The Proposal for the State Budget Law for 2008 was announced to the Parliament on 12 October 2007. In general, the Proposal does not introduce any major changes to the existing tax rules. The most relevant aspects in terms of taxation, which should enter into force as from 1 January 2008, are summarized below. Further details of the Budget will be reported subsequently. Withholding tax -   Parent-Subsidiary Directive 2003/123/EC in response to the EU Commission's infringement proceedings against Portugal for discriminatory taxation of outbound dividends, the proposals will cure any existing discrimination by reducing the holding period from 2...