Tax and Customs Authority

Binding Information concerning Case No. 1661/2014, of 23 July 2014, published on 24 March 2016

Framework applicable to the remuneration of doctors working for ULS, E.P.E. (local health units)

Clarifies that the regime for cross-border workers provided for in the Double Tax Treaty between Portugal and Spain shall apply to doctors working for Empresas Públicas Empresariais - E.P.E. (translatable as Corporate Public Companies) provided that the remaining requirements of the regime are complied with (i.e., that the doctors live across the border and return to their homes on a daily basis) since they do not belong to the administrative structure of the Portuguese State even if subject to the legal framework applicable to civil servants.

Tax and Customs Authority

Binding Information concerning Case No. 9584, of 19 February 2016, published on 3 March 2016

Real estate transactions – Inexistence of premises for the application of the exemption waiver

Clarifies that it is not possible to waive the Value Added Tax ("VAT") exemption on the transfer of real estate whenever the purchaser intends to lease the property (VAT exempt activity) but does not yet have a known tenant.

Further notes that, if the VAT exemption is not waived on the acquisition of the property, such waiver cannot occur on a subsequent lease.

Tax and Customs Authority Tax Management Area - CIT

Circular No. 20186/2016, of 26 February 2016, published on 3 March 2016

Discloses the municipal surtax rates applicable to the 2015 tax period, to be collected in 2016.

Further clarifies that under the terms of the new law establishing the funding regime of municipalities and inter-municipal entities (Law No. 73/2013, 3 September), the surtax is levied on the taxable profit subject to and not exempt from Corporate Income Tax (“CIT”) for the 2015 tax period and that:

  • The  standard  rate  applies  to  taxpayers  whose  turnover  in  2015  exceeds €150,000.00;
  • The reduced rate applies to taxpayers whose turnover in 2015 does not exceed €150,000.00 but is higher than the amount indicated in the "scope of exemption" column;
  • Taxpayers whose turnover in 2015 does not exceed the amount shown in the "scope of exemption" column are exempt from municipal surtax;
  • In cases where the exemption is subject to the verification of other requirements besides turnover, the criteria mentioned in the "scope of exemption" column must be met.

Tax and Customs Authority

Binding Information concerning Case No. 10017, of 26 February 2016, published on 3 March 2016

Invoicing – Invoicing of commissions regarding insurance mediation activity carried out in exclusivity

Clarifies that an entity which, within its commercial activity, exclusively carries out VAT exempt transactions, without a right of deduction, is exempted from the obligation to issue invoices. Notwithstanding it may choose to do so, in which case it is required to fulfil all invoicing or simplified invoicing legal requirements.

Tax and Customs Authority

Tax Management Area - PIT

Circular No. 20183/2016, of 3 March 2016

Harmonizes the procedure to prove the existence of a non-marital partnership, for Personal Income Tax (“PIT”) purposes, whenever the Tax Authorities taxpayers’ register does not show that the taxpayers have shared a common tax residency for a minimum period of 2 years.

It further determines that proof of non-marital partnership may be performed by any means legally admissible, clarifying that whenever such proof is performed by submitting a statement issued by the parish, said document must be accompanied by a sworn statement of the taxpayers that they live in a non-marital partnership, as well as a certified copy of their complete birth certificates.

Additionally clarifies that this procedure is applicable only to the year 2015 and onwards, not to prior years.

Tax and Customs Authority

Binding Information concerning Case No. 9860, of 4 March 2016

Right of deduction – Moment in which the right arises

Clarifies that the acquirer may use its right of deduction even if the invoices in which the tax is mentioned have not yet been registered in the accounts, provided that the deadline of 4 years from the date of invoicing has not yet elapsed.

Tax and Customs Authority

Binding Information concerning Case No. 9949, of 11 March 2016

Real Estate Operations – Operation subject and not exempt – Contract for use of space and rendering of services connected with the fruition of the property – Leasing of a property together with the rendering of other services, and not just a simple and straightforward lease

Clarifies that a leasing including the rendering of certain services in connection with the use and fruition of the property, namely the management of facilities, exterior cleaning services and exterior maintenance, represents a leasing with connected services not cov- ered by the VAT exemption foreseen in paragraph 29) of Article 9 of the VAT Code , therefore VAT being levied at the general rate.

Tax and Customs Authority

Tax Management Area - CIT

Circular No. 20184/2016, of 14 March 2016

Clarifies the state/regional surtax calculation method whenever the taxable income of the taxpayer is subject to different tax regimes by virtue of its activity being carried out both inside and outside Madeira Free Trade Zone (“MFTZ”).

It further clarifies that the exclusion of payment of the regional surtax applicable to entities operating within the MFTZ under Article 36 of the Statute of Tax Benefits ("STB") does not apply neither to companies which have been licensed after 1 January 2015, which are subject to the new regime provided for in Article 36-A of the STB, nor to entities licensed before such date but which have opted for the new regime, which are required to pay 20% of the regional surtax assessed over the taxable income arising from the activity carried out within the FZM.

Tax and Customs Authority

Tax Management Area - Property Tax

Circular No. 40114, of 16 March 2016

Clarifies that entities belonging to central, regional and local authorities, or its business sectors, which own properties or surface rights, must report to the tax office of the area of the property the entering of lease agreements under the aided leasing regime for the purpose of permanent residence of households, so that the attribution of the benefit of automatic exemption of Property Tax is controlled.

The Property Tax exemption shall be registered in the land registry (with the code "68 – aided leasing for housing") after being confirmed that the taxpayer does not have any debts towards the Tax Authorities or Social Security as provided in the STB.

Tax and Customs Authority

Tax Management Area - Income Taxes and International Relations

Circular No. 20185, of 29 March 2016

Establishes the procedure for immediate assignment in Tax Offices of pre-issued passwords to access the Tax Authority´s website, in Tax Offices.