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1 PROPOSAL of law No. 97/X explanatory statement following the 1997 constitutional revision, the Finance Law of the autonomous regions, approved by law No. 13/98, of 24 February, established, for the first time, the General rules of achievement of financial autonomy enshrined in the Constitution and in the political-administrative statutes of the autonomous regions. As pioneering legislation, law No. 13/98, of 24 February, determined its own review by the end of 2001, which did not occur, without prejudice to that law have been occasionally modified by Organic Law No. 1/2002, of June 29, no. 2/2002, of August 28, and by law No. 60-A/2005, of 30 December. Meets, so, after more than eight years since its adoption, carry out the review of the Finance Law of the autonomous regions, taking into account experience during its implementation and the evolution however recorded in the financial rules of discipline in the public sector, in particular those under the Treaty on European Union and economic and Monetary Union. The present proposal for autonomous regions finance law aims to ensure, in particular, fiscal consolidation efforts are shared by the various levels of public administration, strengthening and clarification of the autonomy and the tax liability of the autonomous regions and the correction of the shortcomings and inaccuracies detected throughout the life of the law No. 13/98, of 24 February.
2 in this sense, one of the nuclear aspects of this proposal is the revision of the rules for determining the amounts of the annual transfers from the State budget in favour of autonomous regions. First of all, index, the annual amount of funds to be entered in the State budget in favour of autonomous regions the rate of change of current expense of the State, excluding the transfer of State for Social Security and assistance from the State to the Caixa Geral de Aposentações, being set a maximum ceiling of variation equal to the rate of change of GDP at current market prices , which is a base of reference in line with the principle of national solidarity. Secondly, the breakdown between the two autonomous regions of the overall amount of annual transfers are governed by principles of equity and is given the total population, the population young and old, to the periphery of each region index and an index of fiscal effort. As far as the Cohesion Fund, the respective transfers are fixed as a decreasing function of the ratio of the GDP at market prices per capita and national autonomous region and the autonomous region is only eligible to benefit from the Fund if this ratio is less than one. Additionally, establishes a mechanism for gradual slowdown of the Cohesion Fund, to be applied if the region ceases to be eligible at the year of entry into force of this law. This mechanism is intended to, on the one hand, to avoid a sudden drop in the amount that the region had been enjoying and, on the other hand, not to ignore the existence of free zones in the regions is likely to generate income not fully available to the region. And, although this does not change at present sufficiently significant, the relative positions between the average levels of income earned by residents of each region and the national average, it is estimated that in the last year of the duration of this mechanism for the assessment of the relative level of development of the region concerned. This evaluation will take into account the possible impact of the existence of 3 zones located in this region. With regard to the indebtedness, is set a framework for applying sanctions to be applied in cases of violation of their limits. Establishes that, without prejudice to the legally provided for situations, loans from autonomous regions may not benefit from personal guarantee of the State. Determines also the ban on autonomous regions commitments by the State. On behalf of the transparency of financial relations between the State and the autonomous regions, abandons the shape of calculation of the VAT own resources on the basis of capitações, replacing the rule of allocating each autonomous region of VAT revenue collected by them. In determining the amount of transfers from the State budget in favour of autonomous regions is considered a budget which aims to compensate for the autonomous regions of impact resulting from this amendment on the recipes. In the field of power of adaptation of the national tax system, widen and clarifies the powers of autonomous regions, assigning them responsible for creating any kind of tribute in force only in the autonomous region, since the subject matter of taxation on national. As regards the own resources of the autonomous regions, the adaptation of the system of regional finance to major changes in the structure of the national tax system, maxime the abolition of tax on Successions and donations and the entry into force of the new code of stamp duty. This Bill still has the clarification and simplification of the wording of several provisions previously contained in law No. 13/98, of 24 February, and rules were introduced to revitalize the functioning of the Board of monitoring of Financial Policies and implement projects of common interest.
4 were heard the Government organs of the autonomous regions.
So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following Bill: title I Subject, general principles and accountability Chapter I subject matter and general principles Article 1 subject-matter this law concerns the definition of the means available to the autonomous regions of the Azores and Madeira for the implementation of financial autonomy enshrined in the Constitution and in the political-administrative statutes.
Article 2 Scope for the purposes of the previous article, this law covers matters relating to regional recipes, the tax power of the autonomous regions, the adaptation of the national tax system, the financial relations between the autonomous regions and local authorities based in the autonomous regions, as well as to the regional heritage.
