Stamp Tax

• 1. Tax basis

  Stamp Tax is due on acts, contracts, documents, titles, books, papers and other facts foreseen in the General Stamp Tax Table, which occur in Portugal and are not subject or exempt from VAT (certain prizes may be simultaneously subject to VAT and Stamp Tax). There will be no cumulative taxation on the same document or act, except for acquisitions, for no consideration, of the ownership or other rights over immovable property.
  
  The abovementioned facts are also subject to Stamp Tax if, although they occur outside the Portuguese territory, they are presented for legal purposes in Portugal.

• 2. Rates

  The applicable tax rates are those established in the General Stamp Tax Chart at the time the tax is due. In case more than one Stamp Tax rate may be applicable, only the higher actually applies. A non-exhaustive description of some of the operations liable to Stamp Tax is presented in the table below:
  .

  Tax basis	Rate (%)
  Acquisition of ownership or other rights on real estate (or consideration or donation).	0.8
  Gratuitous acquisition of goods by individuals (gift or inheritance), including adverse possession.	10
  Letting or sub-letting of real estate (applied on the amount of first monthly rent)	10
  Guarantees, regardless of their nature or form, except if materially accessory and simultaneously to contracts subject to Stamp Tax under other rule: - Less than one year (per month or fraction); - One or more years; - Five or more years or without term.	0.04 0.5 0.6
  Use of credit: -Less than one year (per month or fraction); - One or more years; - Five or more years; - Revolving credit facilities (credit used in the form of current account, overdraft or any other form in which the maturity is not determined or non-determinable) - per month on the average monthly debt balance daily assessed (dividing the sum of the daily debt balance by 30).	0.04 0.5 0.6 0.04
  Operations performed by or through credit and financial institutions: - Interest; - Premiums and interest due on promissory notes; - Commissions on given guarantees; - Other commissions for financial services.	4 4 3 4
  Net asset value of undertakings for collective investment (UCIs) - due on a quarterly basis. - UCIs investing only in money market instruments and deposits; - Other types of UCIs (including real estate funds and companies).	0.0025% 0.0125%

• 3. Payment

  Taxpayer must assess and pay the due Stamp Tax. For instance, is the lender who is liable to assess and pay the Stamp Tax due, except if there is any public notary or credit institution, financial entity or identical entity, resident in Portugal, intermediating the operation, where said liability will remain with the latter.
  
  Notwithstanding, whenever the credit is granted by a non-resident entity without intervention of a public notary or without intermediation of a Portuguese financial institution, the borrower will be responsible for the assessment of the tax and its payment to the Portuguese Tax Authority.
  
  Stamp Tax should be delivered to the Portuguese Tax Authority until the 20th day of the following month where the tax is due. The economic burden of Stamp Tax is borne by the entity that bears the economic interest (for instance: in loans, by the borrower).
  
  Annex 1
  
  [Tax Treaties withholding tax rates]
  
  
  

