Special Taxation Regime for Company Groups (RETGS on the Portuguese abbreviation).

Administrative Ruling No. 5/2015 was issued by the Tax Authority, publishing the main features of the Special Taxation Regime for Company Groups, regarding the amendments introduced by Law No. 2/2014 of March 16.

Thereby, Tax Authority published the present Administrative Ruling in order to resolve any further doubt.

We would like to highlight:

• Company Groups may opt for the present regime, as long as they fulfill the requirements of paragraph 2 of Article 69 of the Corporate Income Tax Code;
• Such option should be made through a proper form, to the Tax Authority;
• The referred option should cover all the companies of the group, meaning, all the companies where the controlling company holds at least 75% of the share capital, and more than 50% of the voting rights.

The text of the referred Administrative Ruling is available on the following link: Administrative Ruling No. 5/2015