 | | | | | Elimination of double economic taxation – participation exemption |
The profits distributed to the companies with registered office in Portugal by their subsidiaries with their registered office located in the European Economic Area – UE member states, Island, Liechtenstein and Norway – shall be excluded from taxation under Corporate Income Tax, in case the detained shareholding is >=10%, owned for a time period of, at least, 1 year (or commitment to continue to own same for an equal period of time). Both companies must have one of the types of company foreseen in the Exhibit of the Parent - Subsidiary Directive and be subject to taxation on income, with no possibility to benefit from exemption.
This deduction is only applicable when the revenue has come from profit that has been effectively taxed. | | |  | |
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