Key Benefits:
PROPOSED LAW NO 1/XI/1.
FIRST AMENDMENT TO ORGANIC LAW NO. 1/2007, OF February 19,
WHICH APPROVES THE FINANCE LAW OF THE AUTONOMOUS REGIONS
The Organic Law No. 1/2007, of February 19, came to pass the Law of
Finance of the Autonomous Regions by repealing Law No 13/98 of February 24.
However, and listening to the fact that many doubts about their constitutionality and legality have been raised, it is understood
timely a review of its content with a view to the full fulfillment of the provisions of the Constitution of the Portuguese Republic and the Critical Administrative-Administrative Statutes
of the Autonomous Regions of the Azores and Madeira.
Thus, with regard to references made to the regional heritage, provided for either in the final part of Article 2º or in Title V, it has chosen to proceed
at its disposal pore wants its definition, whether the competences for its administration are already seat in the Constitution and in the respective Pollegitimate-Administrative Statutes.
It takes the advantage of enshrining the principle of financial autonomy, while at the same time a constitutionally more vision
consentantaneous with the definition of the principle of national solidarity.
In this sense, the adjustment of the calculation formula for transfers of the State Budget, so as to enforce the
statutorily enshrined, reinstating, at the same time, the balance between the Autonomous Regions, without, however, decreasing the amounts the State
reserved for the Autonomous Region of the Azores.
Still in this scope, the concept of projects of common interest will be enhanced that will benefit from the state comparticipation once approved by the
respective Governments.
Similarly, the rule of the loans, to be issued by the Autonomous Regions, to be able to benefit from personal guarantee of the State, shall be established.
terms of the respective law, thus achieving full compliance with the established statutorily.
Similarly, they purge themselves of the Law the references of the previous Article 62º to the transfer of attributions and powers necessary to the exercise of power
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tributary, pore such matters are already enshrined by the Decree-Law No. 18/2005 of January 18, which transferred to the Autonomous Region of Madeira the attributions and tax powers that within the Finance Directorate of the
Autonomous region of Madeira, and of all the services of it dependents, came under way in the territory of the Region by the Government of the Republic, competing for the Regional Government of the Autonomous Region of Madeira the full exercise of the
competencies provided for in the Constitution and in the law in relation to own tax revenues, practicing all the necessary acts to its administration and management.
Still in tax matters, it is established that in the Value Added Tax (VAT) clearance is applied the suspensive scheme, seen to be the method that guarantees, with greater reliability, that the Autonomous Regions will receive
the proceeds of this tax that are due to them. In order to close possible losses of VAT revenue, a safeguard clause is expected, which guarantees to the
Regions, in the year 2008, a level of revenue identical to that obtained by the application of the principle of capitation in 2007.
Finally, in the context of the adoption of the official plan of public accounts and
taking into account the unicity of the national system, it is imposed on mandatory State to make available to the Regions Autonomous the integrated computer applications as well as the technical support necessary for compliance with that
obligation, with a view to standardizing procedures, avoiding increased costs with analyses and studies of informatics applications that already exist.
Thus:
Pursuant to paragraph 1 (f) of Article 227º of the Constitution of the Republic and (b) of Article 37º (1) of Law No 13/91 of June 5,
amended by the Laws 130/99 of August 21 and 12/2000 of June 21, the Legislative Assembly of Madeira presents to the Assembly of the Republic a
the following proposed law:
Article 1º Amendment to the Organic Law No. 1/2007 of February 19
Articles 2º, 3º, 6º, 7º, 8º, 11º, 15º, 16º, 19º, 21º, 30º, 31º, 33º, 35º, 37º, 38º, 39º, 40º, 49º, 51º, 55º, 59º, 61º, 62º, 62º, 62º, 62º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º, 63º and 65º of the Organic Law are
wording:
" Article 2º [...]
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For the purposes of the preceding article, the present law covers matters relating to regional revenue, the own tax power of Autonomous Regions, the adaptation of the national tax system and financial relations between Autonomous Regions and local authorities based in the Autonomous Regions.
Article 3º [...]
....................................................................................................................................................
a) ........................................................................................................
b) Principle of regional financial autonomy;
c) [Previous point (b)]
d) [Previous point (c)]
e) [Previous point (d)]
f) Principle of territorial continuity;
g) Principle of regionalization of services;
h) [Previous point (e)]
i) [Previous point (f)]
j) [Previous point (g)]
Article 6º [...]
1-A The regional financial autonomy develops in the framework of the principle of fiscal stability, which presupposes, in the medium term, a situation close to the budgetary balance.
2-Both the State and the Autonomous Regions contribute to each other in order to achieve their financial goals, in the framework of the principle of the stability of their respective budgets.
Article 7º [...]
1-The principle of national solidarity aims to ensure the promotion of economic and social development and the well-being and quality of life of the populations, links the state to bear the costs of the inequalities derived from insularity, in particular with regard to transport, communications, energy, education, culture, health, sport and social security with a view to the elimination of the
4
inequalities resulting from the situation of insularity and of the outermost and the realization of economic and social convergence with the remaining national territory and with the European Union.
2-The principle of national solidarity is reciprocated and covers the entire national and each of its Regions, and shall ensure an appropriate level of public services and private activities, without disequal sacrifices.
3-(Previous # 2).
4-The principle of national solidarity is appropriate, at every turn, at the level of development of the regions.
5-(Previous # 5).
6-(Previous # 6).
Article 8º [...]
........................................................................................................................
a) The balanced development of the national whole;
b) ...........................................................................................................
c) ...........................................................................................................
Article 11º [...]
1-...................................................................................................................
a) ..............................................................................................................
b) ..............................................................................................................
c) ..............................................................................................................
d) ..............................................................................................................
e) ..............................................................................................................
f) ..............................................................................................................
g) ..............................................................................................................
h) ..............................................................................................................
i) ..............................................................................................................
2-...................................................................................................................
5
3-...................................................................................................................
4-The Council is advised by a technical committee, consisting of a representative of each of its members, to which it is up,
in particular, the evaluation, monitoring and formulation of proposals for resolution of possible issues arising from the application of the law, the selection and evaluation of projects of common interest, the preparation of the meetings to be
refers to paragraph 2, as well as the implementation of the measures taken in them.
Article 15º [...]
1-...................................................................................................................
2-The revenue collected in the Autonomous Regions by the State services that are not delivered directly in the regional coffers shall be applied in projects that improve the operationality and functionality of such services.
3-(Previous # 2)
4-(Previous # 3)
5-(Previous # 4)
6-(Previous # 5)
Article 16º [...]
................................................................................................................
a) .........................................................................................................
b) ..........................................................................................................
c) (Eliminated).
Article 19º [...]
1-Constitutes revenue from each circumscription the value added tax levied by the application of the suspensive regime, in accordance with the prevailing rules for intra-Community transactions, to the operations carried out with the remaining territory national, to imports and to intra-Community acquisitions, and by the operations in them carried out in accordance with the criteria set out in Article 1º (2) and (3) of Decree Law No. 347/85 of August 23.
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2-Under no circumstances can a calculation mode be adopted that originates a lower amount of revenue than the one earned by the capping regime.
3-(Previous # 2)
Article 21º [...]
1-...................................................................................................................
a) ..............................................................................................................
b) ..............................................................................................................
2-...................................................................................................................
3-...................................................................................................................
a) ...........................................................................................................
b) ...........................................................................................................
4-Constitui still revenue from each Autonomous Region, the amount arising from the stamp duty due on the sports mutual bets, determined according to the caption regime.
