugll,ly:
i) In respect oftaxcs of a periodic nature, as to income taxes rclating to
the yc;!r beginning on or afkr th" day of J;!nuary of
"alendar year ncx( f01l0wi11& that in whieh the nOli"c of termination is
ii) In all CJ8CS, un or "nn I· day of hauary oj'
year next foll owing thJ! in thc tlotke of tcnnin'lti(ltl is given:
b) In Portug,!I:
1) In re;;pect of taxes withhcld at SO!lrCC. the fa ct giving rise to them
appearing on or ancr thc I s! day of Jarl1lary of the calcndJr year next
!()llowing that in the said  
ii) In re>pect ,,1' utller to incou\C" ari,ill£, in any iisc;JI ydlr
beginning on or atlcr tile 151 (by of J.muil!)' vI' G! lendar )'l'<!f
tollowing that in the said notice of tcrmination.
l:-l WITl\ESS WHEREOF the signatories, duly authorisc<110 that .:!lee!, bav.: s ignl'd
DONE AT , of of200L. in in the
Portugucse, Spanish :md Engl i:;h language:;, alltcx!s hei"g 'Iuthmtic, In case of
the English tcxt shall prevail.
For the Oricntal [{cpu!;!1 ic of C For (he Portugu{."Sc
On signing the COllvention bC1ween the of Un,!:uay and the
Portuguese Rtl'ubl I"r tlw A voidance oj" D(,uble Taxation and thc Prevent ion of Fis, al
Evasion wi1h ReSPl"L1 10 Taxes on and ()n C 'pitli l lhe signlltories hove agreed
that 1he following pr()visions shil ll form all inkgral part of the Conventi on.
I . Ad Artidc 2, paragraph 4 (TaxL' <xlVcrcd)
Notwithstanding the provision of 4 of Article 2 (If the COllVLIlti()ll . if
Ponugal a tax ("I worldwiJe capital ' mder iL, domes ti c bw, the
will nOlify to the L' ruguay,m authoritiL> or bringing into alld wi ll
discuss with each other the inclusion of such tax within the scope of the Convention.
2. Ad Art icle 8 (Inl cmati onal
c()mpilni c$ Ii-olll wunlne> agr(lCd to carryon ,\11 air
transportation business together ill thL fonn of a consortiulli or a simi lar foml of
nssocialiof1, the Q r pnrngraph I Q I' 8 of ConVClltiQIl npply 10
sueh part of the proiils of the consonium or nssoci at ion as corresponds to the
  held inthu\ consort Ium \IT (,,\.OCiali()1l by u wrnpany thill LS" rcsi\!cnt ()fa
C01l1rac1ing Smte.
3. /\tl Article 10, paragraph 4
In of ['QrtUgil l, it   tlt;Lt «Dividend>" also includes
pr() i] t" attributed under an nrrangemcnt for part icipation in profIts (""lls.I'(K; ia{,iio {' m
parlicipa(Ctio .").
4. Ad Article 16 (Dirc<:tors' Fees)
The teml in 01" Uruguay Jnd mei!l1> iI Board of
Di rector:; ,
5. Ad Article 27 (Exchnngc of Inlonnatioll)
The Contr;,diog Stutq comply with lit<; I,,, the of
computer files pers.:.",,,] data as   hy the Untted NiJt,ono GcncrJI
Asscmhly Resolution A;'RESi45i95, adopted on the 14'" Deccmber 1990,
6. Ad Article n , 5 (Exchange ofi nt0ml'l1 ioll)
Nut",ilh';t"nding   restriction to the to infornwtion i,1
par.lgrilph 5 of Article 27 o llhc Convention establiiihcd by lhc laws in force in ei lher
Contract ing State, to the that this h"s b(Tn r"tificJ hy the Wlllpcknt
Legislative Powers Jild into 1l will tht legal   I,lr
CO!ll plying " .. ith any information n:'1uc:;t, including infonll'lljnn hel d by
instil utiort, wi lhin the score of tht Convcntion,
7. Enti tlement 10 the benciits oflhe Convcntion:
;I) It umler:sto()u the pnwi,ions of tli c. Convention shall not be eonstnlcJ
>0 as to the by il CO!ll raning Slale  
provisions pro'..-i dcxl for in its domc,tic law:
ill [t is understood in the ConvcntlOn ,hall ,,, ,t be
grunltXl 10 a resi dent of a Stilte who is not
in the C(l!l lrading Slate,
IN \VlTNESS WHEREOF signutori..,,; , duly   to thal etfeel, h"ve Signed
thi s Protocol.
DONE AT tt,fo-r,{ , this ::.d\ lay of of200.i, ill in Ihe
Portuguese, Spanish and English 1"l1gll;lg<S, bemg authent ic. In of
divergencc, English tcxt shal l prevai l,

For the I RcpubJ ic of For the [' ortugltCSC Republic

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