First Amendment To The Organic Law No. 1/2007, Of 19 February (Approved The Finance Law Of The Autonomous Regions, Revoking The Law No. 13/98, Of 24 February)

Original Language Title: Primeira alteração à Lei Orgânica n.º 1/2007, de 19 de Fevereiro (aprova a Lei de Finanças das Regiões Autónomas, revogando a Lei n.º 13/98, de 24 de Fevereiro)

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c31684a4c33526c6548527663793977634777784c56684a4c6d527659773d3d&fich=ppl1-XI.doc&Inline=false

DRAFT law No. 1/XI/1st FIRST amendment to LAW No. 1/2007, of 19 February, which approves the law of FINANCES of the AUTONOMOUS REGIONS the organic law nº 1/2007, of February 19, came to approve the Finance Law of the autonomous regions, revoking the law No. 13/98, of 24 February. However, and given the fact that many questions about your constitutionality and legality have been raised, "appropriate a review of your content with a view to full compliance with the provisions of the Constitution of the Portuguese Republic and the Political-Administrative Statutes of the autonomous regions of the Azores and Madeira. Thus, as regards the references made to the regional heritage, provided for either in the final part of article 2, either in title V, chose to proceed to your disposal for your definition, want want skills for your administration are already sitting in the Constitution and its Political-Administrative Statutes. Take advantage to consecrate the principle of financial autonomy, establishing both a constitutionally vision more in line with the definition of the principle of national solidarity. In this sense, the adjustment of the calculation formula of transfers from the State budget, in order to enforce the statutorily enshrined, restoring, at the same time, the balance between the autonomous regions, without, however, diminishing the amounts that the State set aside for the autonomous region of the Azores. In this framework, enhances the concept of projects of common interest that will benefit the State contribution once approved by their respective Governments. Similarly, the rule of the loans, to be issued by the autonomous regions may benefit from personal guarantee of the State, in accordance with its law, thus achieving full compliance with the established statutorily. Similarly, expurgam the law references of previous article 62 to the transfer of tasks and competencies necessary for the exercise of the power to tax, because such matters 2 are already established by Decree-Law No. 18/2005, of 18 January, which transferred to the autonomous region of Madeira the tax duties and responsibilities within the Finance Directorate of the autonomous region of Madeira , and all dependent services, being carried out in the territory of the region by the Government of the Republic, the Regional Government of the autonomous region of Madeira the full exercise of the powers provided for in the Constitution and in law with regard to tax revenues own, practicing all acts necessary for your administration and management. Even on tax matters, establishes that in the discharge of the value added tax (VAT) is applied the suspensive arrangement, because it is the method that ensures, with greater reliability, the autonomous regions receive tax revenues that are due them. In order to make good any loss of VAT revenue, provides for a safeguard clause, which guarantees to the regions, in the year 2008, a revenue level identical to that obtained by the application of the principle of per capita in 2007. Finally, in the context of the adoption of the official plan of public accounts and taking into account the uniqueness of the national system, the obligation of the State to provide Autonomous regions the integrated computer applications, as well as the technical assistance necessary for the fulfilment of this obligation, with a view to harmonization of procedures, avoiding additional costs with analyses and studies of computer applications that already exist. So: under f) of paragraph 1 of article 227 of the Constitution of the Republic and of (b)) of paragraph 1 of article 37 of law No. 13/91, of 5 June, amended by Laws Nos. 130/99, of 21 August and 12/2000, of 21 June, the Legislative Assembly of Madeira it presents to Parliament the following proposal of law : Article 1 amendment to the organic law nº 1/2007, of February 19 are amended articles 2, 3, 6, 7, 8, 15 .16 .11, 19th, 21st, 25th, 30th, 31st, 33rd, 35th, 36th, 37th, 38th, 39th, 40th, 49th, 51st, 55th, 59th, 61st, 62nd, 63rd and 65th of the organic law nº 1/2007, of February 19, which are replaced by the following : ' article 2 [...]

3 for the purposes of the previous article, this law covers matters relating to regional recipes, the tax power of the autonomous regions, the adaptation of the national tax system and financial relations between the autonomous regions and local authorities based in the autonomous regions. Artigo 3º
[…] …................................................................................................................................................. a) …..................................................................................................... b) Princípio da autonomia financeira regional; c) [previous subparagraph (b))] d) [previous subparagraph (c))] and) [Former subparagraph (d))] f) principle of territorial continuity; g) principle of regionalization of services; h) [previous article)] i) [previous subparagraph (f))] j) [previous subparagraph (g))] article 6 [...] 1-regional financial autonomy develops within the framework of the principle of budgetary stability, which presupposes, in the medium term, a situation close to budget equilibrium. 2-both the State and the autonomous regions contribute recipro Cally among themselves for the achievement of its financial objectives, within the framework of the principle of stability of the respective budgets. Article 7 [...] 1-the principle of national solidarity to ensure the promotion of the economic and social development and the well-being and quality of life of the people, binds the State to bear the costs of inequality derived from insularity, in particular with regard to transport, communications, energy, education, culture, health, sports and social security, with a view to the Elimination of inequalities 4 arising from the situation of island regions and outermost regions and the realization of economic and social convergence with the rest of the territory national and with the European Union. 2-the principle of national solidarity is reciprocal and covers the national whole and each of its Regions, and should ensure an adequate level of public and private activities without sacrificing desigualitários. 3-(Former paragraph 2). 4-the principle of national solidarity fits in every moment, the level of development of the regions. 5-(Former paragraph 5). 6-(Former paragraph 6). Article 8

[...].......................................................................................................................) the balanced development of the whole national; b) …........................................................................................................ c) …........................................................................................................ Artigo 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 one representative from each of its members, to which fits, namely, evaluation, monitoring and formulating proposals for resolving any issues arising from the application of the law, the selection and evaluation of projects of common interest, the preparation of the meetings referred to in paragraph 2 as well as the implementation of the measures taken under the same. Artigo 15º
[…] 1 - ................................................................................................................... 2-revenue collected in the autonomous regions by State services that are not delivered directly to regional coffers must be applied in projects that improve the functionality and the functionality of these services. 3 - (Anterior nº 2) 4 - (Anterior nº 3) 5 - (Anterior nº 4) 6 - (Anterior nº 5) Artigo 16º
[…] …............................................................................................................. a) …...................................................................................................... b) …....................................................................................................... c) (Eliminado). Article 19 [...] 1 recipe of each constituency is the value added tax charged by application of suspensive arrangement, in accordance with the rules applicable to intra-Community transactions, the transactions carried out with the rest of the national territory, to imports and intra-Community acquisitions, and the operations carried out therein, in accordance with the criteria set out in paragraphs 2 and 3 of article 1 of Decree-Law No. 347/85 , 23 August.

