The Corporate Taxation Reform, Changing The Code Of The Personal Income Tax, Approved By Decree-Law No. 442-B/88 Of 30 November, The Implementing Decree No. 25/2009, Of September 14, And The Tax Code

Original Language Title: Procede à reforma da tributação das sociedades, alterando o Código do Imposto sobre o Rendimento das Pessoas Coletivas, aprovado pelo Decreto-Lei n.º 442-B/88, de 30 de novembro, o Decreto Regulamentar n.º 25/2009, de 14 de setembro, e o Código do Imposto

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PRESIDENCY of the COUNCIL of MINISTERS 1 Proposal of law No. 175/XII explanatory memorandum the reform of corporate income tax (IRC) Collective is a priority of the Government since the beginning of the parliamentary term. This reform consists, first, of the Government's Programme, which aims to reform as crucial to strengthen the competitiveness and internationalisation of Portuguese companies. The priority of the reform of IRC is based on the very significant impact that this type of reform has in the promotion of sustainable economic growth based on private investment and internationalization of the economy (whether through foreign direct investment, both through the internationalisation of Portuguese companies). In fact, today there is a broad international consensus that IRC is the tax with the most significant impact on the investment decisions of economic agents. Thus, various international organizations, in a number of studies on this issue, confirm that the direct taxation on businesses is the fiscal instrument best suited for promoting investment in General and foreign direct investment in particular. The investment is the decisive element for the economic recovery of the country. In Portugal, the investment has been decreasing over the past decade and, in particular, in recent years. At this time it is therefore vital to stimulate investment in order to reverse this negative cycle and begin a new phase of economic growth and job creation. The tax factors are not the only ones to determine the investment decision. However, a deep and comprehensive reform of the IRC, alongside the other structural reforms passed by this Government, plays a decisive role in increasing the competitiveness of the Portuguese economy and in the affirmation of Portugal as foreign investment-friendly destination.

PRESIDENCY of the COUNCIL of MINISTERS Also 2 as regards the internationalization of enterprises, it is essential that a small open economy, as is the case for Portugal, bet on tax schemes that promote the investment of domestic companies in foreign markets. These tax regimes should not only allow the investment of domestic companies in foreign markets, but also attract multinational companies that use the country as a destination for their investments. Thus, this framework makes this proposal for reform of the IRC in a decisive element for the national economic recovery. For this purpose, the reform of the IRC aims to fix a set of chronic problems that are detrimental to the competitiveness of our tax system. Therefore, the high level of applicable fees. Currently, the rate of IRC is 25%. To this there are the Municipal Surcharge, whose rate of up to 1.5% of taxable income and the State surcharge that focuses, at a rate of 3% on taxable income exceeding 1, 5 m € and up to 7, 5 m € and 5% on taxable income greater than 7, 5 m €. In the context of the reform of the IRC proposed a gradual reduction of the CORPORATE INCOME TAX rate to 23 percent in 2014, with the ultimate goal of the fix between 17% and 19% in 2016. At the same time, it is proposed the Elimination of municipal and State surcharge Surcharge in 2018, so that the tax rates in Portugal are competitive in international terms, in particular with the countries that compete with Portugal in the attraction of foreign investment. Additionally, the reform aims at promoting the simplification of the fiscal system to significantly reduce the reporting obligations and ancillary obligations. Currently the companies are subject to a total of 68 reporting obligations and accessory. Portugal is the Fourth EU country in which compliance costs appear higher. It is estimated that, on average, the Portuguese companies spend 23 additional hours per year in relation to the European average in the fulfilment of the respective tax obligations.

In this context, the elimination or reduction of about a third of the PRESIDENCY of the COUNCIL of MINISTERS obligations 3 incumbent on businesses to declarative, simplifying a significant set of rules to comply with those obligations, without calling into question the mechanisms needed to effectively combat tax evasion and the underground economy. As a measure of promoting smaller companies, the reform proposes the creation of a simplified system for small and medium-sized enterprises. At this moment, the regime of IRC applies without distinction to all companies in Portugal, regardless of your size and turnover. This reality requires a microenterprise is subject to compliance with the same tax that a company listed on the stock exchange. The reform proposes a simplified optional scheme, to which only join companies that so wish, apply to companies with turnover not exceeding € 200,000.00 and balance sheet total not exceeding € 500,000.00, potentially covering more than 300,000 companies (70% of the entrepreneurial tissue). At the same time, and in such a way as to equate the two schemes, amendments are made to the simplified scheme of IRS in like manner (in terms of coefficients, both in terms of turnover ceiling), covering approximately 160,000 of business people. On the other side and conscious that the internationalization of the national economy is critical to the sustainability and growth of the Portuguese corporate sector, we propose a set of measures that facilitate that internationalization and promote the competitiveness of Portuguese companies globally. So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following Bill, with priority and urgency request: article 1 4 PRESIDENCY of the COUNCIL of MINISTERS object to this law the reform of corporate taxation, changing the income tax Code of Collective People (CIRC) approved by Decree-Law No. 442-B/88 of 30 November and the Regulatory Decree No. 25/2009, of September 14, as amended by law No 66-B/December 30, 2011. Article 2 amendment to income tax Code of Collective People articles 6, 8, 14, 15, 16, 18 to 24, 26 to 34, 40, 41, 43, 46, 48, 51 to 55, 63, 66 to 71, 73 to 76, 78, 81, 83, 84, 87, 88, 90 to 94, 97, 98, 104 to 106, 118, 120, 123, 130 and 138 of the IRC code approved by Decree-Law No. 442-B/88 of 30 November, are replaced by the following:% quot% article 6 [...] 1 - […]. 2 - […]. 3 - […]. 4-[...]: the Society: 1 Professional)) the company incorporated to the exercise of a professional activity specifically provided for in the list of activities referred to in article 151 of the IRS code, in which all the partners are professional individuals of this activity; or, 2) society whose incomes come in more than 75%, PRESIDENCY of the COUNCIL of MINISTERS of 5 joint exercise or isolated from professional activities specifically provided for in article 151 of the IRS code, provided that, cumulatively, on any day of the tax period, the number of members does not exceed five, none of them are collective person of public law , and at least 75% of the share capital is held by professionals engaged in such activities, in whole or in part, through the society. b) […]; c) […]. 5-for the purposes of point (c)) of paragraph 1, shall not be regarded as simple societies administering the assets engaged in the activity of management of holdings in other companies and holding shares that meet the requirements set out in paragraph 1 of article 51 article 8 [...] 1-[...]. 2 - […]. 3-the option referred to in the preceding paragraph is extensible, fulfilled the conditions laid down in that paragraph, to other taxpayers, upon notification to the tax authority and customs made at least 60 days from the date of your home.



PRESIDENCY of the COUNCIL of MINISTERS 6 4-[...]: the early) in taxation, in which comprises the period elapsing between the date of commencing the activity, the seat or effective direction happens to be situated in Portuguese territory or if they begin to get that give rise to income subject to tax, as the case may be, and the end of the tax period; b) […]; c) […]; d) […]. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9 - […]. 10-[...]. 11-whenever, in the design of a merger or scission, is set a date from which the transactions of the companies to merge or split are treated for accounting purposes as made on the recipient company, the same date is considered relevant for tax purposes since it is a tax period coincides with that in the production of legal effects of the operation concerned.

12-When is applicable the provisions of the preceding paragraph, the PRESIDENCY of the COUNCIL of MINISTERS results 7


performed by companies to merge or split off during the period between the date set in the project and the date of the production of legal effects of the operation, are transferred for the purpose of being included in the taxable income of the recipient company for the same period of taxation in which would be considered by those companies. Article 14 [...] 1-[...]. 2 - […]. 3-are exempt from the profits and reserves an entity resident in Portuguese territory, subject to and not exempt from IRC or tax referred to in article 7 and not covered by the arrangements laid down in article 6, place at the disposal of an entity: a) is a resident: 1) in another Member State of the European Union; 2) in a Member State of the European economic area that is linked to administrative cooperation in the field of taxation equivalent to the established in the framework of the European Union; 3) in a State with which it has been celebrated for the avoidance of double taxation Convention, providing for administrative cooperation in the field of taxation equivalent to established within the European Union.

b) governed and not exempt from a tax referred to in article 2 of the PRESIDENCY of the COUNCIL of MINISTERS No. 2011 Policy 8/96/EU, of the Council of 30 November 2011, or a tax identical or substantially similar to IRC provided that, in the situations referred to in article 3 (a)) above, the legal rate applicable to the entity is not less than 60% of the IRC rate referred to in paragraph 1 of article 87; c) Holds direct, or directly or indirectly pursuant to paragraph 6 of article 69, a contribution of not less than 5% of the capital or of the voting rights of the entity that distributes the profits or reserves, continuously, during the 12 months prior to distribution, or, if held for less time, be maintained continuously during the time required to complete that period. 4-for the purposes of applying the arrangements provided for in the preceding paragraph must be made proof of compliance with the respective conditions, before the entity is obliged to perform the deduction at source, at no time prior to the date of the making available of the profits and reserves, and the evidence concerning the requirements set out in paragraph 1 (a)) and (b)) of the preceding paragraph be made through Declaration confirmed and authenticated by the competent tax authorities of the State of which he is a resident This entity, and to observe the provisions of article 119 of the IRS Code. 5-for the purposes of paragraph 3, the definition of resident entity that results from the respective State tax legislation and conventions designed to prevent double taxation.