Article 25º [...]
It constitutes revenue from each Autonomous Region the product of the fees, emoluments and prices due for the provision of regional services, by the acts of removing legal limits on the activities of individuals from the competence of regional bodies and by the use of goods from the regional public domain.
Article 30º [...]
1-Autonomous Regions may in each year contract debt founded as long as they respect the maximum limit provided for in paragraph 4 of this Article and do not correspond to an additional net borrowing proportionally than that of the State in that year, calculated, for each Region, of harmony with the principle of capitation.
2-In the event that the Autonomous Regions require a net increase in indebtedness higher than that provided for in paragraph 1, they shall obtain assent from the Council for the Monitoring of Financial Policies and the approval of the Assembly of the Republic, to be granted within the framework of the Budget Act.
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3-For the purpose of consideration of borrowing limits, the net borrowing increases for reasons linked to the implementation of projects co-financed by community funds are excepted.
4-(Previous # 3).
5-(Previous # 4).
6-(Previous # 5).
7-Net indebtedness balances of a given year may be used in one of the subsequent three years.
Article 31º [...]
1-...................................................................................................................
2-...................................................................................................................
3-A The reduction provided for in paragraph 1 shall be used in the debt amortization of the respective Autonomous Region or, if this is not enforceable, in the addition of the values for the financing of the projects of common interest in that Region.
Article 33º Support of the Institute of Treasury Management and Public Credit, I. P.
The Autonomous Regions may draw on the support of the Treasury Management Institute and Public Credit, I. P., either for the organization of regional public debt issuance, or for the monitoring of its management, with a view to minimizing costs and risk and to coordinate regional public debt operations with the direct public debt of the State.
Article 35º [...]
The loans to be issued by the Autonomous Regions may qualify for personal assurance from the State under the respective law.
Article 36º Assumption of commitments of the Autonomous Regions by the State
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The State may assume responsibilities for the obligations of the Autonomous Regions and assume the commitments that are due to these obligations under the law.
Article 37º [...]
1-...................................................................................................................
2-...................................................................................................................
3-...................................................................................................................
4-In case the rate resulting from the previous paragraph is lower than the rate of salary update of the civil service in that same year, the latter rate applies.
5-(Previous # 4).
6-In the year of entry into force of this Law, the amount of monies to be entered in the State Budget for the year t shall be equal to 355,800,000.
7-A The apportionment of this amount by the Autonomous Regions, which takes into account the respective structural characteristics, is made according to the following formula:
Despite the
From
From
Despite the
From
Despite the Despite, the Despite the
The
The
The
The
The
The
The
The
4,
4,
2,
2,
2,
2,
2,
2,, tR, 05,0125,0
14
14 to 05.0
65
65 to 05,00,725
tRA
tR
RA
R
tRA
tR
tRA
tR
tRA
tR tRA
EF
EF
IU
IU
P
P
P
P
P
P TT
Being:
tR, T-Transfer to the Autonomous Region in the year t;
tRA, T-Transfer to the Autonomous Regions in the year t, calculated in accordance with the provisions of paragraph 2 of this article;
2, tRP-Population of the Autonomous Region in the year t-2 according to the latest data released by the INE at the date of calculation;
2, tRAP-Soma of the population of the Autonomous Regions in the year t-2;
2.65 to tRP-Population of the Autonomous Region in the year t-2 with 65 or more years of age according to the latest data released by the INE at the date of calculation;
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2.65 to tRAP-Soma of the Population of the Autonomous Region with 65 or more years of age in the year t-2;
2.14 to tRP-Population of the Autonomous Region in the year t-2 with 14 or fewer years of age, the latest data released by the INE at the date of calculation;
2.14 to tRAP-Soma of the Population of Autonomous Regions in the year t-1 at 14 or less years of age;
RIU = RA
R
RA
R
ilhasn
ilhasn
DL
DL
º
No. 3,07,0 Probability thereof
RAIU-Soma of the indexes of the outermost region;
RDL-Distance between the capital of each Autonomous Region and the capital of the Country;
RADL-Soma of the distances between the capital of each of the Autonomous Regions and
the capital of the Country;
Rilhasn º -Number of islands with resident population in the Autonomous Region;
RAilhasn º -Total number of islands with resident population in the Autonomous Regions;
Despite the
EFR , t 4 -ratio between tax revenue of the Autonomous Region, net of effect
corrective of VAT, stemming from Article 19º (2) of this diploma, and of possible extraordinary tax hits from previous years, and Gross Domestic Product at market prices, current prices, in the year t-4;
Despite the
EFRA , t 4 = Sum of fiscal effort indicators.
8-A from the year t + 1, from the allocation resulting from the application of the criteria set out in paragraph 7, may in no case result an amount for each Autonomous Region lower than the amount received in the previous year, updated according to the provisions of the No. 2 of this article, making the necessary compensations by deduction of the amounts of the Autonomous Region which has a growth higher than defined in the same paragraph 2.
9-(Previous # 7).
Article 38º [...]
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1-...................................................................................................................
2-The Cohesion Fund has in each year of State Budget appropriations, to be transferred to Regional Budgets, to finance the previously identified investment programmes and projects, which fulfil the requirements of the previous number and is equal to 35% of budgetary transfers for each Autonomous Region defined in accordance with Article 37º.
3-The transfers provided for in this article are processed in quarterly instalments, to be carried out in the first five days of each quarter.
Article 39º [...]
1-A national participation in the community systems of financial incentives for support to the productive sector is ensured by the State Budget or the budgets of the entities that tutelage their respective areas, independent of their nature national or regional.
2-It is also transferred to the Autonomous Regions the importances corresponding to the payment of the bonuses due in the respective territories and resulting from the application of nationwide created incentive systems.
Article 40º [...]
1-By projects of common interest understand those who are promoted for reasons of national interest or strategy and still those likely to produce positive economic effect for the whole of the national economy, hurt by, inter alia, by the its consequences in terms of the balance of payments or job creation, and, as well as, those who have the effect
a decrease in insularity costs or special relevance in the social, environmental, development of new technologies, transport and communications.
2-...................................................................................................................
3-The concrete conditions of financing by the State of the projects provided for in the preceding paragraph shall be fixed by decree-law, ears the Regional Government to which I relate and the Council for Monitoring Financial Policies, which they shall respect the principle of equality between Autonomous Regions.
Article 49º [...]
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1-...................................................................................................................
2-Legislative Assemblies of the Autonomous Regions may still, under the law, decrease the national rates of income taxes (IRS and IRC) and value added tax, up to the limit of 30% and 35%, respectively, and of the special consumption taxes, in accordance with the current legislation.
3-...................................................................................................................
4-...................................................................................................................
5-Legislative Assemblies of the Autonomous Regions may grant majorities in the percentages and limits of deductible charges to the IRS collection, pursuant to the IRS Code, concerning charges with environmental equipment, with own housing and permanent, and with health, support for the third age and education.
6-Legislative Assemblies of the Autonomous Regions may, still, grant deductions to the IRS collection, setting its limits, of expenditure borne on health, support for the third age, education, plane displacements in the national territory for the patients and eventual accompaniment and for the students of the Autonomous Regions displaced on other islands or on the Portuguese continent.
7-(Previous # 5).
8-Legislative Assemblies may further increase, by 30%, the limits of the tax benefits pertaining to Mecenate and to the creation of employment provided for in the Status of Tax Benefits.
9-(Previous # 6).
Article 51º [...]
