The transposition of the Directive no. 2003/49/CE, of June 3, related to a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States was completed by the Portuguese Law no. 55/2013, of August 8. 

Through the amendment of the Corporate Income Tax Code, interest and royalties become exempt from taxes provided that the beneficial owner of the interest or royalties is a company of another Member State or a permanent establishment situated in another Member State of a company of a Member State, due or paid by a Portuguese resident entity or a permanent establishment situated in another Member State. 

The Portuguese resident entity or the permanent establishment should be an associated company of the beneficial owner of the interest or royalties. 

The payments of interest and royalties between a Portuguese resident entity and a company resident in the Swiss Confederation are also exempt from taxes under the terms of the Agreement between the European Union and the Swiss Confederation. 

The Law is applicable since July 1, 2013.