Tax treaty between Australia and Portugal

We welcome comments on draft legislation and explanatory materials that:

• introduce a new tax treaty between Australia and Portugal
• amend explanatory notes in the International Tax Agreements Act 1953.

The treaty supports bilateral trade and investment and reduces double taxation by:

• lowering withholding tax rates on cross‑border:
  • interest
  • dividends
  • royalty payments
• implementing base erosion and profit shifting (BEPS) recommendations.

Australia and Portugal signed the treaty on 30 November 2023. The treaty will apply after both countries exchange instruments of ratification.