 | | | | | Under the portuguese tax legislation, resident members in Portuguese territory are liable, in the due proportion of their share and irrespective of distribution, for profits earned in companies resident in tax havens, so long as, the member directly or indirectly holds at least 25% of the shares, or, for at least 10% when a non-resident company is directly or indirectly held by resident members by more than 50% of the shares.
These rules also apply where the profits or income derived from an indirect participation that is held through an agent, trustee or intermediary.
This liability corresponds to the profits earned by the company after deductions of applicable taxes in the company’s resident state.
Also considered Residents of tax havens, are the entities resident in the countries listed in theportuguese official list of tax havens, as well as, those that have not been taxed on income through an identical or similar tax as the Corporate Income Tax (IRC) or where the tax actually paid is equal to or less than 60% of what would be payable if the company were resident in Portuguese territory.
This scheme does not apply to entities resident in the European Union (EU) or European Economic Area (EEA) as long as the formation and operation of the controlled entity complies with valid economic reasons and such entity develops an agricultural, commercial, industrial or provision of services activity. | | |  | |
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