5 article 3 Principles the financial autonomy of autonomous regions developed in accordance with the following principles: the principle of legality); b) principle of stability of financial relations; c) budgetary stability; d) principle of national solidarity; e) principle of coordination; f) principle of transparency; g) control principle.
Article 4 principle of legality the financial autonomy of autonomous regions shall exercise within the framework of the Constitution, of their political and administrative statutes, of this law and other complementary legislation.
Article 5 principle of stability of financial relations the regional financial autonomy grows in respect for the principle of stability of the financial relations between the State and the autonomous regions, which aims to ensure the Government organs of the autonomous regions the predictability of resources required for the continuation of its 6 assignments.
Article 6 principle of budgetary stability to regional financial autonomy develops within the framework of the principle of budgetary stability, which presupposes, in the medium term, a situation close to budget equilibrium and, in each financial year, the budget of the State of the net debt ceilings that the regional autonomous regions are subject.
Article 7 principle of national solidarity 1-the principle of national solidarity is reciprocal and covers the national whole and each of its parts, and should ensure an adequate level of public and private activities without sacrificing desigualitários. 2-the principle of national solidarity is compatible with financial autonomy and with the obligation of the autonomous regions contribute to the balanced development of the country and to the achievement of the objectives of economic policy which the Portuguese State is bound by treaties or international agreements, in particular those arising out of common policies or growth coordinates , employment and stability and common monetary policy of the European Union. 3-the principle of national solidarity aims to promote the abolition of inequalities arising from the situation of insularity and ultraperifecidade and the achievement of economic convergence of the autonomous regions with the rest of the country and with the European Union.
7 4-the State and the autonomous regions contribute reciprocally to the achievement of its financial objectives, within the framework of the principle of stability of the respective budgets. 5-for the purposes of compliance with the principle of social solidarity, article 37 determines the criteria of transfers from the State budget for the autonomous regions. 6-solidarity binds the State to also with the autonomous regions in the situations referred to in articles 42 and 43
Article 8 principle of coordination the autonomous regions wield their financial autonomy by coordinating their financial policies with those of the State in order to ensure: a) the fulfilment of regional and national financial objectives, with a view to promoting balanced development of the whole national; b) budgetary objectives that Portugal has obliged, in particular within the European Union; c) the realization of the principle of budgetary stability, in order to avoid situations of inequality.
Article 9 principle of transparency 1-the State and the autonomous regions provide each other the entire economic and financial information required to fully achieve their financial policies 8. 2-the information referred to in the preceding paragraph must be complete, clear and objective and be provided in a timely manner.
Article 10 the Principle control the financial autonomy of autonomous regions is subject to administrative controls, and, in accordance with the political Constitution and the political-administrative status of each of the autonomous regions.
Article 11 accompanying Financial Policy Council 1-To ensure coordination between the autonomous regions and the finances of the State, working with the Ministry of finance and public administration, the monitoring of Financial Policies, with the following competencies: a) monitor the implementation of this Act; b) Analyze the regional fiscal policies and their coordination with the objectives of the national financial policy, without prejudice to regional financial autonomy; c) Enjoy, in the financial plan, the participation of the autonomous regions in Community policies, in particular those relating to economic and Monetary Union; d) ensure compliance with the rights of participation of autonomous regions 9 finance provided for in the Constitution and in the political-administrative statutes; and) analyze the financing needs and debt regional policy and its coordination with national financial policy objectives, without prejudice to regional financial autonomy; f) monitor the development of community support mechanisms; g) Issue the opinions set forth in paragraph 4 of article 27, paragraph 2 of article 30, and in paragraph 3 of article 40; h) issue opinions at the request of the Government of the Republic or of regional governments. 2-the Council ordinarily meets once a year, before the adoption by the Council of Ministers of the draft State budget law and, extraordinarily, for duly motivated request of the Minister of finance or of one of the regional governments.
3-the composition and functioning of the Council, which includes representatives nominated by regional Governments, are defined by joint decree of the Prime Minister and the Minister of finance, after ears Regional Governments of Azores and Madeira.
Chapter II accountability 10 article 12 excessive deficits Procedure 1-under the excessive deficits procedure, until the end of the months of February and August, regional statistical services present an estimate of the non-financial accounts and government debt to the previous years and current according to the methodology of the ESA 95 and the deficit and debt Manual approved by Eurostat. 2-national statistical authorities should validate the accounts submitted by the regional statistical services until the end of the month following its submission. 3-in the case of the accounts are not validated or be raised reservations to the estimates submitted by the regional authorities, national statistical authorities shall submit a detailed report of the corrections made and their impact on the balance of the accounts and on government debt of public administrations.
Article 13 implementation 1-budgetary estimates Each regional government presents quarterly, the Ministry of finance and public administration, an estimate of the budgetary implementation and regional government debt, including the autonomous services and funds, by the end of the following month of the quarter to which they relate, in the format set by the Ministry of finance and public administration. 2 not send the quarterly information referred to in the preceding paragraph implies 10% retention of the twelfth fiscal transfers from the State.
11 3-the percentage provided for in the previous paragraph increases to 20% from the first quarter of non-compliance. 4-the sums retained are transferred to the autonomous regions as soon as they are received the elements that were at the origin of these deductions.
TITLE II regional recipes section I tax SUBSECTION I General provisions article 14 Concepts for the purpose of achieving the distribution of tax revenue between the State and the autonomous regions, it is considered that: the National Territory) is the Portuguese territory as defined in article 5 of the Constitution; b) Constituency is the territory of the continent or of an autonomous region, as the case may be; c) autonomous region is the territory corresponding to the Azores and the Madeira Islands.
12 article 15 1-State obligations in accordance with the provisions of the Constitution and its political-administrative statutes, the autonomous regions shall be entitled to delivery by the Government of the Republic of tax revenues relating to taxes that should belong to them, in accordance with the following articles, as well as other recipes that are assigned to them by law. 2-submission by the Government of the Republic to the autonomous regions of tax revenues that they compete processes until the 15th day of the month following that of its collection. 3-in case it is not possible to determine precisely the part of the tax revenue of any taxes relating to the autonomous regions, the amount provisionally transferred is equivalent to net revenues in the month previous year counterpart multiplied by the rate of revenue growth of respective tax provided for in the State budget for the current year. 4-for the purposes of calculating the tax revenues due to autonomous regions, these are not entitled to the allocation of tax revenue not collected by virtue of benefits applicable in its territory. 5-Notwithstanding the provisions of articles following, are adopted by legislative or regulatory provision, as well as through protocols to be concluded between the Government of the Republic and the regional Governments, the measures necessary for the implementation of the provisions of this article.
13 SUBSECTION II article 16 Taxes personal income tax revenue of each autonomous region Is the personal income tax: a) Due for individuals considered fiscally resident in each region, regardless of where they carry out their activity; b) Withheld, definitively, on income paid or made available to individuals considered fiscally non-residents in any circumscription of Portuguese territory, by natural or legal persons with residence, head office or (place of) effective management in each region or by a permanent establishment situated therein that such income should be imputed; c) Withheld, definitively, on premiums of lotteries, Lotto and sports betting, and claimed or paid in each autonomous region, irrespective of the place of residence, even if known, of the recipient or the place of purchase of the game titles or realization of the bets.
Article 17 corporate income tax is 1 recipe for each autonomous region the tax on income of legal persons: 14) Due by legal persons or similar companies that have headquarters, place of effective management or permanent establishment in a single region; b) Due by legal persons or similar companies that have their head office or (place of) effective management in Portuguese territory and have branches, delegations, agencies, offices, facilities, or any form of permanent representation not constituted as legal entities in more than one constituency, in accordance with the procedure referred to in paragraph 2 of this article; c) Withheld, definitively, by income generated in each constituency in respect of legal persons or similar companies that do not have a head office, place of effective management or permanent establishment in the national territory. 2-regarding the tax referred to in point (b)) of the preceding paragraph, the revenue from each constituency is determined by the ratio of the annual volume of business for the year corresponding to facilities in each autonomous region and the total annual volume of business for the year. 3-for the purposes of this article, the annual volume of business the value of transfers of goods and services, excluding value added tax.
Article 18 ancillary obligations of the income taxes entities that proceed the withholding taxes to residents or non-residents, with or without permanent establishment, shall carry out the respective discrimination by constituency, according to the rules of attribution set under previous articles.
15 article 19 1 value added tax revenue of each constituency is the value added tax charged by her operations carried out, in accordance with the criteria set out in paragraphs 2 and 3 of article 1 of Decree-Law No. 347/85, 23 August. 2-the Minister of finance, regional Governments, ears regulating by Ordinance the allocation mode to the autonomous regions of their recipes.
