The Official Gazette of Portugal published Order 796-B/2013 of the Ministry of Finance on 14 January 2013. Order 796-B/2013 approved the new withholding tax tables for personal income tax.
The new withholding tax rates are applicable to employment and pension income (income categories A and H). New withholding tax rates are effective from 15 January 2013 and applicable to salaries and pensions paid during the month of January.
According to Order 796-B/2013, a 28% (previously 26.5%) withholding tax rate will be applicable on dividends, interest from bank deposits, interest from shareholders loans and interest from debt securities. The 28% withholding tax rate will also apply to rental income (previously, 16.5%). A 25% withholding tax rate (previously 21.5%) will be applicable on the income derived by non-resident entities from the lease of equipment, royalties (either earned or not by the author or original owner), technical assistance, employment income, remuneration of board members, provision of services and pensions.