1-...................................................................................................................
a) ...........................................................................................................
b) ...........................................................................................................
c) ...........................................................................................................
2-...................................................................................................................
a) ...........................................................................................................
b) ...........................................................................................................
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c) ...........................................................................................................
3-...................................................................................................................
4-...................................................................................................................
5-In the event that the Autonomous Regions opt for the regionalization of tax services, there is no place for any compensatory payment to the State.
Article 55º [...]
1-...................................................................................................................
2-...................................................................................................................
3-The tax revenue belonging to the Autonomous Regions pursuant to the Constitution, the Administrative-Administrative Statutes and the present Law shall not be allocated to local authorities based in the Autonomous Regions under the Financial Scheming established for those.
Article 59º [...]
1-The provisions of this Law:
a) ..............................................................................................................
b) ..............................................................................................................
c) ..............................................................................................................
(d) It does not contravenes the provisions of the Constitution and the Political-Administrative Statutes of the Autonomous Regions.
2-(Eliminated).
Article 61º [...]
The Government of the Republic shall adopt the acts necessary for the implementation of the provisions of Article 15º (6), paragraph 3 of Article 19º, paragraph 3 of Article 40º and Article 65º-A within 120 days after the publication of this Law.
Article 62º [...]
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1-Within the scope of the transfer of the State to the Autonomous Region of Madeira of the tasks and powers provided for in the Constitution and the Act in relation to its own tax revenues, as well as the power to practise all the necessary acts to its administration and management, the legal references made in the national tax legislation to the Minister of Finance or to the Director General of Taxes, are understood to have been reported to the holders of the corresponding regional bodies.
2-Until they find themselves created and installed all means necessary for the exercise of the tax power conferred on the Autonomous Regions, the Directorate General of Taxes, through its departments and services and the services of the State continue to ensure that the procedures in administrative matters necessary for the exercise of the mentioned power, including those relating to the settlement and collection of taxes that constitute own revenue of the Autonomous Regions, are to be achieved.
Article 63º [...]
1-Autonomous Regions shall adopt, in the maximum period of two years after the date of entry into force of this Law, the Official Public Accounting Plan and their respective sectoral account plans.
2-The Government of the Republic makes available to the Regions Autonomous the integrated informatics applications as well as the technical support necessary for the fulfillment of the provisions of this article.
Article 65º [...]
This Law is revised in the year 2015 . "
Article 2º Addition to the Organic Law No. 1/2007, of February 19
Articles 4º-A, 8º-A, 8º-B, 22º-A, 25º-A, 43º-A, 44º-A, 65º-A, 65º-A and 65º-B to the Organic Law No. 1/2007 of February 19, are hereby adjourned with the following wording:
" Article 4º-A
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Principle of regional financial autonomy
1-A The financial autonomy of Autonomous Regions translates into the existence of heritage and own finances and is reflected in the patrimonial, budgetary and treasury autonomy.
2-A Financial autonomy aims to guarantee the self-governing bodies of the Autonomous Regions the means necessary for the pursuit of their assignments, as well as the availability of the appropriate instruments for the promotion of economic and social development and of the well-being and quality of life of the populations, to the elimination of inequalities resulting from the situation of insularity and of the outermost and to the realization of economic convergence with the remaining national territory and with the European Union.
Article 8º-A Principle of territorial continuity
The principle of territorial continuity is based on the need to correct structural inequalities, stemming from remoteness and insularity, and aims at full consecration of the rights of citizenship of island populations by linking, specifically, the State to its compliance, in accordance with its constitutional obligations.
Article 8º-B Principle of regionalization of services
The regionalization of services and the transfer of powers shall continue in accordance with the Constitution and with the law, and shall always be accompanied by the corresponding financial means to make face to the respective burdens under the terms of Article 43º-A.
Article 22º-A Special tax on the game
It constitutes revenue from each Autonomous Region the special tax for the exercise of the game's activity, due by the dealerships in the respective territorial constituencies.
Article 25º-A Net revenue from the exploitation of social games
It constitutes revenue from each Autonomous Region a share in the
net operating results of the social games explored by the Santa Casa da Misericórdia de Lisboa, determined by the method of capitation.
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Article 43º-A Regionalization of services
1-The financial means to cope with the charges with the regionalised services are determined by the difference between the revenue and the expenses arising from the transfer of competences, from the average of the last three years that where regionalization occurs.
2-The monies referred to in the preceding paragraph shall be adjusted annually in accordance with the criterion set out in Article 37º (3) and (4).
3-The transfers arising from this article are processed in quarterly instalments, to be carried out in the first fifteen days of each quarter.
Article 44º-A Delays in transfers
Will be due interest of late payment on the part of the Central Administration, in the
cases of delays in the financial transfers of the State.
Article 65º-A Acts of transfers
The monies due from the application of the provisions of Articles 5º, 6, 30º and 31º of Law No. 13/98 of February 24 are delivered to the Autonomous Regions upon the conclusion of a regularization agreement.
Article 65º-B Allocation of savings from Organic Law No. 1/2007
The savings of the State resulting from the application of Articles 37º and 38º of the Organic Law No. 1/2007, of February 19 , determined by reference to the amounts transferred in the year 2006, they are allocated to the financing of the projects of common interest in the respective Region. "
Article 3º
Abrogation standard
Articles 32º, 44º and 57º of the Organic Law No. 1/2007 of February 19, are repealed.
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Article 4º Republication
The Organic Law No. 1/2007, of February 19, is republished in annex,
with the changes made by this diploma, necessary renumbering and too much material corrections.
Article 5º
Entry into force
This diploma shall come into force on January 1, 2010.
Approved in Plenary Session of the Legislative Assembly of Madeira, on October 29, 2009.
THE PRESIDENT OF THE LEGISLATIVE ASSEMBLY OF WOOD,
___________________________________________ José Miguel Jardim Olival de Mendonça
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ANNEX
Republication of the Organic Law No. 1/2007, of February 19 Finance Law of the Autonomous Regions
Title I
Object, general principles and accountability
CHAPTER I Object and general principles
Article 1º Subject
This Law shall have the object of the means of which they dispose the Autonomous Regions of the Azores and Madeira for the realization of the financial autonomy enshrined in the Constitution and the Critical Administrative-Administrative Statutes.
Article 2º Scope
For the purposes of the preceding article, the present law covers matters relating to regional revenue, the own tax power of Autonomous Regions, the adaptation of the national tax system and financial relations between
Autonomous Regions and local authorities based in the Autonomous Regions.
Article 3º Principles
The financial autonomy of the Autonomous Regions develops in respect of the following principles:
a) Principle of legality;
b) Principle of regional financial autonomy;
c) Principle of the stability of financial relations;
d) Principle of budgetary stability;
e) Principle of national solidarity;
f) Principle of territorial continuity;
g) Principle of regionalization of services;
h) Principle of coordination;
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i) Principle of transparency;
j) Principle of control.
Article 4º
Principle of legality
The financial autonomy of the Autonomous Regions shall exercise in the framework of the Constitution, the respective Polatio-Administrative Statutes, of this Law and
too much supplemental legislation.
Article 5º
Principle of regional financial autonomy
1-A The financial autonomy of the Autonomous Regions translates into the existence of heritage and own finances and is reflected in autonomy
patrimonial, budgetary and treasury.
2-A Financial autonomy aims to guarantee the governing bodies of their own
Autonomous Regions the means necessary for the pursuit of their assignments, as well as the availability of the appropriate instruments for the promotion of economic and social development and the well-being and quality of life of the
populations, to the elimination of inequalities resulting from the situation of insularity and of the outermost region and to the realization of economic convergence with the remaining national territory and with the European Union.