Article 20 excise duties Constitute revenue from each constituency the excise duty levied on taxable products that are released for consumption.
Article 21 1-stamp duty revenue of each autonomous region Is the stamp duty payable by taxable persons referred to in paragraph 1 of article 2 of the stamp tax Code that:) with registered office, place of effective management, permanent establishment or fiscal domicile in the autonomous regions; b) have their head office or (place of) effective management in the national territory and have branches, delegations, agencies, offices, facilities, or any form of permanent representation without its own legal personality in the autonomous regions.
16 2-in the situations referred to in the preceding paragraph, the revenues of each autonomous region are determined, with the necessary adaptations, in accordance with the rules of territoriality laid down in paragraphs 1 and 2 of article 4 of the code of the stamp tax, in relation to facts which occurred in these regions, and tax the taxable persons carry out discrimination in the respective tax guides. 3-free transmissions, constitutes revenue of autonomous regions the value of stamp tax: a) That, in the succession by death, would be due for each beneficiary with fiscal domicile in the autonomous regions, when the taxpayer is the heritage, represented by the double headband in accordance with subparagraph (a)) of paragraph 2 of article 2 of the stamp tax Code; b) Due in other free broadcasts when the donee, legatee or domiciled tax usucapiente in the autonomous regions.
Article 22 extraordinary Taxes 1-taxes extraordinary settled as additional or about the tax base or the collection of other taxes constitute the Revenue Division which have been affected the main tax levied on. 2-extraordinary autonomous taxes are proportionally allocated to each constituency, according to the location of the goods, the contract or the situation of the assets secured by way of principal or accessory on focusing. 3-extraordinary taxes can according to the degree that the create, be allocated exclusively to one or more constituencies, if the exceptional situation 17 that legitimizes occur or check only in this or in those constituencies.
SECTION II other income Are Interest income article 23 of each constituency the amount charged on the interest and compensatory interest, net of indemnity interest on taxes constituting own resources.
Article 24 penalties and fines 1-fines and penalties are the Revenue Division in which they have checked the action or omission that constitutes the offence. 2-When the offence if practice in successive or repeated acts, or by an act likely to extend in time the criminal or non-criminal fines are allocated to the constituency in whose area if you have practiced the last act or ceases the consummation.
Article 25 regional public rates and prices Without prejudice to special legislation, constitutes revenue of each Autonomous Region 18, the product of the rates, fees and rates payable for the provision of regional services, by acts of removing legal limits the activities of individuals within the jurisdiction of regional organs and the use of goods in the public domain.
SECTION III regional government article 26 general principles the regional public debt shall be guided by principles of accuracy and efficiency, aims to ensure the availability of the funding required for each financial year and pursues the following objectives: a) minimization of direct and indirect costs on a long-term basis; b) ensuring a balanced distribution of costs by several annual budgets; c) preventing excessive concentration of depreciation; d) exposure to excessive risk taking.
Article 27 public Loans 1-the autonomous regions may, in accordance with their respective political-administrative and statutes of this law, contract public debt founded and floating.
19 2-currency borrowing without legal tender in Portugal is made in accordance with the statutes of the administrative-political, depends on prior authorization of the Assembly of the Republic and take into account the need to avoid distortions in the external public debt and do not induce negative reflexes in the rating of the Republic. 3-loans to collapse by autonomous regions called without legal tender currency in Portugal may not exceed 10% of the direct debt of each autonomous region. 4-duly justified and with the prior opinion of the Board of monitoring of Financial Policies, the percentage referred to in the preceding paragraph may be exceeded, with the permission of the Assembly of the Republic on the proposal of the Government.
Article 28 the borrowing long-term debt long-term debt lacks permission of respective regional legislative assemblies, pursuant to the political-administrative statutes of the autonomous regions, and is intended exclusively to finance investments or replace and amortize loans previously contracted, obeying the limits laid down in accordance with the provisions of this law.
Article 29 floating Debt to cope with cash-flow needs, the autonomous regions may issue debt, the amount accumulated emissions floating alive in each moment 20 not to exceed 35% of the current revenues collected in previous year.
