Law No. 83-C/2013. D.R. (Portuguese official gazette) No. 253, Supplement, Series I of 2013-12-31

Parliament

This law approved the 2014 State Budget and amended the Código dos Regimes Contributivos do Sistema Previdencial de Segurança Social (Code of Social Security Welfare System Contributions Scheme).

Among the amendments provided for, the following are noteworthy:

Tax base:

  • A frequency criterion is added to the concept of regularity of the benefit: a benefit is deemed to be regular where it is granted regularly every five years or less often (provided the other requirements are fulfilled);
  • The compensation paid by the trade union associations for the discharge of the corresponding functions constitutes tax base;

Self-employed individuals:

  • Individuals living in civil union (“união de facto”) will now be covered by the scheme applicable to self-employed individuals under the terms applicable to spouses;
  • Holder of rights over farms the produce of which is predominantly intended for consumption by their holders and their families and the activity’s income does not exceed the annual amount of four times the value of the Social Support Index, are excluded from the personal scope of the scheme applicable to self-employed individuals;
  • The payment obligation applicable to all self-employed individuals will now include the payment of contributions and the annual statement of the sums corresponding to the activity pursued;
  • The identification of the sums necessary to find the relevant income of self-employed individuals that is not obtained by means of the interconnection of data with the Tax Authority shall be included in the annual activity statement;
  • The annual activity statement is made by filling in the social security annex to the Form 3 return for personal income tax, within the deadline for the filing of the tax return;
  • Self-employed individuals are exempt from the payment obligation where the obligation to pay contributions existed for a one-year period, resulting from relevant income equal to six times the Social Support Index or less;
  • The self-employed individual may apply – in February and June of each year to take effect the following month – for the application to him or her of a tax base bracket chosen from the two brackets immediately below or above, without prejudice to the legal thresholds;
  • Where the relevant income determined is 12 times the Social Support Index or less, the tax base is set automatically at 50% of such index.