Ratification by Portugal of the tax treaty between Kuwait and Portugal

On 10th March 2011, by way of Portugal Decree No. 27/2011, Portugal approved the convention between the Portuguese Republic and the state of Kuwait for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

The main provisions of the treaty are as follows:

Permanent establishment

The term ‘permanent establishment' means a fixed place of business through which the business of an enterprise is wholly or partly carried on or a building site, a construction, assembly, erection or installation project or supervisory activities in connection therewith carried out in a Contracting State, constitute a permanent establishment only if such site, project or activities continue for a period of more than 9 months.