Portugal Signs TIEAs With Jersey, IoM

by Jason Gorringe, Tax-News.com, London

14 July 2010

Jersey and the Isle of Man signed tax information exchange agreements with Portugal on July 9. The agreements further demonstrate the territories’ commitment to implementing best standards in transparency and tax information exchange.

In respect of the agreement between Portugal and the Isle of Man, the signing took place between the island’s Treasury Minister, Anne Craine, and the Portuguese Secretary of State for Tax Affairs, Sergio Vasques at the Portuguese Embassy in London. The agreement between Portugal and Jersey was again signed by Vasques, and Jersey’s Chief Minister, Terry Le Sueur.

Commenting on the signing, the Isle of Man’s Treasury Minister said: “The signing of the Isle of Man’s 16th TIEA, coupled with Tynwald’s recent endorsement of the Island’s move to fully automatic exchange of information under the EU Savings Directive in July 2011, is further evidence of the Isle of Man’s strong ongoing commitment to tax co-operation and transparency and to working closely with its European partners.”

“Effective co-operation based on agreed international standards underpins the Island’s reputation as a leading international business centre. As a result, we are constantly working to extend our network of agreements and are at advanced stages of negotiation with several other countries,” Craine concluded.

For his part, on behalf of the Jersey government, Le Sueur said: "We are committed to complying with international standards and as one of the 4 vice-chairs of the Peer Review Group of the Global Forum on Transparency and Information Exchange for Tax Matters, we intend to continue to lead by example."

“We have a long-standing, close relationship with Portugal because of the significant number of Portuguese nationals who have come here to work and settled in Jersey," he added.

"When the TIEA comes into force, the Portuguese authorities have agreed to start negotiations on an agreement to avoid double taxation for certain income of individuals, like employment income and pensions,” Le Sueur disclosed.

The TIEAs will come into force when the respective territories have concluded their individual ratification procedures.

The agreements were negotiated in line with the Organization for Economic Cooperation and Development standard agreement and will assist the countries' tax authorities in civil tax matters and in tax crime investigations.

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