The government Budget Bill for 2007 was presented to parliament on 16 October 2006. The Bill includes a number of tax amendments to corporate income tax (IRC), which will generally apply from 1 January 2007. The most significant amendments in the Bill are summarized below. (a) Outbound dividends under the EU Directive. The minimum holding required to qualify for exemption from withholding tax on outbound dividends paid by Portuguese subsidiaries, either to their EU parent or to an EU-based permanent establishment of another EU head office, will be reduced to 15% (from 20%), provided that the parent and subsidiary concerned...