Portugal: New withholding tax rates in 2013
Further to our Taxflash LT12012, dated 22 October 2012, and effective
1 January 2013
the tax rate applicable to interest and dividend payments made to beneficial owners who are individuals, whether resident or not in Portugal for tax purposes, and who have disclosed their identity and holdings is increased from 26.5% to 28%.
Background
The President of the Republic has ratified the State Budget Law for 2013, which has been published in Diário da Républica under Law nº 66-B/2012 (the “Law”).
Of the tax amendments provided for in the Law, the most important that impacts Clearstream Banking1 tax procedures is the increase to 28% of the tax rate on investment income, capital gains and real estate income payments made to the above-mentioned categories of beneficial owner.
Impact on customers
The withholding tax rates applicable as of 1 January 2013 are as follows:
- 25% for disclosed beneficial owners that are legal entities (resident or non-resident);
- 28% for disclosed beneficial owners that are individuals (resident or non-resident);
- 35% for undisclosed positions and for beneficial owners that are resident in tax-haven countries;
- 0%/reduced rate for certified beneficial owners based on Portuguese domestic legislation or applicable treaty rates.
The tax procedures for obtaining tax relief at source or applying for tax reclaim via quick/standard refund remain unchanged.
Further information
For further information, customers may contact the Clearstream Banking Tax Help Desk on:
| Luxembourg | Frankfurt | |
| Email: | tax@clearstream.com | tax@clearstream.com |
| Telephone: | +352-243-32835 | +49-(0) 69-2 11-1 3821 |
| Fax: | +352-243-632835 | +49-(0) 69-2 11-61 3821 |
or Clearstream Banking Customer Service or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
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