Key Benefits:
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.
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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:
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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;
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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.
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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
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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