Portugal: Proposal to amend the Double Taxation Treaty forms MOD 21-RFI and MOD 22-RFI


Clearstream Banking informs customers that the Portuguese government has issued a law proposal no 180/XIII, which was approved by the Portuguese parliament on 19 July 2019. The proposal includes the following change for the MOD 21-RFI and MOD 22-RFI forms, which are used for the purpose of obtaining relief at source, quick and standard refund, as applicable:

  • Abolishment of the possibility for direct certification in the form(s) by the tax authorities of the country of residence of the beneficiary of the income.

The certification of the form by the competent tax authorities can consequently only be done by proving with the forms (MOD 21-RFI or MOD 22-RFI) a separate certificate of residence, issued by the tax authorities of the beneficial owner, confirming:

  • The country of tax residence of the beneficial owner during the period when the withholding took place; and
  • That the beneficial owner is subject to tax in the country of residence.

The law proposal still needs to be approved by the President of Portuguese Republic and subsequently published in the Portuguese Government official newspaper. However, if the proposal is approved, it is expected to enter into force as from 1 October 2019.

We continue to monitor the Portuguese market as more information becomes available.

This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice.