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Madeira: Domestic Corporate Taxation

Withholding Tax

See Double Taxation Treaties for details of rates of withholding tax applying to treaty countries. Other than as specified in the treaties, the rates of withholding are as follows: Dividends 25%, Interest 25%, Royalties 25%, Rental and Commissions 15%.

Under the EU Parent/Subsidiary Directive, from January 2000 outbound profit distributions and dividends from a Portuguese 25% subsidiary to its EU parent are not subject to withholding.

Under the parent/subsidiary directive the holding requirement has been 10% since 2009, prior to that it was 15% in 2007/08; and 20% in 2005-06. Under the EU's Directive on Interest and Royalties, which came into effect in 2004, both types of payment are exempt from withholding tax if they are between associated companies (rules as for the participation exemption).



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