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Technical news – January 2023

© Jacob Dahgren

 

CASE-LAW

  • Main new developments in case law:
Court Tax Link  Take-away
CAAD  PIT Here Payment of a partner’s personal expenses should be treated as an advance on profits unless proven otherwise.
CAAD  CIT Here CIT (withholding tax) on dividends paid to non-resident ICOs is incompatible with European legislation.
CAAD CIT Here It is up to the PTA to demonstrate, per worker and per period, the (illegitimate) simultaneous deduction of daily allowances, meal allowances and travel and subsistence expenses.
CAAD CIT Here The CIT deductibility of interest paid on non-interest bearing supplementary capital contributions depends on a genuine business purpose for the indirect financing (which is assumed in the case of a holding company).
CAAD CIT Here The PTA cannot correct an PIT declaration based on information provided by the Swiss Tax Authorities without qualifying the nature of the income.
CAAD CIT Here The mere redemption/withdrawal of capital invested in unit-linked insurance does not constitute income taxable under PIT.
 CAAD CIT  Here Banking fees and Management fees are PIT deductible expenses for the purpose of calculating capital gains on securities.
CAAD CIT Here The acquisition value for the purposes of calculating capital gains in PIT in an exchange is the value that served as the basis for the RETT in the purchase of the property given in exchange.
CAAD CIT Here The offsetting, with company funds, of the partner’s debts to the company is equivalent to dividend distribution.
CAAD CIT Here Dividends received by insurers under unit-linked contracts do not benefit from a participation exemption in CIT.
CAAD CIT Here The nullity (for lack of a deed) of mutual agreements between the company and the managing partner does not allow the AT to presume that the flow is an advance on profits.

 

LEGISLATION AND INFORMATION ISSUED BY THE PTA

  • Main new legislation and information from the PTA:
Legislation Tax Link Take-away
PIV CIT Here Leisure room equipment is a CIT deductible expense (social utility expense).
Aviso CIT Here The DTT with Timor-Leste comes into force.
PIV CIT Here Patent box is subject to the generic limitation of CIT tax benefits (i.e. cannot exceed 10% of CIT collection).
PIV CIT Here Payments made to a foreign entity that organises online conferences are not subject to withholding tax.
Ofício-Circulado CIT Here Exceptional reimbursement regime for PPR, PPE and PPR/E.
PIV CIT Here Losses with computer fraud are not deductible in CIT.
PIV PIT Here The limits for the payment of Kms without PIT taxation also include toll and parking payment.
PIV CIT Here Depreciation of warehouse built on land owned by the managing partner is deductible for income tax.
PIV CIT/PIT Here Condominiums are not autonomous taxpayers of CIT, so the income from the common parts are imputed to the condominium owners.
PIV CIT Here Interest paid to “société par actions simplifiée” (outside the list in the Interest and Royalties Directive) does not benefit from exemption from withholding tax.
PIV CIT Here Participation exemption applies to dividends distributed to UK-based parent companies (even after Brexit) but only on a declaration issued by HMRC showing verification of the requirements.
PIV CIT Here Promissory contract with immediate delivery of the property determines the calculation of CIT capital gains, by the value of the deed, even if this has not yet been signed.
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