Portuguese Government proposes new austerity measures : update

Further to our Taxflash T12036, dated 13 September 2012, the Portuguese Government has presented to Parliament a proposal for the introduction of several urgent tax measures.

The proposal awaits Parliamentary approval and subsequent publication in order to enter into force during the current fiscal year. The proposed measures are independent of the anticipated mid-October Budget Bill (which will contain measures for fiscal year 2013).

The following table summarises the tax measures proposed that may impact non-resident investors:

	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%	26.5%	25%	25%
B	Investment income obtained from or paid to a black-listed jurisdiction (as defined by Ministerial Order 292/2011)^a	30%	35%	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%	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.

These measures will come into force on the day following publication, which is expected to occur during fiscal year 2012.

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.