Why this exists
Papelada is Portuguese for paperwork, and more precisely, the RFI and COR procedure everybody dreads. We hope this makes it go more smoothly.
The rule, in three sentences
1
Waking Life is a Portuguese organisation.
When we pay a supplier outside Portugal for a service, Portuguese law obliges us to withhold 25% of the payment and hand it to the tax authority.
2
Unless you prove you pay your taxes at home.
With the right documents, nothing is withheld and you are paid in full.
3
This is not a policy of ours.
It is Portuguese law, and we cannot waive it.
Does this concern you?
Yes, if both are true
- You invoice us for a service; renting equipment counts as a service
- You invoice us more than €250 per calendar year, all your invoices added up
Then one of the two routes below has to happen before finance can pay you.
No, if either is true
- You sell us products, not services
- You invoice us less than €250 per calendar year
Then none of this concerns you. Invoice normally and stop reading.
Two legal ways through it; you choose
Route A2 documentsNothing withheld
You collect a certificate from your tax office and fill one form here. We pay you in full.
Route B0 documents25% withheld
We withhold 25% and pay it to Portugal on your behalf, with a certificate you can use to avoid being taxed twice at home.