Profits and reserves distributed to companies domiciled in Portugal, as well as the capital gains and losses realised, do not contribute to the computation of taxable profit of Corporate Income Tax (IRC) taxpayers with head office or place of effective management in Portugal, depending on the percentage and period of holding of the shares.
Requirements
Dividends:
- Holding of at least 10% of the share capital or voting rights of the company distributing profits and reserves, for a consecutive period of at least one year (prior to distribution), or being held for less time, to be maintained during the time necessary to complete that period;
- The taxable person is not covered by the tax transparency regime;
- The entity distributing the profits or reserves is subject to and not exempt from IRC, special gambling tax, a tax referred to in Article 2 of the Council Directive 2011/96/EU, of 30 November, or a tax equal or similar to IRC and a statutory rate that is not lower than 60% of the standard IRC rate (12.6%);
- The entity distributing the profits or reserves is not resident or domiciled in a country, territory or region subject to a clearly more favourable tax regime.
Capital gains:
- The transferred shares must be held for a consecutive period of at least one year, and on the date of the respective transfer, the requirements described in the access conditions above;
- This regime does not apply if the participated company has real estate properties whose value represents more than 50% of the respective assets, unless such real estate property is used in connection with an agricultural, industrial or commercial activity, which do not involve the lease or purchase and sale of real estate properties.