  Countries	Entry into force	Rates
  -	-	Dividends	Interest	Royalties
  South Africa	22/10/2008	10/15 (a)	10	10
  Germany	08/10/1982	15	10/15 (g)	10
  Andorra	23/04/2017	5/15 (o)	10	5
  Angola	22/09/2019	8/15 (a)	10	5
  Saudi Arabia	01/09/2016	5/10 (o)	10	8
  Algeria	01/05/2006	10/15 (a)	15	10
  Austria	28/02/1972	15	10	5/10 (b)
  Barbados	07/10/2017	5/10 (a)	10	5
  Bahrein	01/11/2016	10/15 (a)	10	5
  Belgium	19/02/1971 - 05/04/2001	15	15	10
  Brazil	01/01/2000	10/15 (a)	15	15
  Bulgaria	18/07/1996	10/15 (a)	10	10
  Cape Verde	15/12/2000	10	10	10
  Canada	24/10/2001	10/15 (a)	10	10
  Chile	25/08/2008	10/15 (a)	5/10/15 (c)	5/10 (d)
  China	08/06/2000	10	10	10
  Cyprus	01/08/2013	10	10	10
  Colombia	30/01/2015	10	10	10
  South Korea	21/12/1997	10/15 (a)	15	10
  Ivory Coast	18/08/2017	10	10	5
  Croatia	28/02/2015	5/10 (a)	10	10
  Cuba	28/12/2005	5/10 (a)	10	5
  Denmark	01/01/2003	10	10	10
  United Arab Emirates	22/05/2012	5/15 (o)	10	10
  Slovakia	01/01/2005	10/15 (a)	10	10
  Slovenia	01/01/2005	5/15 (a)	10	5
  Spain	28/06/1995	10/15 (a)	15	5
  United States of America	01/01/1996	5/15 (a)	0/10 (j)	10
  Estonia	01/01/2005	10	10	10
  Ethiopia	09/04/2017	5/10	10	5
  Finland	14/07/1971	10/15 (a)	15	10
  France	18/11/1972	15	10/12 (f)	5
  Georgia	18/04/2016	5/10 (a)	10	5
  Greece	01/01/2003	15	15	10
  Guinea-Bissau	05/07/2012	10	10	10
  Hong Kong	03/06/2012	5/10 (o)	10	5
  Hungary	08/05/2000	10/15 (a)	10	10
  India	05/04/2000	10/15 (a)	10	10
  Indonesia	11/05/2007	10	10	10
  Ireland	11/07/1994 -18/12/2006	15	15	10
  Iceland	01/01/2003	10/15 (a)	10	10
  Israel	18/02/2008	5 (a) / 10 (n) / 15	10	10
  Italy	15/01/1983	15	15	12
  Japan	28/07/2013	5/10 (p)	5/10 (p)	5
  Kuwait	05/12/2013	5/10 (p)	10	10
  Latvia	07/03/2003	10	10	10
  Lithuania	26/02/2003	10	10	10
  Luxemburg	30/12/2000	10	10	10
  Macau	01/01/1999	10	10	10
  Malta	01/01/2003	10/15 (a)	10	10
  Morocco	27/06/2000	10/15 (a)	12	10
  México	09/01/2001	10	10	10
  Mozambique	01/01/1994 - 07/06/2008	15	10	10
  Moldavia	18/10/2010	5/10 (a)	10	8
  Montenegro	07/12/2017	5/10 (o)	10	5/10 (q)
  Norway	15/06/2012	5/15	10	10
  Panamá	10/06/2012	10/15 (o)	10	10
  Pakistan	04/06/2007	10/15 (a)	10	10
  Peru	12/04/2014	10/15	10/15	10/15
  Poland	04/02/1998	10/15 (a)	10	10
  Qatar	04/04/2014	5/10	10	10
  United Kingdom	20/01/1969	10/15 (a)	10	5
  Czech Republic	01/10/1997	10/15 (a)	10	10
  Romania	14/07/1999	10/15 (a)	10	10
  Russia	01/01/2003	10/15 (a)	10	10
  San Marino	03/12/2015	10/15 (a)	10	10
  São Tome e Príncipe	12/07/2017	10/15 (a)	10	10
  Senegal	20/03/2016	5/10 (a)	10	10
  Singapura	26/12/2013	10	10	10
  Sweden	01/01/2000	10	10	10
  Switzerland	17/12/1975	5/15 (a)	10	5
  Oman	26/07/2016	5/10/15 (o)	10	8
  Tunisia	21/08/2000	15	15	10
  Turkey	18/12/2006	5/15 (a)	10/15 (i)	10
  Ukraine	01/01/2003	10/15 (a)	10	10
  Uruguay	13/09/2012	5/10 (a)	10	10
  Venezuela	08/01/1998	10/15 (a)	10	10/12 (k)
  Vietnam	09/11/2016	5/10/15 (o)	10	10/7,5

  
  (*) The reduced rates are applicable either by relief at source mechanism or refund reclaim provided the beneficiary presents the necessary forms (21-RFI to 24-RFI), duly completed (but no need to be authenticated by the respective tax authorities) and a tax residence certificate of the recipient of the income.
  
  (a) Reduced rate whenever the beneficiary is a company that holds at least 25% of the subsidiary’s share capital (two years holding period) and 15% in the remaining cases. In the case of Andorra and Saudi Arabia, the shareholder percentage criterion is limited to 10% of the capital of the company which pays the dividens. In the case of Chile, Cuba, Slovenia, Spain, Finland, Moldova, Norway, UK and Switzerland, there is no minimum holding period required. In the case of the UK, the shareholding percentage criterion is replaced by voting rights. In the case of Venezuela, there is no requirement on a minimal capital shareholding on the company of the other Contracting State. In the case of Barbados, Bahrein, Croatia, United Arab Emirates, Ethiopia, Georgia, Moldavia and Uruguay, there is no requirement on a minimum shareholding period. In the case of Angola, the minimum holding period is 365 days.
  
