General information – types of securities, deadlines, other market specifics – Portugal – CBF
Types of securities eligible in Clearstream Banking
The eligible securities issued in Portugal are as follows:
- Government bonds:
- Bilhetes do Tesouro (BT);
- Fundos de Investimento Publico (FIP);
- Obrigações do Tesouro (OT);
- Obrigações do Tesouro de Rendimento Variável (OTRV);
- Corporate bonds;
- Listed equities;
- Warrants.
Types of beneficial owner
The types of eligible beneficial owner recognised for tax purposes in Portugal vary according to security type, as follows:
For domestic debt securities subject to Law 83/2013
Beneficial owners eligible for exemption from tax
- Central banks, public law agencies, public law entities or International/Supranational organisations recognised by the Republic of Portugal (or a body of a recognised international/supranational organisation to whom the same immunities and privileges should be availed to) ;
- Entities (individual and corporate) resident for tax purposes in a country or jurisdiction which has entered into a DTT or a TIEA with the Republic of Portugal:
- Other non-resident entities not covered by any of the above that are not resident in a tax-haven country, according with Ministerial Order 292/2011 of 8 November 2011 (The latest tax haven list can be found on the government's website):
- Credit institutions, financial companies, pension funds, and insurance companies domiciled in an OECD Member State or in a DTT country;
- Collective Investment Vehicles (CIVs) domiciled in an OECD Member State or in a DTT country;
- Portuguese residents eligible for tax exemption. The codes for Portuguese tax-exempt entities are the following:
- Art. 97 of CIRC (Corporate Income Tax Code) –Exemption from withholding tax.
- Art. 9 of CIRC – State, Autonomous Regions, local authorities, their associations governed by public law and social security federations and institutions.
- Art. 10 of CIRC – General Public Interest Companies, Charities and other non-governmental social entities.
- Art. 16 of EBF (Tax Incentives Statute) – Pension Funds and assimilated funds.
- Art. 21 of EBF – Retirement Savings Funds (FPR), Education Savings Funds (FPE), Retirement and Education Savings Funds (FPR/E).
- Art. 22, No. 10 of EBF (Tax Incentives Statute) – Tax Regime applicable to Portuguese Collective Investments Vehicles)
- Art. 23 - A of EBF – Venture Capital Investment Funds.
- Other legislation.
Beneficial owners eligible for standard tax rates
Portuguese beneficial owners not eligible for tax exemption may apply for the following standard tax rates after submission of the requested information by the prescribed deadlines:
- 25% for disclosed legal entities;
- 28% for disclosed individuals.
Important note: Non-Portuguese beneficial owners holding debt securities subject to Law 83/2013 cannot apply for reduced tax rates via Clearstream Banking. For such beneficial owners the available rates are either 0% (if eligible and based on the relief at source or quick refund procedures), or 35% (if not eligible for tax exemption or undisclosed).
Beneficial owners taxed at maximum tax rate
- Residents of countries considered as tax havens by Portuguese legislation and that have no DTT or TIEA with Portugal;
- Non-disclosed beneficial owners.
For equities
Beneficial owners eligible for exemption from tax
- EU/EEA pension funds;
- Non-residents of Portugal recognised as tax-exempt under Portuguese legislation (Central banks, government agencies and International/Supranational organisations recognised by Portuguese law)
- Portuguese residents eligible for tax exemption. The codes for Portuguese tax-exempt entities are the following:
- Art. 97 of CIRC (Corporate Income Tax Code) –Exemption from withholding tax.
- Art. 9 of CIRC – State, Autonomous Regions, local authorities, their associations governed by public law and social security federations and institutions.
- Art. 10 of CIRC – General Public Interest Companies, Charities and other non-governmental social entities.
- Art. 16 of EBF (Tax Incentives Statute) – Pension Funds and assimilated funds.
- Art. 21 of EBF – Retirement Savings Funds (FPR), Education Savings Funds (FPE), Retirement and Education Savings Funds (FPR/E).
- Art. 22, No. 10 of EBF (Tax Incentives Statute) – Tax Regime applicable to Portuguese Collective Investments Vehicles)
- Art. 23 - A of EBF – Venture Capital Investment Funds.
- Other legislation.
Beneficial owners eligible for reduced tax rate
- Residents of a Double Taxation Treaty (DTT) country
- Beneficial owners that are not resident of a country or territory considered as tax-haven by the Portuguese legislation may apply for the following standard tax rates after submission of the requested information by the prescribed deadlines:
- 25% for disclosed legal entities;
- 28% for disclosed individuals.
- Residents of Portugal that are not eligible for tax exemption but request the application of a standard tax rate (25% or 28% rate).
Beneficial owners taxed at maximum tax rate
- Non-disclosed beneficial owners.
