The Portuguese rules on international tax transparency (usually known as CFC rules, the abbreviation for Controlled Foreign Companies) are complex. RPBA has prepared an infographic to help understand this subject and conclude on the transparent or opaque nature of non-Portuguese resident entities, with consequences at the level of the Portuguese Corporate Income Tax (“IRC”) or Personal Income Tax (“IRS”).

1. International Tax Transparency (Controlled Foreign Entities) – General rule
Rua Abranches Ferrão, n.º 10, 9.º Piso, Fracção G, 1600-001 Lisboa, Portugal
T.: (351) 212 402 743 F.: (351) 210 103 898 E.: geral@rpba.pt
No imputation is due
/ the entity is not tax
transparent
Is the entity resident in a
territory included in the
Portuguese tax havens’
blacklist, as approved by
Ministerial Order no.
292/2011, of November
8th (Please check the
blacklist in the last page)?
Participations in a non-
Portuguese resident
entity?
Taxpayer subject
to the
Portuguese
Personal Income
Tax (“IRS”) or
Corporate
Income Tax
(“IRC”)
NO
Is the effectively paid
Corporate Income Tax less
than half of the IRC that
would have fictitiously
been due in Portugal, if the
entity was resident in
Portugal?
OR
YES
NO
Voting rights in a non-
Portuguese resident
entity?
Rights over the income
or assets of a non-
Portuguese resident
entity?
OR
ORDoes the taxpayer hold
directly or indirectly in
25% or more:
Please check the
exceptions on the
following pages:
Resident in
Portugal
YES
1
The entity is prima
facie tax transparent:
The profits or the income
of the non-resident entity
in each tax period, as
fictively determined under
the IRC Code, deducted
from the Corporate Income
Tax paid in its State of
residence, are imputed to
the taxpayer resident in
Portugal in proportion to
his/its direct or indirect
control, the latter being
taxed under IRS or IRC, as
appropriate.

2. Rua Abranches Ferrão, n.º 10, 9.º Piso, Fracção G, 1600-001 Lisboa, Portugal
T.: (351) 212 402 743 F.: (351) 210 103 898 E.: geral@rpba.pt
Are the incorporation and
holding of the non-resident
entity based on valid
economic reasons?
YES
Is the entity resident or
established in another
Member State of the
European Union or of the
European Economic Area?
NO
Does the non-resident entity
develop an agricultural,
commercial, industrial or
service rendering activity?
YES
NO
NO
The entity is secunda
facie tax
transparent:
The profits or the income
of the non-resident entity
in each tax period, as
fictively determined
under the IRC Code,
deducted from the
Corporate Income Tax
paid in its State of
residence, are imputed to
the taxpayer resident in
Portugal in proportion to
his/its direct or indirect
control, the latter being
taxed under IRS or IRC, as
appropriate.
The entity is not tax
transparent
Please check the
remaining exceptions
on the next page:
International Tax Transparency (Controlled Foreign Entities) – Exception according to residence
2
YES
NO
YES
Is this activity supported by
staff, equipment, assets and
premises?

3. Rua Abranches Ferrão, n.º 10, 9.º Piso, Fracção G, 1600-001 Lisboa, Portugal
T.: (351) 212 402 743 F.: (351) 210 103 898 E.: geral@rpba.pt
The entity is not tax
transparent
The entity is tax
transparent:
The profits or the income
of the non-resident entity
in each tax period, as
fictively determined under
the IRC Code, deducted
from the Corporate
Income Tax paid in its
State of residence, are
imputed to the taxpayer
resident in Portugal in
proportion to his/its direct
or indirect control, the
latter being taxed under
IRS or IRC, as appropriate.
YES
NO
DISCLAIMER: This infographic is updated until
January 14th, 2021. Although great care has
been taken when drafting this infographic,
Ricardo da Palma Borges & Associados (RPBA)
- Sociedade de Advogados, S.P., R.L. does not
accept any responsibility whatsoever for any
consequences arising from the use of the
information contained herein. The information
is provided solely for general purposes, cannot
be regarded as legal or other advice. It is
strongly recommended to take professional
legal advice appropriate for your case before
making any decisions.
Is the income of the non-resident
entity derived in more than 25%
from one or more of the following
categories of income ?
Interest or any other capital income?
Royalties or any other income derived from intellectual property,
image rights or rights of similar nature?
Dividends and income derived from the disposal of shares of capital?
Income derived from financial leasing?
Income derived from transactions proper of the banking business
even if not carried on by credit institutions, relating to insurance,
business or from other financial activities entered into with entities
in special relations for the purposes of the Portuguese transfer
pricing provision?
Income from invoicing companies that earn commercial and services
income derived from goods and services purchased from and sold to
related entities, for the purposes of the Portuguese transfer pricing
provision and that add no or little economic value?
International Tax Transparency (Controlled Foreign Entities) – Exception according to activities
3
OrAnd
OrAnd
OrAnd
OrAnd
OrAnd

4. Rua Abranches Ferrão, n.º 10, 9.º Piso, Fracção G, 1600-001 Lisboa, Portugal
T.: (351) 212 402 743 F.: (351) 210 103 898 E.: geral@rpba.pt
Portuguese Tax Havens’ Blacklist, as approved by Ministerial Order no. 292/2011, of November 8th
Anguilla Guyana Puerto Rico
Antigua and Barbuda Honduras Qatar
The Netherlands Antilles Hong Kong The Solomon Islands
Aruba Jamaica American Samoa
Ascension Jordan Samoa
The Bahamas The Queshm Island St. Helena
Bahrain Kiribati St. Lucia
Barbados Kuwait St. Kitts-Nevis
Belize Labuan San Marino
Bermuda Lebanon St. Pierre and Miguelon
Bolivia Liberia St. Vincent and the Grenadines
Brunei Liechtenstein The Seychelles
The Channel Islands (Alderney, Guernsey, Jersey,
Great Sark, Herm, Little Sark, Brechou, Jethou and
Lihou)
The Maldives Swaziland
The Isle of Man
Svalbard Islands (Spitsbergen archipelago and the
Bjornoya island)The Northern Marianas Islands
The Cayman Islands The Marshall Islands Tokelau
The Cocos o Keeling Islands Mauritius Tonga
The Cook Islands Monaco Trinidad and Tobago
Costa Rica Montserrat Tristão da Cunha Island
Djibouti Nauru Turks and Caicos Islands
Dominica Natal Tuvalu
United Arab Emirates Niue Uruguay
The Falkland Islands Norfolk Island Vanuatu
Fiji Oman The British Virgin Islands
Gambia Palau The U.S. Virgin Islands
Grenada Panama Yemen
Gibraltar Pitcairn Island
“Other Pacific Islands not specifically mentioned”
Guam French Polynesia 4