Approves A Set Of Additional Fiscal Consolidation Measures Designed To Strengthen And Accelerate The Reduction Of Excessive Deficit And Control Debt Growth Foreseen In The Stability And Growth Program (Pec)

Original Language Title: Aprova um conjunto de medidas adicionais de consolidação orçamental que visam reforçar e acelerar a redução de défice excessivo e o controlo do crescimento da dívida pública previstos no Programa de Estabilidade e Crescimento (PEC)

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Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c31684a4c33526c6548527663793977634777794e6931595353356b62324d3d&fich=ppl26-XI.doc&Inline=false

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st explanatory memorandum within the framework of a common policy in the euro area in order to restore confidence to the financial markets and their agents and the speculative attack on the single currency, the Portuguese Government has decided to reduce the budget deficit from 9.3% to 7.3% in the current year of 2010. For this purpose, and because the stability and growth program (PEC) for 2010-2013 foresaw, for 2010, the reduction of the deficit from 9.3% to 8.3%, the Government decided to adopt a set of additional measures that show. The new targets for the public deficit become to 7.3% of GDP in 2010 (formerly 8.3%) and 4.6% of GDP in 2011 (formerly 6.6%). Thus, it becomes necessary to propose to Parliament the adoption of a set of measures motivated by general interest, exceptional financial and economic juncture of instability and speculative attacks on financial markets affecting several European Union States, to which Portugal is not oblivious. In this context, and in addition to the measures of the expenditure side, the Government considers it necessary to adopt urgently a further set of tax measures, so as to strengthen and accelerate budgetary consolidation strategy referred to in PEC 2010-2013. So, if: (i)) increased 1 percentage point in all the VAT rates, the normal, the intermediate and the reduced; II) additional taxation for IRS purposes, by 1 percentage point increase in rates applicable to the tax General 3rd tier of income and 1.5 percentage points from the fourth grade, as well as a corresponding increase in withholding taxes from IRS; III) additional taxation of CORPORATE INCOME TAX, applying a surcharge corresponding to a spill of 2.5 percentage points on companies whose taxable profit exceeds EUR 2 million; and iv) the worsening of tax stamp granting consumer credit.

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st with regard to additional taxation for IRS purposes, she is fulfilled through the establishment of a new General taxes table, which focus on all incomes formally of 2010 and therefore do not affect taxation situations pretéritas legal consolidated fiscally. In addition, to ensure that taxpayers only suffer increased corresponding to seven months of the year, the additional fees of 1% and 1.5% are subject to a weighting, applying in 2010 just in 7/12 of its value. Only in the context of the 2011 State budget if shall introduce the necessary adjustments to the table to reflect the full implementation of the new rates next year. It is expected a reduction of transfers to the State Business Sector by strengthening and rationalization measures of financial sustainability, as well as the reduction of 5% of the remuneration of holders of political office, public managers and assimilated. Strengthening expenditure reduction passes the strict control of the recruitment of workers in public functions, as well as by a set of measures of budgetary control to consecrate specifically in the Ordinance that executes the State budget for 2010, in particular, through the strengthening of the rule of budgetary balance in services and in autonomous funds and the share of appropriations and reductions relating to intermediate consumption. As regards the reduction of central State budget transfers to regional and local administrations, this is done under the budgetary Framework, a strengthened value law, allows, in its article 88, which are set below the transfers provided for in Local Finance and Law on Regional finances Law, special circumstances arise that jeopardise the stability and growth Programme , as are the circumstances verified at present.

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st the possibility of planned reduction depends always of exceptional circumstances imperiously checking required by strict adherence to obligations under the stability and growth Program and the principles of proportionality, not will and mutual solidarity, and lacks prior constitutional bodies hearing and legally competent sub-sectors involved. The hearing will be promoted by the Assembly of the Republic of the National Association of Portuguese municipalities and the National Association of Parishes. So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following Bill: chapter I section I tax measures personal income tax article 1 Amendment to the code of the personal income tax articles 68, 71, 101 and 102 of the code of personal income tax abbreviated designated by the IRS code, approved by Decree-Law No. 442-A/88 of 30 November, are replaced by the following: ' article 68  ...  1 - ... : PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st taxable income (euros) Rates (percentage) Normal (A) (B) up to 4 793 11.08 11.080 over 4 793 up 13.58 11.927 7 250 of more than 7 250 up to 17 979 24.08 19.179 over 17 979 up 34.88 28.053 41 349 more than 41 349 to 37.38 30.944 59 926 Of more than 59 926 to 40.88 31.667 64 623 Of more than up to 150 000 64 623 42.88 38.049 exceeding 150 000 45.88 2- ...  . Article 71.  1-are subject to final withholding tax, to 21.5% withholding tax, the following income obtained in Portuguese territory: a) [...]; b) […];