6-the provisions of paragraphs 3 and 4 shall also apply to profits and reserves, PRESIDENCY of the COUNCIL of MINISTERS distributed 9 an entity resident in Portuguese territory, place at the disposal of a permanent establishment situated in another Member State of the European Union or the European economic area, of an entity which complies with the requirements laid down in (a)) c) of paragraph 3. 7-for the purposes of the preceding paragraph, the term permanent establishment any fixed installation through which a society exerts, in whole or in part, to your activity and is subject to tax under the Convention for the avoidance of double taxation or, in your absence, under the national law. 8 - […]. 9 - […]. 10-[Repealed]. 11-[Repealed]. 12-[...]. 13-[...]. 14-[...]. 15-[...]. 16-[...]. Article 15 [...] 1-[...]:) [...]; b) […];

PRESIDENCY of the COUNCIL of MINISTERS 10 c) [...]: 1) tax losses attributable to that permanent establishment, in accordance with article 52, mutatis mutandis, as well as the preceding the cessation of activity by virtue of no longer lie in Portuguese territory the headquarters and the effective direction, in proportion to the market value of assets affects a that permanent establishment; 2) […]; d) […]. 2 - […]. 3 - […]. Article 16 [...] 1-[...]. 2 - […]. 3-the determination of the collectable under the direct review, when is performed or correction object by the tax authority and customs, is the responsibility of the Director of finance at the headquarters area, actual direction or a permanent establishment of the taxable person, or of the Director of the unit of the major contributor in the cases that are object of fixes made for this in the performance of their duties , or employee in that for some of them is delegated competence. 4 - […]. Article 18 PRESIDENCY of the COUNCIL of MINISTERS 11 [...] 1-[...]. 2 - […]. 3 - […]. 4 - […]. 5-The revenue related to sales and services, as well as the costs relating to inventories and supplies and external services, are attributable to the tax period to which they relate for the nominal amount of the consideration. 6 - […]. 7 - […]. 8-The income and expenses, just like any other asset, recorded variations in the preparation of individual accounts as a result of the use of the equity method or, in the case of joint ventures that IRC taxable persons, the proportional consolidation method, do not compete for the determination of taxable income and the income of the distributed profits be allocated to the period of taxation in which it acquires the right to the same.

9-[...]: a) the financial instruments recognised at fair value the COUNCIL PRESIDENCY of 12 MINISTERS through results, since, in the case of equity instruments, have a price formed on a regulated market and the non-taxable person holds, directly or indirectly, an interest in 5% or more of the respective share capital; or b) [...]. 10-[...]. 11-[...]. 12-[...]. Article 19 [...] 1-the determination of results of construction contracts is made at the discretion of the percentage of completion. 2 - […]. 3-where in accordance with the accounting standards, the outcome of a construction contract cannot be estimated reliably, contract revenue is the total contract expenditures. 4 - […]. 5 - […]. 6 - […]. 7-[previous paragraph 3]. Article 20 Income gains and PRESIDENCY of the COUNCIL of MINISTERS 13 1-shall be considered income and gains arising from operations of any nature as a result of a regular or occasional action, basic or accessory purposes, namely: a) [...]; b) […]; c) […]; d) […]; e) […]; f) increase in fair value gains on financial instruments; g) won by increase of fair value in consumable biological assets other than forestry multiannual holdings; h) […]; i) […]; j) […]. 2 - […]. 3 - […]. 4-is still considered as income the difference between the amount delivered to the partners as a result of the reduction of the share capital and the acquisition value of the respective shares.

Article 21 [...]

PRESIDENCY of the COUNCIL of MINISTERS 14 1-[...]: a) of capital, including the issuance of shares or quotas, the coverage of losses in any capacity, made by the owners of capital, as well as other accretions arising from transactions in shares, quotas and other equity instruments of the issuer, including those resulting from the attribution of derivative financial instruments which are to be recognised as equity instruments; b) […]; c) […]; d) […]; e) increased equity of the recipient company arising from mergers, demergers, entry of assets or exchange of shares, excluding component that match the cancellation of shares held by this merged or de-merged companies. 2 - […]. Article 22 [...] 1-[...]:) [...];

(b)) When the subsidies the intangible assets without life defined, should be included in taxable income for a part of the grant awarded, regardless of the receipt, on the proportion provided for PRESIDENCY of the COUNCIL of MINISTERS 15 in article 45; c) When respect subsidies to investment properties and non-consumable biological assets, measured at fair value model, must be included in taxable income for a part of the grant awarded, regardless of receipt, at a rate provided for in article 45; d) When the subsidies do not respect to assets referred to in paragraph 1(a) above, should be included in taxable profit in equal fractions, during periods of taxation in which the elements to which they relate are inalienable rights, under the law or the contract under which they were granted, or, in other cases, during 10 years, being the first receipt of the allowance. 2 - […]. Article 23 expense and losses 1-for the determination of taxable income, all expenses are deductible and losses incurred or supported by the taxpayer to obtain or ensure the income subject to IRC. 2-the following shall be considered as covered by the preceding paragraph, in particular, the following expenses and losses:) [previous) (a) of paragraph 1]; b) [previous) (b) of paragraph 1]; c) [previous) (c) of paragraph 1]; d) of an administrative nature, such as remuneration, including the PRESIDENCY of the COUNCIL of MINISTERS 16


assigned the title of profit, per diems, current consumables, transport and communications, rent, litigation, insurance, including life, sickness or health, and operations of the branch «Life», contributions to pension savings funds, contributions to pension funds and to any supplementary social security, as well as expenses for termination benefits and other post-employment benefits or long-term employee; and those relating to analyses) rationalisation, research, consultation and development projects; f) [previous) point (f) of paragraph 1]; g) [previous) (g) of paragraph 1]; h) impairment losses; I) provisions; j) reductions in fair value losses on financial instruments; k) losses due to reductions in fair value in consumable biological assets other than forestry multiannual holdings; l) [previous) point (l) of paragraph 1]; m) [previous m) (a) of paragraph 1].

3-The deductible expenses in accordance with the preceding paragraphs shall be supported by proven, regardless of nature or of the documents used for this purpose.

PRESIDENCY of the COUNCIL of MINISTERS 17 4-in the case of expenses incurred or borne by the taxpayer with the purchase of goods or services, the document referred to in the preceding paragraph must contain at least the following information: a) name or corporate name of the supplier of the goods or provider of the services and the recipient; b) tax identification numbers of the supplier of the goods or provider of the services and the recipient, where they are entities with residence or establishment in the national territory; c) quantity and usual name of goods purchased or services rendered; d) value of the consideration, namely the price; e) date on which the goods were purchased or in which the services were performed. 5-[Repealed]. 6-When the supplier of goods or supplier of services is obliged to issuance of invoice or document legally equated in terms of the VAT code, the document proving the purchase of goods or services referred to in paragraph 4 must assume this form.



Article 24 PRESIDENCY of the COUNCIL of MINISTERS 18 [...] Under the same conditions laid down for the expenses and losses, contributing to the formation of the erosions taxable income not reflected in the net profit or loss for the accounting period, except: a) [...]; b) […]; c) exits, in cash or in kind, in favor of the holders of capital, by way of remuneration or even reduction, or sharing of assets, as well as other erosions arising from transactions in shares, quotas and other equity instruments of the issuer or of your reclassification; d) […]; e) […]; f) the reduction of the equity capital of the company as a result of mergers, demergers or asset entry, excluding component that match the cancellation of shares held by this merged or de-merged companies.



Article 26 [...]

PRESIDENCY of the COUNCIL of MINISTERS 19 1-for the purposes of determining taxable profit, the income and expenses of the inventories are those resulting from the application of the criteria of measurement set out in accounting standards in force using:) [...]; b) […]; c) […]; d) […]; e) [Repealed]. 2-can be included in the cost of acquisition or production borrowing costs, as well as other expenses directly attributable to them according to the accounting standards specifically applicable. 3-where the use of standard costs lead to significant deviations, the Tax and Customs Authority can make the appropriate corrections, taking into account the field of application of the same, the amount of sales and inventories and the degree of rotation of inventories. 4 - […]. 5 - […].

6-the use of criteria of measurement other than those provided for in paragraph 1 depends on Tax and Customs Authority authorization, which must be requested by the end of the tax period, through application indicating the criteria to adopt and the reasons that justify.

PRESIDENCY of the COUNCIL of MINISTERS 20 article 27 change of 1 measurement criteria-The criteria for the measurement of inventories should be uniformly followed in successive tax periods. 2-Can, however, change the criteria when the same are justified on economic or technical reasons and are accepted by the tax authority and customs. Article 28 impairment losses on inventories 1-are deductible in calculating taxable income impairment losses on inventories, recognised in the same tax period or in previous taxation periods, up to the limit of the difference between the cost of acquisition or production of inventories and the respective net realisable value at the balance sheet date referred to, when this is lower. 2 - […]. 3-the partial or total reversal of impairment losses referred to in paragraph 1 competes for the formation of the taxable profit.

