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Payments unduly justified
Under Portuguese law, payments made by Madeira companies to entities residing in Tax havens are not deductible for the purpose of calculating taxable profit, but are subject to a specific tax at the rate of 35%, unless the purchaser can prove that said charges correspond to operations effectively implemented in circumstances that are not abnormal and the amount involved was also not excessive.
Similarly, it shall not be deductible amounts paid or due, indirectly, to entities resident in tax havens, where the taxpayer has or should have known of the destination of such amounts, unless it can demonstrate that such costs correspond to operations effectively implemented in circumstances that are not abnormal and the amount involved was not excessive.
It is presumed to exist such knowledge when there are special relations between the taxpayer and the entity resident in the tax haven, or between the taxpayer and an agent, trustee, or intermediary.