The 2010 National Budget - Law n.º 3-B/2010 – was published on April 28, 2010, introducing some amendments to the Stamp Duty Code.

These amendments will bring significant impact on the daily life of Portuguese companies.

Some paragraphs from the Stamp Duty General Table (SDGT) have been revoked, which will result in a non tax incidence regarding certain

acts and contracts. The affected paragraphs include the following:

i) Paragraph 8 – Written documents of any contracts not specifically referred to in the SDGT;

ii) Paragraph 13 – Books that are mandatory in accordance with the Portuguese Commercial Law;

iii) Paragraph 26 – Share capital contributions.

The elimination of Paragraph 8 means that any contracts that are not specifically referred to in the SDGT will no longer be subject to Stamp

Duty. This will affect a number of contracts, which include, among others, service agreements, share purchase and sale agreements and

labour contracts.

As a result of the elimination of Paragraph 13, corporate books, such as general meeting minutes books, will no longer be subject to Stamp

Duty. Consequently, the legalization of such books will become entirely made by the respective companies.

With the revocation of Paragraph 26, the capital contributions in kind will become subject to the same regime applicable to cash

contributions, which were already not subject to Stamp Duty. This means that operations such as incorporation of companies and share

capital increases will cease to trigger Stamp Duty on the respective contributions, independently of the type of such contributions.

These amendments entered into force in 29 April 2010 and are applicable to any acts or contracts entered into on or after such date.

Abreu Advogados