Portuguese Personal Income Tax ('Imposto sobre o Rendimento das Pessoas Singulares' or IRS) is applicable to either the income obtained by resident or non-resident entities. Regarding non-resident entities it taxes only their income obtained in Portuguese territory, as to the resident entities it taxes their global income, either from internal or external source. The taxation period is the civil year. Regarding resident entities, some kind of income may be taxed through final withholding tax, or together with their overall income at a progressive IRS rate that can reach a maximum of 42%, through the delivery of the respective Income Tax Return ('Declaração Modelo 3'). Non-resident entities may be taxed either by definitive withholding tax or are obliged to the delivery of the 'Declaração Modelo 3' in some situations (namely in case of capital gains).