ARTICLE 20 Pensions, Annuities, Alimony, and Child Support 　　1. Subject to the provisions of Article 21 (Government Service): 　　(a) pensions and other similar remuneration derived and beneficially owned by a resident of a Contracting State in consideration of past employment shall be taxable only in that State; and 　　(b) social security benefits and other public pensions paid by a Contracting State to a resident of the other Contracting State or a citizen of the United States may be taxed in the first-mentioned State. 　　2. Annuities derived and beneficially owned by a resident of a Contracting State shall be taxable only in that State. The term "annuities" as used in this paragraph means a stated sum paid periodically at stated times during a specific time period, under an obligation to make the payments in return for adequate and full consideration (other than services rendered). 　　3. Alimony paid to a resident of a Contracting State shall be taxable only in that State. The term "alimony" as used in this paragraph means periodic payments made pursuant to a written separation agreement or a decree of divorce, separate maintenance, or compulsory support, which payments are taxable to the recipient under the laws of the State of which he is a resident. 　　4. Periodic payments for the support of a minor child made pursuant to a written separation agreement or a decree of divorce, separate maintenance, or compulsory support, paid by a resident of a Contracting State to a resident of the other Contracting State, shall be taxable only in the first-mentioned State. 　　　　　　　　　　　　　　　ARTICLE 21 　　　　　　　　　　　　　　Government Service 　　1. (a) Remuneration, other than a pension, paid by a Contracting State or a political or administrative subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State. 　　(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: 　　(i) is a national of that State; or 　　(ii) did not become a resident of that State solely for the purpose of rendering the services. 　　2. (a) Any pension paid by, or out of funds created by, a Contracting State or a political or administrative subdivision or a local authority thereof to an individual in respect of services rendered to that State, subdivision or authority shall be taxable only in that State. 　　(b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident and national of that State. 　　3. The provisions of Articles 15 (Independent Personal Services), 16 (Dependent Personal Services), 18 (Directors' Fees), 19 (Artistes and Sportsmen), and 20 (Pensions, Annuities, Alimony, and Child Support) shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political or administrative subdivision or a local authority thereof. 　　　　　　　　　　　　　ARTICLE 22 　　　　　　　　　　　Teachers and Researchers 　　1. An individual who is a resident of a Contracting State immediately before visiting the other Contracting State and who, at the invitation of the Government of the other Contracting State or of a university or other accredited educational institution or recognized scientific research institution of that other Contracting State, or under an official program of cultural exchange, visits that other State solely for the purpose of teaching or carrying out research at such a university or educational institution shall be exempt from tax in both Contracting States on his remuneration from such activity for a period not exceeding 2 years from the date of his arrival in the other State. An individual shall be entitled to the benefits of this paragraph only once and in no event shall any individual have the benefits of both this Article and Article 23 (Students and Trainees), either simultaneously or consecutively. 　　2. This Article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons. 　　　　　　　　　　　　ARTICLE 23 　　　　　　　　　　Students and Trainees 　　1. (a) An individual who is a resident of a Contracting State immediately before his visit to the other Contracting State and who is temporarily present in that other Contracting State for the primary purpose of: 　　(i) studying at a university or other accredited educational institution in that other Contracting State; 　　(ii) securing training required to qualify him to practice a profession or professional specialty; or 　　(iii) studying or doing research as a recipient of a grant, allowance, or award from a governmental, religious, charitable, scientific, literary, or educational organization, shall be exempt from tax by that other Contracting State with respect to the amounts described in subparagraph (b) of this paragraph for a period not exceeding 5 years from the date of his arrival in that other State. 　　(b) The amounts referred to in subparagraph (a) of this paragraph are: 　　(i) payments from abroad for the purpose of the individual's maintenance, education, study, research, or training; 　　(ii) the grant, allowance, or award; and 　　(iii) income from personal services performed in that other Contracting State in an aggregate amount not in excess of 5,000 United States dollars or its equivalent in Portuguese escudos for any taxable year. 　　2. An individual who is a resident of a Contracting State immediately before his visit to the other Contracting State and who is temporarily present in that other Contracting State as an employee of, or under contract with, a resident of the first-mentioned Contracting State, for the primary purpose of: 　　(a) acquiring technical, professional, or business experience from a person other than that resident of the first-mentioned Contracting State, or 　　(b) studying at a university or other accredited educational institution in that other Contracting State, shall be exempt from tax by that other Contracting State for a period of 12 consecutive months with respect to his income from personal services in an aggregate amount not in excess of 8,000 United States dollars or its equivalent in Portuguese escudos. 　　3. This Article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons. 　　　　　　　　　　　　　　ARTICLE 24 　　　　　　　　　　　　　　Other Income 　　1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State unless they arise in the other Contracting State, in which case they may also be taxed in that other State. 　　2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property (real property) as defined in paragraph 2 of Article 6 (Income from Immovable Property (Real Property)), if the beneficial owner of the income, being a resident of a Contracting State, carries on or has carried on business in the other Contracting State through a permanent establishment situated therein, or performs or has performed in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 (Business Profits) or Article 15 (Independent Personal Services), as the case may be, shall apply. 　　　　　　　　　　　　　　ARTICLE 25 　　　　　　　　　　Relief from Double Taxation 　　1. In accordance with the provisions and subject to the limitations of the law of the United States (as it may be amended from time to time without changing the general principle hereof), the United States shall allow to a resident or citizen of the United States as a credit against the United States tax on income: 　　(a) the income tax paid to Portugal by or on behalf of such citizen or resident; and 　　(b) in the case of a United States company owning at least 10 percent of the voting stock of a company that is a resident of Portugal and from which the United States company receives dividends, the income tax paid to Portugal by or on behalf of the distributing company with respect to the profits out of which the dividends are paid. 　　2. In the case of an individual who is a citizen of the United States and a resident of Portugal, income that may be taxed by the United States solely by reason of citizenship shall be deemed to arise in Portugal to the extent necessary to avoid double taxation, provided that the tax paid to the United States will not be less than the tax that would be paid under the Articles of this Convention if the individual were not a citizen of the United States. 　　