6 2-under no circumstances may be adopted a method of calculation that results in a lower amount of revenue than received by capitation scheme. 3 - (Anterior nº 2) Artigo 21º
[…] 1 - …................................................................................................................ a) …........................................................................................................... b) …........................................................................................................... 2 - …................................................................................................................ 3 - …................................................................................................................ a) …........................................................................................................ b) …........................................................................................................ 4-each recipe is also the autonomous region, the amount derived from the stamp duty due on the sports betting, determined according to the scheme of headage. Article 25 [...] Recipe of each autonomous region is the product of the rates, fees and rates payable for the provision of regional services, by acts of removing legal limits the activities of individuals within the jurisdiction of regional organs and the use of goods in the public domain. Article 30 [...] 1-the autonomous regions may each year contract debt founded in compliance with the ceiling referred to in paragraph 4 of this article and does not match a proportionally higher than the additional net debt of the State that year, calculated, for each region, in accordance with the principle of per capita. 2-in the case of the autonomous regions need a net increase of indebtedness in excess of that provided for in paragraph 1, shall obtain the assent of the Council of the Financial Policies and approval of the Assembly of the Republic, to be granted under the law of the budget.

7 3-for the purposes of consideration of the limits of indebtedness, are excepcionados the net debt increases for reasons linked to the implementation of projects co-financed by Community funds. 4-(Former paragraph 3). 5-(Former paragraph 4). 6-(Former paragraph 5). 7-net debt balances for a given year may be used in one of the three subsequent years. Artigo 31º
[…] 1 - …................................................................................................................ 2 - …................................................................................................................ 3-the reduction provided for in paragraph 1 shall be used on amortization of debt of the autonomous region its or, if this is not feasible, in addition of the values intended for the financing of projects of common interest in the region. Article 33 Management Institute's support of Treasury and Public credit, I. P. The autonomous regions may have recourse to the support of the Institute for the management of Treasury and Public credit, I. P., both for the Organization of regional public debt emissions, both for the monitoring of your management, with a view to

minimize cost and risk and to coordinate regional public debt operations with direct public debt of the State. Article 35 [...] The loans issued by the autonomous regions can benefit from personal guarantee of the State, in accordance with its law.

Article 36 of the autonomous regions commitments by 8 State the State can assume responsibility for the obligations of the autonomous regions and assume the commitments arising from these obligations, in accordance with the law. Artigo 37º
[…] 1 - …................................................................................................................ 2 - …................................................................................................................ 3 - …................................................................................................................ 4-If the rate resulting from the previous paragraph is less than the refresh rate of pay in the civil service that same year applies this rate. 5-(Former paragraph 4). 6-in the year of entry into force of this Act, the amount of the appropriations to be entered in the State budget for the year t equals 355,800,000 euros. 7-the breakdown of this amount by the autonomous regions, taking account of their structural characteristics, is made according to the following formula:                      4, 4, 2, 2, 2, 2, 2, 2, tR, 05, 0125, 0 14 14 05.0 65 65 05, 00, 725 tRA tR RA R tRA tRA tRA tRA tR tR tR EF EF UI UI P P P P P P TT Being : tR, T-transfer to the autonomous region in year t; TRA, T-transfer to the autonomous regions in year t, calculated in accordance with the provisions of paragraph 2 of this article; 2,  tRP-Population of the autonomous region in year t-2 according to the latest data published by the INE at the time of the calculation; 2,  tRAP-Sum of the population of the autonomous regions in year t-2;  2.65 tRP-Population of the autonomous region in year t-2 with 65 years of age or older according to the latest data published by the INE at the time of the calculation;

9  2.65 tRAP-Sum of the population of the Autonomous Region with 65 years of age or older in the year t-2;  2.14 tRP-Population of the autonomous region in year t-2 with 14 or so years of age, according to the latest data published by the INE at the time of the calculation;  2.14 tRAP-Sum of the population of the autonomous regions in the year t-1 with 14 or fewer years old; RIU = RA R RA R ilhasn ilhasn DL DL ººº 3, 07, 0    RAIU-sum of the indices of remoteness; 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-number of Islands with the resident population of the autonomous region; RAilhasn-total number of Islands with population resident in the autonomous regions;   EFR, t  4-tax revenue ratio of the autonomous region, net of the corrective effect of VAT arising from paragraph 2 of article 19 of this regulation, and any extraordinary adjustments of taxes from previous years, and gross domestic product at market prices, current prices, in the year t-4;   EFRA, t  4 = sum of indicators of fiscal effort. 8-from the year t + 1, the allocation resulting from the application of the criteria laid down in paragraph 7, cannot, under any circumstances, result in an amount for each autonomous region is less than the amount received in the previous year, updated in accordance with the provisions of paragraph 2 of this article, the necessary compensation for deduction of the amounts of the autonomous region that has a growth higher than that defined in the same paragraph 2. 9-(Former paragraph 7).

Article 38 [...]

10 1 - …................................................................................................................ 2-the Cohesion Fund has in each year of funds from the State budget, the transfer to Regional budgets, to finance programmes and projects of investment, previously identified, which meet the requirements of the preceding paragraph and is equal to 35% of budgetary transfers for each autonomous region defined in accordance with article 37. 3-the transfers provided for in this article in quarterly payments processing to be carried out during the first five days of each quarter. Article 39 [...] 1-the national participation in community systems of financial incentives to support the productive sector is ensured by the State budget or the budgets of the entities that protect the respective areas, regardless of fearing your national or regional nature. 2-are also transferred to the autonomous regions the amount corresponding to the payment of subsidies due in their respective territories and resulting from the application of incentive systems created at national level. Article 40 [...] 1-For projects of common interest "means those who are promoted for reasons of interest or national strategy and likely to produce positive economic effect for the whole national economy, measured, inter alia, the consequences in terms of balance of payments or of job creation, and, as well as those that have the effect of a decrease of the costs of insularity or special relevance in social areas , environmental, development of new technologies, transport and communications. 2 - …................................................................................................................ 3-specific conditions of funding by the State of the projects referred to in the preceding paragraph shall be established by Ordinance, heard the Regional Government to which it relates and the monitoring of Financial Policies, which should respect the principle of equality between the autonomous regions. Article 49 [...]