Article 6º Principle of stability of financial relations
Regional financial autonomy develops in respect of the principle of the stability of financial relations between the State and the Autonomous Regions, which aims to guarantee the governing bodies of the Autonomous Regions for predictability
of the means necessary for the pursuit of their assignments.
Article 7º
Principle of budgetary stability
1-A The regional financial autonomy develops in the framework of the principle of fiscal stability, which presupposes, in the medium term, a
close situation of the budget balance.
2-Both the State and the Autonomous Regions contribute to each other to the realization of their financial goals, in the framework of the
principle of the stability of the respective budgets.
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Article 8º Principle of national solidarity
1-The principle of national solidarity aims to ensure the promotion of the
economic and social development and the well-being and quality of life of the populations, binds the State to bear the costs of the inequalities derived from insularity, specifically in relation to transport, communications,
energy, education, culture, health, sport and social security with a view to the elimination of inequalities resulting from the situation of insularity and
outermost and the realization of economic and social convergence with the remaining national territory and with the European Union.
2-The principle of national solidarity is reciprocated and covers the whole
national and each of its Regions, and shall ensure an appropriate level of public services and private activities without disegalitarian sacrifices.
3-The principle of national solidarity is compatible with financial autonomy and with the obligation of Autonomous Regions to contribute to the balanced development of the Country and to the fulfilment of the objectives of
economic policy to which the Portuguese State is bound by force of treaties or international agreements, notably those arising from common or coordinated policies of growth, employment and stability and policy
common currency of the European Union.
4-The principle of national solidarity is appropriate, at each time,
at the level of development of the regions.
5-A National solidarity with the Autonomous Regions translates into the transfers of the State Budget provided for in Articles 41º and 42º.
6-A The solidarity also links the State to the Autonomous Regions in the situations referred to in Articles 43º to 47º.
Article 9º Principle of coordination
The Autonomous Regions exercise their financial autonomy
coordinating their financial policies with those of the State so as to ensure:
a) The balanced development of the national whole;
b) The achievement of the budgetary objectives to which Portugal is
has obliged, specifically within the framework of the European Union;
c) The realization of the principle of budgetary stability, so as to
prevent situations of inequality.
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Article 10º Principle of territorial continuity
The principle of territorial continuity rests on the need for
correct structural inequalities, stemming from remoteness and insularity, and aims at full consecration of the rights of citizenship of island populations, by linking, in particular, the State to their compliance, according to
with their constitutional obligations.
Article 11º
Principle of regionalization of services
The regionalization of services and the transfer of powers shall continue in accordance with the Constitution and with the law, and shall always be accompanied by the
corresponding financial means to cope with the respective burdens under Rule 48º.
Article 12º Principle of transparency
1-The State and the Autonomous Regions provide each other with
information in economic and financial matters necessary for the purpose of pursuing their respective financial policies.
2-A information referred to in the preceding paragraph shall be complete,
clear and objective and be provided in a timely way.
Article 13º
Principle of control
The financial autonomy of the Autonomous Regions shall be subject to administrative, jurisdictional and political controls, under the Constitution and the
Poly-Administrative Status of each of the Autonomous Regions.
Article 14º
Council for Monitoring Financial Policies
1-To ensure coordination between the finances of the Autonomous Regions and those of the State, it works, together with the Ministry of Finance and the
Public Administration, the Council for Monitoring Financial Policies, with the following competences:
a) Follow up on the application of this Law;
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b) to analyze regional fiscal policies and their coordination with the objectives of the national financial policy, without prejudice to regional financial autonomy;
(c) to appreciate, in the financial plan, the participation of the Autonomous Regions in Community policies, in particular those relating to the economic and monetary union;
(d) Ensuring compliance with the rights of participation of Autonomous Regions in the financial area provided for in the Constitution and
in the Poltium-Administrative Statutes;
e) To analyze the financing needs and the regional borrowing policy and their coordination with the objectives of the
national financial policy, without prejudice to regional financial autonomy;
f) Follow up on the evolution of community support mechanisms;
g) Ensuring the principle of coherence between regional tax systems and the national tax system by promoting, by
recommendations, the coordination between the competent national and regional tax authorities;
(h) to issue the opinions stipulated in paragraph 4 of Article 32º, paragraph 2 of the
article 35º and in paragraph 3 of Article 44º;
(i) issuing opinions at the request of the Government of the Republic or of the
Regional Governments.
2-The Council meets ordinarily once a year, prior to the approval by the Council of Ministers of the proposal for the Budget of the Budget of the
State, and extraordinarily by duly substantiated request of the Minister of Finance or of one of the Regional Governments.
3-The Council is chaired by a representative of the Ministry of Finance and Public Administration and integrates a representative of the Regional Government of the Azores and a representative of the Regional Government of Madeira.
4-The Council is advised by a technical committee, consisting of a representative of each of its members, to which it is up to, inter alia, the evaluation, monitoring and formulation of proposals for
resolution of any issues arising from the application of the law, the selection and evaluation of projects of common interest, the preparation of the meetings to be
refers to paragraph 2, as well as the implementation of the measures taken in them.
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CHAPTER II Provision of accounts
Article 15º Excessive deficit procedure
1-Within the scope of the excessive deficit procedure, until the end of the
Months of February and August, Regional Statistical Services present an estimate of the non-financial accounts and public debt of the
regional public administrations for the previous and current years, in accordance with the ESA 95 methodology and the Decade and Debt Manual approved by Eurostat.
2-National statistical authorities must validate the accounts submitted by the Regional Statistical Services by the end of the following month
to that of your presentation.
3-In the event that the accounts are not validated or reservations are raised to the estimates presented by the regional authorities, the authorities
national statistics shall provide a detailed report of the corrections made and their impacts on the balance of accounts and the public debt of regional public administrations.
Article 16º Estimates of budget implementation
1-Each Regional Government presents quarterly, to the Ministry of Finance and Public Administration, an estimate of the budgetary implementation and public debt of the Regional Government, including the services and autonomous funds,
by the end of the following month of the quarter to which they relate, in format to be defined by the Ministry of Finance and Public Administration.
2-The non-sending of the quarterly information referred to in the preceding paragraph implies the retention of 10% of the twelfth of the State budget transfers.
3-A The percentage predicted in the previous figure increases to 20% from the 1º quarter of default.
4-retained monies are transferred to the Autonomous Regions thus
that the elements that have been at the origin of such retentions are received.
23
Title II Regional revenue
SECTION I
Tax revenue
SUBSECTION I General provisions
Article 17º Concepts
For the purpose of realizing the distribution of tax revenue between the State and the Autonomous Regions, it is considered that:
a) "National territory" is the Portuguese territory as defined in the
article 5º of the Constitution;
b) "Circumscription" is the territory of the continent or of a region
autonomous, as the case may be;
c) "Autonomous Region" is the territory corresponding to the archipelago of the Azores and the Madeira archipelago.
Article 18º Obligations of the State
1-In harmony with the provisions of the Constitution and the respective
Polish-Administrative Statutes, Autonomous Regions are entitled to the delivery by the Government of the Republic of tax revenue relating to taxes that should
they belong to them, in the terms of the following articles as well as to other recipes assigned to them by law.
2-The revenue collected in the Autonomous Regions by the services of the
State that are not delivered directly in the regional coffers should be applied in projects that improve operationality and functionality
of these services.
