Exemption for bank accounts used for electronic payments and/or collections

The Tax on Credits and Debits on Bank Accounts (the Tax) is collected by means of withholding whenever a credit or debit is registered on a bank account.

On 30 November, Decree No. 983/2017 was published in the Official Gazette. The Decree established that bank accounts used exclusively for the performance of its activity by companies dedicated to provide electronic payment services and collection services on behalf of third parties, utilities invoices, taxes and other services are exempted from the Tax, including account movements that facilitate the extraction or deposit of cash against a debit or credit on the clients' bank accounts, provided that the accounts are used exclusively for such operation.

The Decree sets forth that the exemption shall come into force upon its respective publication on the Official Gazette.