Quick refund – Eligibility, documentation, deadlines – Portuguese equities – CBL
Who can apply for a quick refund?
A quick refund of withholding tax on dividends from Portuguese equities is available through Clearstream Banking for eligible beneficial owners if full or partial relief at source has not been obtained, as follows:
Eligible beneficial owners | Effective rate of tax | Tax refund |
Residents of a Double Taxation Treaty (DTT) country | Tax treaty rate | 35% minus the tax treaty rate b |
EU/EEA pension funds | Tax treaty rate | 35% minus the tax treaty rate b |
Non-resident of Portugal availing themselves the privileges and immunities enshrined in an international agreement or chart (central banks, government agencies and international/supranational organisations recognised by Portuguese law) | 0% | 35% |
Non-resident of Portugal or DTT country applying for a standard tax rate (25% or 28% rate)c | 25%/28% | 10%/7% |
Portuguese residents eligible for tax exemption | 0% | 35% |
Portuguese residents applying for a standard tax rate (25% or 28% rate) | 25%/28% | 10%/7% |
a. Expressed as a percentage of the gross dividend amount.
b. Amount of relief will be 0% if the DTT rate exceeds 35%.
c. Residents of Tax Havens having a DTT in place with Portugal cannot benefit from the standard rate 25%/28%.
To apply for partial or total quick refund from withholding tax on dividend payments for equities, the beneficial owners have to fulfil the following reporting and documentation requirements:
Documentation requirements
To apply for partial or total quick refund from withholding tax on dividend payments for equities, the beneficial owners must provide the same documentation as for relief at source.
Deadlines for receipt of documents
Documentation for quick refund of withholding tax on dividends from Portuguese equities must be received by Clearstream Banking at 10:00 CET the latest on the 13 th 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.