Portugal: Electronic payment of standard refund – Update
Further to TaxFlash LT25008, LuxCSD1 informs clients that the Portuguese Tax Authorities (PTA) have confirmed that the payment of reclaimed amounts will continue to be processed by cheques to Clearstream Europe2 in its role of custodian and withholding agent.
Background
In 2025 the PTA implemented the possibility to pay the reclaims via interbank electronic transfer (TEI) on condition that a notarised Power of Attorney was provided along with the usual MOD 22-RFI allowing the custodian, acting as tax substitute, to receive the wires on behalf of the beneficial owner.
However, the PTA do not agree to process this payment via TEI to the account of Clearstream Europe held by its tax representative in Portugal.
Following further discussions, the PTA confirmed that the TEI is not mandatory and that the current process of payment via cheque will continue.
Impact on clients
The refund payment procedure remains unchanged, with payments continuing to be issued via Portuguese Treasury cheques.
No additional power of attorney nor other certification is required from the clients nor from the beneficial owners.
Further information
For further information, please contact LuxCSD Tax Help Desk, Client Services or your Relationship Officer.
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1. LuxCSD refers to LuxCSD S.A., registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.
2. Clearstream Europe refers to Clearstream Europe AG, in its role of Portuguese withholding agent, registered office at Mergenthalerallee 61, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500. Clearstream Banking S.A. is registered as an Australian CS (Overseas) Facility, under subsection 824B(2) of the Corporations Act 2001, with registration number ARBN 675 244 783.