11 1 - …................................................................................................................ 2-The legislative assemblies of the autonomous regions may also, under the law, reduce national rates of income taxes (IRS and IRC) and value added tax, up to a limit of 30% and 35%, respectively, and excise duty, in accordance with the legislation in force. 3 - …................................................................................................................ 4 - …................................................................................................................ 5-The legislative assemblies of the autonomous regions may grant bonuses in the percentages and limits costs tax deductible tax credits from the IRS pursuant to IRS Code, relating to costs of environmental equipment,

with personal and permanent residence, and with health, support for the elderly and education. 6-The legislative assemblies of the autonomous regions can also grant tax credits from the IRS, defining its limits, for expenses incurred with the health, support for the elderly, education, movements of aircraft in national territory for patients and possible date and for the students of the autonomous regions displaced in other islands or the mainland Portuguese. 7-(Former paragraph 5). 8-The legislative assemblies can increase, even 30%, the limits of tax benefits relating to Patronage and job creation provided for in the Tax benefits Statute. 9-(Former paragraph 6). Artigo 51º
[…] 1 - …................................................................................................................ a) …........................................................................................................ b) …........................................................................................................ c) …........................................................................................................ 2 - …................................................................................................................ a) …........................................................................................................ b) …........................................................................................................

12 c) …........................................................................................................ 3 - …................................................................................................................ 4 - …................................................................................................................ 5-in the case of the autonomous regions opt for regionalization of tax services, there are no any compensatory payment to the State. Artigo 55º
[…] 1 - …................................................................................................................ 2 - …................................................................................................................ 3-tax revenues belonging to the autonomous regions in terms of the Constitution, Political-Administrative and statutes of this law cannot be allocated to local authorities based in the autonomous regions, under the financial arrangements established for those. Article 59 [...] 1-the provisions of this law: a) ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. b) ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... c) ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... d) contravenes the provisions of the Constitution and the Political-Administrative Statutes of the autonomous regions. 2-(deleted). Article 61 [...] The Government of the Republic shall approve the acts necessary for the implementation of paragraph 6 of article 15, paragraph 3 of article 19, paragraph 3 of article 40 and article 65-(A) within 120 days after the publication of this law. Article 62 [...]

13 1-in the context of the transfer of the State to the autonomous region of Madeira of the duties and responsibilities provided for in the Constitution and in the law in relation to their own tax revenue, as well as the power to perform all acts necessary for your administration and management, the legal references made in national tax legislation to the Finance Minister or the Director-General of taxes , reported to the holders of the corresponding regional bodies. 2-Even if they are created and installed all the means necessary for the exercise of power conferred tax to autonomous regions, the Directorate-General of taxes, through its departments and services and the services of the State continue to ensure the realization of the administrative procedures required for the performance of the mentioned power, including those relating to liquidation and collection of the taxes which constitute my own recipe of the autonomous regions. Article 63 [...] 1-the autonomous regions should adopt, in the maximum period of two years after the date of entry into force of this law, the Official Plan of public accounting and respective sectoral accounts plans. 2-the Government of the Republic offers to the autonomous regions the integrated computer applications, as well as the technical assistance necessary for the fulfilment of the provisions of this article. Article 65 [...] This law is revised in the year 2015. ' Article 2 Amendment to the organic law nº 1/2007, of February 19 articles are added 4-, 8-, 8-B, 22A, 25-, 43-, 44-, 65-and 65-B the organic law nº 1/2007, of February 19, to read as follows: «article 4-14 the principle of financial autonomy 1-regional financial autonomy of autonomous regions is reflected in the existence of assets and finance themselves and reflected in the autonomy of assets , budgetary and Treasury. 2-financial autonomy aims to ensure the Government organs of the autonomous regions the means necessary for the pursuit of its mission, as well as the availability of appropriate instruments to promote economic and social development and the well-being and quality of life of the people, the Elimination of inequalities arising from the situation of island regions and outermost regions and the achievement of economic convergence with the rest of the country and with the European Union. Article 8-the principle of territorial continuity the principle of territorial continuity is based on the need to correct structural inequalities arising from remoteness and insularity, and aims at the full consecration of the citizenship rights of insular populations, linking, in particular, the State to your performance, in accordance with its constitutional obligations. Article 8-B principle of regionalization of services the regionalization of services and the transfer of powers are continuing in accordance with the Constitution and the law, and must always be accompanied by the corresponding financial resources to cope with their charges, in accordance with article 43-the article 22A excise the game Constitutes revenue of each autonomous region excise duty by the pursuit of the activity of the game due by the concessionary companies in the respective territorial constituencies. Article 25-the

Net revenues from the exploitation of social gaming Is prescription of each autonomous region a net operating profit of social games operated by Santa Casa da Misericórdia de Lisboa, determined by the capitation method.

15 article 43-the regionalization of services 1-the financial means to meet the costs of the regionalized services are determined by the difference between revenue and expenditure arising from the transfer of powers, from the average of the last three years preceding the year in which the regionalization occurs. 2-the amount of money referred to in the previous paragraph are adjusted annually in accordance with the criteria set out in paragraphs 3 and 4 of article 37. 3-transfers arising out of this article processing in quarterly installments to be made within 15 days of each quarter. Article 44-delays in transfers will be payable on late payments by the Central Administration, in the cases of delays in financial transfers from the State. Article 65-to transfer the sums due Adjustments resulting from the application of the provisions of articles 5, paragraph 6, 30 and 31 of Act No. 13/98, of 24 February, are handed over to autonomous regions through the conclusion of a settlement agreement. Article 65-B savings Allocation of the organic law nº 1/2007 State savings resulting from the implementation of articles 37 and 38 of organic law No. 1/2007, of February 19, determined by reference to the amounts transferred in the year 2006, are earmarked for the financing of projects of common interest in the region.» Article 3 Standard set Are deleted articles 32, 44 and 57 of the organic law nº 1/2007, of 19 February.

16 article 4 Republication the organic law nº 1/2007, of February 19, is republished in annex, as amended by this decree-law, required renumbering and other corrections. Article 5 entry into force the present law shall enter into force on 1 January 2010. Adopted in Plenary Session of the Legislative Assembly of Madeira, on 29 October 2009. The PRESIDENT of the LEGISLATIVE ASSEMBLY of MADEIRA, _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Jose Miguel Olive Garden of Marie 17 ANNEX Republication of the organic law nº 1/2007, of February 19 autonomous regions Finance Act Title I Subject, general principles and accountability CHAPTER I subject matter and general principles article 1 subject-matter this law concerns the definition of the means available to the autonomous regions of the Azores and Madeira for the implementation of financial autonomy enshrined in the Constitution and in the Political-Administrative Statutes. Article 2 Scope for the purposes of the previous article, this law covers matters relating to regional recipes, the tax power of the autonomous regions, the adaptation of the national tax system and financial relations between the autonomous regions and local authorities based in the autonomous regions. Article 3 Principles the financial autonomy of autonomous regions developed in accordance with the following principles: the principle of legality); b) principle of financial autonomy; c) principle of stability of financial relations; d) budgetary stability; e) principle of national solidarity; f) principle of territorial continuity; g) principle of regionalization of services; h) principle of coordination;

