Tax and Customs Authority Corporate Income Tax Services Circular-Letter No. 20170, of 14 March 2014

This Circular-Letter publishes the list of municipalities and the rates of the municipal surcharge (“Derrama Municipal”) that will be charged with respect to the year 2013 and clarifies that:

  • The standard rate of the municipal surcharge is applicable to the taxpayers whose turnover in the previous period exceeds EUR 150,000.00;
  • The reduced rate of the municipal surcharge is applicable to the taxpayers whose turnover in the previous period is lower than EUR 150,000.00.

Tax and Customs Authority Office of the Director General Circular No. 5/2014, of 20 March 2014

Among the clarifications provided by this Circular regarding the simplified regime of computation of taxable income for IRS purposes, it should be highlighted the clarification regarding the application of the 0.75 coefficient, set forth in article 31(1)( b) of the CIRS.

In accordance with this clarification, the aforementioned coefficient is applicable to (i) the income from any of the activities covered by article 1(3)(b) of the CIRS , regardless of the classification of the activity according to the Port uguese Classification of Economic Activities, the National Statistics Institute, or the codes listed in the table of activities approved by Ordinance No. º 1011/2001, of 21 August , and (ii) the income derived from isolated acts related to the aforementioned activities.

Tax and Customs Authority Personal Income Tax Services Circular-Letter No. 20172, of 28 March 2014

In accordance with the clarifications provided by this Circular -Letter, in 2014 the simplified regime of computation of taxable income will be applicable to taxpayers with income from Category B which:

  • Started their activity in 2013 covered by the simplified regime, on the grounds that the estimated annual income was not higher than EUR 150.000,00, and did not obtain an income higher than EUR 200.000,00;
  • Are already under the simplified regime and obtained an income higher than EUR 150,000.00 in 2012, but not exceeding EUR 200,000.00 in 2013;
  • Are already under the simplified regime and did not obtain an income higher than EUR 250,000.00 in 2013.

The Circular-Letter also clarifies that taxpayers to which the organized accounting regime was applicable in 2013 due to legal imposition will be under by the simplified regime in 2014 if their gross annual income from Category B in 2013 was equal to or lower than EUR 200,000.00. In the event these taxpayers want to remain under the organized accounting regime, they must opt for it until the end of March 2014 .

Tax and Customs Authority
Office of the Director General
Circular No. 6/2014, of 28 March 2014

In this Circular the Tax Authorities highlight the key points of the simplified regime of computation of taxable income under the CIRC, set forth by Law No. 2/2014, of 16 January, and set out some examples of common situations.