Portugal: Portuguese State Budget Law Proposal for 2013

Further to our Taxflashes T12036, dated 13 September 2012, and T12040, dated 8 October 2012, Clearstream Banking would like to inform customers that on 15 October 2012 the Portuguese Government presented the Portuguese State Budget Law Proposal for 2013 to the Portuguese Parliament.

The following table summarises the tax measures proposed in the Budget Law Proposal for 2013 together with the Urgent Austerity measures proposed by the Portuguese Government to the Portuguese Parliament on September 2012.

	Tax on	Individuals		Legal entities
	Tax on	From	To	From	To
A	Investment income and capital gains paid to identified entities (resident or non-resident)	25%	28% (Budget Law Proposal 2013) 26,5% (Urgent Austerity Measures)	25%	25%
B	Investment income obtained from or paid to a black-listed jurisdiction (as defined by Ministerial Order 292/2011) ^a	30%	35% (Urgent Austerity Measures)	30%	35%
C	Investment income made available in bank accounts of one or more holders but for the benefit of unidentified third parties ^b	30%	35% (Urgent Austerity Measures)	30%	35%

a. The Black List defined by Ministerial Order 292/2011 is available in our Announcement A11172, dated 10 November 2011. This list may be subject to changes in the future. We will inform customers accordingly.
b. If the beneficial owner is identified and duly certified, the rates in line A above or reduced rates granted by virtue of a Double Taxation Treaty or Portuguese domestic legislation apply.

Note: If approved the provision of the State Budget Law proposal will enter in force from 1 January 2013 whereas the Urgent Austerity measures, if approved, will enter into force after the date of publication, this is expected to occur during the current fiscal year.

We will provide further information or official confirmation as soon as it becomes available.

This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice.