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Article 46 of Código do Imposto sobre o Rendimento das Pessoas Coletivas (Corporation Tax Code), approved by Decreto-Lei no. 442-B/88 (Decree-Law No 442-B/88) of 30 November 1988 (Diário da República I, Series I-A, No 277, of 30 November 1988), in the version in force in 2009 (‘the CIRC’), entitled ‘Elimination of the economic double taxation of distributed profits’, provided as follows: ‘1. In the determination of the taxable profits of commercial companies, civil law companies having a commercial form, cooperatives and public undertakings, with their head office or effective management in Portuguese territory, income included in the tax base that corresponds to distributed profits shall be deducted, provided that the following requirements are met: (a) the company distributing the profits has its head office or effective management in the same territory and is subject to and not exempt from corporation tax or is subject to the tax referred to in Article 7; (b) the beneficiary entity is not covered by the fiscal transparency regime provided for in Article 6; (c) the beneficiary entity has a direct holding in the capital of the company distributing the profits of not less than 10% or with an acquisition value of not less than EUR 20 million, and that holding had been in its ownership for an uninterrupted period of one year on the date on which the profits were made available to it or, if it had been in its ownership for a shorter period, is retained until such time as that period is completed. … 5. The provisions of paragraph 1 shall also apply where an entity resident in Portuguese territory holds part of the share capital, under the terms and conditions referred to in that paragraph, of an entity resident in another Member State of the European Union, provided that both entities meet the requirements laid down in Article 2 of [Council] Directive 90/435/EEC of 23 July 1990 [on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (OJ 1990 L 225, p. 6)]. … 8. The deduction referred to in paragraph 1 shall be only 50% of the income included in taxable profits made up of: (a) distributed profits, where none of the requirements laid down in subparagraphs (b) and (c) of that paragraph is met, as well as income received under a profit-sharing arrangement between members of a partnership, provided that, in either case, the requirement laid down in paragraph 1(a) is met; (b) profits distributed by an entity resident in another Member State of the European Union, where that entity meets the requirements laid down in Article 2 of Directive 90/435, and none of the requirements laid down in paragraph 1(c) are met. 9. If the minimum capital condition to be held, referred to in paragraph 1, is no longer fulfilled before expiry of the period of one year referred to therein, the deduction shall be rectified in accordance with the preceding paragraph, or annulled, without prejudice to the taking into account of any tax credit for international double taxation, in accordance with Article 85, respectively. … 11. The deduction referred to in paragraph 1 shall be reduced by 50% when the income comes from profits that have not actually been taxed, unless the beneficiary is a capital share management company. 12. For the purposes of paragraph 5 and paragraph 8(b), the taxpayer must prove that the entity in which capital is held and, in the case of paragraph 6, the recipient entity, fulfil the conditions referred to in Article 2 of [Directive 90/435], on the basis of a declaration confirmed and certified by the competent tax authorities of the Member State of the European Union of residency.’