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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

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CHAIR OF THE COUNCIL OF MINISTERS

Proposed Law No. 16 /XI

Exhibition of Motives

The Programme of the XVIII Constitutional Government establishes that in order to improve the equity

in obtaining resources and obtaining a fairer allocation of the tax burden among the

taxpayers, should " approximate the taxation regime of the most-valued mobiliary

practiced in the generality of OECD countries ".

The Stability and Growth Programme for 2010-2013 also provides for the taxation of

more furnished valuations as a fair and equal apportionment measure of the effort of

recovery of the economy and consolidation of public accounts.

The State Budget Act for the year 2010 had already opened the way in this direction

by unifying the liberatory rates of the Singular Persons ' Income Tax

(IRS), incidents essentially on capital income, in the single value of 20%.

The present Proposal for Law enshrines the general rule of taxation of the most-valued furnishioners

and the concomitant revocation of the tax-exclusion regime currently beholdant in

IRS headquarters

First, a scheme for taxation of the most-valued mobiliaries at the rate is introduced.

of 20%, with an exemption scheme for annual gains up to € 500 resulting from the balance between

the most and the least valuable ones, usually obtained by small investors.

Second, for the purpose of ensuring efficient intersecting of data and

combat tax evasion and fraud establish specific communication obligations

that impend about certain entities.

Finally, the hitherto constant tax exclusion standard of paragraph 2 is repealed.

article 10 of the IRS Code addressing the most-valuable arising from the onerous disposal

of shares held for more than 12 months, as well as bonds and other debt securities.

CHAIR OF THE COUNCIL OF MINISTERS

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

Article 1.

Amendment to the Income Tax Code of Singular People

Articles 72, 119 and 123 of the Income Tax Code of Persons

Singular, abbreviated by the IRS Code, approved by the Decree-Law

n 422-A/88 of November 30, shall be replaced by the following:

" Article 72.

...XX_ENCODE_CASE_One ...

1-percent ... ago.

2-percent ... ago.

3-percent ... ago.

4-The positive balance between the most-valuable and under-valued, resulting from the

operations provided for in points b ), and ), f) and g) of Article 10 (1), is

taxed at the rate of 20%.

5-percent ... ago.

6-percent ... ago.

7-percent ... ago.

8-percent ... ago.

9-percent ... ago.

10-percent ... ago.

CHAIR OF THE COUNCIL OF MINISTERS

Article 119.

...XX_ENCODE_CASE_One ...

1-[...].

2-percent ... ago.

3-percent ... ago.

4-percent ... ago.

5-percent ... ago.

6-percent ... ago.

7-percent ... ago.

8-percent ... ago.

9-percent ... ago.

10-percent ... ago.

11-percent ... ago.

12-The following entities, where they carry out the operations provided for in the

points b), e), f) and g) of Article 10 (1), are obliged to deliver to the

Directorate-General for Taxes, until the end of the month of January of each year,

an official model statement from which they construct, in particular, the

date of the disposal, the value of achievement and the beneficiary of the yield:

a) Credit institutions and financial companies, relatively

operations carried out with your intervention;

b) The entities deveer of that value, concerning the operations

carried out with the intervention of notaries and other officials or of

entities performing notarial functions, as well as of

entities and professionals with competence to authenticate

CHAIR OF THE COUNCIL OF MINISTERS

particular documents, when it does not show applicable to (

previous;

c) The entities debunked from that value that they have or should

have organized accounting, when you do not show up

applicable the previous points.

Article 123.

...XX_ENCODE_CASE_One ...

The notaries, conservatives, judicial secretaries, technical secretaries of

justice and entities and professionals with competence to authenticate

particular documents that title deeds or contracts subject to registration

predial or to intervene in the operations provided for in the ( b ), and ), f ) and g ) from the

n Article 10 (1) are obliged to send to the Directorate General of Taxes,

preferentially by electronic means, up to the day 10 of each month, relation of the

acts per se practiced and decisions carried forward on trial in the previous month

of the processes to his post that are likely to produce income

subject to IRS, through official model. "

Article 2.

Revocation of provisions under the IRS Code

The paragraphs 2, 11 and 12 of Article 10 of the IRS Code, approved by the IRS, are repealed.

Decree-Law No 422-A/88 of November 30.

Article 3.

Amendment to the Status of Tax Benefits

Article 22 of the Statute of Tax Benefits, abbreviated by EBF,

approved by Decree-Law No. 215/89 of July 1, it is replaced by the following:

" Article 22.

Investment funds

CHAIR OF THE COUNCIL OF MINISTERS

1-percent ... ago.

2-percent ... ago.

3-percent ... ago.

4-percent ... ago.

5-percent ... ago.

6-percent ... ago.

7-percent ... ago.

8-percent ... ago.

9-percent ... ago.

10-percent ... ago.

11-percent ... ago.

12-percent ... ago.

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14-percent ... ago.

15-percent ... ago.

16-The positive balance between the most-valuable and less-valuable ones resulting from the

divestment of shares held by investment funds during more than

12 months, bonds and other debt securities, is excluded from

taxation, except when obtained by mixed investment funds or

private underwriting closed to which the rules provided for

in the IRS Code. "

Article 4.

Addition to the Status of Tax Benefits

CHAIR OF THE COUNCIL OF MINISTERS

It is added to the Status of Fiscal Benefits, approved by the Decree-Law No. 215/89, of 1

of July, Article 74, with the following wording:

" Article 74.

Small Investors

It is exempt from IRS, up to the annual value of € 500, the positive balance between the most-

worthless and less-valuable income resulting from the disposal of shares, bonds and

other debt securities, obtained by residents in Portuguese territory.

Article 5.

Entry into force

This Law shall come into force on the day following that of its publication.

Seen and approved in Council of Ministers of April 22, 2010

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs