Law no. 5/2016, of February 29

Amends the Corporate Income Tax Code (CIT Code), implementing the Council Directive (EU) 2015/121, of 27 January, 2015, that amended the Parent-Subsidiary Directive, in order to establish an anti-abuse provision for the purposes of implementation of the participation exemption regime.

Hence, the aforesaid regime, provided for under articles 14 and 51 of the CIT Code, will not be applicable to profits and reserves distributed when there is an arrangement or a series of arrangements which, having been put into place for the main purpose or one of the main purposes of obtaining a tax advantage that defeats the object or purpose to eliminate double taxation on those profits and reserves, are not genuine having regard to all relevant facts and circumstances.

For this purpose, it shall be understood that an arrangement or series of arrangements will be regarded as not genuine to the extent that they are not put into place for valid commercial reasons and do not reflect economic reality.

Ministry of Finance

Ordinance no. 32/2016, of February 25

Approves a new form of the annual Personal Income Tax (PIT) return (annex H of tax form model 3), and the respective instructions for its completion, envisaging the declaration of tax benefits and tax deductions pertaining the year 2015.

Secretary of State for Tax Affairs Order no. 18/2016, of February 15

Postpones to March 15, 2016, the deadline for the availability of the amount of deductions to the assessed Personal Income Tax, calculated by the Tax Authorities (PTA) based on the information communicated to that entity through the system e-factura, through the electronic rental receipt and through the different statements submitted by third parties, in the taxpayers’ personal page at the PTA website.

Also postpones to March 31, 2016, the deadline for the submission of complaints concerning the amounts assessed by the PTA.

Moreover, extends the deadlines foreseen in the PIT Code for the submission of the PIT return (tax form model 3) pertaining income obtained in the year 2015, as follows: for taxpayers that have only received employment income (Category A) or pensions (Category H), submission due during April; in all other cases, submission during May.

Ministry of Finance

Ordinance no. 24-A/2016, of February 10

Increases the value of the Oil and Energy Products Tax’s unit rates applicable in mainland Portugal to unleaded petrol, road diesel and colored and marked diesel.

Council of Ministers

Decree Law no. 5/2016, of February 8

Establishes that, notwithstanding the calculation of the deductions to the assessed PIT made by the PTA based on invoices, electronic rental receipts and other third parties’ statements communicated to the PTA, the taxpayers may declare, on a transitional basis, their expenditure on health, education and training, as well as property and household’s costs, in the PIT returns pertaining the year 2015.

Clarifies that this possibility does not discharge the obligation of justifying the amounts declared, for the part exceeding the amount previously communicated to the PTA.

Also allows the taxpayers to communicate their expenditure on health, education and training in the PTA website, when incurred outside the Member States of the European Union or of the European Economic Area with which there is exchange of information in tax matters.

Secretary of State for Tax Affairs

Order no. 1823/2016, of January 20, published on February 5, 2016

Approves the CIT return (tax form model 22), as well as the respective annexes and instruction for its completion.