Advanced Search

Changes The Code Of The Personal Income Tax, Approved By Decree-Law No. 442-A/88 Of 30 November, And Code Of The Corporate Income Tax, Approved By Decree-Law No. 442-B/88 Of 30 November, Po

Original Language Title: Altera o Código do Imposto sobre o Rendimento das Pessoas Singulares, aprovado pelo Decreto-Lei n.º 442-A/88, de 30 de Novembro, e o Código do Imposto sobre o Rendimento das Pessoas Colectivas, aprovado pelo Decreto-Lei n.º 442-B/88, de 30 de Novembro, po

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.

PROPOSED LAW NO. 294 /X/4.

Exhibition of Motives

On the causes of the current financial crisis there is widespread consensus on electing the

inadequacy of the remunerative practices of the administrators and top executives in the

financial services sector and in societies with listed values, as one of the

factors that have also contributed to the adoption of a risk management that has privileged

obtaining short-term yields and which induced the high potential exposure to

risks of significant losses in the long term.

It is therefore important to ensure that the principles of a good policy are applied

remuneration of the professional categories whose activity has a determining impact on the

definition of the operational and strategic objectives of the companies, so as to safeguard

the long-term values and interests of all the partners involved, specifically

the workers, the customers and the investors.

Among the factors to be taken into account to ensure the implementation of the principles of policies of

socially responsible and consistent remuneration with a sound risk management and

effective, they highlight the taxation and social security schemes applicable to the

components of the remunerative package of the administrators, managers and managers who se

reveal more penalizers for the companies, i.e. the claims due by

termination of duties or by termination of a contract before the term, whatever the

convection modality of payment.

2

Thus, the present proposed law contemplates an integral taxation regime of the

importances due as a result of the termination of duties or termination of a

contract before your term, when aubed by administrators, managers and managers of

legal persons residing in Portuguese territory.

This scheme does not apply to premiums for good management or by achievement of objectives

previously fixed, being that at this level, one should evolve into a fixation practice

of the same in a midterm optics and not solely in the logic of exercise.

Simultaneously, the present law proposal aims to introduce a withholding dispensation in the

source on the income from dependent labour paid to resident workers in

Portugal, but dislocated abroad, at the service of entities residing in territory

portuguese, whenever such income is actually subject to taxation in the country

of the source at the headquarters of a similar tax or analogous to the IRS. This amendment to Article 99 of the

IRS Code aims to, therefore, eliminate the financial penalty that impens on

the workers displaced abroad for carrying out activities at the service of the

employer, but who maintain the tax residence in Portugal, so as to favour the

geographical mobility of employees and to strengthen the competitive position of companies

Portuguese.

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

3

Article 1.

Amendment to the Income Tax Code of Singular People

Articles 2 and 99 of the Income Tax Code on Singular People's Income,

approved by Decree-Law No 442-A/88 of November 30, in the current wording, passes

to be replaced by the following:

" Article 2.

[...]

1-[...].

2-[...].

3-[...].

4-When, in any form, cease the contracts underlying the situations

referred to in points a) , b) and c) of paragraph 1, but without prejudice to the provisions of the

point ( d) of the same number, as to the benefits that continue to be

due even if the contract of employment does not subsist, or check the

cessation of the roles of manager, administrator or person manager

collective, the auwound importances, to any title, stay always

subject to taxation:

a) For its entirety, dealing with manager, administrator or manager

of a legal person;

4

b) In the part that exceeds the corresponding value at one and a half times the value

average of regular remunerations with character of subject consideration

the tax, earned in the last 12 months, multiplied by the number

of years or fraction of seniority or exercise of functions in the

debtor entity, in the remaining cases, save when in the 24 months

following is created new professional or business bond,

regardless of their nature, with the same entity, case in

that the importations will be taxed by the totality.

5-For the purposes of the said in the preceding paragraph, it shall also be deemed to be created

a new business bond when they are established with the entity

with which they have ceased the labour, commercial or provision relations

services, by society or other entity in which at least 50% of the

your capital be held, in isolation or in conjunction with some of the

elements of the respective household, by the beneficiary or by a

plurality of beneficiaries of the importances received, except if the

referred to as labour relations, commercial or service provision

represent less than 50% of sales or service benefits

carried out in the exercise.

6-[...].

7-[...].

8-[...].

9-[...].

5

10-[...].

11-[...].

12-[...].

13-[...].

14-[...].

Article 99.

[...]

1-[...].

2-[...].

3-[...].

4-[...].

5-Stay waived from the withholding tax as referred to in paragraph 1, the

income from work obtained by activities carried out abroad

by natural persons residing in Portuguese territory, where such

income shall be subject to effective taxation in the country of the source in

similar or identical tax to the IRS. "

Article 2.

6

Amendment to the Income Tax Code of Collective Persons

Article 81 of the Code of the Income Tax on Collective Persons,

approved by Decree-Law No 442-B/88 of November 10, in the current wording, passes the

have the following wording:

" Article 81.

[...]

1-[...].

2-[...].

3-[...].

4-[...].

5-[...].

6-[...].

7-[...].

8-[...].

9-[...].

10-[...].

11-[...].

12-[...].

13-Are taxed autonomously, at the rate of 35%, the spending or charges

concerning compensation or any compensations due, no

related to the achievement of productivity goals

previously defined in the contractual relationship, when you check the

cessation of functions of manager, administrator or manager and, well, the

spending on the part that exceeds the value of the remunerations that would be

self-injured by the exercise of those posts until the end of the contract, when

whether it is the termination of a contract before the term, whicheth is the

7

modality of payment, whether this is carried out directly by the

taxable person, whether there is transfer of the inherent responsibilities

for a other entity. "

Seen and approved in Council of Ministers of May 21, 2009

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs