Adopting Counter-Cyclical Fiscal Measures, Changing The Irs Code, The Imi Code And The Tax Benefits Statute, With A View To Mitigating The Impact On Families Of The Rising Costs With Housing, And Creates An Autonomous Tax Rate For Companies

Original Language Title: Aprova medidas fiscais anticíclicas, alterando o Código do IRS, o Código do IMI e o Estatuto dos Benefícios Fiscais, tendo em vista minorar o impacto nas famílias dos custos crescentes com a habitação, e cria uma taxa de tributação autónoma para empresas

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DRAFT law No. 217/X explanatory memorandum the soaring price of petroleum products and the worsening of the crisis that has plagued the international financial markets have required national authorities adopting a cautious behavior, considering mainly the resolution of social problems. Consolidation measures adopted by the European Central Bank towards the escalation of interest rates as inflation containment mechanism, have very serious implications on the lower income families. It was mandatory that the State introduced the tax relief more affect the housing market, the most basic aspect of the guarantee of fundamental right enshrined in article 65 of the Constitution of the Portuguese Republic. It is intended to introduce a set of tax measures including a varied field of taxes and objectives with a view to smoothing the effects of internal crisis in the financial markets and the markets of petroleum products. Firstly, it is proposed to change the scheme of tax credits relating to costs of real estate, in terms of personal income tax (IRS). It is, thus, to increase the personal and permanent residence, including interest, on the basis of the taxable amount, benefiting, by use of the exemption, the lowest income earners.

On the other hand, in the Municipal property tax (IMI) envisaged the reduction of the maximum rates relating to urban property evaluated and not evaluated, in 0.1%. In this way, reduces the maximum rate of 0.8% for IMI 0.7% for buildings not evaluated under the IMI code and 0.5% to 0.4% for buildings assessed under the code of IMI. Also, the provision should be made for those Municipalities may fix fees for parishes, ensuring greater equity in here distribution of tax burdens involved. Furthermore, the reduction of rates, the extension of the period of exemption from IMI for the permanent housing of 6 to 8 years, for buildings with taxable amount to € 157,500, and 3 to 4 years, for buildings with taxable amount of Eur to 157,500 236,250 Euros. On the other hand, the methods of the FIFO (First-In first-out) or weighted average cost valuation criteria of oil stocks for tax purposes, for manufacturing and distribution of refined petroleum products. So, the extraordinary gain however obtained by adopting this criterion passes to find themselves subject to a tax rate of 25%, ensuring the redistribution of wealth through the implementation of a tax for achieving extraordinary in casu. Triggered the procedures necessary for the consultation of the National Association of Portuguese municipalities and the National Association of Parishes. So: in accordance with subparagraph (d)) of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following proposal of law: article 1 Amendment to the code of the personal income tax articles 78 and 85 of the code of the personal income tax, as designated by the IRS code, approved by Decree-Law No. 442-A/88 , Nov 30, are replaced by the following:% quot% article 78(3)(b) [...] 1 – […]. 2 – […]. 3 – […]. 4 – in any case, the deductions provided for in paragraph 1 may leave taxpayers tax net income less than you would be if your taxable income correspond to the upper bound of the step immediately below. 5-[previous paragraph 4]. Article 85 [...] 1 – [...]. 2 – […]. 3 – […]. 4 – […]. 5 – […]. 6 – […]. 7-the limits in (a)) and b) of paragraph 1 are high, taking into account the levels provided for in paragraph 1 of article 68, as follows: 50% a) in taxpayers with taxable income up to a maximum of 2 step; b) In 20% to taxpayers with taxable income up to a maximum of the 3rd grade; c) In 10% for taxpayers with taxable income up to a maximum of 4 step.» Article 2 amendment to the Municipal property tax Code article 112 of the Municipal property tax code, as designated by the IMI Code, approved by Decree-Law No. 287/2003, of 12 November, is replaced by the following:% quot% article 112 [...] 1 – the rates of property tax are as follows: a) [...]; b) urban properties: 0.4% 0.7%; c) urban property evaluated in accordance with the CCME: 0.2% to 0.4%. 2 – […]. 3 – […]. 4 – […].

5-the municipalities, by decision of the municipal Assembly, fix the rate to be applied for each year, within the ranges provided for in paragraph 1 (b)) and c) of paragraph 1, which may be fixed by the parish. 6 – […]. 7 – […]. 8 – […]. 9 – […]. 10-[...]. 11-[...]. 12-[...]. 13-[...]. 14 – […].» Article 3 amendment to the Tax benefits statute in article 46 of the Tax benefits Statute, approved by Decree-Law No. 215/89, of 1 July and republished by Decree-Law No. 108/2008 shall be replaced by the following:% quot% article 46 [...] 1 - […]. 2 - […]. 3 - […]. 4 - […]. 5-for the purposes of paragraphs 1 and 3, the period of exemption granted is determined in accordance with the following table: taxable amount (in euro) exemption Period (in years)-personal and permanent residence and lease to housing To over 157 500 157 500 8 and up to 236 250 4 6-[...]. 7 - […]. 8 - […]. 9 - […]. 10-[...]. 11-[...]. 12-[...].» Article 4 separate taxation for manufacturing or distribution of refined petroleum products 1-manufacturing companies or distribution of refined petroleum products are required, for tax purposes, to adopt the methods FIFO (First In First Out) or weighted average cost in the cost of raw materials consumed, and must be used the same method for all inventories having similar nature and use in subsequent exercises.

2 – the positive difference between the gross production margin based on the application of the methods FIFO (First In First Out) or weighted average cost in the cost of raw materials consumed and determined based on the application of costing method adopted in accounting is subject to a separate taxation in IRC, at the rate of 25%. 3-the separate taxation in established IRC pursuant to paragraph 1 is not deductible for any effects in determining taxable profit, both in individual accounts as in optics. 4-you may not rebound in the price of goods sold the cost supported with separate taxation in IRC, and the competition regulator to your supervision. 5-the preceding paragraphs shall apply to the 2008 and subsequent exercises. Article 5 1 effect-The amendments made by this Act to articles 78 and 85 of the IRS code and article 112 of the IMI code take effect from 1 January 2008. 2-changing the exemption period referred to in article 46 of the Tax benefits Statute, as amended by this Act, shall apply to exemptions in the period of 6 or 3 years of benefit is still in force or became extinct in the year 2008.

Article 6 entry into force this law shall enter into force on the day following your publication.

Seen and approved by the Council of Ministers of 10 July 2008 the Prime Minister, the Minister of Parliamentary Affairs Minister Presidency