Contribution on the Banking Sector
The application of the extraordinary contribution on the banking sector is extended and the applicable rates updated – the maximum applicable rate to the liabilities deducted from the original own funds (Tier 1) and ancillary own funds (Tier 2) and of the deposits covered by the Deposit Guarantee Fund, is increased to 0.07% and the maximum rate applicable to the notional value of derivatives off balance sheet is increased to 0.00030%.
Energy Sector Extraordinary Contribution
An extraordinary contribution on the energy sector is set up with the goal of promoting the sustainability of the sector by means of the creation of a fund for the reduction of the tariff debt and for the financing of social and environmental policies in this sector.
This extraordinary contribution is due by individuals or legal persons that are part of the national energy sector, having tax domicile or registered office, effective place of management or permanent establishment in the Portuguese territory, that, on 1 January 2014 are in one of the situations set forth in this regime.
The contribution is levied on the value of the taxable person’s assets comprising: (i) tangible fixed assets, (ii) intangible assets, except for industrial property elements, and (iii) financial assets allocated to concessions or licensed activities. In the case of regulated activities, the contribution is due on the value of the regulated assets, if the latter is higher than the value of the assets identified above.
The rate of the contribution on the energy sector is, as a rule, 0.85%. In the case of electricity generation through combined cycle power plants or of crude oil refining, the rates of 0.285%, 0.565% and 0.85% are applied, based on the annual use equivalent to the installed power and to the operation index of refineries, respectively.
The amounts of energy sector extraordinary contribution paid are not tax deductible costs for corporate income tax purposes nor can they be, directly or indirectly, passed on in tariffs or be considered in determining their capital cost.
The law also establishes several exemptions, most of them connected to renewable sources of energy.
Extraordinary solidarity contribution (“CES”) – Pensions income
The extraordinary monthly contribution on all life-long cash benefits (payments due to pensioners, retirees, pre-retired or similar) continues to apply in the same terms established for 2013.
The Government is authorised to:
- Legislate on the taxation of financial transactions that take place on the secondary market (“Taxa Tobin”), consequently renewing the authorisation granted for 2013;
- Implement Council Directive 2008/8/EC of 12 February, amending Directive 2006/112/EC, in respect of the place of the supply, for VAT purposes, of telecommunications, broadcasting and television services or of electronic services;
- Review the Special Taxation System for Income from Debt Securities;
- Review the Tax Regime of Collective Investment Undertakings;
- Approve a corporate income tax regime for interest due or paid by undertakings with registered office or effective management in the Portuguese territory, arising from loans granted by credit institutions of another Member State of the European Union or of the European Economic Area;
- Lay down a system of penalties in connection with the Community Regime for the Control of Exports, Transfer, Brokering and Transit of Dual Use Items;
- Approve the draw of the prize to be attributed to physical persons with a tax identification number associated to invoices issued and communicated to the Tax Authority.