Pedro Fugas Partner EY, Tax Services

Precipitation and lack of consideration drives investors away from Portugal

According to the 2021 OE, at the proposal of the Greens, which was approved with the abstention of PSD, CDS-PP, Enough and Liberal Initiative and the favorable vote of the remaining parties with parliamentary seat and support from the Government, the Portuguese entities that are dominated or controlled, directly or indirectly, by entities that have domicile […]

What can the real estate sector expect from this budget?

As a positive note, few in this sector, we highlight the exemptions from IRS and IRC of property income obtained within the scope of the Municipal Programs of offer for affordable housing rent.

What future for the tourist utility?

A diploma recently amending the Statute of Tax Benefits (EBF) was approved by the Assembly and promulgated by the President of the Republic.

General anti-abuse clause (with reduced scope)

As already anticipated, the General Inspection of Finance (IGF) came, in the scope of an audit carried out in 2017, to the abusive tax planning control system, to pronounce itself on the application of the general anti-abuse clause (CGAA), provided for in article 38. of the General Tax Law (LGT).

What changes in corporate taxation - the taxation of non-resident investors

Despite this State Budget Law Proposal for 2018 (“PL OE 2018”) does not provide for significant changes in terms of corporate income tax (which in itself is positive and presupposes some fiscal stability, at least, in this matter), the truth is that it introduces a rule in the IRC Code (article 4) that brings some incongruity to the Portuguese tax system, which we will try to explain below through four scenarios.