Additional solidarity on banking will not be tax deductible

The budget proposal presented by the Government already provided for the extraordinary contribution on banking, but allowed that contribution to be deducted in IRC by the same banks. Now, with the approval of the proposed amendment to the Left Block, the deduction of the bank contribution in IRC no longer takes effect.

Cristina Bernardo

The proposal presented by the Left Bloc (BE) so that the solidarity surcharge on the banking sector is not tax-deductible was approved this Wednesday in the discussion of the amendments to the Supplementary Budget in the specialty. The blockers' legislative initiative received the favorable votes of the PS, BE, PCP, PAN and Chega and the votes against the PSD, CDS-PP and Liberal Initiative.

“It is proposed that the solidarity surcharge on the banking sector should not be considered a deductible charge for the purposes of determining the taxable profit in IRC, even when accounted for as expenses for the tax period, similarly to what is already happening with other taxes, as is the case with the contribution to the banking sector, ”reads the approved BE proposal.

A budget proposal presented by the Government already foresaw the extraordinary contribution on banking, but allowed that contribution to be deducted in IRC by the same banks. To prevent this effect, the BE presented this proposal to prevent, according to the blockade deputy Mariana Mortágua, that the deduction of the contribution in the IRC “would nullify this tax in practice”.

This Tuesday was also approved annex VI of the budget proposal that defines the creation of the solidarity surcharge on the banking sector, whose revenue, estimated at 33 million euros. The initiative was approved, with the votes of the PS, BE, PCP and PAN and the Liberal Initiative voting against. The PSD abstained.

The creation of the solidarity surcharge on banking “aims to strengthen the financing mechanisms of the social security system, as a way of compensating for the exemption from value added tax (VAT) applicable to most financial services and operations, bringing the tax burden borne by the financial sector to which other sectors are charged ”.

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