3-A delivery by the Government of the Republic to the Autonomous Regions of the tax revenue that they compete for up to the 15º day of the month
subsequent to that of their collection.
4-In the event that it is not possible to strictly ascertain the part of the tax revenue of any taxes relating to the Autonomous Regions, the amount
provisionally transferred is equivalent to net income in the corresponding month of the
24
previous year multiplied by the revenue growth rate of the respective tax expected in the State Budget for the current year.
5-For the purpose of calculating tax revenue due to Regions
Autonomas, these are not entitled to the allocation of tax revenue that are not charged by virtue of benefits applicable in their territory.
6-Without prejudice to the provisions of the following Articles, they shall be adopted by
by legislative or regulatory, as well as through protocols to be concluded between the Government of the Republic and the Regional Governments, the necessary measures to
concretization of the provisions of this Article.
SUBSECTION II Taxes
Article 19º Tax on the income of natural persons
It constitutes revenue from each Autonomous Region the income tax of natural persons:
a) Due by natural persons deemed to be fiscally
residents in each Region, regardless of the place in which they are engaged;
b) Retained, on a definite basis, on income paid or posts to
provision of natural persons deemed to be fiscally non-resident in any circumscription of Portuguese territory, by
natural or legal persons with residence, seat or actual direction in each Region or by permanent establishment in them situated at which such income should be imputed;
Article 20º Tax on the income of legal persons
1-Constituted revenue of each Autonomous Region the income tax of legal persons:
a) Due by legal persons or equistops who are registered,
effective steering or stable establishment in a single Region;
b) Due by legal persons or equistops who have registered or effective head office in Portuguese territory and have branches,
delegations, agencies, offices, facilities or any forms of permanent representation with no legal personality of their own
in more than one circumscription, in the terms referred to in paragraph 2 of this Article;
25
c) Retained, on a definite basis, by the income generated in each constituency, in respect of legal persons or equates who do not have a seat, actual direction or establishment
stable on national territory.
2-Regarding the tax referred to in paragraph (b) of the preceding paragraph, the revenue of each constituency shall be determined by the proportion between the volume
annual business of the financial year corresponding to the facilities located in each Autonomous Region and the total annual turnover of the financial year.
3-For the purposes of this Article, the annual volume of business the value of goods and services transmissions, with the exclusion of value added tax, is understood by annual turnover.
Article 21º Ancillary obligations of income taxes
Entities carrying out the retentions at the source to residents or non-residents, with or without a stable establishment, shall carry out the respective discrimination by the circumscription in accordance with the rules of imputation defined
in the terms of the previous articles.
Article 22º Value added tax
1-Constitutes revenue from each circumscription the value added tax levied by the application of the suspensive regime, according to the
prevailing rules for intra-Community transactions, operations carried out with the remaining national territory, imports and intra-Community procurements, and the operations in them carried out, according to the criteria
defined in Article 1º (2) and (3) of Decree-Law No. 347/85 of August 23.
2-Under no circumstances can a calculation mode be adopted that
origine a lower amount of revenue than the one earned by the capitation regime.
3-The Minister of Finance, listened to the Regional Governments,
regulates by poring over the mode of allocation to the Autonomous Regions of the respective revenue.
Article 23º
Special consumption taxes
They constitute revenue from each circumscription the excise taxes
charged on the taxable products that are introduced in the consumption.
26
Article 24º Stamp duty
1-Constitutes revenue from each Region Autonomous the stamp duty due
by taxable persons referred to in Article 2º (1) of the Selo Tax Code that:
a) Available from head office, effective direction, stable establishment or
tax domicile in the Autonomous Regions;
b) They are available from head office or effective direction on national territory and
they possess branches, delegations, agencies, offices, installations or any forms of permanent representation, with no legal personality of their own in the Autonomous Regions.
2-In the situations referred to in the preceding paragraph, the revenue of each Autonomous Region shall be determined, with the necessary adaptations, in the terms
of the rules of territoriality provided for in Article 4º (1) and (2) of the Selo Tax Code, concerning the tax facts occurring in those Regions, and the taxable persons shall make the discrimination in their respective guides
tax due.
3-In the free broadcasts, it constitutes revenue of the Autonomous Regions the value of the stamp duty:
(a) That, in the successions per death, it would be due by each beneficiary with a tax domicile in the Autonomous Regions, when the subject
liability for inheritance, represented by the head-of-the-couple in accordance with paragraph 2 (2) of the Code of the Selo Tax;
b) Due to the remaining free transmissions when the tenant, tenant, or habitual person has tax domicile in the Regions
Autonomous.
4-Constitui still revenue from each Autonomous Region, the amount arising from stamp duty due on the sports mutual bets,
determined according to the regime of capitation.
Article 25º Extraordinary taxes
1-Extraordinary Taxes settled as additional or on the taxable amount or the collection of other taxes constitute revenue of the
circumscription to which the principal taxes have been allocated on which they have focused.
27
2-Autonomous extraordinary taxes are proportionally allocated to each circumscription according to the location of the goods, the conclusion of the contract or the situation of the goods guarantor of any obligation
principal or accessory on which they focus.
3-Extraordinary Taxes may, in accordance with the diploma that you create them, be allocated exclusively to one or more constituencies if the situation
exceptional that legitimizes them occur or check themselves only in that or in these constituencies.
Article 26º Special tax on the game
It constitutes revenue from each Autonomous Region the special tax by the
exercise of the activity of the game, due by the dealerships in the respective territorial constituencies.
SECTION II Other recipes
Article 27º
Interest
They constitute revenue of each circumscription the value collected from the interest of late payment and the compensatory interest, net of the interest indemnified on the
taxes that constitute own revenue.
Article 28º
Fines and fines
1-The fines and fines constitute revenue from the circumscription in which if it has verified the action or omission that substantiates the offence.
2-Where the offence is practised in successive or repeated acts, or by a single act likely to extend in time, fines or fines are
affected to the circumscription in whose area the last act has been practiced or has ceased to be consummated.
Article 29º
Regional public fees and prices
It constitutes revenue from each Autonomous Region, the product of the fees, emoluments and prices due for the provision of regional services, by the acts of
28
removal of legal limits on the activities of individuals from the competence of regional bodies and by the use of goods from the regional public domain.
Article 30º
Income liquids from the exploitation of social games
It constitutes revenue from each Autonomous Region a share in the net operating results of social games explored by the Santa Casa da
Mercy of Lisbon, determined by the method of capitation.
SECTION III
Regional public debt
Article 31º General principles
The resource to regional public borrowing is guided by principles of rigour and efficiency, it aims to ensure the provision of the required funding
for each financial year and pursue the following objectives:
a) Minimization of direct and indirect costs in a long term perspective;
b) Guarantee of a balanced distribution of costs by the various annual budgets;
c) Prevention of excessive temporal concentration of depreciation;
d) Not exposure to excessive risks.
Article 32º
Public loans
1-Autonomous Regions may, in the terms of the respective Polity-Administrative Statutes and of this Law, contract founded public debt and
float.
2-A contraction of currency loans without legal tender in
Portugal is made pursuant to the respective Polity-Administrative Statutes, depends on prior authorization of the Assembly of the Republic and takes into consideration the need to avoid distortions in external public debt and not
provoke negative reflections in the rating of the Republic.
3-Loans to be contracted by the Autonomous Regions named
in currency without legal tender in Portugal may not exceed 10% of the direct debt of each Autonomous Region.
