Press Release: Direct taxation: Commission requests Portugal to end discriminatory taxation of non-resident taxpayers

The European Commission formally requested Portugal to change its tax provisions according to which non-resident taxpayers have to appoint a fiscal representative if they obtain taxable income in Portugal. The Commission considered the provision incompatible with the free movement of persons and the free movement of capital as guaranteed by Articles 18 and 56 of the EC Treaty and Articles 36 and 40 of the EEA Agreement. The request took the form of a reasoned opinion (second step of the infringement procedure provided for in Article 226 of the EC Treaty). If there is no satisfactory reaction to the reasoned opinion within two months, the Commission may decide to refer the matter to the European Court of Justice.