Portuguese Tax Identification Number (NIF)
Any non-resident or resident investor holding Portuguese securities (debt securities or equities) is required to obtain and provide CBF with a Portuguese Tax Identification Number (NIF), which is the primary way to identify their activity (at income and transactions level) in the communications with the Portuguese Tax Authorities (PTA).
In the relevant reports that need to be submitted to the PTA, CBF, acting as tax agent, is under an obligation to detail all positions and movements in the name of the beneficial owner (when disclosed) and of CBF direct clients (for undisclosed positions and transactions).
Important note: Every CBF client that wishes to settle and hold Portuguese securities with CBF is obliged to request or submit a NIF. CBF client’s accounts and sub-accounts for which no NIF has been submitted will be blocked for settlement of Portuguese securities and the settlement instructions will be rejected.
Deadlines for obtaining relief or reclaiming withholding tax
Relief at source
The deadline to apply for relief at source depends on the type of security and applicable legislation, as follows:
Type of security | Deadline for receipt by Clearstream Banking |
Debt securities – | Documentation: at least two business days before the respective payment date, by 10:00 CET. Per payment instruction: at least one business day before the respective payment date, by 10:00 CET. |
Equities | Documentation: at least two business days before the respective payment date, by 10:00 CET. Per payment instruction: At least one business day before the record date of the respective payment, by 10:00 CET |
Quick refund
Important note: Quick refund on debt securities is not available via Clearstream Banking.
For equities, Clearstream Banking’s deadline for receipt of documents for reclaiming withholding tax using the quick refund procedure is, at the latest, 10:00 CET on the 13th 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.
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.
A partial standard refund of withholding tax on dividends from Portuguese equities is available through Clearstream Banking for beneficial owners who are residents of a DTT country and did not obtain the treaty rate at source or via the quick refund (the “treaty standard refund”) or for those eligible to the standard rates (28% or 25%).
Statutory deadline for reclaiming withholding tax
The statutory deadline for reclaiming withholding tax using the treaty standard refund procedure is two years following the end of the year in which the dividend payment took place.
Clearstream deadline for standard refund applications
The deadline by which Clearstream Banking must receive the documentation for an application is at the latest two months before the statutory deadline. All reclaim applications received after this deadline will be processed by Clearstream Banking on a “best efforts” basis. However, in such cases, Clearstream Banking will apply an extra charge and accepts no responsibility for forms that have not reached the Portuguese Tax Authorities by the date considered to be the statute of limitations deadline.
When are refunds received?
Quick refund
The estimated time for receiving a quick refund on equities is the end of the month of the date that Clearstream Banking receives the certified documents.
Standard refund
There is no estimated time for receiving a full refund on debt securities or a partial refund on equities and clients are strongly encouraged to use the relief at source or quick refund procedures.
Notes on tax reclaims
Clients warrant the completeness and accuracy of the information they supply to Clearstream Banking.
It is the client's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly and to calculate the amount due. Clearstream Banking is under no obligation to carry out any investigation in respect of such information.
With respect to tax reclaims in general, clients are reminded that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country. It is the client's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly, and to calculate the amount due.
Market specifics
The following details are specific to the Portuguese market.
Issuance of a tax voucher and amendment of Modelo 30
The issuance of a tax voucher and amendment of Modelo 30 can be requested by clients who wish to obtain a standard refund of withholding tax directly with the Portuguese Tax Authorities (PTA). The tax voucher is delivered only if the beneficial owner was fully taxed at source (35%).
The tax voucher is issued by the Portuguese withholding agent being Clearstream Banking AG (CBF) for income payments as of 14 December 2020. It provides evidence that tax was withheld at source for a past taxable income payment.
Important note: The attestation does not replace the full chain of credit advices and can be considered as proof of tax withheld at the level of the tax agent only. It cannot be considered as a credit advice of payment from Clearstream Banking to the client. A Clearstream Banking credit advice, if required, must be requested separately.
The amendment of the initially submitted Modelo 30 is a mandatory requirement of the PTA to identify the final beneficial owner to be refunded. It will be performed by Clearstream Banking upon receipt of the tax voucher request.
Tax voucher requests
Requests must be sent by email to the dedicated mailbox (adhoc_refunds_portugal@clearstream.com).
Clients must use the dedicated template. All fields of the template must be completed.
Upon receipt and after verification of the submitted details, Clearstream will issue the relevant Tax Voucher. Invalid requests will be rejected and returned for correction to the client via MT568.
The tax vouchers are sent in paper form (by DHL) to the address mentioned in the template. An electronic copy can be exceptionally provided if requested.
The delivery of an attestation may take more than 25 calendar days from the date that the valid request is received by Clearstream Banking
Important note: Clearstream Banking will not assist further in the process of refund requests directly to the PTA and accepts no responsibility for their acceptance or non-acceptance by the Portuguese tax authorities.