Portugal Tax News

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EU Commission requests Italy not to apply a withholding tax on dividends paid to Netherlands parent companies

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EU Commission progresses infringement actions against Member States for discriminatory taxation of outbound dividends

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Treaty between Turkey and Portugal ratified

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ECJ: previous UK ACT regime regarding outbound dividends compatible with EC fundamental freedoms (ACT IV GLO) – details

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ECJ holds French withholding tax on outbound dividends incompatible with freedom of establishment

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Tax authorities issue internal binding information on thin capitalization rules

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Budget Bill for 2007 – corporate income tax: details

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Budget Bill for 2007 – tax incentives: details

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ECJ: Azores lower tax rate held to be "selective" within the meaning of the EC Treaty State aid rules

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European Commission decides that Luxembourg's preferential tax regime for 1929 holding companies constitutes incompatible state aid

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European Commission requests Belgium to terminate discriminatory taxation of inbound dividends

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European Commission requested Spain to end infringement to the EC Parent-Subsidiary Directive concerning the use of anti-abuse measures

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European Commission requests Belgium, Italy, Luxembourg, Netherlands, Portugal and Spain to terminate discriminatory taxation of outbound dividends

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European Commission refers Italy and Luxembourg to ECJ for not implementing Directive amending EC Parent-Subsidiary Directive

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Treaty between Turkey and Portugal approved

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Amendments to new tax regime for debt securities

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The proposals included in the Budget Bill for 2006 have been approved by the parliament, subject to certain minor changes, and enacted as the Budget for 2006 by Law 60-A/05, published in the Official Gazette of 30 December 2005.

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Additional protocol between Ireland and Portugal signed

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Changes to withholding taxes on dividends anti-dividend stripping/washing measures

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Budget Bill for 2006 details including changes relating to EU law

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Portugal and Chile signed a first-time income tax treaty in Santiago on 7 July 2005. Further details of the treaty will be reported subsequently.

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The proposal to rectify the Budget Law for 2005 has been approved by the parliament and enacted by Law 39-A/05, published in the Official Gazette of 29 July 2005. The most important amendments reported earlier, which apply from 1 January 2005, are compiled below:

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Portugal and Turkey signed a first-time tax treaty on 11 May 2005.

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