New forms (Models RFI) to avoid international double taxation were approved
Tax Alert Portugal
The new model forms 21-RFI, 22-RFI, 23-RFI and 24-RFI, which are required for the application of international double taxation conventions, were approved by Dispatch No 8363/2020 of 31 August 2020.
These forms are intended to prove the conditions for total or partial exemption from withholding tax or total or partial refund of tax that has been withheld at source, both for Personal Income Tax (“IRS”) and Corporate Income Tax (“IRC”).
The modification of these forms results from the amendments to the IRS and IRC Codes introduced by Law no. 119/2019, of 18 September, which once again revised the procedure for proving the residence of the beneficiary of income attributed by residents in Portugal. The new changes, with effect from 1 October 2019, are as follows:
Presentation to the debtor of the income of the said form (model 21-RFI or 22-RFI, depending on the nature of the income) by the beneficiary until the deadline set for delivering the tax to the State, without the need for certification by the tax authorities of the State of its residence (i.e. by the 20th day of the following month);
This form must be accompanied by a document certifying the income beneficiary's residence in the period concerned, as well as the subjection to income tax in that State for the same period.
The refund of tax which has been withheld for non-compliance with the procedure described above must be requested within two years of the end of the year in which the taxable event occurred, by submitting the corresponding form (model 23-RFI or 24-RFI), also accompanied by said tax residence certificate issued in the same terms as above.