4-For taxpayers engaged in editorial activity, the annual amount accumulated impairment losses corresponds to the loss of value of editorial funds consisting of works and additional elements, as long as two years have elapsed after the date of its publication, which for this purpose is considered coincident with the date of legal deposit of each issue.

PRESIDENCY of the COUNCIL of MINISTERS 21 5-[...]. Article 29 [...] 1-are accepted as expenses depreciation and amortisation of assets subject to depreciation elements, considering as such: the tangible fixed assets) and intangible assets; b) biological assets which are not consumables and investment properties accounted for at acquisition cost. 2-for the purposes of the preceding paragraph shall be deemed to be subject to depreciation of the assets, with systematic character, suffer loss of value resulting from your use or the passage of time. 3-[previous No. 2]. 4-Safe reasons duly justified and accepted by the tax authority and customs, active elements only consider themselves subject to depreciation after entering into operation or use. 5-are equally depreciable, pursuant to the preceding paragraphs, the components, the major repairs and improvements and the improvements recognized as elements of tangible fixed assets. Article 30 [...] 1-the calculation of depreciation and amortization of assets referred to in the preceding article is made, as a rule, by the straight line method, in view of your life. 2 - […].

PRESIDENCY of the COUNCIL of MINISTERS 22 3-the adoption by the taxpayer for depreciation and amortization methods other than those referred to in the preceding paragraphs, resulting in the application of depreciation or amortisation quotas higher than those provided for in the following article depends on the permission of the tax authority and customs, which must be requested by the end of the tax period through application indicating the methods to adopt and the reasons that justify. 4-[Repealed]. 5-[Repealed]. 6-[Repealed]. 7-[Repealed]. Article 31 [...] 1-straight line method, the annual depreciation or amortisation quota that can be accepted as spent the period of taxation is determined by applying the depreciation or amortisation rates defined in the decree establishing the respective regulatory regime the following values: a) [...]; b) […]; c) market value, at the date of initial recognition, for the goods object of evaluation for that purpose, when is not known the cost of acquisition or production. 2-for the purposes of depreciable or depreciable value provided for in the preceding paragraph: PRESIDENCY of the COUNCIL of MINISTERS 23 a) are not considered the costs of dismantling; and b) Deduct the salvage value. 3-respect of elements for which are not fixed rates of depreciation or amortisation, are accepted by the tax authority and customs are considered reasonable, taking into account the expected useful life period of those elements. 4-[previous paragraph 3]. 5-[previous paragraph 4]. 6-the rates of depreciation of assets acquired in the use of components, major repairs and improvements or improvements to elements of the assets subject to depreciation are calculated based on their expected useful life period. 7-[previous paragraph 6]. 8-[previous paragraph 7].

Article 32 [...] 1-expenditure on development projects can be considered as tax expense in the accounting period in which they are supported, although the resulting elements will be recognized as intangible assets in the financial statements of taxpayers. 2 - […]. 3 - […].

PRESIDENCY of the COUNCIL of MINISTERS 24 Article 33 [...] In cases where the unit cost of acquisition or production of active elements subject to depreciation does not exceed € 1000.00, is accepted to your full deduction in the tax period in which is recognised, except when such elements are part and parcel of a set that should be depreciated or amortised as a whole. Article 34 non-deductible depreciation and amortization for tax purposes 1-[...]:) [...]; b) […]; c) […];


d) depreciation and amortisation charged beyond the maximum period of life, subject to the special cases duly justified and accepted by the tax authority and customs; e) depreciation of the passenger or mixed light vehicles, including electric vehicles, in the part corresponding to the acquisition cost or revalued amount surplus to the amount to be set by order of the Member of Government responsible for the area of finance, as well as of pleasure boats and private aircraft, provided that such goods are not affection to the public transport service or intended to be rented in the course of normal activity of the PRESIDENCY of the COUNCIL of MINISTERS

25 taxable. 2 - […]. Article 40 [...] 1-[...]. 2-when it provides a level of holding irregular over time, can be reduced if an amount different from that referred to in the preceding paragraph and, in this case, the taxable person to communicate to the Tax and Customs Authority a plan of Constitution the provision that takes into account that the operating level, until the end of the first tax period in which the expenditures are recognised your Constitution or reinforcement. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7 - […]. Article 41 [...] 1-The bad debts can be directly considered as expenses or losses in the period of taxation in the following situations, since that has not been admitted to impairment loss or this is insufficient:) In the implementation process, after the register referred to in point (b)) of paragraph 2 of article 717.º of the code of Civil procedure; (b)) In the insolvency proceedings, when the same is declared of PRESIDENCY of the COUNCIL of MINISTERS 26 character limited or after the approval of the decision provided for in article 156 of the code of insolvency and Corporate recovery; c) In special process of revitalization, after approval of the recovery plan by judge, provided for in article 17-F of the code of insolvency and Corporate recovery; d) laid down in SIREVE, after conclusion of the agreement referred to in article 12 of the said arrangements; e) in the context of disputes arising out of the provision of essential public services, after arbitration award; f) in accordance with the legal framework of the provision of essential public services, the credits are required and your value does not exceed the amount of € 750.00. 2-[Repealed].

Article 43 [...] 1-[...]. 2-are also considered as expenses of the period of taxation, up to a limit of 15% of the costs with personnel accounted for by way of salaries, wages or salaries relating to the tax period, supported with: a) personal accident insurance contracts, as well as with life insurance contracts, contributions to pension funds and comparable or any supplementary security COUNCIL PRESIDENCY of 27 social MINISTERS to ensure only the benefit of retirement, early retirement, retirement, disability or survival in favour of workers of the enterprise; b) insurance contracts or health for the benefit of workers, pensioners or their relatives. 3 - […]. 4-the provisions of paragraphs 2 and 3 from where, cumulatively, the following conditions, with the exception of points (d)) and e) in the case of health insurance or health, personal accident or life insurance to ensure only the risk of death or disability: a) [...]; b) […]; c) […]; d) […]; e) […]; f) […]; g) […]. 5 - […]. 6-the contributions intended to cover responsibilities with the benefits provided for in paragraph 2 of the personnel in the active in 31 December of the year preceding the conclusion of contracts of insurance or pension funds entries corresponding to the benefits for service before that date, are also accepted as an expense under the terms and conditions set out in paragraphs 2 , 3 and 4, and, in the case of those 28 COUNCIL of MINISTERS PRESIDENCY responsibilities exceed the limits set out in those first two numbers, but not double, the amount of the excess is also accepted as spent each year by an amount corresponding to not more than one seventh of that excess, without prejudice to the consideration of this in those limits, and the current value of those responsibilities be certified by insurers , pension funds companies or other competent entities. 7-The additional contributions for the coverage of liability for costs of benefits provided for in paragraph 2, when made as a result of changes in the actuarial assumptions on which were based the initial calculations of those responsibilities, reported at the time of conclusion of the insurance contract or of the Constitution of the pension fund or the date on which the liabilities were transferred, and duly certified by the competent authorities , can also be accepted as an expense in the following terms:) in the tax period in which they are made, within a maximum of five, calculated that the change in the actuarial assumptions or transfer of responsibilities; b) […]. 8 - […]. 9 - […]. 10-[...]. 11-[...]. 12-in the case of rescue for the benefit of the employer, the provisions of paragraph 10 could also not apply if it is proved the existence of excess funds caused by termination of employment contracts.

PRESIDENCY of the COUNCIL of MINISTERS 29 13-[...]. 14-the condition referred to in point (b)) paragraph 4 can no longer check provided it can be shown that the differentiation introduced is based on objective criteria, in particular in the case of entities subject to corporate restructuring processes, and should this amendment be communicated to the tax authority and customs until the expiry of the period of taxation in which it occurs. 15-[...]. Article 46 [...] 1-[...].

2-capital gains and capital losses are given by the difference between the value of realization, net of charges that may be incurred, and the value of acquisition, net of depreciation and amortization accepted fiscally, impairment losses and other fixes of value provided for in articles 28-31-B, and yet the values recognized as tax expense in accordance with article 45- without prejudice to the final part of paragraph 3 of article 31-a. 3-[...]:) [...]; b) […]; c) […]; d) in the case of mergers, demergers, entry of assets or exchange of shares, the market value of the elements transmitted in PRESIDENCY of the COUNCIL of MINISTERS 30 consequence of those operations; e) […]; f) […]. 4 - […]. 5-Consider-if disposals, in particular: a) [...]; b) […]; c) the transfer of assets in the context of mergers, demergers or asset entry, made by the merged, de-merged or contributing companies contributors;

d) extinction or delivery by the partners of the shares of the capital stock of the merged, de-merged or contributing companies acquired in the context of merger, Division or exchange of shares; e) cancellation of shares held by the company merged or de-merged companies as a result of mergers or demergers; f) redemption and amortisation of shareholdings with reduction of capital; g) cancellation of shares by reduction of capital intended to cover losses of a society when the respective partner, in consequence of the annulment, leave to stop any participation. 6 - […].