3. In the case of Portugal: 　　(a) Where a resident of Portugal derives income that, in accordance with the provisions of this Convention may be taxed in the United States (other than solely by reason of citizenship), Portugal shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in the United States. Such deduction shall not, however, exceed that part of the income tax, as computed before the deduction is given, that is attributable to the income that may be taxed in the United States; 　　(b) In the case of a Portuguese company that receives dividends from a United States company in the capital of which it holds directly a participation of at least 25 percent, Portugal shall allow a deduction for 95 percent of such dividends included in the tax base, provided that participation was held for the preceding 2 years, or from the date of the organization of the Portuguese company if that occurred later, but in either case only if the participation was held continuously throughout that period. 　　(c) Where, in accordance with any provision of the Convention, income derived by a resident of Portugal is exempt from tax in Portugal, Portugal may, nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. 　　　　　　　　　　　　　　ARTICLE 26 　　　　　　　　　　　　　Non-Discrimination 　　1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. This provision shall also apply to persons who are not residents of one or both of the Contracting States. However, for the purposes of United States tax, and subject to Article 25 (Relief from Double Taxation), a United States national who is not a resident of the United States and a Portuguese national who is not a resident of the United States are not in the same circumstances. 　　2. The taxation on a permanent establishment that an enterprise of a Contracting State has in the other Contracting State shall not be less favorably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs, and reductions for taxation purposes on account of civil status or family responsibilities that it grants to its own residents. 　　3. Nothing in this Article shall be construed as preventing either Contracting State from imposing a tax as described in Article 12 (Branch Tax). 　　4. Except where the provisions of paragraph 1 of Article 9 (Associated Enterprises), paragraph 8 of Article 11 (Interest), or paragraph 6 of Article 13 (Royalties) apply, interest, royalties, and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purposes of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. 　　5. Enterprises of a Contracting State, the Capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith that is other or more burdensome than the taxation and connected requirements to which other similarly situated enterprises of the first-mentioned State are or may be subjected. 　　6. The provisions of this Article shall, notwithstanding the provisions of Article 2 (Taxes Covered), apply to taxes of every kind and description imposed by a Contracting State or a political or administrative subdivision or local authority thereof. 　　　　　　　　　　　　　　ARTICLE 27 　　　　　　　　Mutual Agreement Procedure 　　1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or national. The case must be presented within 5 years from the first notification of the action resulting in taxation not in accordance with the provisions of this Convention. 　　2. The competent authority shall endeavor, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation that is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits or other procedural limitations in the domestic law of the Contracting States. 　　3. The competent authorities of the Contracting States shall endeavor to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. In particular, the competent authorities of the Contracting States may agree on the procedures for the application of the limits imposed by the taxation at source of dividends, interest, and royalties by Articles 10 (Dividends), 11 (Interest) and 13 (Royalties), respectively. 　　4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching agreement in the sense of the preceding paragraphs. 　　　　　　　　　　　　　ARTICLE 28 　　　　　　　　　Exchange of Information 　　1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Article 1 (Personal Scope). Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment, collection, or administration of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. 　　2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation: 　　(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; 　　(b) to supply information that is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; 　　(c) to supply information that would disclose any trade, business, industrial, commercial, or professional secret or trade process, or information the disclosure of which would be contrary to public policy. 　　3. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall obtain the information to which the request relates in the same manner and to the same extent as if the tax of the first-mentioned State were the tax of that other State and were being imposed by that other State. If specifically requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall provide information under this Article in the form of depositions of witnesses and authenticated copies of unedited original documents (including books, papers, statements, records, accounts, and writings), to the same extent such depositions and documents can be obtained under the laws and administrative practices of that other State with respect to its own taxes. 　　4. For the purposes of this Article, the Convention shall apply, notwithstanding the provisions of Article 2 (Taxes Covered), to taxes of every kind imposed at the national level by a Contracting State. 　　　　　　　　　　　　　ARTICLE 29 　　　　　　　Diplomatic Agents and Consular Officers 　　Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements. 　　　　　　　　　　　　　ARTICLE 30 　　　　　　　　　　　　Entry into Force 　　1. This Convention shall be subject to ratification in accordance with the applicable procedures of each Contracting State and instruments of ratification shall be exchanged at Lisbon as soon as possible. 　　2. The Convention shall enter into force upon the exchange of instruments of ratification and its provisions shall have effect: 　　(a) in respect of taxes withheld at source, for amounts paid or Credited on or after the first day of January next following the date on which the Convention enters into force; and 　　(b) in respect of other taxes, for taxable years beginning on or after the first day of January next following the date on which the Convention enters into force. 　　　　　　　　　　　　　　　ARTICLE 31 　　　　　　　　　　　　　　　Termination 　　This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention at any time after 5 years from the date on which the Convention enters into force, provided that at least 6 months prior notice of termination has been given through diplomatic channels. In such event, the Convention shall cease to have effect: 　　(a) in respect of taxes withheld at source, fo r amounts paid or credited on or after the first day of January next following the expiration of the 6-month period; 　　(b) in respect of other taxes, for taxable years beginning on or after the first day of January next following the expiration of the 6-month period. 　　IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Convention. 　　DONE at Washington, in duplicate, in the English and Portuguese languages, both texts being equally authentic, this sixth day of September, 1994. FOR THE UNITED STATES OF FOR THE PORTUGUESE AMERICA: REPUBLIC (s) John Kornblum (s) Mr. Knopfli