Article 30 1-debt Limits in order to ensure effective coordination between the finances of the State and of the autonomous regions and the principle of budgetary stability, are defined annually in the State budget borrowing regional ceilings, compatible with the concepts used in national accounts, which include the guarantees run. 2-The regional debt ceilings are fixed taking into account the proposals made by regional Governments to the Government of the Republic and the opinion of the Board of monitoring of Financial Policies, and comply with the goals established by the Government of the Republic with regard to the overall balance of General Government sector, in order to ensure compliance with the principle of budgetary stability. 3-the fixing of the limits mentioned in the preceding paragraphs meets that, as a result of the additional debt or increase of the credit to the region, the total debt service, including annual depreciation and interest, do not exceed, in any case, 25% of the current revenues of the previous year, with the exception of transfers and assistance from the State for each region. 4-for the purposes of the preceding paragraph, it is not considered debt service the amount of depreciation. 5-in the case of loans whose amortization to concentrate in a single year, for the purposes of the preceding paragraph, the respective value annualise.
21 Article 31 Penalties for violations of limits on indebtedness-1 violation of debt limits for an autonomous region leads to a reduction in transfers from the State that it is payable in the following year, in amounts equal to the excess of indebtedness in relation to the maximum limit determined in accordance with the previous article. 2-the reduction provided for in the preceding paragraph takes place proportionally in the transfer payments quarterly.
Article 32 public debt issuance pending approval or publication of the State budget to issue regional government pending approval or publication of the State budget shall be subject to the provisions of article 8 of law No. 7/98, of 3 February.
Article 33 Management Institute's support of public credit, I. P. The autonomous regions may have recourse to the support of the Institute of management of public credit, I. P., both for the Organization of Regional public debt emissions and the monitoring of its management, with a view to minimize costs and risk and coordinate regional public debt operations with direct public debt of the State.
22 article 34 regional debt tax treatment the regional government enjoys the same tax treatment to the public debt of the State.
Article 35 State guarantee subject to the situations legally provided for loans to be issued by the autonomous regions may not benefit from personal guarantee of the State.
Article 36 ban on autonomous regions commitments by the State Without prejudice to the legally provided for situations, the State cannot assume responsibility for the obligations of the autonomous regions, nor assume the commitments arising from these obligations.
SECTION IV State Transfers
Article 37 1 budgetary Transfers-In compliance with the principle of solidarity enshrined in the Constitution, in the political-administrative statutes and in this law, the State budget each year includes amounts to be transferred to each of the autonomous regions.
23 2-the annual amount of funds to be entered in the State budget for the year t is equal to the amounts entered in the budget of the State for the year t-1 updated according to the update rate set in accordance with the following paragraphs. 3-the discount rate is equal to the rate of change in the year t-2, the current expenditure of the State, excluding the transfer of State for Social Security and assistance from the State to the Caixa Geral de Aposentações, according to the General Government account. 4-in the case of the rate of change defined in the preceding paragraph exceed the estimate of the National Institute of statistics of the rate of change in the year t-2, the GDP at current market prices, the discount rate referred to in paragraph 2 will be the estimate of the National Institute of statistics of the rate of change in the year t-2, the GDP at current market prices. 5-in the year of entry into force of this Act, the amount of the appropriations to be entered in the State budget for the year t is equal to the amount entered in the year t-1 multiplied by a factor of 1.5. 6-the breakdown of this amount by the autonomous regions, taking account of their structural features and includes a fixed factor relative to the impact on the revenue of the value-added tax resulting from the application of paragraph 1 of article 19, is made according to the following formula: i EF EF UI UI P P P P P P TT tRA TR RA R tRA tRA tRA tRA tR tR tR 335, 005, 015, 0 14 14 05.0 65 65 05, 00, 4 365, 4, 2, 2, 2, 2, 2, 2, tR: i = 0.27 and r = 0.73 weights corresponding, respectively, to the autonomous region of Madeira and the Azores.
24 tR, T-budgetary Transfer to the autonomous region in year t. tRA, T-budgetary Transfer to the autonomous regions in year t, calculated in accordance with the provisions of paragraph 2 of this article. PR, t 2 -Population of the autonomous region in year t-2 according to the latest data published by the INE at the time of the calculation; to, t 2 -Sum of the population of the autonomous regions in year t-2; P65R , t 2 -Population of the autonomous region in year t-2 with 65 years of age or older according to the latest data published by the INE at the time of the calculation; P65RA , t 2 -Sum of the population of the Autonomous Region with 65 years of age or older in the year t-2; P14R , t 2 -Population of the autonomous region in year t-2 with 14 or so years of age, according to the latest data published by the INE on the date of the calculation. P14RA , t 2 -Sum of the population of the autonomous regions in year t-2 with 14 or fewer years old; RIU = RA R RA R ilhasn ilhasn DL DL ººº 3, 07, 0 RAIU-sum of the indices of ultra periphery. RDL-shortest distance between the autonomous region and the Portuguese mainland. RADL-Sum of the smallest distances between each of the autonomous regions and the continent Portuguese. Rilhasn-number of Islands with the resident population in the autonomous region. RAilhasn-total number of Islands with the resident population in the regions Autonomous 25. EFR, t = 4 ratio between tax revenues and autonomous region gross domestic product at market prices, current prices, in the year t-4. EFRA, t 4 = sum of indicators of fiscal effort. 7-transfers from the State budget process in quarterly installments, to be carried out during the first five days of each quarter.