PRESIDENCY of the COUNCIL of MINISTERS 31 7-in the case of disposals in the operations division shall be considered gains or losses of shares the positive or negative difference, respectively, between the market value of the shares of the company granted to the shareholders of the company being divided, or of assets employed and part of the acquisition value of the shares held by the shareholders of the company being divided corresponding to assets deployed , determined in accordance with paragraphs 3, 5 or 6 of article 76 as appropriate. 8-for the purposes of this code, the acquisition value of the shares should be considered, as appropriate, positive or negative: a) the deliveries of the partners to cover losses, which are allocated in proportion to each of the shares held; and (b)) the amount delivered to partners by reducing the share capital up to the amount of the purchase price, which is allocated in proportion to each of the shares held. 9-in the event of a change of the system of determination of the collectable during the period when the assets are depreciable or amortisable assets, should be considered in the calculation of capital gains or capital losses, for the period in which the simplified scheme is applied to determination of the collectable, minimum quotas of depreciation or amortization. 10-On equivalence of values of realization or acquisition of operations performed without legal tender currency in Portugal, shall apply the exchange rate of the date of completion or acquisition, or, in the absence of, the last previous listing.

PRESIDENCY of the COUNCIL of MINISTERS 32


11-On sale of shares of the same type and which carry identical rights, considers that the shares transmitted are those acquired long ago. 12-the taxpayer may choose to apply the weighted average cost in determining the cost of the acquisition of shares of the same type and which carry identical rights, in which case:) is not applicable to monetary correction referred to in the following article; b) option must be applied to all parties that belong to the same portfolio and be maintained for a minimum period of three years.

Article 48 [...] 1-for the purposes of determining taxable profit, the positive difference between capital gains and capital losses, calculated in accordance with the preceding articles, performed by the disposal of tangible fixed assets, intangible assets and non-consumable biological assets held for a period of not less than one year, even if any of these assets has been reclassified as non-current assets held for sale , or as a result of compensation for losses incurred in these elements, is considered in half of your value, when: the corresponding realization value) to all of those assets be reinvested in the acquisition, construction or production of tangible fixed assets, intangible assets, biological assets or PRESIDENCY of the COUNCIL of MINISTERS 33 which are not consumables, in the tax period prior to the completion on the tax period or until the end of the tax period following; (b)) the goods in whatever reinvested the value of performance: 1) are not property acquired in the taxpayer's use of IRS or IRC with which there are special relationships as defined in paragraph 4 of article 63; 2) Be detained for a period not less than one year of the end of the tax period in which the performance occurs. 2 - […]. 3 - […]. 4-[Repealed]. 5-for the purposes of paragraphs 1 and 2, the taxable person shall mention the intention to make the reinvestment in the Declaration referred to in point (c)) of paragraph 1 of article 117 of the tax period in which the performance occurs, checking on the same and on the statements of two taxation periods following the reinvestment made. 6-not being implemented, totally or partially, the reinvestment by the end of the tax period following completion, it is considered as income of the period of taxation, respectively, the difference or the proportional share of the difference referred to in paragraph 1 not included in taxable profit, increased in 15%. 7-[Repealed]. 8-the provisions of paragraphs 1 and 2 shall not apply to intangible assets acquired or disposed of the entities with which there are special relations under PRESIDENCY of the COUNCIL of MINISTERS 34 paragraph 4 of article 63 9-the provisions of paragraphs 1 and 2 shall not apply to capital gains and losses realized by the merged, de-merged or contributing in the context of mergers , Division or active input, as well as the capital gains and losses realized in permanent affectation of goods for purposes unrelated to the activity carried on by the taxpayer or carried out by companies in liquidation. Article 51 elimination of economic double taxation of profits and reserves distributed 1-the profits and reserves distributed to taxpayers of IRC based or effective direction in Portuguese territory do not compete for the determination of taxable income, provided that cumulatively the following requirements arise: a) the taxpayer holds directly or directly or indirectly, in accordance with paragraph 6 of article 69 , a participation of not less than 5% of the capital or of the voting rights of the entity that distributes the profits or reserves; (b)) the participation referred to in the preceding paragraph has been owned, continuously, during the 12 months prior to distribution or, if held for less time, is kept for the time necessary to complete that period; c) the taxpayer is not covered by the fiscal transparency regime provided for in article 6; d) the entity that distributes the profits or reserves is subject and not exempt from CORPORATE INCOME TAX, the tax referred to in article 7, to a tax referred to in article 2 of Directive No. 2011/96/EU, of the Council of 30 November 2011, or a tax of identical nature or PRESIDENCY of the COUNCIL of MINISTERS 35 similar to IRC and the legal rate applicable to the entity is not less than 60% of the IRC rate referred to in paragraph 1 Article 87; and) the entity that distributes the profits or reserves has no residence or domicile in a country, territory or region subject to a clearly more favourable tax regime contained in list approved by order of the Member of Government responsible for the area of finance. 2-the requirement laid down in point (d)) of the preceding paragraph is dismissed when the cumulative fulfilment of the conditions laid down in paragraph 6 of article 66 3-the provisions of this article shall also apply to the collectable charged under article 6, the taxpayer with headquarters or effective direction in Portuguese territory that meets the requirement set out in subparagraph (c)) of paragraph 1 at the corresponding to profits and reserves distributed to a company your subsidiary which is subject to the fiscal transparency regime, since the participation of the latter in the entity that distributes the profits or reserves to comply with the requirements laid down in the preceding paragraphs. 4-the provisions of paragraphs 1 and 2 is still applicable to the value assigned in the Association in participation to associate IRC taxable person, established or effective direction in Portuguese territory, regardless of the value of your contribution, as to income that have been effectively taxed, distributed by associantes resident in the same territory. 5-the provisions of paragraphs 1 and 2 is still applicable to the reimbursement made to the partners as a result of the depreciation of shareholdings without capital reduction.

PRESIDENCY of the COUNCIL of MINISTERS 36 6-the provisions of paragraphs 1 and 2 shall apply, irrespective of the percentage shareholding and the period within which this has remained in your title, the income from shareholdings in which have been applied the technical reserves of insurance companies and insurance mutuals, as well as the income of the following companies : the) regional development corporations; b) investment companies; c financial brokerage Companies).

7-Notwithstanding the provisions of paragraphs 1 and 2, the regime then consecrated is applicable, as described in the preceding paragraph, General agencies of foreign insurers, as well as to permanent establishments of companies resident in another Member State of the European Union and the European economic area that are equivalent to those referred to in the preceding paragraph. 8 - […]. 9-in cases where the requirements set out in the preceding paragraphs are not filled, the profits and reserves distributed the taxpayer can still benefit from tax credits for international double taxation, in accordance with the provisions of articles 91 and 91-10.-Notwithstanding the provisions of paragraph 2, paragraphs 1 and 6 are only applicable to profits and reserves distributed who:) does not match the deductible expenses by the entity that distributes PRESIDENCY of the COUNCIL of MINISTERS 37 for purposes of tax mentioned in paragraph (d)) of article 1; and (b)) to be distributed by entities subject and does not exempt the income tax or, where applicable, come from and non-exempt income subject to income tax on subafiliadas entities, except where the entity that distributes the profits or reserves is resident in a Member State of the European Union or of a State member of the European economic area that is linked to administrative cooperation in the field of taxation equivalent to established within the European Union. 11-[Repealed]. 12-[Repealed]. Article 52 [...] 1-Without prejudice to the provisions of the following paragraph, the tax losses calculated in particular tax period in accordance with the foregoing provisions, are deducted from the taxable profits, going on them, of one or more of the 12 subsequent taxation periods. 2-deduction to make on each of the tax periods shall not exceed the amount corresponding to 70% of their taxable income, not getting, however, undermined the deduction of part of these losses that have not been deducted under the same conditions until the end of the respective period of deduction. 3 - […]. 4-when you make corrections to the tax losses declared by the taxpayer, should change accordingly, deductions made, not PRESIDENCY of the COUNCIL of MINISTERS by 38, however, any cancellation or settlement of IRC, although additional, if more than four years have elapsed in respect to that to which the taxable profit. 5 - […]. 6 - […]. 7 - […].


