Technical News – March 2023 – BELIM CASTILHO - Tax Law office, Tax Lawyers and Tax advisors, Lisbon Portugal

CASE-LAW

Main new developments in case-law:

Court	Tax	Link	Take-away
TCAN	CIT	Here	Undocumented expenses cannot be eluded by testimonial evidence, but only by documentary evidence.
CAAD	PIT	Here	The establishment of a procedure to prove the actual price is a condition for the challenge of the additional income tax assessment.
CAAD	PIT	Here	If the taxpayer is unable to prove documentally the acquisition cost of the shares, then the (lower) quotation verified in the last 2 years is considered.
STA	CIT	Here	The credit for tax paid abroad is deductible, within the limits established by law, not only for corporate income tax and state surtax, but also for municipal surtax.
CAAD	PIT	Here	Capital losses generated by one spouse or unmarried partner must be deducted against the capital gains of the other when there is an option for joint taxation.
CAAD	CIT	Here	Expenses with the acquisition of vouchers – including meal vouchers – are not deductible under CIT if the company is unable to demonstrate their destination. Bank interest incurred with loans that are re-channelled without remuneration to another entity of the group, are also not deductible.
CAAD	PIT	Here	For the purposes of qualifying as a micro and small enterprise for the benefit of the 14% income tax on the sale of shares, self-employed but economically dependent employees (<80% turnover to the company) should not, at the outset, count for the calculation of the number of employees.
STA	PIT	Here	The increase in capital by incorporation of legal reserves does not count for the increase in the tax basis of shareholdings in a future sale scenario.
TCAN	PIT	Here	The execution of works for the purpose of tax deductions or increase in the value of tax acquisition in PIT can be proved by any means of proof, not being limited to invoices.
CAAD	PIT	Here	The failure to comply with the deadline to submit the proof of the effective price (in the case of sale of property below the PSV) renders the PIT assessment unappealable.
CAAD	VAT	Here	The under-settled VAT in triangular operations must be regulated under article 78 no. 2 of the CIVA
TJUE	VAT	Here	The provision which presumes that electronic platforms are service providers in respect of the electronic services which they make available is not invalid
CAAD	VAT	Here	The status of a non-EU taxable person can be established by general means of proof
TJUE	VAT	Here	Questions for a preliminary ruling- Admission of additional evidence for intra-Community transfers
TJUE	VAT	Here	Questions for a preliminary ruling – do insurance operations include salvage?
TJUE	VAT	Here	Questions for a preliminary ruling – timing of building occupation?
CAAD	VAT	Here	VAT paid on a non-simulated operation, even if unduly assessed, may be deducted under the terms of article 20 no. 1 al. a) of the CIVA
TACN	VAT	Here	Expenditure on football box has both an advertising and a representation component – it is necessary to determine the scope of deductibility
CAAD	VAT	Here	Unduly assessed tax cannot be deducted as per CJEU

LEGISLATION AND INFORMATION ISSUED BY THE PTA

Main new legislation and information from the PTA:

Legislation	Tax	Link	Take-away
Ofício-circulado	PIT	Aqui	Education expenses incurred abroad – frequently asked questions (FAQ).
PIV	IMI	Aqui	Credit institutions can benefit from the suspension of IMI on properties acquired in the repayment of loans.
PIV	IMI	Aqui	Rustic property leased to third parties for the installation of a solar power station maintains the qualification of rustic property.
Guia	SS	Aqui	New SS regime for Professionals in the Cultural Area (optional)
PIV	CIT	Aqui	Companies formed in a de-merger may be part of a tax consolidation group (RETGS) after one year from the date the de-merger takes effect for accounting and tax purposes.
PIV	CIT	Aqui	The period for holding shares received in exchange (even with tax neutrality) restarts from zero after the operation (in the sphere of the company that received the shares in question, the partner is different that received new ones is different), so you have to wait 1 year to be able to integrate the tax consolidation group (RETGS).
Parecer AR	VAT	Aqui	Parliament (AR)’s opinion on the ViDA – VAT in the Digital Age proposal

How can we help?

We are a Tax Law Firm based in Portugal, made of Tax Lawyers and Tax advisors.

Our focus is Portuguese Tax and Customs Law.

Request Info