General information - types of securities, deadlines, other market specifics - Portugal - securities held in CBF

29.04.2022

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 types of eligible beneficial owner recognised for tax purposes in Portugal vary according to security type, as follows:

For domestic debt securities subject to Law 83/2013

Beneficial owners eligible for exemption from tax

  • Central banks, public law agencies, public law entities or International/Supranational organisations recognised by the Republic of Portugal (or a body of a recognised international/supranational organisation to whom the same immunities and privileges should be availed to) ;
  • Entities (individual and corporate) resident for tax purposes in a country or jurisdiction which has entered into a DTT or a TIEA with the Republic of Portugal:
    • An updated DTT list can be found on the government's website;
    • An updated TIEA list can be found on the government's website;
  • Other non-resident entities not covered by any of the above that are not resident in a tax-haven country, according with Ministerial Order 292/2011 of 8 November 2011 (The latest tax haven list can be found on the government's website):
  • Credit institutions, financial companies, pension funds, and insurance companies domiciled in an OECD Member State or in a DTT country;
  • Collective Investment Vehicles (CIVs) domiciled in an OECD Member State or in a DTT country;
  • Portuguese residents eligible for tax exemption. The codes for Portuguese tax-exempt entities are the following:
  1. Art. 97 of CIRC (Corporate Income Tax Code) –Exemption from withholding tax.
  2. Art. 9 of CIRC – State, Autonomous Regions, local authorities, their associations governed by public law and social security federations and institutions.
  3. Art. 10 of CIRC – General Public Interest Companies, Charities and other non-governmental social entities.
  4. Art. 16 of EBF (Tax Incentives Statute) – Pension Funds and assimilated funds.
  5. Art. 21 of EBF – Retirement Savings Funds (FPR), Education Savings Funds (FPE), Retirement and Education Savings Funds (FPR/E).
  6. Art. 22, No. 10 of EBF (Tax Incentives Statute) – Tax Regime applicable to Portuguese Collective Investments Vehicles)
  7. Art. 23 - A of EBF – Venture Capital Investment Funds.
  8. Other legislation.

Beneficial owners eligible for reduced tax rate

Portuguese beneficial owners not eligible for tax exemption may apply for the following reduced tax rates after submission of the requested information by the prescribed deadlines:

  • 25% for disclosed legal entities;
  • 28% for disclosed individuals.

Important note: Non-Portuguese beneficial owners holding debt securities subject to Law 83/2013 cannot apply for reduced tax rates via Clearstream Banking. For such beneficial owners the available rates are either 0% (if eligible and based on the relief at source or quick refund procedures), or 35% (if not eligible for tax exemption or undisclosed).

Beneficial owners taxed at maximum tax rate

  • Residents of countries considered as tax havens by Portuguese legislation and that have no DTT or TIEA with Portugal;
  • Non-disclosed beneficial owners.

For equities:

Beneficial owners eligible for exemption from tax

  • EU/EEA pension funds;
  • Non-residents of Portugal recognised as tax-exempt under Portuguese legislation (Central banks, government agencies and International/Supranational organisations recognised by Portuguese law)
  • Portuguese residents eligible for tax exemption. The codes for Portuguese tax-exempt entities are the following:
  1. Art. 97 of CIRC (Corporate Income Tax Code) –Exemption from withholding tax.
  2. Art. 9 of CIRC – State, Autonomous Regions, local authorities, their associations governed by public law and social security federations and institutions.
  3. Art. 10 of CIRC – General Public Interest Companies, Charities and other non-governmental social entities.
  4. Art. 16 of EBF (Tax Incentives Statute) – Pension Funds and assimilated funds.
  5. Art. 21 of EBF – Retirement Savings Funds (FPR), Education Savings Funds (FPE), Retirement and Education Savings Funds (FPR/E).
  6. Art. 22, No. 10 of EBF (Tax Incentives Statute) – Tax Regime applicable to Portuguese Collective Investments Vehicles)
  7. Art. 23 - A of EBF – Venture Capital Investment Funds.
  8. Other legislation.

Beneficial owners eligible for reduced tax rate

  • Residents of a Double Taxation Treaty (DTT) country
  • Beneficial owners that are not resident of a country or territory considered as tax-haven by the Portuguese legislation may apply for the following reduced tax rates after submission of the requested information by the prescribed deadlines:
    • 25% for disclosed legal entities;
    • 28% for disclosed individuals.
  • Residents of Portugal, that are not eligible for tax exemption but request the application of a reduced tax rate (25% or 28% rate).

Beneficial owners taxed at maximum tax rate

  • Non-disclosed beneficial owners.

Portuguese Tax Identification Number (NIF)

Any non-resident or resident investor holding Portuguese securities (debt securities or equities) is required to obtain and provide CBF with a Portuguese Tax Identification Number (NIF), which is the primary way to identify their activity (at income and transactions level) in the communications with the Portuguese Tax Authorities (PTA). 

In the relevant reports that need to be submitted to the PTA, CBF, acting as tax agent, is under an obligation to detail all positions and movements in the name of the beneficial owner (when disclosed) and of CBF direct customers (for undisclosed positions and transactions). 

Important note: Every CBF customer that wishes to settle and hold Portuguese securities with CBF is obliged to request or submit a NIF. CBF customer’s accounts and sub-accounts for which no NIF has been submitted will be blocked for settlement of Portuguese securities and the settlement instructions will be rejected.

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Deadlines for obtaining relief or reclaiming withholding tax

Relief at source

The deadline to apply for relief at source depends on the type of security and applicable legislation, as follows:

Type of security

Deadline for receipt by Clearstream Banking

Debt securities –
Law 83/2013

Documentation: at least two business days before the respective payment date, by 10:00 CET.

Per payment instruction: at least one business day before the respective payment date, by 10:00 CET.

Equities

Documentation: at least two business days before the respective payment date, by 10:00 CET.

Per payment instruction: At least one business day before the record date of the respective payment, by 10:00 CET

Quick refund

The deadline for reclaiming withholding tax using the quick refund procedure depends on the type of security and applicable legislation:

Type of security

Deadline for receipt by Clearstream Banking

Debt securities –
Law 83/2013

The deadline for reclaiming withholding tax via the quick refund procedure through Clearstream Banking depends on the fiscal residency and eligibility of the beneficial owner for tax exemption or reduced tax rate, as follows:

  • For non-residents of Portugal entitled to full quick refund of withholding tax under the application of the Special Debt Regime (SDR): at the latest 5 business days before the sixth month after the applicable payment date, by 10:00 CET; or
  • For residents of Portugal entitled to full quick refund of withholding tax under the application of the 2008 State Budget Law: at the latest 10:00 CET on the 10th of the month (or the last business day prior to the 13th, if the latter is not a business day) following the month in which the interest payment was made; or
  • For residents of Portugal entitled to reduced rate of withholding tax (25% / 28%): at the latest 10:00 CET on the 13th of the month (or the last business day prior to the 13th, if the latter is not a business day) following the month in which the interest payment was made.

Equities

At the latest, 10:00 CET on the 13th of the month (or the last business day prior to the 13th, if the latter is not a business day) following the month in which the dividend payment was made.

Standard refund

Full standard refund on debt securities is not available via Clearstream Banking.

Important note:The standard refund process is still being analysed with the Portuguese tax authorities. Further information will be provided at a later stage

When are refunds received?

  • Quick refund:
    The estimated time for receiving a quick refund depends on the type of securities as follows:
    • Debt securities: two weeks from the date that Clearstream Banking receives the certified documents.
    • Equities: by end of the month of the date that Clearstream Banking receives the certified documents.

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.