8-the provisions of paragraph 1 shall cease to apply when it is found, the date of expiry of the period of taxation in which it is carried out the deduction, which, in relation to that which it concerns the losses, there has been a change of ownership of more than 50% of the share capital or a majority of voting rights. 9-for the purposes of the preceding paragraph, are not considered changes:) Of which the passage of ownership of the capital or of the voting rights of indirect, direct or indirect to direct; b) arising out of operations carried out under the special scheme provided for in articles 73 et seq.; c) arising from succession by death; d) When you stop and hold, directly or indirectly, more than 20% of the share capital or a majority of voting rights of the company since the beginning of the tax period to which they relate the losses; or PRESIDENCY of the COUNCIL of MINISTERS and 39) When the purchaser is an employee or member of the governing bodies of the company, at least since the beginning of the tax period to which they relate the losses. 10-the provisions of points (a) to (d)) and the previous number) does not relieve the permit referred to in paragraph 12 concerning the part of the tax losses relating to the tax period in which the purchaser has passed to hold, directly or indirectly, more than 20% of the share capital or a majority of the voting rights or has initiated functions in society , respectively, as well as to periods prior to that. 11-[...]. 12-the Member of Government responsible for the area of finance can authorize, in cases of recognised economic interest and upon request to the tax authority and customs, which is not applied the limitation provided for in paragraph 8. 13-the elements that should instruct the application for authorisation referred to in paragraph 1 to be submitted by the company within 30 days from the date of the occurrence of the change referred to in paragraph 8, are defined by order of the Member of Government responsible for the area of finance. 14-where are concerned tax losses for the period immediately preceding the occurrence of any of the amendments referred to in paragraph 8 and this occurs before the expiry of the period of delivery of the respective income declaration, the application referred to in article 12 may be submitted within 30 days of the expiry of the deadline of this statement. 15-for the purposes of paragraph 1, shall be deducted in 1st place tax losses PRESIDENCY of the COUNCIL of MINISTERS established 40. Article 53 [...] 1-[...]. 2 - […]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7-The total income calculated in accordance with the provisions of the preceding paragraphs are tax deductible, to the respective competition, arguably related to the achievement of the purposes of social, cultural, environmental, nature, sports or education pursued by such persons or entities, conferences since there is no direct or indirect interest of members of statutory bodies, by themselves or through an intermediary the results of exploitation of economic activities pursued by them. Article 54 [...] 1-[...]. 2-for the purposes of point (b)) of the preceding paragraph, the part of the common expenses to be charged is determined by allocating quotas in proportion to the total of the gross income of those subjects and non-exempt and non-exempt or income, or according to another criterion PRESIDENCY of the COUNCIL of MINISTERS considered most appropriate 41 accepted by the tax authority and customs. 3 - […]. 4 - […]. Article 55 [...] 1-[...].

2-can be deducted as an expense for the purpose of determining the taxable profit costs of administration that, in the terms or conditions substantially identical to those that would normally be contracted, accepted and practiced between independent entities in operations, and should these criteria be followed uniformly in the various periods of taxation. 3 - […]. Article 63 [...] 1-[...]. 2 - […]. 3 - […]. 4-[...]: a) an entity and holders of the respective capital, or their spouses, ascendants or descendants of these, holding, directly or indirectly, a participation of not less than 20% of the capital or of the PRESIDENCY of the COUNCIL of MINISTERS voting rights 42; b) entities in which the same capital holders, their spouses, ascendants or descendants hold, directly or indirectly, a participation of not less than 20% of the capital or of the voting rights; c) […]; d) […]; e) […]; f) companies that are in a domain relationship, in accordance with article 486.º of the companies code; g) Entities whose legal relationship enables, by its terms and conditions, that a condition of other management decisions, on the basis of facts or circumstances unrelated to their business or professional relationship; h) […]. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9-the rules provided for in this article shall also apply in the relations between: a) A non-resident entity and a your permanent establishment situated in Portuguese territory, or between this and other permanent establishments situated outside this territory; (b)) A resident entity and its permanent establishments situated PRESIDENCY of the COUNCIL of MINISTERS outside the Portuguese territory or 43. 10-[...]. 11-[...]. 12-[...]. 13-[...]. Article 66 [...] 1-[...]. 2 - […]. 3 - […]. 4 - […]. 5-for the purposes of paragraph 1, it is considered that an entity is subject to a clearly more favourable tax regime when the territory of residence of the same appear on the list approved by order of the Member of Government responsible for the area of finance, when this entity is exempt or not subject to a tax on income identical or analogous to IRC or still, when the tax rate is applicable is less than 60% of the IRC rate referred to in paragraph 1 of article 87 6-[...]: a) The respective profits or revenues come in at least 75% of: 1) An agricultural or industrial activity in the territory where they are established; or 2) A commercial activity, or to provide services, that no PRESIDENCY of the COUNCIL of MINISTERS is directed predominantly to the 44 Portuguese market; b) […]: 1) […]; 2) […];

3) operations relating to shares representing less than 5% of the capital or of the voting rights, or any shares in entities resident or domiciled in a country, territory or region subject to a clearly more favourable tax regime, contained in the approved list by order of the Member of Government responsible for the area of finance, or other securities , the intellectual or industrial property rights, the provision of information relating to experience gained in a industrial, commercial or scientific sectors or the provision of technical assistance; 4) […]. 7 - […]. 8 - […]. 9 - […]. 10-[...]. 11-[...].

PRESIDENCY of the COUNCIL of MINISTERS 45 12-[...]. Article 67 [...] 1-net financing costs and compete for the determination of taxable profit to the greatest of the following limits: a) € 1,000,000.00; or b) 30% of income before depreciation, amortization, net financing costs and taxes. 2-The net financing expenses not deductible in accordance with the preceding paragraph may also be considered in determining the taxable income of one or more of the five subsequent taxation periods, after NET finance costs of this same period, observing the limitations provided for in the preceding paragraph. 3-where the amount of funding expenses deducted is less than 30% of income before depreciation, amortization, net financing costs and taxes, the unused portion of this limit in addition to the maximum amount deductible under b) of paragraph 1, until the fifth subsequent taxation period. 4-for the purposes of paragraphs 2 and 3, in first place the net financing expenses non-deductible and the unused portion of the limit referred to in paragraph 1 that have been established. 5-in cases where there is a group of companies subject to the special arrangements laid down in article 69, the parent company may choose, for the purpose of determining the taxable profit of the group for the application of the provisions in the COUNCIL of MINISTERS PRESIDENCY 46 this article to the Group's net financing expenses as follows: a) the limits for the respective deductibility to the taxable profit of the group are calculated based on the result before depreciation , amortization, net financing costs and taxes on the total consolidated its component societies;




b) net financing expenses group companies regarding tax periods preceding the application of the system and not yet deducted may be considered, in accordance with paragraph 2, up to the limit laid down in paragraph 1 corresponding to the society to respect, calculated individually; c) the portion of the unused limit referred to in paragraph 3, by companies of the group in previous taxation periods for the implementation of the scheme can only be added under that number the maximum amount deductible expenses net financing environmentally sound society, calculated individually; d) net financing expenses group companies, as well as the portion of the unused limit referred to in paragraph 3, relating to the period of taxation in which the scheme can only be used by the group, regardless of the output of one or more companies in the group.

PRESIDENCY of the COUNCIL of MINISTERS 47 6-dominant society option provided for in paragraph 1 shall be kept for a minimum period of three years from the date on which your application begins. 7-the option mentioned in paragraph 5 should be communicated to the Tax and Customs Authority by sending, by electronic transmission of data, the Declaration referred to in article 118, until the end of the third month of the tax period in which they intend to start the respective application.

8-the provisions of paragraphs 2 and 3 shall cease to apply when it is found, the date of the end of the tax period in which the deduction is made or increased the limit, which, in relation to that the respective net financing costs or part of the unused limit, there has been a change of ownership of more than 50% of the share capital or a majority of voting rights of the taxpayer except in the case of apply the provisions of paragraph 9 of article 52 or obtained permission from the Member of Government responsible for the area of finance in case of recognized economic interest, upon request to present in the Tax and Customs Authority, within the period provided for in paragraph 14 of article 52. 9-[previous No. 5]. 10-[previous paragraph 6]. 11-the provisions of this article shall not apply to entities subject to the supervision of the Bank of Portugal and of the Instituto de Seguros de Portugal, to branches in Portugal of credit institutions and other financial institutions or insurance undertakings, and securitisation companies set up pursuant to Decree-Law No 453/99, of November 5.

PRESIDENCY of the COUNCIL of MINISTERS-48 12 [previous paragraph 8]. 13-for the purposes of this article, the result before depreciation, amortization, net financing costs and taxes is calculated in the accounting, fixed: a) gains and losses arising from changes in fair value that do not contribute to the determination of the taxable profit;

b) Impairments and reversals of non-depreciable or Amortizable investments; c) gains and losses resulting from the application of the equity method or, in the case of joint ventures that IRC taxable persons, the proportional consolidation method; d) income or expense relating to shares to which apply the arrangements provided for in articles 51 and 51-C; and) income or expenses attributable to a permanent establishment situated in Portuguese territory for which is exercised the option provided for in paragraph 1 of article 54-a. Article 68 [...] 1-The determination of the collectable subject to tax when income obtained abroad which give rise to tax credit for international legal double taxation, in accordance with article 91 , such income shall be considered, for the purposes of taxation, by the respective gross amounts of income taxes paid in the PRESIDENCY of the COUNCIL of MINISTERS 49 abroad. 2 - […]. 3-When is exercised the option provided for in article 91-A, should be added to the taxpayer's collectable taxes on profits paid by entities for this held directly or indirectly, in the States where they are residents, corresponding to the profits and reserves which have been distributed. Article 69 [...] 1-[...]. 2-there is a group of companies where a company, said dominant, holds, directly or indirectly, at least, 75% of the share capital of another or other so-called societies dominated, since such participation you check out more than 50% of the voting rights. 3 - […]. 4 - […]: a) […]; b) […]; c) […]; d) […]; e) […]; f) [Repealed]; g) […].

