Standard refund – eligibility, documentation, deadlines – Portuguese debt securities – CBF
Who can apply for a standard refund?
A full standard refund of withholding tax on interest from Portuguese debt securities subject to Decree-law 193/2005 and amended by Law 83/2013 is available to eligible beneficial owners if relief at source has not been obtained, as follows:
Eligible beneficial owners | Effective rate of tax | Tax refund |
DTT/TIEA residents eligible for tax exemption | 0% | 35% |
Credit institutions, financial companies, pension funds, insurance companies domiciled in an OECD Member State or in a DTT country | 0% | 35% |
Collective Investment Vehicles (CIVs) domiciled in an OECD Member State or in a DTT country | 0% | 35% |
Central banks, public law agencies, public law entities or International/Supranational organisations recognised by the Republic of Portugal | 0% | 35% |
Pre-requisite for each full standard refund application
All clients applying for full standard refund must submit:
- Before the first standard refund application, a Portuguese Tax Identification Number (TIN) Request for each beneficial owner applying for standard refund and not yet having a Portuguese TIN. If a Portuguese TIN already exists, it has to be provided to Clearstream Banking to obtain confirmation of its validity. Clients should always wait for the confirmation from Clearstream Banking that the TIN is valid before initiating their standard refund application;
- Annually, the Individualised Securities Registration Report (ISRR) completed by the client once a year and including all transactions (that are domestic, internal Clearstream Banking or Bridge transactions) that took place during the year of the interest payment.
Deadlines for receipt of documents for reporting purposes
Clearstream Banking must receive the documentation requested for reporting purposes by the following deadlines:
Type of document | Deadline for receipt by |
Portuguese Tax Identification Number (TIN) Request | At the latest one month before the first standard refund application (if not already provided). |
Individualised Securities Registration Report (ISRR) | At the latest 10 business days before the end of the third month following the year in which the Portuguese securities were purchased and/or in which the interest payment took place, by 10:00 CET. |
Documentation requirements
To apply for a full refund of withholding tax on interest from Portuguese debt securities, the following documentation must be submitted to Clearstream Banking:
- Form Mod. 25-RFI (for the refund of tax unduly withheld on the coupon date or redemption date, of debt securities); or
- Form Mod. 26-RFI (for the refund of tax withheld on accrued interest on the date of transfer of debt securities); and
- Power of Attorney if Mod-25 RFI or Form Mod. 26-RFI is not executed by the final beneficial owner; and
- Power of Attorney for Tax Reclaim Processes Follow Up; and
- Letter of Request to Clearstream Banking for Reclaim of Portuguese Withholding Tax.
Deadline for receipt of full standard refund documents
The statutory deadline for reclaiming withholding tax using the full standard refund procedure is two years following the end of the year in which the interest payment took place.
The deadline by which Clearstream Banking must receive the documentation for an application is at the latest two (2) months before the statutory deadline. All standard refund applications received after this deadline will be processed by Clearstream Banking on a best-effort basis. However, in such cases, Clearstream Banking will apply an extra charge and accepts no responsibility for forms that have not reached the Portuguese Authorities by the date considered as being the statute of limitations deadline.
When are refunds received?
There is no estimated time for receiving a refund via the treaty standard refund application and clients are strongly encouraged to use the relief at source or quick refund procedures.