Article 38 the Cohesion Fund for the outermost regions 1-the Cohesion Fund is intended to support exclusively investment programmes and projects contained in the annual investment plans of the autonomous regions, taking into account the provisions in subparagraph (g)) of article 9 and j) of article 227.º of the Constitution, and to ensure economic convergence with the rest of the national territory. 2-the Cohesion Fund has in each year of funds from the State budget, the transfer to regional budgets, to finance programmes and projects of investment, previously identified, which meet the requirements of the preceding paragraph and is equal to a percentage of budget transfers for each autonomous region defined in accordance with the previous article. 3-the percentage referred to in the preceding paragraph is: 20% when 4 4 90.0 t t PIBPCN PIBPCR 12.5% when 0.90 PIBPCRt 0.95 4 PIBPCNt 4 26 5% when 0.95 PIBPCRt PIBPCNt 4 4 1 0% when PIBPCRt 4 PIBPCNt 4 1 Being: 4 PIBPCRt-gross domestic product at current market prices, per capita, in the autonomous region in year t-4. PIBPCNt 4-gross domestic product at current market prices, per capita in Portugal in the year t-4.
Article 39 national Reimbursement incentive systems Are transferred to the autonomous regions the amount corresponding to the payment of subsidies due in their respective territories and resulting from the application of incentive systems created at national level.
Article 40 projects of common interest 1-For projects of common interest "means those who are promoted for reasons of interest or national strategy and likely to produce a positive economic effect for the whole national economy, measured, inter alia, the consequences in terms of balance of payments or of job creation, and , those that have the effect of a decrease of the costs of insularity or better communication between different parts of the national territory. 2-the classification of a project as being of common interest depends on a favorable decision of the Government of the Republic and the regional government.
27 3-specific conditions of funding by the State of the projects referred to in paragraph 1 shall be fixed by decree-law, heard the Regional Government to which it relates and the monitoring of Financial Policies.
Article 41 special cases Constitute extraordinary transfers from the State budget the resulting established in articles 42 and 43, as well as any transfers the creation of territorial continuity.
Article 42 financial Protocols In exceptional cases, the State and the autonomous regions may conclude financial protocols, with reciprocal obligations not provided for in this law, but in accordance with its general principles.
Article 43 extraordinary Support 1-national solidarity binds the State to support the autonomous regions in unforeseen situations resulting from natural disasters and for which they do not have financial resources, aimed at, inter alia, reconstruction and restoration of infrastructure and economic and social activities, as well as the support to affected populations.
28 2-national solidarity is reflected even in the obligation of the State to restore the situation prior to the practice of environmental damage caused in the autonomous regions, arising from the activities by him or by other States, in particular by virtue of international agreements or treaties, or to make available the financial resources necessary for the repair of this damage.
Article 44 transfer of duties and responsibilities to local authorities in the context of the transfer of duties and responsibilities to local authorities by the State, it is for the autonomous regions to ensure the financial resources and the appropriate heritage for the performance of functions transferred whenever these are of the competence of regional Governments, in accordance with the predict in regional legislative decree of the respective legislative Assembly.
TITLE III tax Power own and adaptation of the national tax system section I General Framework 29 Article 45 General principles The tax competences of regional bodies observe constitutional and statutory limits and the following principles: a) the principle of consistency between the national tax system and regional tax systems; b) the principle of legality, in accordance with the Constitution; c) the principle of equality between the autonomous regions; d) the principle of national solidarity, in accordance with article 7 of this law; and) the principle of flexibility, to ensure that the regional tax systems should adapt to regional specificities, wants and can create taxes in force in the autonomous regions only wants to adapting national taxes regional specificities; f) the principle of sufficiency, in the sense that the regional tax charges, in principle, should ensure the coverage of public expenditure; g) the principle of functional efficiency of regional tax systems, in the sense that the structuring of the regional tax systems should encourage investment in the autonomous regions and ensure the social and economic development.