PRESIDENCY of the COUNCIL of MINISTERS 50 5-for the determination of the level of participation required of at least 75%, if the shares held directly or indirectly through: the Companies resident in Portuguese territory) who possess the requirements legally required to be part of the Group;

b) Companies resident in another Member State of the European Union or the European economic area, in this case since there is obligation of administrative cooperation in the field of taxation equivalent to that established in the framework of the European Union, which are held, directly or indirectly, at least, 75% by the dominant society through companies referred to in the preceding paragraph or in the first part of this paragraph. 6-When the participation or voting rights are held indirectly, the effective percentage of participation or voting rights is obtained by the process of successive multiplication of the percentages of participation and voting rights in each of the levels when shares or voting rights in a company held directly and indirectly, the effective percentage of participation or voting rights resulting from the sum of the percentages of holdings or of vote. 7-[previous No. 5]. 8-the option mentioned in paragraph 1, the changes in the composition of the Group and the resignation or the cessation of application in this scheme must be reported to the tax authority and customs by the dominant society by sending, by electronic transmission of data, the PRESIDENCY of the COUNCIL of MINISTERS 51 declaration referred to in article 118, within the following periods: a) in the case of option by applying in this scheme by the end of the 3rd month of the tax period in which they intend to start application; b) in the case of changes in the composition of the Group: 1) to the end of the third month of the tax period in which should be made the inclusion of new companies that satisfy the requirements legally required; 2) until the end of the third month of the accounting period following that in which the Group's companies output for sale of participation or for breach of other conditions, or other changes in the composition of the group motivated in particular by mergers or demergers, except if the change occur by termination of the activity of group membership, in which case the report shall be made by the end of the period laid down for the submission of the corresponding declaration of cessation; c) in the case of resignation, until the end of the third month of the tax period in which they intend to waive the application of the system; d) in the case of termination, until the end of the third month of the accounting period following that in which let to verify the conditions for the application of the system referred to in subparagraphs (a) and (b))) of paragraph 9; e) [Repealed]. 9-the special regime for taxation of groups of companies ceases to your application in the following cases: a) let to verify any of the requirements referred to in paragraph 3 PRESIDENCY of the COUNCIL of MINISTERS with regard to the dominant society 52, without prejudice to paragraph 11; b) If any of the situations referred to in points (a)), b), (d)) or g) of paragraph 4 in respect of the dominant society; c) the taxable income of any of the companies in the group is determined by the application of indirect methods.

10-the effects of the resignation or termination in these arrangements refer:) at the end of the preceding taxation period in which it was reported the resignation to the application in the present regime under and deadline referred to in paragraph 8; b) at the end of the tax period prior to the verification of any of the facts referred to in paragraph 9. 11-in cases where the parent company is considered dominated another company resident in Portuguese territory which meets the requirements, except as provided in subparagraph (b)) of paragraph 3, to be characterized as dominant, the latter can opt for continuity of application of the special regime for taxation of groups of companies through Tax and customs authority communication , made in the 30 days following the date on which it is found that by passing that group to include the new dominant society. 12-[previous paragraph 10]. 13-[previous paragraph 11]. Article 70 [...]

PRESIDENCY of the COUNCIL of MINISTERS 53


1-for each of the tax periods falling within the scope of application of the special arrangements, the taxable profit of the group is calculated by the dominant society, through the algebraic sum of the taxable profits and tax losses calculated in periodic statements of each of the companies belonging to the group, adjusted, where appropriate, of the effect of applying the option provided for in paragraph 5 of article 67 2-[...]. Article 71 [...] 1-[...]. 2-When, during the application of the system, there is room for mergers between companies of the group or a company incorporates one or more companies not belonging to the group, the losses of the merged checked tax periods prior to the start of the scheme can be deducted from the taxable profit of the group up to a limit of the taxable income of the new Corporation or the acquiring company , since these operations are applied the special arrangements laid down in article 74 and the terms and conditions laid down in article 75-3 in the event that the new dominant society opts for continuity of application of the special regime for taxation of groups pursuant to paragraph 11 of article 69, the tax losses of the Group recorded during previous taxation periods in which the scheme is applied can be tax deductible when taxable profit of the Group Since authorization is obtained in accordance with paragraph 12 of article 52 4-in the event that the parent company of a group of companies (parent company) acquired the domain of a parent company of PRESIDENCY of the COUNCIL of MINISTERS 54 1 other group of companies (previous parent company) and the new dominant society opts for continuity of application of the special regime for taxation of groups pursuant to paragraph 11 of article 69 the shares of the tax losses of the Group attributable to group companies of the new dominant society and integrating the previous dominant society group, are tax deductible in accordance with subparagraph (a)) of paragraph 1.

5-in the event that the parent company of a group of companies (parent company) acquired the domain of a parent company of a group of companies (previous parent company) and the new dominant society opts for the inclusion of the companies belonging to the Group of the previous parent company within the meaning of article 1) of subparagraph (b)) of paragraph 8 of article 69 , the share of the tax losses of the previous group parent company attributable to companies that integrate the new dominant society are tax deductible in accordance with subparagraph (a)) of paragraph 1. 6-[previous paragraph 3]. Article 73 [...] 1-[...]:) [...]; b) […]; c) global transfer of the assets of a company (merged company) to the company holding all the shares of your social capital (company);

PRESIDENCY of the COUNCIL of MINISTERS 55 d) the global transfer of the assets of a company (merged company) to another existing company (company), when all of the shares of the capital stock of both is held by the same partner;

and global heritage) the transfer of a company (merged company) to another company (company), when all of the shares of the capital stock of this is owned by the merged company. 2 - […]: a) […]; b) […]; c) a society (society being divided) highlights one or more branches of your activity, keeping at least one of the branches of activity, to merge with the company (company) holding all of the shares of your social capital; d) A company (company being divided) highlights one or more branches of your activity, keeping at least one of the branches of activity, to merge with another existing company (company), when all of the shares of the capital stock of both is held by the same partner; and) a society (society being divided) highlights one or more branches of your activity, keeping at least one of the branches of activity, to merge with another existing company (company), PRESIDENCY of the COUNCIL of MINISTERS 56 when all of the shares of the capital stock of this is owned by the company being divided. 3 - […].

4-for the purposes of the preceding paragraph and of paragraph 1 (a)), c), (d)) and e) of paragraph 2, it is considered business activity the set of elements that constitute organizational point of view, an autonomous economic unit, i.e. a set capable of functioning by its own means, which can understand the debts for your organization or operation. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9 - […]. 10-the special arrangements set forth in this subsection does not apply, in whole or in part, when it concludes that the transactions covered by the same had as main objective or as one of its principal objectives tax evasion, which may be checked, in particular, in cases where the companies involved do not have all of their income which is subjected to the same taxation regime in IRC or when operations have not been carried out for valid economic reasons such as the restructuring or the PRESIDENCY of the COUNCIL of MINISTERS 57 rationalization of the activities of the companies participating in them, and then, if appropriate, to the corresponding tax. Article 74 [...] 1-[...].

2-where, by reason of merger, Division or active input, under the conditions referred to in the preceding paragraphs, is transferred to a company which is a resident of another Member State or a permanent establishment situated outside the territory of a Portuguese resident here, does not apply in relation to that permanent establishment the special arrangements laid down in this article, but the resident company may deduct the tax in the absence of the provisions of Directive No. 2009/133/EC of 19 October 2009, would be applicable in the State in which that permanent establishment is situated, being this deduction is made in the same manner and by the same amount that would place if that tax had been effectively liquidated and paid. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7-When the merged company holds an equity stake in the company, not competes for the formation of the taxable profit added value or less added value resulting from the cancellation of the parties eventually PRESIDENCY of the COUNCIL of MINISTERS held capital 58 in this society as a result of the merger or assignment to the partners of the merged company of units of the receiving company. 8-[Repealed].



