Tax and Customs Authority

VAT Services

Circular-Letter No. 30144/2013, of 12 April

In accordance with this circular letter, for the purposes of articles 36 and 40 of the Value Added Tax Code, toll tickets are to be treated as invoices.

Tax and Customs Authority

Corporate Income Tax Services

Circular-Letter No. 20167/2013, of 12 April

Circular-letter No. 20167/2013, of 12 April, publishes the instructions to be complied with by organisations that do not pursue a commercial, industrial or agricultural activity

as main activity, with regard to the obligation to forward the tax return form, in accordance with the new wording of article 117 of the Corporate Income Tax Code.

This circular-letter defines the personal tax liability and the taxable value: corporate income tax is levied on the global income of associations, foundations, federations, confederations and other organisations that do not pursue a commercial, industrial or agricultural activity as main activity.

Provision is also made for the possibility of those organisations benefiting from the exemption established in article 10 of the corporate income tax code where the organisations in question are public interest legal persons or private welfare associations, and comply with the other requirements set out in the provision.

The circular-letter in question also lays down the form for determining the tax; the obligation to forward the income tax return applying to all subjects of corporate income tax residing in Portugal (with the exception of certain cases), within a certain period of time; and explains how to fill in the tax return in question (Modelo 22 form).

Tax and Customs Authority

VAT Services

Binding Information – Case No. I301 2008169 of 25 March 2009

VAT – Competition Prizes

With this binding information, provided at the request of a taxpayer, the Tax Administration clarifies the VAT provisions applicable to public competition prizes.

Indeed, the Tax Administration sustains that the compensation granted to authors of projects excluded from a public tender is free from VAT, in accordance with article 9(16) of the VAT Code. This exemption translates into the fact that taxable persons do not charge such tax in transactions carried out in that scope, and are not entitled to deduct the tax paid in the acquisition of goods or services, since the exemptions provided for in article 9 are not provided for in article 19 of the VAT Code.

Where – because it is considered that the work belongs to the intellectual creator of the same - there is no transfer of copyright, no VAT will be charged on the amount of the prize.

If, however, following the competition, service agreements are entered into with the winner or one of the winners of the competition, the prize becomes a consideration subject to, not exempt from and taxed for VAT.

Tax and Customs Authority

Corporate Income Tax Services

Binding Information – Case No. 4209/2012, of 21 January 2013

Special Group Taxation Scheme (RETGS) – Insolvency procedure – Special Revitalisation Procedure

With this Binding Information, the Tax Administration clarifies the interpretation that should be applied to article 69(4)(b) of the Corporate Income Tax Code.

Accordingly, it establishes that companies that, at the beginning or during the application of the RETGS have been the subject of a procedure under the Code of Insolvency and Recovery of Companies in which a declaration of insolvency has been decreed or, in the case of a Special Revitalisation Procedure, a decree appointing a temporary judicial receiver has been issued, cannot be included in the group of companies taxed under the RETGS.