29
4-Since duly justified and by prior opinion of the Financial Policies Monitoring Board, the percentage referred to in the preceding paragraph may be exceeded, upon permission of the
Assembly of the Republic, on a proposal from the Government.
Article 33º
Debt founded
The contraction of debt founded lacks the permission of the respective
Legislative Assemblies, pursuant to the Critical Administrative-Administrative Statutes of the Autonomous Regions, and is intended solely to finance investments or to replace and amortize previously contracted loans by obeying the
limits set in harmony with the provisions of this Law.
Article 34º
Floating debt
To cope with the needs of treasury, the Autonomous Regions
may issue floating debt whose cumulative amount of live emissions at each time is not expected to exceed 35% of the current revenue collected in the previous financial year.
Article 35º Limits to borrowing
1-Autonomous Regions may in each year contract debt founded as long as they respect the maximum limit provided for in paragraph 4 of this Article and not
correspond to an additional net indebtedness proportionally higher than that of the State in that year, calculated, for each Region, of harmony of the principle of capitation.
2-In the event that the Autonomous Regions require a net increase in borrowing higher than that provided for in paragraph 1, they shall obtain opinion
favourable Council for the Monitoring of Financial Policies and approval of the Assembly of the Republic, to be granted in the framework of the Budget Act.
3-For the purpose of consideration of borrowing limits, they stay
excepted net borrowing increases for reasons linked to the implementation of projects co-financed by community funds.
4-In the setting of the limits mentioned in the previous figures meets-
if to which, as a result of the additional indebtedness or increase in credit to the Region, the total debt service, including annual depreciation and interest, does not
exceeds, under no circumstances, 25% of the current revenue from the previous year, with the exception of transfers and comprised of the State for each Region.
30
5-For the purposes of the preceding paragraph, no debt service is considered to be the amount of the extraordinary depreciation.
6-In the case of loans whose amortization is focused on a single
year, for the purposes of the preceding paragraph, the annualisation of the respective value is carried out.
7-Net indebtedness balances of a given year may
be used in one of the subsequent three years.
Article 36º
Sanction for violation of limits on indebtedness
1-A violation of borrowing limits by an Autonomous Region
originates a reduction in state transfers due to it in the subsequent year of value equal to excess debt face to the upper limit
determined in the terms of the previous article.
2-A The reduction provided for in the preceding paragraph shall process proportional to the benefits to be transferred on a quarterly basis.
3-A The reduction provided for in paragraph 1 shall be used in the debt amortization of the respective Autonomous Region or, if this is not enforceable, in the addition of the values for the financing of the projects of common interest in that
Region.
Article 37º
Support of the Institute of Treasury Management and Public Credit, I. P.
The Autonomous Regions can draw on the support of the Institute of Management
of Treasury and Public Credit, I. P., either for the organization of regional public debt issuance, or for the monitoring of its management, with a view to minimizing costs and risk and coordinating regional public debt operations
with the direct public debt of the State.
Article 38º
Tax treatment of regional public debt
Regional public debt enjoys the same tax treatment as debt
public of the State.
Article 39º Guarantee of the State
The loans to be issued by the Autonomous Regions may qualify for personal assurance from the State under the respective law.
31
Article 40º Assumption of commitments by the Autonomous Regions by the State
The State may assume responsibilities for the obligations of the Regions
Autonomous and assume the commitments that arise from these obligations, under the law.
SECTION IV
Transfers from the State
Article 41º
Budget transfers
1-In fulfillment of the principle of solidarity enshrined in the Constitution, the Administrative-Administrative Statutes and the present Law, the Law of the
State budget of each year includes appropriations to be transferred to each of the Autonomous Regions.
2-The annual amount of monies to be entered in the State Budget for the year t is equal to the monies entered in the State Budget for the year t-1, updated according to the rate of update set out in the terms of the
following numbers.
3-A refresh rate is equal to the rate of change, in the year t-2, of the current state expenditure, excluding the transfer of the State to the
social security and the state's contribution to the General Box of Retirements, according to the General Account of the State.
4-In case the rate resulting from the previous paragraph is lower than the rate of salary update of the civil service in that same year, the latter rate applies.
5-In the case that the rate of change defined in the preceding paragraph exceeds the estimate of the National Statistical Institute of the rate of change, in the year t-2, of the
GDP at current market prices, the update rate referred to in paragraph 2 shall be the estimate of the National Statistical Institute of the rate of change, in the year t-2, of GDP at current market prices.
6-In the year of entry into force of this Law, the amount of monies to be entered in the State Budget for the year t shall be equal to 355,800,000.
7-A The apportionment of this amount by the Autonomous Regions, which has in
account for the respective structural characteristics, is done in accordance with the following formula:
32
Despite the
From
From
Despite the
From
Despite the Despite, the Despite the
The
The
The
The
The
The
The
The
4,
4,
2,
2,
2,
2,
2,
2,, tR, 05,0125,0
14
14 to 05.0
65
65 to 05,00,725
tRA
tR
RA
R
tRA
tR
tRA
tR
tRA
tR tRA
EF
EF
IU
IU
P
P
P
P
P
P TT
Being:
tR, T -Transfer to the Autonomous Region in the year t;
tRA, T -Transfer to Autonomous Regions in the year t, calculated in accordance with the provisions of paragraph 2 of this article;
2, tRP -Population of the Autonomous Region in the year t-2 according to the latest data released by the INE at the date of calculation;
2, tRAP -Sum of the population of the Autonomous Regions in the year t-2;
2.65 to tRP -Population of the Autonomous Region in the year t-2 with 65 or more years of age according to the latest data released by the INE at the date of calculation;
2.65 to tRAP -Sum of Population of Autonomous Region with 65 or more years of age in the year t-2;
2.14 to tRP -Population of the Autonomous Region in the year t-2 with 14 or fewer years of age, according to the latest data released by the INE at the date of calculation;
2.14 to tRAP -Sum of the Population of Autonomous Regions in the year t-1 at 14 or less years of age;
RIU = RA
R
RA
R
ilhasn
ilhasn
DL
DL
º
No. 3,07,0 Probability thereof
RAIU -Sum of the indexes of the outermost;
RDL -Distance between the capital of each Autonomous Region and the capital of the Country;
RADL -Sum of the distances between the capital of each of the Autonomous Regions and
the capital of the Country;
Rilhasn No.-Number of islands with resident population in the Autonomous Region;
RAilhasn No.-Total number of islands with resident population in the Regions
Autonomous;
33
Despite the
EFR , t 4-Race between tax revenue of the Autonomous Region, net of effect
corrective of VAT, stemming from Article 22º (2) of this diploma, and of possible extraordinary tax hits from previous years, and Gross Domestic Product at market prices, current prices, in the year t-4;
Despite the
EFRA , t 4 = Soma of the fiscal effort indicators.
8-A from the year t + 1, from the apportionment resulting from the application of the criteria set out in paragraph 7, shall in no case result an amount for each Autonomous Region lower than the amount received in the previous year, updated
in accordance with the provisions of paragraph 2 of this article, making the necessary compensations by deduction of the amounts of the Autonomous Region which has a
growth higher than defined in the same paragraph 2.
9-The State Budget transfers are processed in quarterly installments, to be carried out in the first five days of each quarter.
Article 42º Cohesion fund for the outermost regions
1-The Cohesion Fund is intended to support exclusively programmes and
investment projects set out in the annual investment plans of the Autonomous Regions, taking into account the precept in Article 9º (g) and the
Paragraph 1 (j) of Article 227º of the Constitution, and aims to ensure economic convergence with the remaining national territory.
