Portugal: Certificate of Residence can in some cases replace sections of RFI certification - Update
Further to our Announcement A09157 of 16 October 2009 and effective
immediately
a Certificate of Residence may replace the sections of the official RFI forms designated for completion by the local tax authorities of the beneficial owners with fiscal residency in the following countries:
- Brazil
- Chile
- Hong Kong
- Mexico
- Morocco
- Pakistan
- Turkey
Background
In 2009 the Portuguese Minister of Finance published Despacho nº 22600/2009, clarifying that a Certificate of Residence issued by the local tax authorities of the final beneficial owner can be accepted instead of the respective sections of Forms RFI (21-RFI to 24-RFI) duly certified (signed and stamped) by the local tax authorities of the beneficial owner of the income.
Beneficial owners are required to prove their eligibility to obtain the reduced tax rate granted in accordance with Article 4º of the Double Taxation Treaty (DTT) signed between their country of residence and Portugal.
The certification of their tax residence as foreseen in section III of the Form 21-RFI and section IV of the form 22-RFI can, according to Despacho 22600/2009, be replaced by a valid Certificate of Residence.
Impact on customers
A Certificate of Residence issued by the beneficial owner’s local tax authorities is considered valid provided that:
1. The beneficial owner’s local tax authorities:
a) Have delivered a one-time communication, by official or formal means directly to the Portuguese Tax Authorities, confirming that they are unable to certify the RFI forms; and
b) Issue, upon each beneficial owner request, a Certificate of Residence that includes:
- Identification of the beneficial owner of the income;
- Confirmation that the beneficial owner is/was resident in that country for tax purposes, under Article 4º of the applicable DTT;
- The year(s) in which the beneficial owner is/was so resident;
- Confirmation that the beneficial owner is/was subject to income tax;
- Identification of the entity that certifies the document;
- Date, signature and official stamp.
2. The beneficial owner submits this specific Certificate of Residence together with the RFI form duly filled and signed, but with the section designated for completion by the beneficial owner’s local tax authorities left blank, as it is replaced by the Certificate of Residence.
Validity of the Certificate of Residence
For relief at source and quick refund, the Certificate of Residence is valid one year as of the issuance date. It must cover the first impacted income payment in the respective year and must be submitted together with the Form 21-RFI duly completed and signed (but with section III left blank).
For standard refund, the Certificate of Residence must be provided for each refund application, together with all the other required certification, including the Form 22-RFI duly completed and signed (but with section IV left blank).
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.