18 i) principle of transparency; j) principle of control. Article 4 principle of legality the financial autonomy of autonomous regions shall exercise within the framework of the Constitution, of their political and Administrative Statutes, of this law and other complementary legislation. Article 5 principle of financial autonomy 1-regional financial autonomy of autonomous regions is reflected in the existence of assets and finance themselves and reflected in the autonomy of assets, Treasury and budget. 2-financial autonomy aims to ensure the Government organs of the autonomous regions the means necessary for the pursuit of its mission, as well as the availability of appropriate instruments to promote economic and social development and the well-being and quality of life of the people, the Elimination of inequalities arising from the situation of island regions and outermost regions and the achievement of economic convergence with the rest of the country and with the European Union. Article 6 principle of stability of financial relations the regional financial autonomy grows in respect for the principle of stability of the financial relations between the State and the autonomous regions, which aims to ensure the Government organs of the autonomous regions the predictability of the means necessary for the pursuit of its mission. Article 7 principle of budgetary stability 1-regional financial autonomy develops within the framework of the principle of budgetary stability, which presupposes, in the medium term, a situation close to budget equilibrium. 2-both the State and the autonomous regions contribute recipro Cally among themselves for the achievement of its financial objectives, within the framework of the principle of stability of the respective budgets.

19 article 8 national solidarity principle 1-the principle of national solidarity to ensure the promotion of the economic and social development and the well-being and quality of life of the people, binds the State to bear the costs of inequality derived from insularity, in particular with regard to transport, communications, energy, education, culture, health, sports and social security, with a view to the Elimination of inequalities arising from the situation of island regions and outermost regions and the realization of economic and social convergence with the rest of the country and with the European Union. 2-the principle of national solidarity is reciprocal and covers the national whole and each of its Regions, and should ensure an adequate level of public and private activities without sacrificing desigualitários. 3-the principle of national solidarity is compatible with financial autonomy and with the obligation of the autonomous regions contribute to the balanced development of the country and to the achievement of the objectives of economic policy which the Portuguese State is bound by treaties or international agreements, in particular those arising from policies

or coordinates of growth, employment and stability and common monetary policy of the European Union. 4-the principle of national solidarity fits in every moment, the level of development of the regions. 5-the national solidarity with the autonomous regions is reflected in the State budget transfers provided for in articles 41 and 42. 6-solidarity binds the State to also with the autonomous regions in the situations referred to in articles 43 to 47. Article 9 principle of coordination the autonomous regions wield to your financial autonomy by coordinating their financial policies with those of the State in order to ensure: a) the balanced development of the whole national; b) budgetary objectives that Portugal has obliged, in particular within the European Union; c) the realization of the principle of budgetary stability, in order to avoid situations of inequality.

20 article 10 territorial continuity principle the principle of territorial continuity is based on the need to correct structural inequalities arising from remoteness and insularity, and aims at the full consecration of the citizenship rights of insular populations, linking, in particular, the State to your performance, in accordance with its constitutional obligations. Article 11 principle of regionalization of services the regionalization of services and the transfer of powers are continuing in accordance with the Constitution and the law, and must always be accompanied by the corresponding financial resources to cope with their charges, in accordance with article 48. Article 12 transparency Principle 1-the State and the autonomous regions provide each other the entire economic and financial information required to fully achieve their financial policies. 2-the information referred to in the preceding paragraph must be complete, clear and objective and be provided in a timely manner. Article 13 principle of financial autonomy control of autonomous regions is subject to administrative controls, and, in accordance with the political Constitution and the political-administrative Status of each of the autonomous regions. Article 14 monitoring of Council 1-financial policies To ensure coordination between the autonomous regions and the finances of the State, working with the Ministry of finance and public administration, the monitoring of Financial Policies, with the following competencies: a) monitor the implementation of this Act;

21 b) Analyze the regional fiscal policies and your coordination with national financial policy objectives, without prejudice to regional financial autonomy; c) Enjoy, in the financial plan, the participation of the autonomous regions in Community policies, in particular those relating to economic and Monetary Union; d) ensure compliance with the rights of participation of autonomous regions in the financial area provided for in the Constitution and in the Political-Administrative Statutes; and) analyze the financing needs and debt policy and your regional coordination with the objectives of the national financial policy, without prejudice to regional financial autonomy; f) monitor the development of community support mechanisms; g) Ensure the principle of consistency between the regional tax systems and the national tax system, promoting, through recommendations, coordination between the national and regional competent tax authorities; h) Issue the opinions set forth in paragraph 4 of article 32, paragraph 2 of article 35 and paragraph 3 of article 44; I) issue opinions at the request of the Government of the Republic or of regional governments. 2-the Council ordinarily meets once a year, before the adoption by the Council of Ministers of the draft State budget, and extraordinarily upon request duly motivated of Finance Minister or one of the regional governments. 3-the Council is chaired by a representative of the Ministry of finance and public administration and 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 one representative from each of its members, to which fits, namely, evaluation, monitoring and formulating proposals for resolving any issues arising from the application of the law, the selection and evaluation of projects of common interest, the preparation of the meetings referred to in paragraph 2 as well as the implementation of the measures taken under the same.

22 CHAPTER II presentation of the accounts article 15 excessive deficits Procedure 1-under 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 government debt to the previous years, according to the methodology of the ESA 95 and the deficit and debt Manual approved by Eurostat. 2-national statistical authorities should validate the accounts submitted by the Regional Statistical Services until the end of the month following your presentation. 3-in the case of the accounts are not validated or be raised reservations to the estimates submitted by the regional authorities, national statistical authorities shall submit a detailed report of the corrections made and their impact on the balance of the accounts and on government debt of public administrations. Article 16 Estimates of budgetary implementation 1-Each Regional Government presents quarterly, the Ministry of finance and public administration, an estimate of the budgetary implementation and Regional Government debt, including the autonomous services and funds, by the end of the following month of the quarter to which they relate, in the format set by the Ministry of finance and public administration. 2 not send the quarterly information referred to in the preceding paragraph implies 10% retention of the twelfth fiscal transfers from the State. 3-the percentage provided for in the previous paragraph increases to 20% from the first quarter of non-compliance. 4-the sums retained are transferred to the autonomous regions as soon as they are received the elements that were at the origin of these deductions.