2-The Cohesion Fund has in each year of Budget appropriations of the
State, to be transferred to Regional Budgets, to finance the previously identified investment programmes and projects that fill the
requirements of the preceding paragraph and is equal to 35% of budget transfers for each Autonomous Region defined in accordance with Article 41º.
3-The transfers provided for in this article are processed in installments
quarterly, to be carried out in the first five days of each quarter
Article 43º National comparticipation in incentive systems
1-A national comparticipation in community systems of financial incentives for support to the productive sector is ensured by the State Budget
or by the budgets of the entities that tutelize the respective areas, regardless of their national or regional nature.
2-Are also transferred to the Autonomous Regions as importân-
cias corresponding to the payment of the allowances due in the respective
34
territories and resulting from the application of systems of incentives created at the national level.
Article 44º
Projects of common interest
1-By projects of common interest understand those who are promoted for reasons of interest or national strategy and still the susceptible
of producing positive economic effect for the whole of the national economy, affixed, inter alia, by its consequences in terms of the balance of
payments or job creation, and, as well as, those who have the effect of a decrease in insularity costs or special relevance in the social, environmental, development of new technologies,
of transport and communications.
2-A classification of a project as being of common interest
depends on a favourable decision of the Government of the Republic and the Regional Government.
3-The concrete conditions of financing by the State of the projects provided for in the preceding paragraph shall be fixed by decree-law, ears the Government
Regional to which I relate and the Monitoring Council for Financial Policies, which must respect the principle of equality between Autonomous Regions
Article 45º Special cases
They constitute extraordinary transfers of the State Budget which result from the one set out in Articles 46º and 47º, as well as possible transfers aimed at the realization of the territorial continuity.
Article 46º 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 their general principles.
Article 47º Extraordinary support
1-A national solidarity ties the State to support the Regions
Autonomies in unforeseen situations resulting from natural disasters and for which these do not have financial means, aiming at, specifically,
35
actions of reconstruction and recovery of economic and social infrastructure and activities, as well as support for the respective affected populations.
2-A national solidarity still translates into the obligation of the State
repose the situation prior to the practice of environmental damage, by it or by other States caused in the Autonomous Regions, arising from the exercise of activities, particularly by virtue of international agreements or treaties, or
making available the financial means necessary for the remediation of such damage.
Article 48º
Regionalization of services
1-The financial means to cope with the charges with the regionalised services are determined by the difference between the revenue and the expenditure
that arise from the transfer of competences, from the average of the previous three years the one in which regionalization occurs.
2-The monies referred to in the preceding paragraph shall be adjusted annually in accordance with the criterion set out in Article 41º (3) and (4).
3-The transfers arising from this article are processed in installments
quarterly, to be carried out in the first fifteen days of each quarter.
Article 49º Delays in transfers
Interest on arrears by the Central Administration will be due in cases of delays in the financial transfers of the State.
Title III Own tax power and adaptation of the national tax system
SECTION I
General framework
Article 50º
General principles
The tax competencies of regional bodies observe the constitutional and statutory limits and still the following principles:
a) The principle of consistency between the national tax system and regional tax systems;
36
b) The principle of legality, in the terms of the Constitution;
(c) the principle of equality between Autonomous Regions;
d) The principle of national solidarity, pursuant to article 8º of the
present law;
e) The principle of flexibility, in the sense of whom regional tax systems should adapt to regional specificities,
whether it may create tax-beholsable only in the Autonomous Regions, whether by adapting national scope taxes to the
regional specificities;
f) The principle of sufficiency, in the sense that regional tax collections, in principle, will target the coverage of the
regional public expenditure;
g) The principle of functional efficiency of regional tax systems,
in the sense that the structuring of regional tax systems should encourage investment in the Autonomous Regions and ensure the respective economic and social development.
Article 51º Tax competencies
1-Regional bodies have tax competencies of nature
normative and administrative, to be exercised in the terms of the following numbers.
2-A Regional legislative competence, in tax matters, is exercised
by the Legislative Assemblies of the Autonomous Regions, by legislative decree, and comprises the following powers:
a) The power to create and regulate taxes, behollable only in the Regions
Autonomous ones, defining the respective incidence, the rate, the settlement, the collection, the tax benefits and the guarantees of the
taxpayers, pursuant to this Act;
b) The power to adapt national scope taxes to regional specificities, in the matter of incidence, rate,
tax benefits and taxpayer guarantees, within the limits set in the law and pursuant to the following articles.
3-The normative and administrative skills to which they relate
previous figures are exercised pursuant to Sections II and III of this Title III, without prejudice to the coordination between national and regional tax authorities
competent as provided for in Article 14º.
37
SECTION II Legislative competences and tax regulations
Article 52º
Current taxes in the Autonomous Regions only
1-Legislative Assemblies of the Autonomous Regions, upon regional legislative decree, can create current taxes only in the respective
Autonomous Region, provided that the same observes the principles enshrined in this Law, do not focus on subject matter of the incidence provided for
any of the nationwide tax, even if it is exempted or not subject to, or, in it not constying, it may be likely to integrate that incidence, and from its application it does not result in barriers to the exchange of goods and services among the different
points of the national territory.
2-The taxes referred to in the preceding paragraph shall lapse in the case of
being subsequently created other similar ones of national scope.
3-A the jurisdiction referred to in paragraph 1 comprises, among others, the power to create and regulate current improvement contributions only in the Regions
Autonomous, to tax increases in value of real estate arising from regional public works and investments and, well, to create and regulate other special contributions aimed at compensating for the largest regional expendities
arising from disgasting private activities or abusers of the public goods or the regional environment.
Article 53º Additional to taxes
Legislative Assemblies have competence to launch additional, up to the limit
of 10% on the collection of taxes in force in the Autonomous Regions.
Article 54º
Adaptation of the national tax system to regional specificities
1-Without prejudice to the provisions of national tax legislation to invigorate only in the Autonomous Regions, the adaptation of the national tax system to the
regional specificities observes the provisions of this Act and its supplementary legislation.
2-Legislative Assemblies of the Autonomous Regions may still,
pursuant to the law, decrease the national rates of income taxes (IRS and IRC) and value-added tax, up to the limit of 30% and 35%,
respectively, and excise duty, in accordance with current legislation.
38
3-Legislative Assemblies may also determine the application in the Autonomous Regions of the IRC's reduced rates defined in national legislation, under the terms and conditions that appear to be fixed in legislative decree
regional.
4-Legislative Assemblies of Autonomous Regions may grant deductions to the collection on commercial, industrial and agricultural profits
reinvested by the passive subjects.
5-Legislative Assemblies of the Autonomous Regions may grant
majorities in the percentages and limits of the deductible charges to the IRS collection, pursuant to the IRS Code, concerning charges with environmental equipment, with own and permanent housing, and with health, support for the third age and
education.
6-Legislative Assemblies of Autonomous Regions may, as yet,
granting deductions to the IRS collection, setting its limits, of supported expenditure on health, support for the third age, education, plane displacements in the national territory for the patients and eventual companion and for the
students from the Autonomous Regions displaced on other islands or on the Portuguese continent.
7-Legislative Assemblies of Autonomous Regions may
authorize the Regional Governments to grant temporary and conditioned tax benefits, relating to national and regional tax, in regime
contractual, applicable to significant investment projects under Article 39º of the Status of Benefits Tax and supplementary legislation in force, with the necessary adaptations.
8-Legislative Assemblies can increase still, by 30%, the limits of tax benefits pertaining to Mecenate and job creation
provided for in the Status of Tax Benefits.
