Portugal: Simplified procedure for Canadian Funds and Trusts applying for DTT benefits - Update


Note: This announcement, originally published on 26 November 2020, has been updated to include the application of the procedure to standard refund. Changes have been highlighted.

Clearstream Banking1 informs customers of a new agreement reached by the Portuguese tax authorities (PTA) with the Canadian Revenue Agency (CRA) to simplify the certification process for Canadian funds and trusts to benefit from tax relief in Portugal based on the Double Taxation Treaty (DTT) provisions.



funds and trusts resident of Canada within the terms of the convention are no longer required to provide a Statement for Funds when certifying for relief at source, quick refund or standard refund on equities. 


Based on Circular Letter 6/2009 of 6 April 2009, non-resident funds and trusts must comply with the following eligibility criteria to benefit from the reduced tax rates granted by the applicable DTT:

  • Non-resident trusts can benefit from the application of the regime established in the DTT signed between their country of residence and Portugal only if such application is expressly mentioned in the respective DTT. In such cases, proof must be provided of the fulfilment of the requirements and conditions set out in the respective treaty, including proof that the trust is the beneficial owner of the income.
  • For non-resident investment funds and pension funds, the application of the DTT depends on the fulfilment of all the following requirements:
    • The fund is considered a legal entity for the purpose of the respective DTT; and
    • The fund is fully liable to corporate income tax and is not treated as fiscally transparent (that is, the fund is taxable independently of the taxation that may occur at the level of the fund participants); and
    • The fund is the beneficial owner of the income received.

Under the current certification procedure, trusts and funds applying for tax relief must provide additional Declarations to prove their eligibility to obtain the DTT rates.

Following a procedure of exchange of information between the PTA and the CRA, the PTA informed the market that the Certificate of Residence (COR) issued by the CRA under the terms of the convention, to certify the DTT forms (Mod. 21-RFI or Mod. 22-RFI), is sufficient for the application of Double Taxation Treaty rates on Canadian Funds and Trusts.

Impact on customers

Customers applying for relief at source, quick refund or standard refund on behalf of investment funds, pension funds or trusts that are resident of Canada and who provided a valid COR issued by the CRA under the terms of the convention are no longer required to provide a Statement for Funds to prove their eligibility to the DTT rates.

Further information

For further details concerning the process of certification and the applicable deadlines please refer to the Market Taxation Guide - Portugal.

For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.

1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.