23 TITLE II regional recipes section I tax SUBSECTION I General provisions article 17 Concepts for the purpose of achieving the distribution of tax revenues between the

State and the autonomous regions, it is considered that: the ' National Territory ') is the Portuguese territory as defined in article 5 of the Constitution; b) «Circumscription» is the territory of the continent or of an autonomous region, as the case may be; c) ' autonomous region ' is the territory corresponding to the Azores and the Madeira Islands. Article 18 1-State obligations in accordance with the provisions of the Constitution and its Political-Administrative Statutes, the autonomous regions shall be entitled to delivery by the Government of the Republic of tax revenues relating to taxes that should belong to them, in accordance with the following articles, as well as other recipes that are assigned to them by law. 2-revenue collected in the autonomous regions by State services that are not delivered directly to regional coffers must be applied in projects that improve the functionality and the functionality of these services. 3-delivery by the Government of the Republic to the autonomous regions of tax revenues that they compete processes until the 15th day of the month following that of your collection. 4-in case it is not possible to determine precisely the part of the tax revenue of any taxes relating to the autonomous regions, the amount provisionally transferred is equivalent to net revenues in the month previous year 24 counterpart multiplied by the rate of revenue growth of respective tax provided for in the State budget for the current year. 5-for the purposes of calculating the tax revenues due to autonomous regions, these are not entitled to the allocation of tax revenue not collected by virtue of applicable benefits in your territory. 6-Without prejudice to the provisions of the following articles shall be adopted by legislative or regulatory provision, as well as through protocols to be concluded between the Government of the Republic and the regional Governments, the measures necessary for the implementation of the provisions of this article. SUBSECTION II article 19 Taxes personal income tax revenue of each autonomous region Is the personal income tax: a) Due for individuals considered fiscally resident in each region, regardless of where they carry out their activity; b) Withheld, definitively, on income paid or made available to individuals considered fiscally non-residents in any circumscription of Portuguese territory, by natural or legal persons with residence, head office or (place of) effective management in each region or by a permanent establishment situated therein that such income should be imputed; Article 20 corporate income tax is 1 recipe for each autonomous region the corporate income tax: the) Due by legal persons or similar companies that have headquarters, place of effective management or permanent establishment in a single region; b) Due by legal persons or similar companies that have their head office or (place of) effective management in Portuguese territory and have branches, delegations, agencies, offices, facilities, or any form of permanent representation not constituted as legal entities in more than one constituency, in accordance with the procedure referred to in paragraph 2 of this article;

25 c) Withheld, definitively, by income generated in each constituency in respect of legal persons or similar companies that do not have a head office, place of effective management or permanent establishment in the national territory. 2-regarding the tax referred to in point (b)) of the preceding paragraph, the revenue from each constituency is determined by the ratio of the annual volume of business for the year corresponding to facilities in each autonomous region and the total annual volume of business for the year. 3-for the purposes of this article, the annual volume of business the value of transfers of goods and services, excluding value added tax. Ancillary obligations of article 21 income taxes entities that proceed the withholding taxes to residents or non-residents, with or without permanent establishment, shall carry out the respective discrimination by constituency, according to the rules of attribution set under previous articles. Article 22 1 VAT revenue of each Division is the value added tax charged by application of suspensive arrangement, in accordance with the rules applicable to intra-Community transactions, the transactions carried out with the rest of the national territory, to imports and intra-Community acquisitions, and the operations carried out therein, in accordance with the criteria set out in paragraphs 2 and 3 of article 1 of Decree-Law No. 347/85 , 23 August. 2-under no circumstances may be adopted a method of calculation that results in a lower amount of revenue than received by capitation scheme. 3-the Minister of finance, ears the regional Governments, regulating by Ordinance the allocation mode to the autonomous regions of their recipes. Article 23 excise duties Constitute revenue from each constituency the excise duty levied on taxable products that are released for consumption.

26 article 24 1-stamp tax revenue of each autonomous region Is the stamp duty payable by taxable persons referred to in paragraph 1 of article 2 of the stamp tax code that:) with registered office, place of effective management, permanent establishment or fiscal domicile in the autonomous regions; b) have their head office or (place of) effective management in the national territory and have branches, delegations, agencies, offices, facilities, or any form of permanent representation without its own legal personality in the autonomous regions. 2-in the situations referred to in the preceding paragraph, the revenues of each autonomous region are determined, with the necessary adaptations, in accordance with the rules of territoriality laid down in paragraphs 1 and 2 of article 4 of the Code in respect of stamp duty tax facts that occurred in these regions, and the taxable person carrying out discrimination in the respective tax guides. 3-free transmissions, constitutes revenue of autonomous regions the value of stamp tax: a) That, in the succession by death, would be due for each beneficiary with fiscal domicile in the autonomous regions, when the taxpayer is the heritage, represented by the double head in accordance with subparagraph (a)) of paragraph 2 of article 2 of the stamp tax code; b) Due in other free broadcasts when the grantee,

legatee or domiciled tax usucapiente in the autonomous regions. 4-each recipe is also the autonomous region, the amount derived from the stamp duty due on the sports betting, determined according to the scheme of headage. Article 25 extraordinary Taxes 1-taxes extraordinary settled as additional or about the tax base or the collection of other taxes constitute the Revenue Division which have been affected the main tax levied on.

27 2-extraordinary autonomous taxes are proportionally allocated to each district according to the location of the goods, the contract or the situation of the assets secured by way of principal or accessory on focusing. 3-extraordinary taxes may, in accordance with the degree that the create, be allocated exclusively to one or more constituencies if the exceptional situation that the legitimate occur or check only in this or in those constituencies. Article 26 excise the game Constitutes revenue of each autonomous region excise duty by the pursuit of the activity of the game, due by the concessionary companies in the respective territorial constituencies. SECTION II other income Are Interest income article 27 of each constituency the amount charged on the interest and compensatory interest, net of indemnity interest on taxes constituting own resources. Article 28 penalties and fines 1-fines and penalties are the Revenue Division in which they have checked the action or omission that constitutes the offence. 2-When the offence if practice in successive or repeated acts, or by an act likely to extend in time the criminal or non-criminal fines are allocated to the constituency in whose area if you have practiced the last act or ceases the consummation. Article 29 regional public rates and prices Is recipe for each autonomous region, the product of the rates, fees and rates payable for the provision of regional services, by acts of 28 removal of legal limits to the activities of individuals within the jurisdiction of regional organs and the use of goods in the public domain. Article 30 Net Revenues from the exploitation of social gaming Is prescription of each autonomous region a net operating profit of social games operated by Santa Casa da Misericórdia de Lisboa, determined by the capitation method. SECTION III regional government article 31 General principles the regional public debt shall be guided by principles of accuracy and efficiency, aims to ensure the availability of the funding required for each financial year and pursues the following objectives: a) minimization of direct and indirect costs on a long-term basis; b) ensuring a balanced distribution of costs by several annual budgets; c) preventing excessive concentration of depreciation; d) exposure to excessive risk taking. Article 32 public Loans 1-the autonomous regions may, in accordance with their respective Political-Administrative and Statutes of this law, contract public debt founded and floating. 2-currency borrowing without legal tender in Portugal is made in accordance with the statutes of the Administrative-political, depends on prior authorization of the Assembly of the Republic and take into account the need to avoid distortions in the external public debt and do not induce negative reflexes in the rating of the Republic. 3-loans to collapse by autonomous regions called without legal tender currency in Portugal may not exceed 10% of the direct debt of each autonomous region.