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st c) [...]. 2-are subject to final withholding tax, to 21.5% withholding tax, income from securities paid or made available to the holders of its shares/units, residents in Portuguese territory, payable by entities that have no home here you can impute the payment, through entities that have been mandated by borrowers or holders or act on behalf of one or other. 3 - […]. 4-are subject to final withholding tax, to 21.5% withholding tax, the following income obtained in Portuguese territory by non-residents: a) [...]; b) […]; c) […]; d) […]. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9 - […]. 10-[...]. 11-[...].

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st article 101(1)  ...  1-[...]: a) 16.5%, in the case of category B income referred to in subparagraph (c)) of paragraph 1 of article 3, of the income categories E and F or accretions to wealth referred to in paragraph 1 (b)) and c) of paragraph 1 of article 9; b) 21.5%, in the case of income arising from occupational activities specifically provided for in the list referred to in article 151; c) 11.5%, in the case of category B income referred to in subparagraph (b)) of paragraph 1 and points (a) to (g)) and i) of paragraph 2 of article 3, not included in the preceding paragraph. 2 - […]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7 - […]. Article 102  ...  1 - […].

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st 2-the totality of the payments on account is equal to 76.5% of the amount calculated on the basis of the following formula: [...]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7 - […].» Section II corporate income tax article 2 Amendment to code of corporate income tax Are added to the Code of the corporate income tax, approved by Decree-Law No. 442-B/88 of 30 November, articles 87-A, 104 and 105-A, to read as follows: «article 87-the State surcharge 1-On the portion of taxable profit exceeding € 2 000 000 subject and not exempt from corporate income tax computed by taxpayers resident in Portuguese territory engaged in the activity of a commercial, industrial or agricultural nature and by non-residents with a permanent establishment in Portuguese territory, charged an additional fee of 2.5%.

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st


2-When the special regime is applicable to taxation of groups of companies, the rate referred to in the preceding paragraph focuses on the taxable profits determined on periodic statement of each of the companies in the group, including the dominant society. 3-every taxable person referred to in the preceding paragraphs shall carry out the liquidation of the additional surcharge on income periodic declaration referred to in article 120. Article 104-the Payment of State surcharge 1-entities carrying on the activity of a commercial, industrial or agricultural nature and non-residents with a permanent establishment must proceed to the payment of State surcharge in accordance with the following: a) In three additional payments on account, in accordance with the rules laid down in point (a)) of paragraph 1 of article 104; b) until the last day of the period set for the submission of the periodic Declaration of income referred to in article 120, for the difference that exists between the total value of State surcharge calculated there and charges delivered on account in accordance with article 105-BC) until the day of sending the replacement declaration referred to in article 122 , the difference that exists between the total value of State surcharge then calculated and the amounts already paid. 2-the refund to the taxpayer, by the respective difference, when the value of the State surcharge calculated in the statement is less than the value of the additional payments on account.

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st 3-apply the rules of payment of State surcharge not mentioned in this article the rules for payment of corporate income tax, with the necessary adaptations. Article 105-the calculation of the additional payment on account 1-the entities obliged to make payments on account and special payments for care should pay additional care in cases where the previous taxation period was due State surcharge in accordance with the procedure referred to in article 87-a. 2-the value of the additional payments for account payable in accordance with subparagraph (a)) of paragraph 1 of article 104-A is equal to 2% of the portion of taxable profit more than € 2 000 000 on the previous taxation period. 3-When the special regime is applicable to taxation of groups of companies, is due for an added fee due for each of the companies in the group, including the parent company.» Section III value added tax article 3 Amendment to the code of value added tax articles 18 and 49 of the code of value added tax, approved by Decree-Law No. 394-B/84 of 26 December, briefly referred to as the VAT code, shall be replaced by the following: PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st ' article 18 [...] 1-[...]: a) for imports, transfers of goods and services listed in list I annexed to this diploma, the rate of 6%; b) for imports, transfers of goods and services in list II annexed to this diploma, the rate of 13%; (c)) for the remaining imports, transfers of goods and services, the rate of 21%. 2 - […]. 3-the fees referred to in subparagraphs (a)), b) and (c)) of paragraph 1 are, respectively, of 4%, 9% and 15% for operations that, in accordance with special legislation, consider themselves carried out in the autonomous regions of the Azores and Madeira. 4 - […]. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9 - […].



PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st article 49 [...] In cases where the billing or your registration will be processed by values with tax included, in accordance with the preceding articles, the establishment of the corresponding tax basis is obtained by dividing those values by 106 when the tax rate is 6%, by 113 when the tax rate is 13%, and by 121 when the tax rate is 21% by multiplying the quotient by 100 and rounding the result, by default or by excess, to the nearest unit, without prejudice to the adoption of any other method leading to identical result.» Article 4 amendment to Decree-Law No. 347/85, of August 23 article 1 of Decree-Law No. 347/85, of August 23 is replaced by the following: ' article 1-1 are fixed in 4%, 9% and 15%, respectively, the rate of the value added tax referred to in points (a)), b) and (c)) of paragraph 1 of article 18 of the code on the added value approved by Decree-Law No. 394-B/84 of 26 December, to be applied to transfers of goods and services that consider themselves carried out in the autonomous regions of the Azores and Madeira and the imports whose customs clearance takes place in the same Regions. 2 - […]. 3 - […].»

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st section IV stamp duty article 5 amendment of the General stamp duty Table the table 17 general budget stamp duty, attached to the stamp duty Code, approved by law No. 150/99, of 11 September, is replaced by the following: «17-[...]. 17.1 – the use of credit, in the form of funds, goods and other values, as a result of the granting of credit in any capacity except in the cases referred to in the budget, including 17.2 transfer of credits, factoring and Treasury operations when involving any type of funding to the transferee, adherent or borrower, always, as new credit granting the extension of the term of the contract-on its value According to deadline: 17.1. 1 – […]. 17.1.2-[...]. 17.1.3-[...]. 17.1.4-[...]. 17.2 – for the use of credit as a result of the granting of credit in connection with credit agreements to consumers covered by the Decree-Law No. 133/2009, of June 2, always, as new credit granting the extension of the term of the contract-about its value, by reference to the time: PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st 17.2. 1-credit for period of less than one year-for each month or fraction-0.07%. 17.2.2-term credit equal to or exceeding one year-0.90%. 17.2.3-term credit less than five years-1%. 17.2.4-used Credit in the form of current account, bank overdraft or any other form in which the period of use is not determined or determinable, over the monthly average obtained by sum of the balances in debt calculated daily, during the month divided by 30-0.07%. 17.3-[previous verba 17.2].» Chapter II Business Sector of the State article 6 1-Cativações Are captives of 300 000 000 € in Chapter 60 of the Ministry of finance and public administration to transfer from the State budget, particularly for companies that integrate the business sector of the State, whether by way of compensatory allowance or of increased capital and subsidies of any kind. 2-the descativação of funds referred to in the preceding paragraph may be carried out only for exceptional reasons, being subject to permission from the Member of Government responsible for the area of finance, which decides the amounts to deactivate in function of the evolution of budget execution.



PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st Chapter III article 7 Regulators run Balances and retained earnings Are the 2010 State general revenue, 85% of the total value of the balances of retained earnings and calculated at the end of the financial year of 2009 of the regulatory authorities, namely: the) Bank of Portugal; b) Instituto de Seguros de Portugal; c) securities market Commission; d) competition authority; and health regulatory authority); f) regulatory authority of energy services; g) Food and economic Safety Authority; h) ICP-National Communications Authority; I) Regulatory Authority for the media; j) National Commission for Data Protection; l) Office of mobility and land transport, I. P.; m) of water and Waste regulatory authority; n) Institute of construction and real estate, I. P.

