On 16 August 2022 the Global Forum for Transparency and Exchange of Information for Tax Purposes released a second round peer review report in relation to Portugal. The peer review report examines the legal and regulatory framework in Portugal and its compliance with the international standard on transparency and exchange of information on request (EOIR).

The second round peer review report rates Portugal as overall compliant with the relevant standard. The first round peer review in 2015 had found that Portugal was “largely compliant” and some further improvements have been implemented since then, especially in relation to access to, and exchange of, banking information. New internal processes and guidance adopted in 2016 are applicable to all requests for banking information and the practice now conforms to the standard.

Following the entry into force in Portugal of the Multilateral Convention on Administrative Assistance in Tax Matters in March 2015, and the conclusion of a number of bilateral agreements, Portugal has extended the number of partner countries with which information can be exchanged. The report notes that Portugal has further extended its treaty network since the first round peer review and now has agreements covering exchange of information with all major trading partners, the member countries of the G20 and the OECD. The exchange of information is authorised under 81 double taxation agreements, 16 treaties for the exchange of information, the EU directive and the Multilateral Convention.

The report notes that there are deficiencies in the supervisory and enforcement mechanism relating to the centralised beneficial ownership register. The report recommends that Portugal should introduce a program to ensure that up-to-date beneficial ownership information is available on all legal entities and legal arrangements.

In the review period from 1 October 2017 to 30 September 2020 Portugal received 799 information requests and sent 936 requests to treaty partners. Portugal has been providing status updates to its treaty partners where the information requested cannot be provided within 90 days, informing the other authority that Portugal’s competent authority is still working on the case and will respond as soon as possible. However, these status updates are not sent automatically in all cases and there is no register to allow the retrieval of data on updates sent. The report recommends that Portugal should put in place appropriate measures to update the treaty partner if a response cannot be provided within 90 days.

In its response to the report, Portugal has noted that it will work on the recommendations, to improve the legal framework and practical arrangements for exchange of information on request.