Technical News – March 2023

© Jacob Dahgren



  • 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



  • 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
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