Article 75 [...] 1-the tax losses of the merged can be deducted from the taxable profits of the new company or the acquiring company, under the terms and conditions set forth in article 52 and by the end of the period referred to in paragraph 1 of that article, of the tax period to which they relate. 2-[Repealed]. 3-the provisions of paragraph 1 may also apply, mutatis mutandis, to the following operations: a) in a Division in which the extinction of the company being divided, being the tax losses are transmitted to the recipient companies in proportion to the market value of the assets assigned to each of these companies; (b)) in the merger, Division or active input, which is transferred to a company resident in Portuguese territory a permanent establishment situated therein of a company resident in a Member State's PRESIDENCY of the COUNCIL of MINISTERS of the European Union 59, which fulfils the conditions laid down in article 3 of Directive no 2009/133/EC of 19 October 2009 , as a result of this operation, the extinction of the permanent establishment;

c) On transfer of permanent establishments situated in Portuguese territory of companies resident in European Union Member States that are in accordance with the conditions of Directive No. 2009/133/EC of 19 October 2009 in favor of companies resident in other Member States and also in identical conditions, in the context of merger, Division or active input , provided that the assets transferred continue affections to a permanent establishment located here and contribute to the determination of taxable profit which is attributable; d) On transfer of permanent establishments situated in Portuguese territory of companies resident in other EU Member States that are in accordance with the conditions of Directive No. 2009/133/EC, the Council of July 23, 2009 to a company resident in Portuguese territory, in the context of merger, SCISSION and active input, as a result of this operation, the extinction of the permanent establishment. 4-deduction of tax losses transmitted under paragraph 1 and of sub-paragraphs b) and d) of the preceding paragraph has as limit in each tax period, the amount corresponding to the proportion between the value of the net worth of the merged company, or of permanent establishments of the society merged or of the transferring company, and the value of the net worth of PRESIDENCY of the COUNCIL of MINISTERS 60 all companies or permanent establishments involved in the merger or entry of certain assets based on the last balance sheet prior to the operation.


5-the transactions referred to in (a)) and c) of paragraph 1 of article 74, the deduction of losses is performed in the taxable income of a permanent establishment situated in Portuguese territory and respect only those losses that are attributable. 6-where, during the period of application of the special regime for taxation of groups of companies referred to in article 69 or immediately after your term, and as a result of a merger involving all of the companies covered by that scheme, one of the companies belonging to the group to incorporate the other or there's rise to the formation of a new company can the Member of Government responsible for the area of finance, at the request of the dominant society submitted within 90 days after the request of registration of the merger in the commercial registry, allow the tax losses of the group still deduct can be deducted from the taxable profit of the acquiring company or the new company resulting from the merger. Article 76 [...] 1-in cases where it is applied the special arrangements laid down in article 74 to merger operations provided for in points (a)) and b) of paragraph 1 of article 73, as well as to mergers in which, in accordance with paragraph 2(d)) and and) number, are assigned shares to members of the PRESIDENCY of the COUNCIL of MINISTERS societies 61 merged , are not considered for taxation purposes the gains or losses eventually established, provided that the shares received by the partners of the merged are valued for tax purposes at the value it had the shares delivered or extinct, determined in accordance with the provisions of the present code. 2 - […]. 3-the provisions in the preceding paragraphs shall apply to members of company divisions, object to which the special regime laid down in article 74, referred to in (a)) and (b)) of paragraph 2 of article 73 and still in (c)), d) and (e)) of the same number when they are allocated shares to members of the societies split, and should in these cases, the value for tax purposes of the interest held be divided by the shares received and continue to be held in the company being divided, on the basis of the ratio of the market value of the assets assigned to each of the recipient companies and the market value of the assets of the company being divided. 4-in cases where the special arrangements laid down in article 74 to the operations mentioned in subparagraph (d)) of paragraph 1 of article 73, when they are not assigned shares to the shareholder of the merged company, the value for tax purposes of the contribution which this holds in society merged in addition to the value for tax purposes of the contribution that the partner holds in the company. 5-in cases where the special arrangements laid down in article 74 to the operations referred to in (c)) and d) of paragraph 2 of article 73 when are not allocated shares to the shareholder of the company being divided, the value for tax purposes of the company being divided holding participation is reduced in proportion to the market value of outstanding assets addition, PRESIDENCY of the COUNCIL of MINISTERS still 62, in the case of point (d)) of paragraph 2 of article 73, the amount of that reduction to the value for tax purposes of the participation which has in the company.

6-where to apply the special arrangements laid down in article 74 to the operations mentioned in subparagraph (e)) of paragraph 2 of article 73, when they are not assigned shares the company being divided, the value for tax purposes of the contribution which this holds in the company is increased by the value of the assets for tax purposes. 7-the preceding paragraphs shall also apply to members of societies that are object of merger or Division operations covered by Directive No. 2009/133/EC of 19 October 2009. Article 78 [...] 1-the option for the application of the special arrangements set forth in this subsection must be reported to the tax authority the annual declaration of Customs accounting and tax information, as referred to in article 121, relating to the tax period in which the operation is performed: a) The company or recipient companies, in the case of merger or spin-off, except when such companies and as well as the society or societies notifiers are not resident in Portuguese territory or have a permanent establishment located there, where the obligation to notify should be fulfilled by residents; (b)) by the recipient company in the case of asset entry, except the COUNCIL of MINISTERS PRESIDENCY 63 when not resident in Portuguese territory or has a permanent establishment located there, in which case the obligation must be fulfilled by the transferring company;

c) by society acquired when resident in Portuguese territory and the respective partners, residents of barter operations units. 2-for the purposes of paragraph 1 of article 74, the society merged, spun off or transferring company must integrate in the process of tax documents referred to in article 130 the following elements: a) Declaration of recipient company that complies with the provisions of paragraph 3 of article 74; b) statements show, confirmed and authenticated by the tax authorities of another Member State of the European Union that are residents of the other companies involved in the operation, that these are in accordance with the conditions established in article 3 of Directive no 2009/133/EC of 19 October 2009, whenever the operations do not participate only companies resident in Portuguese territory. 3-in the case referred to in paragraph 2 of article 74, in addition to the declarations referred to in (b)) of the preceding paragraph, the resident company must integrate in the process of tax documents referred to in article 130 document issued by the tax authorities of the EU Member State where the permanent establishment is situated in which they declare the tax that would be due in the absence of the provisions of Directive No. 2009/133/EC , of the Council of 19 October 2009.

PRESIDENCY of the COUNCIL of MINISTERS 64 4-the receiving company must integrate, in the process of tax documents provided for in article 130: a) the financial statements of the company merged, spun off or transferring company, before the operation;

b) the relationship of the assets acquired which have been incorporated in the accounts for different values of accepted for tax purposes in society merged, split or contributor, showing both values, as well as depreciation and amortization, impairment losses, provisions and other registered value fixes before carrying out operations, making the respective monitoring pending alienated , transferred or extinct, and the tax benefits or net financing expenses whose transmission occurs pursuant to article 75-. 5-for the purposes of article 76, the shareholders of the merged or de-merged are to integrate in the process of tax documents referred to in article 130 a statement containing the date and identification of the operation carried out, identification of the entities involved the number and nominal value of shares delivered and received, the tax value of shares delivered and respective acquisition dates, the amount of money eventually received, the percentage level of participation held before and after the merger or spin-off and, still, the corrections referred to in paragraph 4 of article 76 6-for the purposes of article 77 the partners of the company acquired must integrate in the process of tax documents referred to in article 130: PRESIDENCY of the COUNCIL of MINISTERS the 65) Declaration that contains the description of the operation of an exchange of shares, the date on which took place, identification of the companies involved, number and nominal value of the shares and the shares received , fiscal value of shares delivered and respective acquisition dates, amount of money eventually received, a result that would be included in the tax base if it wasn't applied the arrangement provided for in article 77 and demonstration of your calculation; b) statement of the acquiring company that already owned, or were holding as a result of the operation of an exchange of shares, the majority of the voting rights of the company acquired; c) in cases where the acquired or acquiring company are resident in other Member States of the European Union, Declaration, confirmed and authenticated by the respective tax authorities that meet the requirements for the application of the Directive No. 2009/133/EC of 19 October 2009. Article 81 [...] 1-is encompassed for purposes of taxation of the partners, in the tax period in which is put to your disposal, the value that is assigned to each of them as a result of the shares, down the acquisition value of the corresponding shares and other equity instruments.

PRESIDENCY of the COUNCIL of MINISTERS 66


2-The inclusion, for the purposes of taxation the difference referred to in the preceding paragraph, it should be noted the following: a) this difference, when positive, is considered as added value; b) this difference, when negative, is regarded as less deductible value added by the amount that exceeds the sum of the tax losses deducted in the context of the application of the special regime for taxation of groups of companies and of the profits distributed by the company reserves and settled having benefited from the provisions of article 51 3-the difference referred to in point (a)) of the preceding paragraph shall apply the provisions of paragraph 1 of article 51-C provided that the requirements set out therein. 4-the least value referred to in (b)) of paragraph 2 is not deductible where the entity liquidated is resident in a country, territory or region with clearly more favourable tax regime the record to list approved by order of the Member of Government responsible for the finance area or when the shares have remained in the ownership of the taxpayer for a period of less than four years. 5-[previous paragraph 4]. 6-where, in one of the four tax periods after the liquidation of a company, the activity pursued by this is exercised by any partner of the company liquidated, or by person or entity with that or this is a special relationship, in accordance with paragraph 4 of article 63, should be added to the taxable income of that shareholder in this tax period, the value of the least value that has been deducted in accordance with point (b)) of paragraph 2, plus in PRESIDENCY of the COUNCIL of MINISTERS 15 67%.