29 4-duly justified and with the prior opinion of the Board of monitoring of Financial Policies, the percentage referred to in the preceding paragraph may be exceeded, with the permission of the Assembly of the Republic on the proposal of the Government. Article 33 the borrowing long-term debt long-term debt lacks permission of respective legislative assemblies, pursuant to the Political-Administrative Statutes of the autonomous regions, and is intended exclusively to finance investments or replace and amortize loans previously contracted, obeying the limits laid down in accordance with the provisions of this law. Article 34 floating Debt to cope with cash-flow needs, the autonomous regions may issue debt, the amount accumulated emissions floating alive in each moment must not exceed 35% of the current revenues collected in previous year. Article 35 the indebtedness Limits 1-the autonomous regions may each year contract debt founded in compliance with the ceiling referred to in paragraph 4 of this article and does not match a proportionally higher than the additional net debt of the State that year, calculated, for each region, in accordance with the principle of per capita. 2-in the case of the autonomous regions need a net increase of indebtedness in excess of that provided for in paragraph 1, shall obtain the assent of the Council of the Financial Policies and approval of the Assembly of the Republic, to be granted under the law of the budget. 3-for the purposes of consideration of the limits of indebtedness, are excepcionados the net debt increases for reasons linked to the implementation of projects co-financed by Community funds. 4-the fixing of the limits mentioned in the preceding paragraphs meets that, as a result of the additional debt or increase of the credit to the region, the total debt service, including annual depreciation and interest, do not exceed, in any case, 25% of the current revenues of the previous year, with the exception of transfers and assistance from the State for each region.

30 5-for the purposes of the preceding paragraph, it is not considered debt service the amount of depreciation. 6-in the case of loans whose amortization to concentrate in a single year, for the purposes of the preceding paragraph, the respective value annualise. 7-net debt balances for a given year may be used in one of the three subsequent years. Article 36 Penalties for violations of limits on indebtedness-1 violation of debt limits for an autonomous region leads to a reduction in transfers from the State that it is payable in the subsequent year of value equal to the excess of indebtedness in relation to the maximum limit determined in accordance with the previous article. 2-the reduction provided for in the preceding paragraph is proportional-

mind in transferring benefits quarterly. 3-the reduction provided for in paragraph 1 shall be used on amortization of debt of the autonomous region its or, if this is not feasible, in addition of the values intended for the financing of projects of common interest in the region. Article 37 Support of the Institute of management of Treasury and Public credit, I. P. The autonomous regions may have recourse to the support of the Institute for the management of Treasury and Public credit, I. P., both for the Organization of regional public debt emissions, both for the monitoring of your management, to reduce cost and risk and to coordinate regional public debt operations with direct public debt of the State. Article 38 regional debt tax treatment the regional government enjoys the same tax treatment to the public debt of the State. Article 39 State guarantee loans issued by the autonomous regions can benefit from personal guarantee of the State, in accordance with its law.

31 article 40 autonomous regions commitments by the State the State can assume responsibility for the obligations of the autonomous regions and assume the commitments arising from these obligations, in accordance with the law. SECTION IV State Transfers article 41 budget 1 Transfers-In compliance with the principle of solidarity enshrined in the Constitution, in the Political-Administrative Statutes and in this law, the State budget each year includes amounts to be transferred to each of the autonomous regions. 2-the annual amount of funds to be entered in the State budget for the year t is equal to the amounts entered in the budget of the State for the year t-1, updated according to the update rate set in accordance with the following paragraphs. 3-the discount rate is equal to the rate of change in the year t-2, the current expenditure of the State, excluding the transfer of State for social security and assistance from the State to the Caixa Geral de Aposentações, according to the General Government account. 4-If the rate resulting from the previous paragraph is less than the refresh rate of pay in the civil service that same year applies this rate. 5-in the case of the rate of change defined in the preceding paragraph exceed the estimate of the National Institute of statistics of the rate of change in the year t-2, the GDP at current market prices, the discount rate referred to in paragraph 2 will be the estimate of the National Institute of statistics of the rate of change in the year t-2, the GDP at current market prices. 6-in the year of entry into force of this Act, the amount of the appropriations to be entered in the State budget for the year t equals 355,800,000 euros. 7-the breakdown of this amount by the autonomous regions, taking account of their structural characteristics, is made according to the following formula: 32                      4, 4, 2, 2, 2, 2, 2, 2, tR, 05, 0125, 0 14 14 05.0 65 65 05, 00, 725 tRA tR RA R tRA tRA tRA tRA tR tR tR EF EF UI UI P P P P P P TT Where: tR, T-transfer to the autonomous region in year t; TRA, T-transfer to the autonomous regions in year t, calculated in accordance with the provisions of paragraph 2 of this article; 2,  tRP-Population of the autonomous region in year t-2 according to the latest data published by the INE at the time of the calculation; 2,  tRAP-Sum of the population of the autonomous regions in year t-2;  2.65 tRP-Population of the autonomous region in year t-2 with 65 years of age or older according to the latest data published by the INE at the time of the calculation;  2.65 tRAP-Sum of the population of the Autonomous Region with 65 years of age or older in the year t-2;  2.14 tRP-Population of the autonomous region in year t-2 with 14 or so years of age, according to the latest data published by the INE at the time of the calculation;  2.14 tRAP-Sum of the population of the autonomous regions in the year t-1 with 14 or fewer years old; RIU = RA R RA R ilhasn ilhasn DL DL ººº 3, 07, 0    RAIU-sum of the indices of remoteness; 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-number of Islands with the resident population of the autonomous region; RAilhasn-total number of Islands with population resident in the autonomous regions;

  33 EFR, t  4-tax revenue ratio of the autonomous region, net of the corrective effect of VAT arising from paragraph 2 of article 22 of this regulation, and any extraordinary adjustments of taxes from previous years, and gross domestic product at market prices, current prices, in the year t-4;   EFRA, t  4 = sum of indicators of fiscal effort. 8-from the year t + 1, the allocation resulting from the application of the criteria laid down in paragraph 7, cannot, under any circumstances, result in an amount for each autonomous region is less than the amount received in the previous year, updated in accordance with the provisions of paragraph 2 of this article, the necessary compensation for deduction of the amounts of the autonomous region that has a growth higher than that defined in the same paragraph 2. 9-transfers from the State budget process in quarterly installments, to be carried out during the first five days of each quarter. Article 42 the Cohesion Fund for the outermost regions 1-the Cohesion Fund is intended to support exclusively investment programmes and projects contained in the annual investment plans of the autonomous regions, taking into account the provisions in subparagraph (g)) of article 9 and j) of paragraph 1 of article 227 of the Constitution, and to ensure economic convergence with the rest of the national territory. 2-the Cohesion Fund has in each year of funds from the State budget, the transfer to Regional budgets, to finance programmes and projects of investment, previously identified, which meet the requirements of the preceding paragraph and is equal to 35% of budgetary transfers for each autonomous region defined under article 41. 3-the transfers provided for in this article in quarterly payments processing to be carried out during the first five days of each quarter article 43 Reimbursement incentive systems national 1-the national subsidy scheme in community systems of financial incentives to support the productive sector is ensured by the State budget or the budgets of the entities that protect the respective areas, regardless of your national or regional nature. 2-are also transferred to the autonomous regions the corresponding payment news-important price increases due to the respective