Article 46 tax Skills 1-regional bodies have regulatory in nature and tax skills
30 administrative exercise in accordance with the following paragraphs. 2-regional legislative competence in the field of taxation, is exerted by regional legislative Assembly, by Legislative Decree, and comprises the following powers: a) the power to create and regulate taxes in effect only in the respective autonomous regions by setting its incidence, the rate, settlement, billing, tax, and benefits the taxpayer guarantees, in accordance with this law; b) the power of adapting national taxes regional specificities in terms of incidence, rate, tax breaks and taxpayer guarantees, within the limits laid down in the law and in accordance with the following articles.
3-The regulatory and administrative powers referred to in the preceding paragraphs shall be performed in accordance with sections II and III of this title III.
SECTION II tax legislative and regulatory Powers article 47 Taxes in force in the autonomous regions only 1-The European regional legislative assemblies, by regional legislative decree, may raise taxes in force only in the autonomous region, provided that they observe the principles enshrined in this law, relating to the subject matter of the expected incidence 31 for any national taxes, even if exempted or not subject or, it is not included, can reasonably be expected to integrate this incidence, and your application does not result in barriers to trade in goods and services between the different points of the country. 2-The taxes referred to in the preceding paragraph shall expire if they are subsequently created other similar nationwide. 3-the competence referred to in paragraph 1 applies, inter alia, the power to create and regulate betterment in force only in the autonomous regions, for tax increases in value of immovable property arising from regional public works and investments, as well as create and regulate other special contributions to make up the largest regional expenditure arising from private activities stressful or perpetrators of public goods or regional environment.
Additional taxes article 48 regional legislative assemblies have authority to launch additional, up to a limit of 10% of the collection of the taxes in force in the autonomous regions.
Article 49 adaptation of the national tax system to the regional specificities 1-without prejudice to the provisions laid down in national tax legislation to operate only in the autonomous regions, the adaptation of the national tax system to the regional specificities observes the provisions of the present law and its complementary legislation. 2-The regional legislative assemblies may grant tax credits on 32 to commercial, industrial and agricultural profits reinvested by taxable persons. 3-the legal framework of international business centre of Madeira and Santa Maria free zone shall be governed by the provisions of the Tax benefits Statute and complementary legislation. 4-The regional legislative assemblies may also, under the law, reduce national rates of income taxes (IRS and IRC) and value added tax, up to a maximum of 30%, and excise duty, in accordance with the legislation in force. 5-The regional legislative assemblies may authorize the regional Governments to grant fiscal benefits temporary and conditional on the national and regional taxes, contractual arrangements, applicable to projects of significant investments, in accordance with article 39 of the Tax benefits Statute and complementary legislation in force, with the necessary adaptations.
Article 50 regulatory powers the organs of the autonomous regions have regulatory competence concerning fiscal matters subject to regional legislative competence.
SECTION III administrative regional Skills article 51 administrative regional Skills 1-administrative regional competences in the field of taxation, the exercise by the respective Governments and regional administrations 33, include: a) the ability of the autonomous regions are subject tax assets in them charged or under regional national, pursuant to paragraph 2; (b)) the right to delivery, by the State, tax revenues that should belong to them, in accordance with the provisions of articles 14 et seq.; c) the power to fix the amount of the fees, charges and rates payable for the provision of regional services, though, by granting regional leased licenses, permits and other removals of legal limits to regional activities of individuals and for the use of the goods in the public domain. 2-the ability of the autonomous regions are subject tax charged therein assets comprises: a) the power to regional governments create tax services responsible for the launch, liquidation and collection of regional taxation; b) the power to regulate the matters referred to in the preceding paragraph, without prejudice to the taxpayer guarantees, nationwide; c) the power of the autonomous regions to use state tax services based in the autonomous regions, through the payment of compensation, agreed between the State and the autonomous regions on the service by that provided in their legal representation. 3-in the case of the State does not collect the compensation referred to in point (c)) of the preceding paragraph shall be counted as State transfer to the autonomous regions. 4-national taxes which constitute regional recipes and taxes and 34 regional rates should be as such identified taxpayers in printed and tax forms, whenever possible, even if they are charged by the tax administration of the State.
