Portugal: New statutory deadline
Effective
immediately
the Clearstream Banking1 deadline for individual beneficial owners not resident in Portugal for reclaiming the full tax withheld at source on interest paid before 4 December 2012 (that is, through the “Reclamação Graciosa” procedure) is three months before the new confirmed statutory deadline, which is two years after 20 January of the year following that in which the payment was made.
Background
In our Announcement L12090, dated 4 December 2012, we explained that the interpretation of the Portuguese legislation applicable for full standard refund of withholding tax is not consistent between the Portuguese Tax Authorities (PTA) and the local custodians, including our depository, Banco Santander Totta (BST). In those circumstances, we took the decision to suspend the standard refund service on interest from Portuguese domestic debt securities as of the date of publication of that Announcement.
One of these discrepancies was linked to the different statutory deadlines for filing tax reclaim applications.
We have been informed by BST that the PTA confirmed that the deadline for individuals non-resident beneficial owners to present a standard reclaim through the “Reclamação Graciosa” procedure is within two years from 20 January of the year following that to which the withholding relates.
This statutory deadline is only applicable for individual non-resident beneficial owners that come under the Special Tax Regime for Debt Securities (Decree Law 193/2005), which means that for all other investors the statutory deadline remains within a two-year time frame from the delivery, by the withholding agent (local bank), of the tax withheld or the date of payment or availability of the income, if later (normally, from the 20th day of the month following the month in which the payment was made).
Impact on customers
A summary of the applicable time limits to present a standard reclaim through the “Reclamação Graciosa” procedure on interest paid by Clearstream Banking before 4 December 2012 is as follows:
| Investor type | Time limit |
| Individual (non-resident) | At the latest, three months before the new confirmed statutory deadline, which is two years after 20 January of the year following that in which the payment was made. |
| Other (non-resident) | At the latest, three months before the end of the two years after the date on which the income was paid. |
All reclaim applications received by Clearstream Banking after the above deadline will be rejected.
Note: With respect to tax reclaims in general, customers are reminded that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country.
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 Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking S.A., 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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