General information - types of securities, deadlines, other market specifics - Portugal (securities held in BNP Paribas S.A.)

03.10.2022

Since 14 December 2020, Clearstream Banking AG (CBF) has become withholding agent and no relief at source/quick refund is available through BNP Paribas S.A. (BNP) any longer. Only standard refund on dividend payments made by BNP 11 December 2020 are available through BNP.

Types of securities eligible in Clearstream Banking

The eligible securities issued in Portugal are as follows:

  • Government bonds:
    • Bilhetes do Tesouro (BT);
    • Fundos de Investimento Publico (FIP);
    • Obrigações do Tesouro (OT);
    • Obrigações do Tesouro de Rendimento Variável (OTRV);
  • Corporate bonds;
  • Listed equities;
  • Warrants.

Types of beneficial owner

The following types of eligible beneficial owner are recognised for tax purposes in Portugal and are eligible to standard refund through BNP:

For equities:

Beneficial owners eligible for reduced tax rate

  • Residents of a Double Taxation Treaty (DTT) country

Portuguese Tax Identification Number

Any foreign or domestic investor operating in the Portuguese market is required to have a Portuguese Tax Identification Number (PT TIN). In agreement with the Portuguese law (article 3 of Portaria 386/98, 3 of July), the same investor can only have one PT TIN.

Clearstream Banking’s local depository (BNP Paribas Securities Services) is acting as a withholding agent in Portugal and is authorised by the Portuguese Tax Authorities to request PT TINs for non-Portuguese resident investors. In order to follow such process, customers applying for standard refund on behalf of beneficial owners that have not yet been allocated with a PT FIN, must submit together with the requested certificates a duly completed PT TIN Request.

Deadlines for reclaiming withholding tax

Standard refund

Important note: Full standard refund is not available via Clearstream Banking.

The statutory deadline for reclaiming withholding tax on dividends using the treaty standard refund procedure is two years from the end of the year in which the withholding of the respective tax took place.

The deadline by which Clearstream Banking must receive the documentation for application for a standard refund of withholding tax is at the latest three months before the statutory deadline. All refund applications received after this deadline will be processed by Clearstream Banking on a "best efforts" basis. However, in such cases, Clearstream Banking accepts no responsibility for forms that have not reached the Portuguese Tax Authorities (the “PTA”) by the date considered being the statute of limitations deadline.

Furthermore, Clearstream Banking will apply an extra charge for applications received less than three months before the statutory deadline.

When are refunds received?

Partial standard refund:
There is no estimated time for receiving a refund via the partial standard refund application.

However, according to the clarifications included in Circular Letter 4/2014, the refund of withholding tax must be made by the PTA until the end of the third month after the delivery of the form and the elements that prove the assumptions of the exemption to the PTA, and in the case the PTA does not comply with this time frame compensatory interests calculated are added to the amount to be reimbursed, at the same rate as applicable to compensatory interest in favour of the State. For the purpose of calculating the period referred to above, it is considered that it is interrupted when the procedure is stopped by a reason attributable to the beneficial owner.

Clearstream Banking will assist customers with the registration of the final beneficial owners in the books of BNP, but accepts no responsibility for the acceptance or non-acceptance by the tax authorities of the refund applications nor for the reimbursement of taxes paid.

Notes on tax reclaims

Customers warrant the completeness and accuracy of the information they supply to Clearstream Banking.

It is the customer's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly and to calculate the amount due. Clearstream Banking is under no obligation to carry out any investigation in respect of such information.

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. It is the customer's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly, and to calculate the amount due.