PORTUGAL Law and Practice Contributed by: Tânia de Almeida Ferreira, João Pedro Albuquerque, Filipe Gomes da Silva and Pedro Neves, CCA Law Firm
The Convention provides a comprehensive legal basis for exchange of information on request, spontaneous exchange, automatic exchange, simultaneous tax examinations and assistance in the recovery of tax claims. In addition, Portugal implements internationally agreed standards developed within the OECD frame - work, including the CRS for the automatic exchange of financial account information and the CbCR frame - work between tax authorities. EU Framework As an EU member state, Portugal is bound by DAC, the EU Directive on Administrative Cooperation, as amended (DAC2 through DAC8). These successive measures have significantly expanded the scope of automatic and spontaneous exchange of informa - tion within the EU, encompassing financial account data, advance cross-border rulings, country-by- country reports, mandatory disclosure of cross-border arrangements (DAC6), digital platform operators and crypto-asset reporting. In addition, administrative co-operation in VAT matters is governed by Council Regulation (EU) No 904/2010, which directly applies in the member states and establishes mechanisms for information exchange, coordination and joint actions aimed at combating VAT fraud. Recovery Assistance and Bilateral Treaties Administrative co-operation in the recovery of tax claims within the EU is regulated by Council Directive 2010/24/EU. This Directive allows the PTA to request assistance from other member states in collecting tax debts and, conversely, to recover foreign tax claims in Portugal under harmonised procedures. Portugal’s extensive network of DTTs, largely based on the OECD Model, also includes exchange-of- information provisions. These facilitate the exchange of information with treaty partners outside the EU and complement both the multilateral and EU-based instruments. Taken together, these instruments form an integrated system under which the PTA exchanges informa -
tion, participates in joint administrative actions and provides mutual assistance in both assessment and enforcement matters. 7.2 Exchange of Information Clauses in Tax Agreements Portugal exchanges tax information on an automatic, spontaneous and on-request basis. Exchange of information on request is carried out pursuant to the DAC, as well as under DTTs or tax information exchange agreements concluded with non-EU jurisdictions. Spontaneous exchanges take place where the PTA identifies information that may be relevant to the tax authorities of another jurisdiction. Automatic exchange applies to multiple categories of data, including financial account information (CRS/ DAC2), country-by-country reports (DAC4), advance cross-border rulings, reportable cross-border arrange - ments (DAC6), and, more recently, information relating to digital platforms (DAC7) and (soon to be) crypto- assets (DAC8). Portugal also exchanges financial account information with the US under the FATCA intergovernmental agreement. 7.3 Other Forms of International Tax Collaboration Portugal has participated in the OECD’s International Compliance Assurance Programme (ICAP) since 2024. At EU level, Portugal allows for simultaneous controls and joint audits with other member states under the DAC, as implemented and amended by domestic pro - visions. These mechanisms enable coordinated audits and, where appropriate, the participation of foreign officials in administrative proceedings. Portugal is also a party to the OECD/Council of Europe Multilateral Convention on Mutual Administrative Assistance in Tax Matters, which enables exchange of information and other forms of administrative coop - eration with a broad range of jurisdictions. In the field of VAT, Portugal participates in Eurofisc, the EU network established to enhance cooperation and combat cross-border VAT fraud.
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