Consultation on the draft legislation will close on December 22, 2024.
The Department of the Treasury on December 3, 2024, issued a release announcing exposure draft legislation for consultation aimed at introducing a new tax treaty between Australia and Portugal to alleviate double taxation and amend explanatory notes in the International Tax Agreements Act 1953.
The Treasury Laws Amendment Bill 2024: Portuguese Tax Convention - Exposure Draft would restrict Australia and Portugal's respective taxing rights to prevent double taxation and allocate taxing rights over various income categories, including business profits, dividends, interest, royalties, and pensions. The draft legislation also incorporates integrity and tax certainty provisions recommended by the base erosion and profit shifting (BEPS) project.
The draft legislation follows the signing of the Convention between Australia and the Portuguese Republic for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance on November 30, 2023.
Consultation on the draft legislation will close on December 22, 2024.