Article 52 Competences for the granting of benefits and tax breaks 1-relating to benefits and tax incentives, whatever their nature and purpose, the specific and exclusive interest of a single autonomous region, the powers conferred on general law to the Minister of finance are exercised with respect for the laws and general principles in force and in the framework of the principle of equal , by a member of the regional government responsible for the area of finance. 2-the benefits or tax incentives of interest or national or specific interest from more than one constituency are within the competence of the Minister of finance, ears their regional governments.
Article 53 conflicts over the place of collection of taxes the conflicts concerning the competence to decide about the location of collection of national taxes which are of interest to the autonomous regions are resolved by agreement between the national and regional competent tax authorities and, failing that, by a decision of the Supreme Administrative Court.
35 TITLE IV financial relations between the autonomous regions and local authorities article 54 1-local authorities Finance the finances of local authorities located in the autonomous regions and the autonomous regions are independent. 2-the provisions of this law shall be without prejudice to the financial regime of local authorities.
Article 55 financial support to local authorities any form of regional local government financial support beyond the already provided in law should aim at strengthening the investment capacity of the local authorities. Title V of the regional heritage article 56 Remission the autonomous regions have their own heritage and patrimonial autonomy, under the Constitution, political-administrative statutes and applicable law.
36 TITLE VI transitional and final provisions article 57 this law, Framework Law on tax matters, constitutes the framework law referred to in the Constitution and the political-administrative statutes of the autonomous regions.
Article 58 safeguard clauses 1-the provisions of this law: a) does not relieve the obligations previously assumed by the State in relation to autonomous regions and these in relation to the State; b) is without prejudice to the obligations of or to take within the framework of international treaties and agreements concluded by the Portuguese State; (c)) shall not affect the statutory and constitutional prerogatives of the autonomous regions, in particular those relating to the rights of participation in the negotiations of treaties or international agreements. 2-where, in the year of the entry into force of this law, working for some of the autonomous regions and the loss of cohesion fund, for the purposes of applying the provisions of paragraph 3 of article 38, the same is implemented gradually, in accordance with the following conditions: (a)) in the year of the entry into force of this law being the calculation of the percentage corresponding to 0 37% considered that this is equivalent to 17.5%; (b)) in the three years following the referred to in (a) above, being the calculation of the percentage corresponding to 0%, this is equivalent to 13.125% 8.75% and 4.375%, successively; (c)) in the last year of the period referred to in the preceding paragraph, the assessment of the relative level of development of the region, taking into consideration the possible impact arising from the existence of free zones.
Article 59 the inheritance and gift tax notwithstanding the repeal of law No 13/98, of 24 February, continues to apply the provisions of article 15 of the same law, in relation to inheritance and gift tax due for any free streaming the fact occurred to withdrawal tax of real estate transfer Municipal Tax code and tax on inheritance and Donations , and whose tax assessment process is pending on the date of entry into force of this law.
Article 60 additional standards for the Government of the Republic approves the actions necessary for the execution of the provisions of paragraph 3 of article 9, paragraph 5 of article 15 and paragraph 2 of article 19 within 90 days after the entry into force of this law.
38 article 61 transfer of duties and responsibilities to the autonomous regions 1-assignments and the skills necessary for the exercise of power conferred tax to autonomous regions, in cases where these consider that the decentralization allows match better the interests of their populations and as the regionalization of services and corresponding functions, are defined by decree-law. 2-approval of the decree-law referred to in the preceding paragraph and until are created and installed all the means necessary for the exercise of power conferred tax to autonomous regions, the Directorate-General of taxes (DGCI), through its departments and services, and the services of the State continue to ensure the realization of the administrative procedures required for the performance of the mentioned power , including those relating to liquidation and collection of the taxes which constitute my own recipe of the autonomous regions. 3-until the entry into force of the decree-law referred to in the preceding paragraph, all legal references made on national tax laws to the Minister of finance and to the Directors-General of the tax administration, in matters relating to own resources of the autonomous regions.
Article 62 the adoption of Official Plan of public accounting the autonomous regions should adopt, in the maximum period of two years after the date of entry into force of this law, the Official Plan of public accounting and respective Sectoral Accounts plans.
Article 63 39 set Standard is revoked the law No. 13/98, of 24 February and its amendments. Article 64 Review this law is revised in the year 2014.
Article 65 entry into force this law shall enter into force on 1 January 2007.
Seen and approved by the Council of Ministers of 4 October 2006 Prime Minister the Minister of Parliamentary Affairs Minister Presidency
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