International Tax Services Portugal Newsbrief Portugal : le Programme 2010-2011 pour la Stabilité et la Croissance inclut un certain nombre de hausses des prélèvements de nature fiscale. Portuguese Stability and Growth Program 2010 Under the Stability and Growth Program for 2010 and 2011, the Portuguese Government has introduced several measures with a tax impact, including increases of some tax rates. Corporate Income Tax The withholding tax rate applicable for several types of income will be increased from 20% to 21.5%. The increased rate applies to income such as interest, dividends, employment income, professional and pension income, as well as other types of capital income. Additional Tax For companies with a head office, effective management, or permanent establishments operating within Portugal, a new tax rate of 2.5% was added to Corporate Income Tax (named “Derrama Estadual”). This new tax rate is only applicable to individual annual taxable profits exceeding EUR 2 million prior to the deduction of tax loss carry forwards. For consolidated tax groups the tax should be assessed on each company's taxable profit. Stamp Tax Stamp Tax rates on capital for loans granted to consumers were also increased. The new rates are expected to be effective July 1, 2010. Tax Information Exchange Agreements Following the signing of Tax Information Exchange Agreements (TIEA) with Gibraltar and Andorra, Portugal has signed similar agreements with Bermuda and Cayman Islands. The entrance into force of the TIEAs shall lead to the removal of those territories from the "black list" of tax heavens. This is especially relevant as their inclusion on the “black list” precluded any entities resident in those jurisdictions from benefiting from the domestic exemption applicable to capital gains and capital income derived from bonds by non-resident entities. Note that since these jurisdictions are still low tax countries, CFC and other anti-avoidance rules continue to apply. For further information Cette publication diffuse des informations fiscales, juridiques ou sociales à caractère général. Cette publication ne peut se substituer à des recommandations ou à des conseils de nature fiscale, juridique ou sociale. Les informations contenues dans cette publication ne constituent en aucune manière un conseil personnalisé susceptible d'engager, à quelque titre que ce soit, la responsabilité des auteurs et / ou de Landwell & Associés. Cette publication est la propriété de Landwell & Associés. Toute reproduction et / ou diffusion, en tout ou partie, par quelque moyen que ce soit est interdite sans autorisation préalable. © 2010 Landwell & Associés. Cabinet d'avocats membre du réseau PricewaterhouseCoopers. PricewaterhouseCoopers est composé d'entités juridiques distinctes et indépendantes les unes des autres. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Landwell & Associés does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. This publication (and any extract from it) must not be copied, redistributed or placed on any website, without Landwell & Associés’ prior written consent. © 2010 Landwell & Associés, member of the PricewaterhouseCoopers' network. ‘PricewaterhouseCoopers’ refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.  www.landwell.fr