Tax filing period in Portugal is April 1st-June 30th
Cool. ā¦ one more question if you donāt mind. How much did / does your law firm charge for āfiscal representationā ?
~$US 1800-1900/yr
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My understanding is that as foreign investors in a non real estate private equity fund we pay 0% Portuguese tax and donāt need to file, but someone please correct me if Iām wrong. Here is a link that shows the 0% rate. https://www.itsgnetwork.com/itsg/globalTaxJournal.asp?aid=16
When are the results of the voting supposed to be announced?
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Does anybody know if the outcome of the voting has been announced?
The two-year extension was confirmed at the meeting itself. This was not a totally unexpected outcome - as I have said above, the scales are in favor of the management company but it was still quite a farce.
They got people at the meeting to vote on things that were not even on the ballot. They counted the against votes, the abstainers and then everyone else on the call was recorded as yes. Even the people who were in favor of the extension didnāt know what was going on - they were still asking āwhen do we vote?ā. No roll call, no tally of votes, no mention of paper votes mailed in prior to the meeting. But at the end the Chairperson announced the extension was approved with some 77% of the vote - what a farce.
Basically, I saw Iberis steamroll the joint owners of approx ā¬60M capital into leaving them their money for two years longer. Others are free to disagree with my view but that is my view.
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I had to miss the meeting this year, unfortunately, though I did submit my (no) vote electronically, for all of the good that did!
I see weāve just received an email about another upcoming distribution. Did they mention in the meeting what value that was going to be per share or anything? I wrote them back to ask, but havenāt gotten any reply.
Unlike the letter preceeding the first distribution with details, this was very sparse and mysterious.
They also havenāt posted in the portal as of yet the results of the voting.
I just received a reply - they donāt know the amount yet, apparently!
I remember in the first distribution, they informed in 2 steps:
1st step: asking investors to ensure their tax residencies with custodian bank are correct - I did reconfirmed with my bank as non-pt tax resident at that time;
2nd step: informing the amount of the distribution.
They also pre-informed us about the company they were divesting and details for the transactions, a few months in advance
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They mentioned at the meeting the upcoming distribution and that it would be as per the LPA but they didnāt announce the amount.
You and the others who couldnāt attend the meeting (and even if you did attend) can request copies of the minutes of the meeting for your records - it is your right. During the management presentation someone asked for a copy of the presentation - Iberis confirmed it would be made available but so far hasnāt been uploaded either.
Surprising since they already had the audited results a month prior to the meeting which was already three weeks ago.
I remember they mentioned that the accounts of the portfolio companies were yet to be signed-off by auditors, therefore the dividends to be distributed to the Fund. So they could not give an exact figure.
Thanks everyone for the additional details on this. The lack of communication is a bit frustrating with the missing presentation, etc.
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At some point Iām going to have to face reality and do my taxes = )
Does anyone know documentation exactly weāre supposed to confirm with our banks to avoid income taxation? I donāt believe I did anything last year when we received our 1st distribution.
I did confirm my tax residency of non-PT in my bank records before the first distribution. However my bank still deducted 10% withholding tax.
This time I am going to send them the Certificate of Residence from my home country tax authority. Letās see what will happen.
I spoke with another bank on such withholding and understood that 10% withholding is dependent on the bank tax departmentās competence and risk appetite.
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If you are an individual, there is no documentation you can provide which will avoid the withholding tax (WHT).
As far as I am aware, withholding on dividend payments made to individuals are as follows:
Tax residents of PT: 25% WHT
Tax residents outside PT: 25% WHT **
Tax residents of black-listed jurisdictions: 35% WHT
** - might be less due to tax treaties with individual jurisdictions: Portugal - Corporate - Withholding taxes