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
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DRAFT law No. 294/X/4th explanatory statement About the causes of the current financial crisis there is a general consensus about the inadequacy of the compensation practices of managers and top executives in the financial services sector and in companies with quoted values, as one of the factors that also contributed to the adoption of a risk management that focused more on obtaining short-term yields and that induced the high potential exposure to risks significant long-term losses. It is therefore important to ensure that they are applied the principles of a good remuneration policy of occupational categories which have a decisive impact on strategic and operational objectives of companies, in order to safeguard the values and long-term interests of all the partners involved, including employees, customers and investors. Among the factors to be taken into account to ensure the application of the principles of socially responsible and remuneration policies consistent with a sound and effective risk management, tax schemes and social security applicable to components of the remuneration package of the directors, managers and managers which are more compound for companies, i.e. compensation due for termination of service or termination of a contract before the end whatever the mode of payment agreed.
2 therefore, this proposed law contemplates a system of taxation of sums due as a result of the dismissal or the termination of a contract before your term, when received by administrators, managers and managers of legal entities resident in Portuguese territory. This scheme does not apply to awards for good management or by achievement of previously set objectives, and, at this level, it should evolve into a practice of fixing the same medium-term perspective and not solely on the logic of the exercise. At the same time, the present Bill aims to introduce an exemption from withholding tax on the employment income paid to employees resident in Portugal, but moved abroad, to entities resident in Portuguese territory, where such income are effectively subject to taxation in the source country of a similar tax or similar to IRS. This amendment to article 99 of the IRS code visa, therefore, eliminate the financial penalty burden on displaced workers abroad to implement activities in the service of the employer, but which maintain the fiscal residence in Portugal, so as to promote the geographic mobility of workers and strengthen the competitive position of Portuguese companies. So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following Bill: 3 article 1 Amendment to the code of the personal income tax articles 2 and 99 of the code of the personal income tax, approved by Decree-Law No. 442-A/88 , 30 November, in the current wording, shall be replaced by the following: ' article 2 [...] 1 - [...]. 2 - [...]. 3 - [...]. 4-When, in any way whatsoever the contracts underlying the situations referred to in points (a)), b) and (c)) of paragraph 1, but without prejudice to the provisions of subparagraph (d)) of the same paragraph, regarding benefits continue to be due even if the contract of employment may not, or the cessation of the functions of Manager, administrator or Manager of a legal person , the sums received at any title, are always subject to taxation: your total), Manager, administrator or Manager of a legal person;
4 b) in the part that exceeds the amount corresponding to one and a half times the average value of the regular payments on a retribution taxpayers, received in the last 12 months, multiplied by the number of years or fraction of antiquity or the exercise of functions in the entity responsible, in other cases, except when in the 24 months following is created new professional or business link regardless of your nature, with the same entity, in which case the amount will be taxed by all. 5-For the purposes referred to in the preceding paragraph, it is considered also created a new business link when they are established on the entity ceased industrial relations, trade or provision of services by a company or other entity in which at least 50% of your capital is stopped, either alone or in conjunction with some of the elements of their household , by the beneficiary or by a plurality of beneficiaries of amounts received, unless the said industrial relations, trade or provision of services represent less than 50% of sales or services supplied in the exercise. 6 - [...]. 7 - [...]. 8 - [...]. 9 - [...].
5 10-[...]. 11 - [...]. 12 - [...]. 13 - [...]. 14 - [...]. Article 99 [...] 1-[...]. 2 - […]. 3 - […]. 4 - […]. 5-Are exempted from the withholding tax referred to in paragraph 1, the income obtained by activities carried out abroad by individuals resident in Portuguese territory, where such income are subject to taxation in the source country in similar or identical to IRS tax.»
Article 2 6 amendment to the Code of the corporate income tax article 81 of the Code of the corporate income tax, approved by Decree-Law No. 442-B/88, of November 10, the current wording is replaced by the following: ' article 81 [...] 1 - [...]. 2 - [...]. 3 - [...]. 4 - [...]. 5 - [...]. 6 - [...]. 7 - [...]. 8 - [...]. 9 - [...]. 10 - [...]. 11 - [...]. 12 - [...]. 13-Are taxed separately at a rate of 35%, expenses or charges relating to compensation or any compensation due, not related to the achievement of objectives of productivity previously defined in contractual relationship, when the dismissal of Manager, administrator or Manager, as well as expenses relating to the part that exceeds the value of the remuneration that would be received by exercise of those posts until the end of the contract in the case of termination of a contract before the end, whatever the payment mode 7, whether this is carried out directly by the taxpayer, whether there is a transfer of responsibilities inherent to another entity.»
Seen and approved by the Council of Ministers of 21 May 2009 the Prime Minister the Minister of Parliamentary Affairs Minister Presidency
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