Portugal Deposit Tax

I

imalwayshappy

Registered User
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Hi,

I have contacted both the revenue (advised to contact the IRS in Portugal) and raisin for advice but neither were of any assistance.

A deposit on raisin matured and a withholding tax of c. 38% has been applied to the interest. Raisin in fairness provided me with the relevant forms to fill out (RFI 21) and post back to the portugese tax authorities which i received the day before i went on holiday last and subsequently forgot to deal with.

Can anyone offer any advice on where to go from here? Googling the IRS is Portugal has been to no avail as I cant find an email to send the query to. Is it too late to fill out the RFI21 form and post off?

Thanks
 
imalwayshappy said:
Thanks but this is not much help...
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How so? Surely it addresses this point of yours?
imalwayshappy said:
Googling the IRS is Portugal has been to no avail as I cant find an email to send the query to.
Click to expand...
The article lists details about the Portuguese tax authorities and, by following a couple of links, you can get to their contact details page:

Contactos

Autoridade Tributária e Aduaneira
sitfiscal.portaldasfinancas.gov.pt sitfiscal.portaldasfinancas.gov.pt
 
ClubMan said:
How so? Surely it addresses this point of yours?

The article lists details about the Portuguese tax authorities and, by following a couple of links, you can get to their contact details page:

Contactos

Autoridade Tributária e Aduaneira
sitfiscal.portaldasfinancas.gov.pt sitfiscal.portaldasfinancas.gov.pt
Click to expand...

For queries they are looking for an equvilant of a PPS number (which I dont have as I am not resident) and they dont speak english on the otherside of the the phone. Tricky situation..
 
imalwayshappy said:
Hi,

I have contacted both the revenue (advised to contact the IRS in Portugal) and raisin for advice but neither were of any assistance.

A deposit on raisin matured and a withholding tax of c. 38% has been applied to the interest. Raisin in fairness provided me with the relevant forms to fill out (RFI 21) and post back to the portugese tax authorities which i received the day before i went on holiday last and subsequently forgot to deal with.

Can anyone offer any advice on where to go from here? Googling the IRS is Portugal has been to no avail as I cant find an email to send the query to. Is it too late to fill out the RFI21 form and post off?

Thanks
Click to expand...
I missed out on claiming the withholding tax from Blur Or. I asked Revenue. They told me to contact the country involved. This isn't correct as I have missed the deadline. I asked again, how to claim tax relief on tax paid in 2024 in a another state. They said claim in 2025. I think like how they were dealing with DIRT tax in EU banks, this maybe a new situation for Revenue within the PAYE side (my account).
 
ACER10 said:
I missed out on claiming the withholding tax from Blur Or. I asked Revenue. They told me to contact the country involved. This isn't correct as I have missed the deadline. I asked again, how to claim tax relief on tax paid in 2024 in a another state. They said claim in 2025. I think like how they were dealing with DIRT tax in EU banks, this maybe a new situation for Revenue within the PAYE side (my account).
Click to expand...
This is my situation exactly. Revenue told me to contact the countries tax authorities. I wonder though is it a case where I just have to pay 5% to the Irish revenue in next years tax return given I have paid 28% to Portugal? Am I over complicating this?
 
If the Portuguese tax authorities got 28%, this is more than the 15% they are entitled to

You have to claim the excess 13% back from the Portuguese tax authorities

You owe DIRT at 33% to the Revenue in Ireland and you can offset the 15% allowed to the Portuguese, so you owe 18% more to Revenue

The joys of depositing your savings in banks abroad!
 
imalwayshappy said:
This is my situation exactly. Revenue told me to contact the countries tax authorities. I wonder though is it a case where I just have to pay 5% to the Irish revenue in next years tax return given I have paid 28% to Portugal? Am I over complicating this?
Click to expand...
Portugal have a Citizens helpline in English to help with tax matters. While you are not resident there, they might still offer you assistance or point you in the right direction. I'm in the same predicament. Even with the tax credit from Revenue offset against the 33%, Portugal still have 18% of WHT on my investment which I can either claim or write off against the interest. You can also try asking for help on their Twitter and Instagram pages! Good luck. Let us know if you succeed in getting the WHT back.
210 489 010 or 300 003 990 (https://www2.gov.pt/en/contactos)
 
What do you mean "write off against the interest"

You either claim the 13% ( = 28% - 15% ) back from Portugal or you don't.

If you don't then you have effectually paid 46% tax on your interest - 28% to Portugal and 18% to Ireland - instead of 33% (15% to Portugal and 18% to Ireland) which is 40% more than you should have
 
jpd said:
What do you mean "write off against the interest"

You either claim the 13% ( = 28% - 15% ) back from Portugal or you don't.

If you don't then you have effectually paid 46% tax on your interest - 28% to Portugal and 18% to Ireland - instead of 33% (15% to Portugal and 18% to Ireland) which is 40% more than you should have
Click to expand...
 
jpd said:
If you don't then you have effectually paid 46% tax on your interest - 28% to Portugal and 18% to Ireland - instead of 33% (15% to Portugal and 18% to Ireland) which is 40% more than you should have
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Yes, that’s it in a nutshell. I don’t know how easy/difficult it is to reclaim the residual 13% WHT from Portugal. Sure, it hurts to pay more than one needs. The upside to this “lesson” is to never invest in countries imposing WHT above the 15% you can offset against your WHT in Ireland, unless you enjoy the extra paperwork, stress and time lost claiming the difference.
 
imalwayshappy said:
This is my situation exactly. Revenue told me to contact the countries tax authorities. I wonder though is it a case where I just have to pay 5% to the Irish revenue in next years tax return given I have paid 28% to Portugal? Am I over complicating this?
Click to expand...
Did you get any further?
I see that Revenue have changed the way last year's declaration of €399 interest earned was dealt with. They had fixed eventually fixed this after I wrote to Mr. Cody office.

I am still waiting for a reply I understand on how to deal with the BlurOr interest earned after I paid withholding tax.

I have interest due from BPG (Raisin) on Dec 30th, and still no word back from Raisin if they received the paperwork posted in October.

Revenue also have added AVC's on my SOL, however, I do not have AVC's. It was only pure chance that I noticed that.
 

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Hi

No nothing further. I'm putting this down to a lesson learnt as it's frustrating. I even had a friend who speaks Portuguese try and he couldn't get anywhere either.
 
If you have other accounts in Raisin in countries which don't withhold interest tax you might be okay.

Say for instance you have 10k in Portugal and 10k in France.
If you get 4% intetest on both deposits.
400 from Portugal with 28% tax so 112 tax.
400 from France with no withholding tax.

You make your income tax return showing total EU deposit interest earned as 800.

You declare Total foreign tax paid 112.

You are allowed up to 15% foreign withholding tax refund .

15% of 800. = 120. So you get all the 112 foreign tax refunded.

Irish Revenue then deduct 33% dirt from your 800.

So you have not lost out.
 
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