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st


Chapter IV Workers in Public Functions article 8 1 recruitment of workers control-organs and the services covered by the scope of the objective defined in article 3 of law No 12-A/2008, of 27 February, cannot make the opening of concursais procedures with a view to the establishment of legal relations of public employment indefinitely, determined or determinable for General or specific career and careers that have not yet been subject to review, or decision to subsistence, intended for candidates who do not possess a legal relationship of public employment for an indefinite period previously established, without prejudice to the next paragraph. 2-In exceptional cases, duly substantiated, the members of the Government responsible for the areas of finance and public administration may, under and in accordance with the provisions of paragraphs 6 and 7 of article 6 of law No 12-A/2008, of 27 February, authorizing the opening of concursais procedures referred to in the preceding paragraph, if the case the maximum number of workers to recruit. 3-the provisions of paragraph 1 shall not apply to concursais procedures which, at the date of entry into force of this law, have already been subject to a favourable opinion on the terms and for the purposes of paragraphs 6 and 7 of article 6 of law No 12-A/2008, of 27 February. 4-the instruments necessary for the application of the provisions of this article, including the terms and elements that must integrate applications for exceptional authorisation referred to in paragraph 2, are approved by order of the Government referred to the same number.

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st 5-all agencies and services responsible for carrying out inspections and audit should, within the framework of actions that will run in the organs and services covered by the provisions of this article, proceed to the identification of situations which may constitute violations of the provisions of this article and shall inform the members of the Government referred to in paragraph 2. 6-without prejudice to the full production of its effects during the time in which they have been running, the hirings and appointments made as a result of workers concursais procedures carried out in violation of the provisions of this article shall be null and void and do incur the perpetrators in disciplinary and financial liability. 7-for the purposes of the implementation of the financial responsibility referred to in the preceding paragraph is considered, in particular, all payments made to employees and contractors named in violation of the provisions of this article as a result of this violation and, as such, undue payments. 8-the provisions of this article has exceptional nature and prevails over all legal provisions, General or specific, contrary. Article 9 control of the recruitment of workers in local and regional governments 1-application of the provisions of the previous article bodies and regional administrations and local services shall be carried out with the necessary adaptations, in particular as regards the administrative powers of the corresponding government agencies themselves. 2-in the case of local authorities, the exceptional recruitment depends on the verification of the following cumulative requirements: PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st the) demonstration of the existence of relevant public interest in recruitment, the weighted human resources shortage in the sector of activity of the recruitment as well as the overall development of the human resources of the municipality or parish where the service integrates; b) Impossibility of occupying the jobs in question under the conditions laid down in paragraphs 1 to 5 of article 6 of law No 12-A/2008, of 27 February, or by use of placed in situation of special mobility or other instruments of mobility. 3-the authorization referred to in paragraph 2 of the preceding article, the local authorities, as the case may be, the entities referred to in paragraph 2 of article 3 of Decree-Law No. 209/2009, of September 3, and depends on a prior opinion in favour of the entities referred to in paragraph 2 of article 2 of the same decree-law, as the case may be. 4-local authorities inform the members of the Government responsible for the areas of finance and public administration of the intention to proceed with the opening of the tendering procedure for the recruitment of workers referred to in paragraph 2 of the preceding article, at least 45 days in the face of its publicity, indicating the grounds concerning the verification of the requirements set out in (a)) and (b)) of paragraph 2. 5-If the members of the Government responsible for the areas of finance and Public Administration consider not having been demonstrated compliance with the requirements set out in paragraph 2, shall inform the concerned authorities, courts, the dissenting opinion in the face of intention communicated, within 30 days after receipt of the information referred to in the preceding paragraph. 6-Existing communication of dissenting opinion referred to in the preceding paragraph, the municipalities that decide to proceed with the publication of the bankruptcy procedure for the recruitment of workers to provide the members of the Government responsible for the areas of finance and public administration such a decision.

