The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for signing of a Protocol amending the Convention between India and Portugal for avoidance of double taxation. The Protocol will also ensure prevention of fiscal evasion with respect to taxes on income.

Once the Protocol enters into force, both India and Portugal would be able to exchange tax related information, which will help tax authorities of both countries to curb tax evasion.

Avoidance of double taxation: amended Protocol enables exchange of tax information to curb fiscal evasion between jurisdictions. Approval was granted for signing a Protocol amending the Convention between India and Portugal to avoid double taxation and strengthen prevention of fiscal evasion; the amendment permits exchange of tax related information between the two jurisdictions to help tax authorities curb tax evasion under the treaty framework.