  (b) When the company holds more than 50% of the share capital.
  
  (c) 5% on bonds or securities that are regularly and substantially traded on a recognized securities market, 10% on loans granted by banks and insurance companies or on sale on credit and 15% on the remaining cases.
  
  (d) 5% on royalties for the use of, or the right to use, any industrial, commercial or scientific equipment. 10% on the remaining cases.
  
  (e) 10% whenever the parent company controls more than 50% of the subsidiary’s share capital. 5% on the remaining cases.
  
  (f) 10% for interest derived from bonds issued in France on or after 1/1/1965; 12% on the remaining cases.
  
  (g) 10% for interest on loans granted by a bank. When the interest is derived from Portugal, the 10% rate is only applicable if the operation for which such loans are granted is officially deemed to be of economic or social interest for Portugal.
  
  (h) 10% on interest paid by companies resident in a Contracting State, where interest paid is considered as a deductible cost, to a financial establishment resident in the other Contracting State. 15% on the remaining cases.
  
  (i) 10% for interest paid on a loan made for a period of more than two years.
  
  (j) 0% on interest on a long-term loan (5 or more years) granted by a bank or other financial institution that is a resident of the other Contracting State
  
  (k) 10% for royalties concerning technical assistance.
  
  (l) Many treaties provide for specific withholding tax exemptions of on interest, namely when interest is paid by and to a State, local authority, central bank, or export credit institutions and when interest is pain in relation to sales on credit.
  
  (m) The treaty does not apply to exempt Luxembourg 1929 holding companies.
  
  (n) 10% whenever the beneficial owner is a company that holds directly at least 25% of the paying company’s capita. Furthermore, this company must be a resident of Israel and the dividends are paid deriving from Israeli-sourced taxable income subject to a lower rate when compared to the Israeli CIT tax rate.
  
  (o) If the beneficial owner is a company (unless it is a partnership) which holds directly at least 10% of the share capital of the entity paying dividends. In the case of Montenegro, the percentage is 5%. In the case of Vietnam, it is applicable a rate of 5% if the beneficial owner is a company which holds, directly, at least 70% of the capital of the entity paying the dividends.
  
  (p) 5% whenever the beneficial owner is a company (unless it is a partnership) which holds directly for an uninterrupted period of 12 months (i) 10% of shareholding with voting rights of the distributing company which is a resident of Japan, or (ii) 10% of the share capital of the company distributing dividends which is a resident of Portugal.
  
  (q) 5% for royalties related with any copyright of literary, artistic or scientific work and 10% for royalties related with patents, trade-marks, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.
  
  (r) 10% for royalties and 7,5% for income generated from technical fees (managerial, technical or consultancy).
  
  
  Annex 2
  
  [Portuguese Blacklisted jurisdictions]
  
  

  American Samoa	Costa Rica	Labuan
  Anguilha	Djibouti	Lebanon
  Antigua and Barbuda	Dominica	Liberia
  Aruba	Falkland Islands or Malvinas	Liechtenstein
  Ascension Island	Fiji Islands	Maldive Islands
  Bahamas	French Polynesia	Marshall Islands
  Bahrain	Gambia	Netherlands Antilles
  Barbados	Gibraltar	Northern Mariana Islands
  Belize	Grenada	Niue Island
  Bermuda	Guam	Norfolk Island
  Bolivia	Guyana	Pacific Islands
  British Virgin Islands	Honduras	Palau Islands
  Brunei	Hong Kong	Panama
  Cayman Islands	Isle of Man	Pitcairn Island
  Channel Islands	Jamaica	Porto Rico
  Christmas Island	Jordan	St Vicente and the Grenadines
  Cocos (Keeling)	Kingdom of Tonga	Sultanate of Oman
  Cook Islands	Kiribati	Svalbard
  Qatar	Kuwait	Swaziland
  Queshm Island	United Arab Emirates	Tokelau
  Saint Helena	United States Virgin Islands	Trinidad and Tobago
  Saint Kitts and Nevis	Vanuatu	Tristan da cunha
  Saint Lucia	Yemen Arab Republic	Turks and Caicos Islands
  Saint Pierre and Miquelon	Uruguay	Tuvalu
  Samoa	Mauritius
  San Marino	Monaco
  Seychelles	Monserrat
  Solomon Islands	Nauru