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st 7-the advertising of tendering in the situation provided for in the preceding paragraph means the retention, transfers from the State budget to the local authority concerned, of similar amount budgeted for the recruitment process was started, which will only be subsequently transferred should verify that the city complied with the legal limit of indebtedness. 8-Without prejudice to the application, mutatis mutandis, the provisions of paragraphs 5, 6 and 7 of the previous article, are also void the signings and the workers appointments made as a result of concursais procedures carried out in violation of the provisions of paragraph 4. 9-local authorities refer to the Directorate-General for local authorities, through the integrated information System of Local Administration, the information referred to in paragraph 5 of the article 50 of law No. 2/2007, of 15 January. 10-in the event of breach of the duty provided for in the preceding paragraph, shall apply the provisions of paragraph 7 of article 50 of law No. 2/2007, of 15 January. 11-this article has exceptional nature and prevails over all legal provisions, General or specific, contrary. Chapter V holders of political office, public managers and similar article 10 Reduction of the salary of holders of political office 1-monthly gross salary of holders of political office is reduced to 5% in exceptional cases. 2-for the purposes of this law, are holders of political offices: a) the President of the Republic;

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st b) the President of the Assembly of the Republic; c) the Prime Minister; d) members to Parliament; and) members of the Government; f) representatives of the Republic in the autonomous regions; g) members to regional Legislative Assemblies; h) the members of the regional Governments; I) the Governor and Lieutenant Governor; j) the President and full-time Councillor of the municipal councils. Article 11 reduction of salaries of public managers and similar 1-total gross monthly fixed remuneration of public managers executives and non-executive, including those belonging to the public sector, local and regional authorities, and assimilated to public managers, is reduced in exceptional cases in 5%. 2-for the purposes of this article, shall be deemed to be assimilated to public managers members of the management or administrative boards of public institutions, including the special arrangements, with the exception of those whose status determines that the remuneration of its members is established by reference to the remuneration for the post of Director-General.



PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st


Chapter VI Autonomous Regions and local authorities article 12 Reduction of transfers to local authorities under article 88 of the law of budgetary framework approved by law No. 91/2001, republished by law No. 48/2004, 24 August, are reduced by € 100 000 000 transfers from the State budget (OE) to local authorities. Article 13 Reduction of transfers to the autonomous regions under article 88 of the law of budgetary framework approved by law No. 91/2001, republished by law No. 48/2004, of August 24, shall be reduced by: a) € 2 500 000 transfers from the State budget for the autonomous region of the Azores; b) € 2 500 000 transfers from the State budget for the autonomous region of Madeira. Article 14 Limits of indebtedness of local authorities-1 pursuant to article 87 of the law of budgetary framework, approved by law No. 91/2001, republished by law No. 48/2004, 24 August, local authorities may agree contractually new loans, including all forms of debt, resulting in an increase in its net debt. 2-the provisions of the preceding paragraph shall be without prejudice to the provisions of paragraphs 5 to 7 of article 39 of law No. 2/2007, of 15 January, and in subparagraph (c)) of article 40 of the law No. 3-B/2010 of 28 April.

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st 3-Can excepcionar himself of paragraph 1 other loans and amortization, authorize by order the Member of Government responsible for the area of finance, in duly substantiated exceptional cases. Article 15 failure to comply with the limits of indebtedness under paragraph 4 of article 92 of the law of budgetary framework approved by law No. 91/2001, republished by law No. 48/2004, 24 August, failure to comply with the limits of indebtedness secured in the previous article and in paragraph 1 of article 83 of law No. 3-B/2010 of 28 April determines the reduction, in proportion to the non-compliance of shipments to be carried out. Article 16 Amendment to maps of law No. 3-B/2010 of 28 April the changes arising from this law are laid down in the 18th and 19th maps annexed to this law, which shall form an integral part, and which override the corresponding maps referred to in article 1 of the law No. 3-B/2010 of 28 April. Chapter VII final provisions article 17 entry into force 1-this law shall enter into force on the day following that of its publication, except as provided in the following paragraphs.

PRESIDENCY of the COUNCIL of MINISTERS draft law No. 26/XI/1st 2-The amendments made by this Act to the VAT code and Decree-Law No. 347/85, of 23 August, come into force on July 1 2010. 3-in the case of transfers of goods and services continued in nature resulting from contracts which give rise to successive payments, the changes introduced in this Act referred to in the preceding paragraph only apply to transactions carried out from the date there, derogate from, for this purpose, the provisions of paragraph 9 of article 18 of the VAT code. 4-the provisions of articles 10 and 11 shall take effect from 1 June 2010.

Seen and approved by the Council of Ministers of 20 May 2010 the Prime Minister the Minister of Parliamentary Affairs Minister Presidency