Introduces A Scheme For The Taxation Of Capital Gains From The Sale Of Securities At A Rate Of 20% With Exemption For Small Investors, And Amending The Code Of The Personal Income Tax And The Tax Benefits Statute

Original Language Title: Introduz um regime de tributação das mais-valias mobiliárias à taxa de 20% com regime de isenção para os pequenos investidores, e altera o Código do Imposto sobre o Rendimento das Pessoas Singulares e o Estatuto dos Benefícios Fiscais

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=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c31684a4c33526c6548527663793977634777784e6931595353356b62324d3d&fich=ppl16-XI.doc&Inline=false

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 16/XI explanatory memorandum the 18TH Constitutional Government programme States that, in order to improve fairness in obtaining resources and achieve a more equitable distribution of the tax burden between taxpayers, must ' approaching the system of taxation of capital gains from the sale of securities in most OECD countries». The stability and growth Programme for 2010-2013 provides for the taxation of capital gains on the sale of securities as fair and equitable sharing of the economic recovery effort and consolidation of public accounts. The State budget for the year 2010 had already pioneered in this sense to standardize the final withholding tax rates of personal income tax (IRS), incidents on investment income, the single value of 20%. This Bill establishes the general rule of taxation of capital gains from the sale of securities and the concomitant repeal of the current tax exclusion for IRS purposes first, introduced a system of taxation of capital gains from the sale of securities at a rate of 20%, with an exemption for annual earnings up to € 500 as a result of the balance between the more and the less capital gains usually obtained by retail investors. Secondly, in order to ensure an efficient crossing of data and combat fraud and tax evasion set out specific obligations that carry on certain entities.

Finally, it is repealed the tax exclusion standard so far in paragraph 2 article 10 of the IRS Code that was heading to the capital gains arising from the sale of shares held for more than 12 months, as well as bonds and other debt securities.

PRESIDENCY of the COUNCIL of MINISTERS So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following proposal of law: article 1 Amendment to the code of the personal income tax articles 72, 119 and 123 of the code of the personal income tax, as designated by the IRS code approved by Decree-Law No. 422-A/88 of 30 November, are replaced by the following: ' article 72  ...  1 - ... . 2 - ... . 3 - ... . 4-the positive balance between capital gains and capital losses resulting from the operations provided for in paragraph 1 (b)), and), f) and (g)) of paragraph 1 of article 10, is taxed at the rate of 20%. 5 - ... . 6 - ... . 7 - ... . 8 - ... . 9 - ... . 10 - ... . PRESIDENCY of the COUNCIL of MINISTERS Article 119  ...  1 - […]. 2 - ... . 3 - ... . 4 - ... . 5 - ... . 6 - ... . 7 - ... . 8 - ... . 9 - ... . 10 - ... . 11 - ... . 12-the following entities, whenever performing the operations provided for in paragraph 1 (b)), and), f) and (g)) of paragraph 1 of article 10, are required to deliver to the Directorate-General of taxes, by the end of the month of January of each year, a statement on an official form which included, inter alia, the date of sale, the value of achievement and the beneficiary of the income : a) credit institutions and financial corporations, in relation to transactions carried out with your intervention; b) debtors that value, in relation to transactions carried out with the intervention of notaries and other officials or entities that perform notarial functions, as well as entities and professionals responsible for authenticating PRESIDENCY of the COUNCIL of MINISTERS private documents, when you don't show the preceding paragraph applies; c) The debtors that value which have or should have organised accounting, when you don't show the above. Article 123  ...  notaries, clerks, Secretaries conservatives and technical and professional bodies with competence to authenticate private documents containing acts or contracts subject to land registry or involved in the operations provided for in paragraph 1 (b)), and), f) and (g)) of paragraph 1 of article 10 are obliged to send to the Directorate-General of taxes, preferably by electronic means, until the day 10 of each month , list of acts for you practiced and decisions which have become res judicata in the previous month of your Office processes that are likely to produce income subject to IRS, through an official form.» Article 2 Repeal of provisions under the IRS Code Are repealed paragraphs 2, 11 and 12 of article 10 of the IRS Code, approved by Decree-Law No. 422-A/88 of 30 November. Article 3 amendment to the Tax benefits statute article 22 of the Statute of tax benefits, as designated by EBF, approved by Decree-Law No. 215/89, of July 1, is replaced by the following: ' article 22 investment funds, PRESIDENCY of the COUNCIL of MINISTERS 1- ... . 2 - ... . 3 - ... . 4 - ... . 5 - ... . 6 - ... . 7 - ... . 8 - ... . 9 - ... . 10 - ... . 11 - ... . 12 - ... . 13 - ... . 14 - ... . 15 - ... . 16-the positive balance between capital gains and capital losses resulting from the sale of shares held by investment funds for more than 12 months, bonds and other debt securities, are excluded from taxation, except when obtained by mixed investment funds or closed in a particular subscription to which apply the procedures laid down in the IRS code.» Article 4 an addition to the Tax benefits statute PRESIDENCY of the COUNCIL of MINISTERS is added to the Tax benefits Statute, approved by Decree-Law No. 215/89, of 1 July, article 74, with the following text:% quot% article 74 small investors Is exempt from FEDERAL INCOME TAX, to the annual amount of € 500, the positive balance between capital gains and capital losses resulting from the sale of shares obligations and other debt securities, obtained by residents in Portuguese territory. Article 5 entry into force this law shall enter into force on the day following your publication. Seen and approved by the Council of Ministers of 22 April 2010 the Prime Minister the Minister of Parliamentary Affairs Minister Presidency