34 territories and resulting from the application of incentive systems created at national level. Article 44 projects of common interest 1-For projects of common interest "means those who are promoted for reasons of interest or national strategy and likely to produce positive economic effect for the whole national economy, measured, inter alia, the consequences in terms of balance of payments or of job creation, and, as well as those that have the effect of a decrease of the costs of insularity or special relevance in social areas , environmental, development of new technologies, transport and communications. 2-the classification of a project as being of common interest depends on a favorable decision of the Government of the Republic and the Regional Government. 3-specific conditions of funding by the State of the projects referred to in the preceding paragraph shall be established by Ordinance, heard the Regional Government to which it relates and the monitoring of Financial Policies, which should respect the principle of equality between the autonomous regions article 45 special cases Constitute extraordinary transfers from the State budget the resulting from the established in articles 46 and 47 as well as any transfers the creation of territorial continuity. Article 46 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 its general principles. Article 47 extraordinary Support 1-national solidarity binds the State to support the autonomous regions in unforeseen situations resulting from natural disasters and for which they do not have financial resources, aimed at, inter alia, 35 reconstruction and recovery of infrastructure and economic and social activities, as well as the support to affected populations. 2-national solidarity is reflected even in the obligation of the State to restore the situation prior to the practice of environmental damage, by him or by other States caused in the autonomous regions, arising from the exercise of activities, in particular by virtue of international agreements or treaties, or to make available the financial resources necessary for the repair of this damage. Article 48 regionalisation of services 1-the financial means to meet the costs of the regionalized services are determined by the difference between revenue and expenditure arising from the transfer of powers, from the average of the last three years preceding the year in which the regionalization occurs. 2-the appropriations referred to in the preceding paragraph are adjusted annually in accordance with the criteria set out in paragraphs 3 and 4 of article 41. 3-transfers arising out of this article processing in quarterly installments to be made within 15 days of each quarter. Article 49 Delays in transfers will be payable on late payments by the Central Administration, in the cases of delays in financial transfers from the State. TITLE III tax Power own and adaptation of the national tax system section I General framework article 50 general principles The tax competences of regional bodies observe constitutional and statutory limits and the following principles: a) the principle of consistency between the national tax system and regional tax systems;

36 b) the principle of legality, in accordance with the Constitution; c) the principle of equality between the autonomous regions; d) the principle of national solidarity, in accordance with article 8 of this law; and) the principle of flexibility, to whom the regional tax systems should adapt to regional specificities, wants and can create taxes in force only in the autonomous regions, either adapting national taxes regional specificities; f) the principle of sufficiency, in the sense that the regional tax charges, in principle, will aim to cover public expenditure; g) the principle of functional efficiency of regional tax systems, in the sense that the structuring of the regional tax systems should encourage investment in the autonomous regions and ensure the social and economic development. Article 51 tax Skills 1-regional bodies have tax powers of regulatory and administrative nature, to exercise in accordance with the following paragraphs. 2-regional legislative competence in the field of taxation, 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 in effect only in the respective autonomous regions by setting its incidence, the rate, settlement, billing, tax, and benefits the taxpayer guarantees, in accordance with this law; b) the power of adapting national taxes regional specificities in terms of incidence, rate, tax breaks and taxpayer guarantees, within the limits laid down in the law and in accordance with the following articles. 3-The regulatory and administrative powers referred to in the preceding paragraphs shall be performed in accordance with sections II and III of this title III, without prejudice to the coordination between the national and regional competent tax authorities provided for in article 14.

37 SECTION II legislative and regulatory Powers article 52 Taxes tax in force only in the autonomous regions 1-The legislative assemblies of the autonomous regions, by regional legislative decree, may raise taxes in force only in the autonomous region, provided that they observe the principles enshrined in this law relating to matters not covered by the impact foreseen for any national taxes , even if exempted or not subject, or, it is not included, can reasonably be expected to integrate this incidence, and your application does not result in barriers to trade in goods and services between the different points of the country. 2-The taxes referred to in the preceding paragraph shall expire if they are subsequently created other similar nationwide. 3-the competence referred to in paragraph 1 applies, inter alia, the power to create and regulate betterment in force only in the autonomous regions, for tax increases in value of immovable property arising from regional public works and investments, as well as create and regulate other

special contributions to make up the largest regional expenditure arising from private activities stressful or perpetrators of public goods or regional environment. Article 53 The taxes Additional legislative assemblies have authority to launch additional, up to a limit of 10% of the collection of the taxes in force in the autonomous regions. Article 54 adaptation of the national tax system to the regional specificities 1-without prejudice to the provisions laid down in national tax legislation to operate only in the autonomous regions, the adaptation of the national tax system to the regional specificities observes the provisions of the present law and its complementary legislation. 2-The legislative assemblies of the autonomous regions may also, under the law, reduce national rates of income taxes (IRS and IRC) and value added tax, up to a limit of 30% and 35%, respectively, and excise duty, in accordance with the legislation in force.

38 3-The legislative assemblies may also determine the application in the autonomous regions of reduced rates of CORPORATION TAX defined in national legislation, in accordance with the terms and conditions that may be established by regional legislative decree. 4-The legislative assemblies of the autonomous regions may grant tax credits relating to commercial, industrial and agricultural profits reinvested by taxable persons. 5-The legislative assemblies of the autonomous regions may grant bonuses in the percentages and limits costs tax deductible tax credits from the IRS pursuant to IRS Code, relating to costs of environmental equipment, with personal and permanent residence, and with health, support for the elderly and education. 6-The legislative assemblies of the autonomous regions can also grant tax credits from the IRS, defining its limits, for expenses incurred with the health, support for the elderly, education, movements of aircraft in national territory for patients and possible date and for the students of the autonomous regions displaced in other islands or the mainland Portuguese. 7-The legislative assemblies of the autonomous regions may authorise the regional Governments to grant fiscal benefits temporary and conditional on the national and regional taxes, contractual arrangements, applicable to projects of significant investments, in accordance with article 39 of the Tax benefits Statute and complementary legislation in force, with the necessary adaptations. 8-The legislative assemblies can increase, even 30%, the limits of tax benefits relating to Patronage and job creation provided for in the Tax benefits Statute. 9-the legal framework of international business centre of Madeira and Santa Maria free zone shall be governed by the provisions of the Tax benefits Statute and complementary legislation. Article 55 regulatory powers the organs of the autonomous regions have regulatory competence concerning fiscal matters subject to regional legislative competence.

