 | | | | | Rules regarding certification as a non-resident |
Companies based in Madeira have to prove that the entities with which they establish relations are non-residents.
With regard to payments and income from day-to-day business activities (payments and income relative to the transaction of goods and services ) in the international services area, including SGPS holding companies, any form of proof will be deemed sufficient to demonstrate non-residency.
In all other situations, proof of non-residency must be made through the submittal of one of the following documents:
- Certificate of tax residence or similar document issued by the tax authorities;
- Document issued by a Portuguese Consulate;
- Document issued by an official entity that proves residence.
Note that the following payments must never be made without first receiving proof of non-residency by one of the means referred to in the previous paragraph:
- Dividends and advance payment of profits;
- Interest and other capital income;
- Royalties and other intellectual property income;
- Fees for brokering any contract;
- Provision of services implemented or used in Portugal, except those concerning transport, telecommunications and financial activities.
In the event of non-presentation of proof of non-residency it is assumed that the operations were performed with entities residing in Portugal, therefore cancelling out the benefits granted to all the entities involved in the operation in question.
Given that the status of non-resident of the entity with which the company in Madeira transacts is a necessary requirement for the attribution of applicable tax incentives, we only execute instructions received after receipt of the respective proof of non-residency. | | |  | |
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