Quick refund – eligibility, documentation, deadlines – Portuguese debt securities – CBL
Who can obtain a quick refund?
Quick refund of withholding tax on interest from Portuguese debt securities is available through Clearstream Banking for eligible beneficial owners (who have not obtained an immediate refund), as follows:
Domestic bonds subject to Law 83/2013 clarified by Circular Letter 4/2014
Eligible beneficial owners | Effective rate of tax | Tax |
DTT/TIEA residents eligible for tax exemption | 0% | 35% |
Credit institutions, financial companies, pension funds, insurance companies domiciled in an OECD Member State or in a DTT country | 0% | 35% |
Collective Investment Vehicles (CIVs) domiciled in an OECD Member State or in a DTT country | 0% | 35% |
Central banks, public law agencies, public law entities or International/Supranational organisations recognised by the Republic of Portugal | 0% | 35% |
Portuguese residents eligible for tax exemption | 0% | 35% |
Portuguese beneficial owners not eligible for tax exemption but applying for reduced tax rates | 25% / 28% | 10% / 7% |
a. Expressed as a percentage of the gross interest amount.
Documentation requirements
There are different documentation requirements depending on the status of the beneficial owner and on the applicable legislation.
Domestic bonds subject to Law 83/2013 clarified by Circular Letter 4/2014
For each quick refund application:
- Form Mod. 25-RFI;
- Per-payment instruction;
- Power of attorney, if applicable.
Important Note: To apply for quick refund of withholding tax, ALL beneficial owners must disclose their identity and holdings via the documentation listed above.
Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Portuguese debt securities.
Deadlines for receipt of documents
Documentation for a quick refund of withholding tax on interest from Portuguese debt securities must be received by Clearstream Banking by the following deadlines:
Category of beneficial owner | Deadline for receipt by Clearstream Banking |
For non-residents of Portugal entitled to full quick refund of withholding tax under the application of the SDSR | At the latest five business days before the sixth month after the payment date |
For residents of Portugal entitled to full quick refund of withholding tax under the application of the 2008 State Budget Law | 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 interest payment was made. |
For residents of Portugal entitled to a reduced rate of withholding tax (25%/28%) | 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 interest payment was made. |
When are refunds received?
The estimated time for receiving a quick refund is two weeks from the date that Clearstream Banking receives the certified documents.