39 SECTION III administrative regional Skills article 56 administrative regional Skills 1-administrative regional competences in the field of taxation, the exercise by Governments and their regional administrations, include: a) the ability of the autonomous regions are subject tax assets in them charged, whether regional or national, in accordance with paragraph 2; (b)) the right to delivery, by the State, tax revenues that should belong to them, in accordance with the provisions of articles 17 and following; c) the power to fix the amount of the fees, charges and rates payable for the provision of regional services, though, by granting regional leased licenses, permits and other removals of legal limits to regional activities of individuals and for the use of the goods in the public domain. 2-the ability of the autonomous regions are subject tax charged therein assets comprises: a) the power to Regional governments create tax services responsible for the launch, liquidation and collection of regional taxation; b) the power to regulate the matters referred to in the preceding paragraph, without prejudice to the taxpayer guarantees, nationwide; c) the power of the autonomous regions to use state tax services based in the autonomous regions, through the payment of compensation, agreed between the State and the autonomous regions on the service by that provided in your legal representation. 3-in the case of the State does not collect the compensation referred to in point (c)) of the preceding paragraph shall be counted as State transfer to the autonomous regions. 4-national taxes which constitute regional recipes and regional taxes and fees should be identified as such to taxpayers in tax forms and print, whenever possible, even if they are charged by the tax administration of the State.

40 5-in the case of autonomous regions opt for regionalization of tax services, there are no any compensatory payment to the State. Article 57 skills for the granting of benefits and tax breaks 1-relating to benefits and tax incentives, whatever your nature and purpose, the specific and exclusive interest of a single autonomous region, the powers conferred on general law to the Minister of finance are exercised with respect for the laws and general principles in force and in the framework of the principle of equal , by a member of the Regional Government responsible for the area of finance. 2-the benefits or tax incentives of interest or national or specific interest from more than one constituency are within the competence of the Minister of finance, ears their regional governments. Article 58-1 supervision skills supervision and the practice of acts resulting from tax taxable persons carrying out business in more than one constituency, as well as taxpayers whose competence for your inspection to be assigned to the central tax inspection services, national tax authorities. 2-Fit the national tax authorities the same powers where, with regard to tax benefits in the interest of an autonomous region or other special tax regimes, the absence of their assumptions or your application is likely to affect tax revenues of another constituency. 3-the preceding paragraphs are without prejudice to the possibility of national tax and regional authorities establish by order set

or by Protocol, cooperation mechanisms for the exercise of those powers. Article 59 Disputes about the location of collection of taxes the conflicts concerning the competence to decide about the location of collection of national taxes which are of interest to the autonomous regions are resolved by agreement between the national and regional competent tax authorities and, in your absence, by decision of the Supreme Administrative Court.

41 TITLE IV financial relations between the autonomous regions and local authorities article 60 1-local authorities Finance the finances of local authorities located in the autonomous regions and the autonomous regions are independent. 2-the provisions of this law shall be without prejudice to the financial regime of local authorities. 3-tax revenues belonging to the autonomous regions in terms of the Constitution, Political-Administrative and statutes of this law, cannot be allocated to local authorities based in the autonomous regions, under the financial arrangements established for those. Article 61 financial support to local authorities any form of regional local government financial support beyond the already provided in law should aim at strengthening the investment capacity of the local authorities. Title V transitional and final provisions article 62 this law, Framework Law on tax matters, constitutes the framework law referred to in the Constitution and the Political-Administrative Statutes of the autonomous regions. Article 63 safeguard clauses the provisions of this law) does not relieve the obligations previously assumed by the State in relation to autonomous regions and these in relation to the State; b) is without prejudice to the obligations of or to take within the framework of international treaties and agreements concluded by the Portuguese State;

42 c) is without prejudice to the constitutional and statutory powers of the autonomous regions, in particular those relating to the rights of participation in the negotiations of treaties or international agreements; d) contravenes the provisions of the Constitution and the Political-Administrative Statutes of the autonomous regions. Article 64 the inheritance and gift tax notwithstanding the repeal of law No 13/98, of 24 February, continues to apply the provisions of article 15 of the same law, in relation to inheritance and gift tax due for any free streaming the fact occurred to withdrawal tax of real estate transfer Municipal Tax code and tax on inheritance and Donations , and whose tax assessment process is pending on the date of entry into force of this law. Article 65 additional standards for the Government of the Republic shall approve the acts necessary for the implementation of paragraph 6 of article 18, paragraph 3 of article 22, paragraph 3 of article 44 and article 70 within 120 days after the publication of this law. Article 66 transfer of duties and responsibilities to the autonomous regions 1-in the context of the transfer of the State to the autonomous region of Madeira of the duties and responsibilities provided for in the Constitution and in the law in relation to their own tax revenue, as well as the power to perform all acts necessary for your administration and management, the legal references made in national tax legislation to the Finance Minister or the Director-General of taxes , reported to the holders of the corresponding regional bodies. 2-Even if they are created and installed all the means necessary for the exercise of power conferred tax to autonomous regions, the Directorate-General of taxes, through its departments and services and the services of the State continue to ensure the realization of the administrative procedures required for the performance of the mentioned power, including those relating to liquidation and collection of the taxes which constitute my own recipe of the autonomous regions.

Article 67 43 adoption of Official Plan of public accounting 1-the autonomous regions should adopt, in the maximum period of two years after the date of entry into force of this law, the Official Plan of public accounting and respective sectoral accounts plans. 2-the Government of the Republic offers to the autonomous regions the integrated computer applications, as well as the technical assistance necessary for the fulfilment of the provisions of this article. Article 68 set Standard is revoked the law No. 13/98, of 24 February, and its amendments, without prejudice to article 64. Article 69 Review this law is revised in the year 2015. Article 70 Hits the money transfers payable arising from the application of the provisions of articles 5, paragraph 6, 30 and 31 of Act No. 13/98, of 24 February, are handed over to autonomous regions through the conclusion of a settlement agreement. Article 71 allocation of savings of the organic law nº 1/2007 State savings resulting from the application of paragraph artigos37 and 38 of organic law No. 1/2007, of February 19, determined by reference to the amounts transferred in the year 2006, are earmarked for the financing of projects of common interest in the region. Article 72 entry into force this law shall enter into force on 1 January 2010.