Ministry of Finance

Ordinance no. 259/2016, of October 4

Rules on the procedures for the application of the special regime applicable to deferred tax assets deriving from the non-deduction of costs and negative equity variations arising from impairment losses on credits and from post-employment or long-term employee benefits, approved by Law no. 61/2014, of 26 August, namely with regard to the control and use of tax credit. 

Ministry of Finance

Decree-Law no. 64/2016, of October 11 

Approves the ancillary regulation provided for in the Financial Reporting Regime (RCIF) and transposes Council Directive 2014/07/EU, of 9 December 2014, as regards mandatory automatic exchange of information in the field of taxation. Specifically, this Decree-Law: 

i. regulates the rules, procedures and ancillary terms necessary for implementation of the RCIF;

ii. amends rules and procedures of administrative cooperation in the field of taxation;

iii. defines the obligations incumbent on financial institutions with regard to due diligence rules and information reporting to the Tax and Customs Authority (AT);

iv. introduces a mechanism of automatic and reciprocal exchange of financial information within the scope of the AT, with regard to residents in other Member States or in participating jurisdictions, in compliance with the Common Reporting Standard developed by the Organisation for Economic Cooperation and Development (OECD);

v. amends the General Regime of Tax Infringements, defining the fines of noncompliance, omissions or inaccuracies in reporting and due diligence procedures and other obligations to which reporting financial institutions are subject under the RCIF; and

vi. amends the Complementary Regime for Tax and Customs Inspection Procedure, granting the AT adequate powers to verify compliance with the obligations provided for reporting financial institutions.

Legislative Assembly of the Autonomous Region of the Azores

Regional Legislative Decree no. 21/2016/A, of 17 October

Creates the regional surtax to be effective in the Autonomous Region of the Azores and approves its regulations.

The regional surtax will be payable by taxpayers resident in the Autonomous Region of the Azores, as well as non-resident taxpayers with a permanent establishment in that Autonomous Region, that are primarily engaged in business of a commercial, industrial or agricultural nature.

The regional surtax will be charged on the taxable profit subject to and not exempt from corporate income tax, corresponding to the following ranges and rates: 2.4% to taxable profits higher than €1,500,000 and up to €7,500,000; 4% to taxable profits in excess of €7,500,000 and up to €35,000,000; 5.6% to taxable profits in excess of €35,000,000. 

This new regime also imposes additional payments on account of regional surtax.