The most significant amendments included in the proposal for the State Budget 2008, which will generally apply from 1 January 2008 onwards, regarding corporate income tax are summarized below. (a). Parent-Subsidiary Directive 2003/123/EC. In response to the EU Commission's infringement proceedings against Portugal for discriminatory taxation of outbound dividends, the proposal would cure any existing discrimination by reducing the holding period from 2 consecutive years to 1 year, and the ownership percentage from 15% to 10%; and by introducing an alternative requirement concerning ownership, i.e. the acquisition value of a shareholding should not be less than EUR 20 million. (b)...