Quick refund - eligibility, documentation, deadlines - Portuguese debt securities

21.12.2015

Who can obtain a quick refund?

Quick refund of withholding tax on interest from Portuguese debt securities is available through Clearstream Banking for eligible beneficial owners (who have not obtained an immediate refund), as follows:

Domestic bonds subject to Law 83/2013 clarified by Circular Letter 4/2014

Eligible beneficial owners

Effective rate of tax
after refund

Tax
refund available
a

Non-residents of Portugal eligible for tax exemption as per Law 83/2013

0%

35%

Central banks and government agencies

0%

35%

International/Supranational organisations recognised by the Portuguese state

0%

35%

Portuguese residents eligible for tax exemption

0%

35%

Portuguese beneficial owners not eligible for tax exemption but applying for reduced tax rates

25% / 28%

10% / 7%

a. Expressed as a percentage of the gross interest amount.

Documentation requirements

There are different documentation requirements depending on the status of the beneficial owner and on the applicable legislation.

Domestic bonds subject to Law 83/2013 clarified by Circular Letter 4/2014

For each quick refund application:

  • Form Mod 25-RFI;
  • List of Portuguese Beneficial Owners, if applicable.

Important Note: To apply for quick refund of withholding tax, ALL beneficial owners must disclose their identity and holdings via the documentation listed above.

Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Portuguese debt securities.

Deadlines for receipt of documents

Documentation for a quick refund of withholding tax on interest from Portuguese debt securities must be received by Clearstream Banking by the following deadlines:

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: 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 10th, 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 10th of the month (or the last business day prior to the 10th, if the latter is not a business day) following the month in which the interest payment was made.

When are refunds received?

The estimated time for receiving a quick refund is two weeks from the date that Clearstream Banking receives the certified documents.