Portugal: Budget Law for 2012 approved by Parliament

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On 30 November 2011, the Portuguese Parliament approved the Budget Law for 2012.

One of the provisions of the new Budget Law is an increase in the rate of withholding tax on interest and dividends paid to non-resident beneficial owners from 21.5% to 25%

To become effective, the Portuguese Budget Law for 2012 must be ratified by the President of the Republic and published in the Diário da Républica.

Subject to ratification, the changes will come into force on 1 January 2012.

We will continue to monitor the progress of the Portuguese Budget Law for 2012 for any new developments and will provide more information as it becomes available.