Mandatory contributions and tax transparency
When not previously deducted, the mandatory contributions for social security regimes made by taxpayers who are shareholders of companies subject to the tax transparency regime can now be deducted within the scope of the special attribution of profits under this category B.
Leasing of real-estate becomes capable of qualifying as a commercial and manufacturing activity whenever there is an option for taxation within the scope of category B (business and professional income). Such an option needs to be exercised ab initio in the declaration of commencement of activity or subsequently through the declaration of changes in the activity and reported to the tenant, being the respective net income determined in accordance with the rules of category F (rental income).
Transfer of assets for the realization of share capital
Standardisation of the applicable PIT rules with the ones foreseen for Corporate Income Tax (“CIT”) purposes in case of transfer of assets for the realization of share capital, in particular foreseeing the possibility of realization of capital in a company resident in another Member State of the European Union, or of the European Economic Area, provided that the contributed assets are allocated to a Portuguese permanent establishment.
Revocation of the 15% penalty in situations of disposal of stakes in corporate entities before a 5-year period has elapsed following the transfer of assets allocated to a business and professional activity for the realization of the share capital of the company whose shares are disposed of.
Simplified regime and organized accounts
Revocation of the minimum permanency period in each of the regimes, being the taxpayer free to elect for the applicability of any of the regimes on an annual basis (ensuring, however, that no double taxation, or absence of taxation, occurs as a result of the change of regime). The same annual option is granted in situations where the choice is for taxation in accordance with the rules applicable to employment income in cases where the income results from the services provided to a sole entity (the minimum permanency period no longer applying).
Establishment of the waiver to keep organized accounts for one-off taxable transactions, regardless of the applicability of the respective regime for the purposes of determining the taxable income when its gross value exceeds EUR 200.000,00.
Within the scope of the simplified regime, the technical or scientific indicators are abandoned and a new 0.35 coefficient applies to services that are not specifically foreseen in the table annexed to the CIT Code , being the 0.75 coefficient kept for the latter. For the taxpayers that initiate their activity after January 1, 2015, and that have not closed it during the past 5 years, the applicable coefficients for the simplified regime can be subject to a 50% or 25% reduction, during the first and second year of activity, provided that the taxpayer does not earn employment or pension income.
In certain situations, and within the application of the simplified regime, part of the mandatory contributions for social security regimes (i.e. the part that exceeds 10% of the gross income), not deducted for other purposes, can now be deducted from the net income of category B (business and professional income). In situations of fast-wearing professions, the amounts (not deducted for other purposes) paid for health, personal accidents and life insurances which specifically assure death, disability and old age retirement risks, can now be deducted from this category’s net income.
Within the application of the organized accounts regime the amounts received as provision, or that are aimed at financing client’s expenses, are considered income of the tax period following its receipt whenever the final account of the work performed is not presented until the end of that year.
Provision aimed at ensuring the taxation of suspended capital gains, increased by 15%, perceived during the application of the organized accounts regime, whose term for reinvestment ends during the application of the simplified regime and whenever the taxpayer has failed to, fully or partially, carry out the reinvestment.
Within the organized accounts regime, the deductibility limits to travelling and accommodation expenses is only applicable when such expenses are paid to income earners of category B (business and professional income), being the remunerations received by household members deductible.
Within the organized accounts regime a specific provision is included so as to allow the elimination of double economic taxation of distributed profits in similar terms to the ones foreseen for capital income.