Miguel González Amado and Mariana Pinto Monteiro wrote the article "Portuguese branches and stamp tax: insights on tax personality and EU compatibility ’, published in the International Tax Review.

In this article, the VdA lawyers analyse a recent decision by the Portuguese Southern Central Administrative Court, which determined that a Portuguese branch has a tax personality for stamp tax purposes in credit operations carried out with its parent company. This conclusion reinforces the idea that branches should be treated as independent entities for tax purposes, rather than a mere extension of their parent company.

The decision raises a number of significant questions, especially with regard to inequalities in relation to the Stamp Tax regime applicable to other entities, as well as the compatibility of this approach with European Union (EU) law and jurisprudence.

The article also reflects on the possible consequences of this decision for international companies operating in Portugal through branches, and the need for a possible standardisation of tax legislation in order to avoid controversy and promote legal certainty.

• This article is available here.