9-The legal regime of the International Business Centre of Madeira and the French Santa Maria Zone is governed by the provisions of the Statute of the
Tax Benefits and supplementary legislation.
Article 55º Regulatory competences
The organs of the Autonomous Regions have tax regulatory competence concerning the subjects of regional legislative competence.
39
SECTION III Regional administrative skills
Article 56º
Regional administrative skills
1-Regional administrative powers, in tax matters, to be exercised by the respective governments and regional administrations, comprise:
(a) the fiscal capacity of the Autonomous Regions to be subject to the active duty imposed on them, whether of a regional scope,
or of a national scope, in accordance with paragraph 2;
b) the right to the delivery, by the State, of the tax revenue that should belong to them, in harmony with the provisions of Articles 17º and
following;
c) The power to fix the quantitative of rates, emoluments and prices
due to the provision of regional services, albeit dealerships, by the regional licence outorga, alvarás and other removals of the legal limits to regional activities of the
private individuals and by the use of the goods from the regional public domain.
2-A The ability of Autonomous Regions to be subject to active
taxes on them charged comprises:
a) The power of the Regional Governments to create the tax services
competent for the launch, settlement and collection of regional scope taxes;
(b) the power to regulate the matters referred to in point (s)
previous, without prejudice to the guarantees of the taxpayers, of a national scope;
(c) The power of the Autonomous Regions to use the State tax services based in the Autonomous Regions, upon payment of compensation, agreed between the State and the Regions
Autonomas, concerning the service by that rendered, in its legal representation.
3-In the event that the State does not collect the compensation to which it relates to
(c) of the preceding paragraph, this shall be accounted for as state transfer to the Autonomous Regions.
4-National taxes that constitute regional revenue and regional taxes and fees should be as such identified to taxpayers in the printed and tax forms where possible, even if they are charged
by the tax administration of the state.
40
5-In the case of Autonomous Regions opting for the regionalization of tax services, there is no place for any compensatory payment to the State.
Article 57º
Competencies for the granting of tax benefits and incentives
1-In respect of tax benefits and incentives, whatever their nature and purpose, of the specific and exclusive interest of a single Region
Autonomous, the competences assigned in the general law to the Minister of Finance are exercised, with respect to the general laws and principles in force and in the framework of the
principle of equality, by the member of the Regional Government responsible for the area of finance.
2-The benefits or tax incentives of interest or national scope
or of the specific interest of more than one circumscription are the competence of the Minister of Finance, listened to the respective Regional Governments.
Article 58º Supervisory powers
1-A the supervision and practice of the tax acts resulting from
taxable persons who develop activity in more than one circumscription, as well as those taxable persons whose competence for their inspection is assigned to the central tax inspection services, shall be able to fit the tax authorities
national.
2-Cabin still to the national tax authorities the same
competences where, in respect of tax benefits of the interest of an Autonomous Region or other special tax regimes, the absence of the respective assumptions or their application is likely to affect the revenue
tax from another circumscription.
3-The provisions of the preceding paragraphs shall be without prejudice to the possibility of
the national and regional tax authorities establish, by joint dispatch or upon protocol, mechanisms of cooperation for the exercise of those powers.
Article 59º Conflicts over the place of collection of taxes
The conflicts concerning the competence to decide on the place of collection of the
national-level taxes that are of interest to Autonomous Regions are resolved by agreement between national and regional tax authorities
competent and, in their absence, by decision of the Supreme Administrative Court.
41
Title IV From financial relations between Autonomous Regions and local authorities
Article 60º
Finance of local authorities
1-The finances of local authorities located in the Autonomous Regions and those of the Autonomous Regions are independent.
2-The provisions of this Law shall be without prejudice to the financial regime of local authorities.
3-The tax revenue belonging to the Autonomous Regions pursuant to the Constitution, the Administrative-Administrative Statutes and the present Law, shall not be affected to the local authorities based in the Autonomous Regions, in the
scope of the financial regime established for those.
Article 61º
Financial support for authorities
Any form of regional financial support to local authorities beyond that already provided for in the Act shall be aimed at the enhancement of the capacity of
investment of the authorities.
Title V Final and transitional provisions
Article 62º Framework law
This Law, in tax matters, constitutes the framework law referred to in the Constitution and the Critical Administrative-Administrative Statutes of the Autonomous Regions.
Article 63º
Safeguard clauses
The provisions of this Law:
(a) Do not waiver the performance of obligations previously assumed by the State in relation to the Autonomous Regions and by these in relation to the State;
b) It is without prejudice to the obligations assumed or to be assumed in the context of international treaties and agreements concluded by the Portuguese State;
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(c) It shall be without prejudice to the constitutional and statutory prerogatives of the Autonomous Regions, specifically those concerning the rights of participation in treaty negotiations or agreements
international;
(d) It does not contravenes the provisions of the Constitution and the Political-Administrative Statutes of the Autonomous Regions.
Article 64º Tax on inheritance and donations
Notwithstanding the repeal of Law No. 13/98 of February 24, the provisions of Article 15º of the same Act are still applied, regarding the tax on inheritance and donations due by any free transmission whose de facto
tributary has occurred until the revocation of the Municipal Tax Code of Sisa and the Tax on Sudisposals and Donations, and whose process of settlement of the
tax if it finds outstanding at the date of entry into force of this Law.
Article 65º Supplementary standards
The Government of the Republic shall adopt the acts necessary for the implementation of the provisions of Article 18º (6), paragraph 3 of Article 22º, paragraph 3 of Article 44º and Article 70º within 120 days after the publication of this Law.
Article 66º Transfer of the attributions and competences to the Autonomous Regions
1-Within the scope of the transfer of the State to the Autonomous Region of Madeira of the tasks and powers provided for in the Constitution and the Act in relation to its own tax revenues, as well as the power to practise all
the acts necessary for its administration and management, the legal references made in the national tax law to the Minister of Finance or to the Director General of the
Taxes, they are understood to be reported to the holders of the corresponding regional bodies.
2-Until they find themselves created and installed all means
necessary for the exercise of the tax power conferred on the Autonomous Regions, the Directorate General of Taxes, through its departments and services and the State services continue to ensure the achievement of the procedures in
administrative matter required for the exercise of the aforementioned power, including those relating to the settlement and collection of taxes that constitute own revenue
of the Autonomous Regions.
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Article 67º Adoption of the Official Public Accounting Plan
1-Autonomous Regions shall adopt, in the maximum period of two
years after the date of entry into force of this Law, the Official Public Accounting Plan and the respective sectoral account plans.
2-The Government of the Republic makes available to the Autonomous Regions the
integrated computer applications, as well as the technical support necessary for the fulfilment of the provisions of this article.
Article 68º Abrogation standard
Act No 13/98 of February 24 and their amendments shall be repealed, without
prejudice to the provisions of Article 64º.
Article 69º
Review
This Law is revised in the year of 2015.
Article 70º
Hits of transfers
The monies due from the application of the provisions of Articles 5º, 6, 30º and 31º of Law No 13/98 of February 24 are delivered to the Regions
Autonomas upon the conclusion of a regularization agreement.
Article 71º
Allocation of savings from Organic Law No. 1/2007
The savings of the State resulting from the application of artigos37º and 38º of the Organic Law No. 1/2007 of February 19, determined by reference
the amounts transferred in the year 2006, are allocated to the financing of the projects of common interest in the respective Region.
Article 72º Entry into force
This Law shall come into force on January 1, 2010.