Article 83 [...] 1-for the determination of the taxable income of the tax period in which the cessation of activity of entity with headquarters or effective direction in Portuguese territory, including the European company and the European cooperative society, as a result of the transfer of the respective residence out of that territory, constitute positive or negative differences components, at the date of termination , between the market values and the values of the relevant tax assets of that entity, though not expressed in accounting. 2-in the case of transfer of residence of a company established or effective direction in Portuguese territory to another Member State of the European Union or the European economic area, in the latter case, provided there is obligation of administrative cooperation in the field of exchange of information and assistance to the recovery equivalent to the established in the European Union, tax, in part corresponds to the positive balance of positive and negative components referred to in the preceding paragraph , is paid in accordance with one of the following ways: a) Immediately, by all the tax calculated on income statement presented in accordance with the procedure and deadline established in paragraph 3 PRESIDENCY of the COUNCIL of MINISTERS article 68 120; or (b)) in the year following that in which, for each of the assets relied upon for the purpose of the tax clearance, your extinction, transmission, desafetação of the activity of the entity or transfer, by any title, material or legal, to a territory or country other than a Member State of the European Union or the European economic area in the latter case, provided there is obligation of administrative cooperation in the field of exchange of information and assistance to the recovery equivalent to the established in the European Union, for part of the tax that matches the fiscal result relative to each element individually identified; or (c)) In equal annual amount fractions, corresponding to one-fifth of the amount of tax discharged with early in the taxation period in which the transfer occurs. 3-the exercise of the option by one of the procedures laid down in paragraph 1 (b)) and c) above determines the maturity of interest at the same rate for interest on arrears, counted from the day following the date referred to in paragraph b) of paragraph 1 of article 104 until the date of effective payment. 4-the option for one of the procedures laid down in paragraph 1 (b)) and c) of paragraph 2 must be exercised in the statement of income corresponding to the tax period in which the termination and determines the delivery within the period laid down in paragraph 3 of article 120, official model Declaration, approved by order of the Member of Government responsible for the area of finance , PRESIDENCY of the COUNCIL of MINISTERS 69 containing a breakdown of the assets and may, in case of founded fears of frustration of the levying of the tax credit, be subject to the provision of a bank guarantee, which corresponds to the amount of tax plus 25%. 5-the taxable person has exercised the option by modality of payment of the tax referred to in paragraph b) of paragraph 2, must submit, annually, by electronic data transmission, within the time limit set in paragraph 1 of article 120, the official template declaration referred to in the preceding paragraph and, being due, tax payment within this period, plus interest calculated in accordance with paragraph 3. 6-without prejudice to the responsibility for the administrative offence that the case fits, the non-delivery of the Declaration referred to in paragraph 1 determines the notification for your presentation and payment of the tax eventually due within 30 days, under penalty of prosecution of tax enforcement for the full amount owed. 7-the taxable person has exercised the option by modality of payment of the tax provided for in subparagraph (c)) of paragraph 2, must make payment of tax due: a) until the expiry of the deadline for submission of the tax return referred to in paragraph 4, for the first annual fraction; and (b)) until the last day of the month of may of each year, regardless of that day be useful or not, plus interest calculated in accordance with paragraph 3, with respect to the remaining fractions of payment. 8-in the case referred to in the preceding paragraph, the lack of any provision implies the end of the immediately following, establishing fiscal execution process for all of the outstanding PRESIDENCY of the COUNCIL of MINISTERS-70 9 the taxable person who, following the option for one of the modalities of payment of the tax provided for in paragraph 1 (b)) or c) of paragraph 2 your transfer operate residence to a territory or country other than a Member State of the European Union or the European economic area, in the latter case, provided there is obligation of administrative cooperation in the field of exchange of information and assistance to the recovery equivalent to the established in the European Union, must make, within the time limit set in paragraph b) of paragraph 1 of article 104 payment of all or part of the tax paid or benefits that are missing, as appropriate, plus the respective interest calculated in accordance with paragraph 3. 10-the preceding paragraphs shall not apply to assets that remain effectively affections to a permanent establishment of the same entity located in Portuguese territory and contribute to the respective taxable income, provided that they are observed, with respect to these elements, the conditions laid down in paragraph 3 of article 74, mutatis mutandis. 11-is applicable to the determination of the taxable profit of the permanent establishment, with the necessary adaptations, the provisions of paragraph 4 of article 12-74 in the situation referred to in paragraph 10, the tax losses prior to cessation of activity can be deducted from the taxable profits attributable to the permanent establishment of the non-resident entity, in accordance with the terms and conditions of article 15 71 13 PRESIDENCY of the COUNCIL of MINISTERS-the regime established in paragraphs 10 , 11 and 12 shall not apply in cases covered by paragraph 10 of article 73 14-the terms for compliance with reporting obligations and provision of guarantee are defined by order of the Member of Government responsible for the area of finance. Article 84 [...] 1-the provisions of paragraph 1 of the preceding article shall apply mutatis mutandis in determining taxable profit attributable to a permanent establishment of non-resident entity located in Portuguese territory, when occurs: a) the cessation of the activity in Portuguese territory; (b)) the transfer, by any material or legal title, out of the Portuguese territory, assets held affection to the permanent establishment. 2-When the facts referred to in the preceding paragraph imply the transfer of assets to another Member State of the European Union or the European economic area, in the latter case, provided there is obligation of administrative cooperation in the field of exchange of information and assistance to the recovery equivalent to the established in the European Union, shall apply mutatis mutandis the provisions of paragraphs 2 to 9 of the previous article. Article 87 [...]

PRESIDENCY of the COUNCIL of MINISTERS 72


1-the IRC rate is 23%, except in the cases referred to in the following paragraphs. 2 - […]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7 - […]. Article 88 [...] 1-undocumented expenses are taxed separately at a rate of 50%, without prejudice to the not your account as expenses in accordance with point (b)) of paragraph 1 of article 23-a. 2-[...]. 3-Are taxed autonomously charges made or incurred by taxable persons who do not benefit from subjective exemptions and carrying on, principally, commercial, industrial or agricultural nature, related to light passenger vehicles, motorcycles or motorcycles, excluding vehicles moved exclusively to electric power, the following rates: a) 15% in the case of vehicles with an acquisition cost of less than € 20 000; b) 27.5% in the case of vehicles with a cost equal to or greater than € 20 000, but less than € 35 000;

PRESIDENCY of the COUNCIL of MINISTERS 73 c) 35% in the case of vehicles with a cost equal to or greater than € 35 000. 4-[Repealed]. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9 - […]. 10-[...]. 11-[...]. 12-[...]. 13-[...]. 14-The autonomous taxation rates provided for in this article are high at 10 percentage points as to taxpayers who have tax losses in the period to respect any of the facts referred to in the above paragraphs tax related to the exercise of a commercial, industrial or agricultural nature does not exempt from IRC. 15-The autonomous taxation rates provided for in paragraphs 7, 9, 11 and 13, as well as the provisions of the preceding paragraph, shall not apply to taxable persons to which the simplified system of determination of the collectable. 16-the provisions of this article shall not apply in respect of expenses or costs of permanent establishment situated outside the Portuguese territory and concerning the activity carried on by your intermediary.

PRESIDENCY of the COUNCIL of MINISTERS article 90 74 [...] 1-[...]. 2-[...]: a) corresponding to the international juridical double taxation; b) corresponding to the international economic double taxation; c) [previous subparagraph (b))]; d) [previous subparagraph (c))]; e) [Former subparagraph (d))]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7 - […]. 8-in respect of taxable persons covered by the simplified scheme of determination of the collectable, the amount determined under paragraph 1 are only making the deductions provided for in (a)) and e) of paragraph 2. 9-deductions made pursuant to points (a)) d) of paragraph 2 may not result negative value.

PRESIDENCY of the COUNCIL of MINISTERS-75 10 [previous paragraph 8]. 11-[previous paragraph 9]. 12-[previous paragraph 10]. Article 91 tax credit for international legal double taxation 1-[...]:) [...]; b) fraction of the IRC, computed before the deduction is given, which is attributable to the income which the country concerned may be taxed, plus the correction referred to in paragraph 1 of article 68, net of expenses directly or indirectly supported for your achievement. 2 - […]. 3-the deduction provided for in paragraph 1 shall be determined by country considering the totality of income from each country, with the exception of the income attributable to a permanent establishment of entities resident outside Portuguese territory whose deduction is calculated separately. 4-Notwithstanding the limitation provided for in the preceding paragraph, where it is not possible to make the deduction referred to in paragraph 1, by collecting failure in the tax period in which the income obtained abroad were included in the article, the remainder collectable can be deducted to the collection of the five periods of taxation following, with the limit laid down in point (b) of paragraph 1) that correspond to the income obtained in the country included in the article collectable and then the deduction provided for in the preceding paragraphs.

PRESIDENCY of the COUNCIL of MINISTERS Article 76 92 [...] 1-For entities carrying on the activity of a commercial, industrial or agricultural nature, as well as the non-residents with a permanent establishment in Portuguese territory, the tax paid pursuant to paragraph 1 of article 90, net of deductions referred to in (a)) c) of paragraph 2 of the same article , may not be less than 90% of the amount that would be determined if the taxable person not imbued with tax relief and the arrangements provided for in paragraph 13 of article 43-2 [...]. Article 93 [...] 1-the deduction referred to in subparagraph (d)) of paragraph 2 of article 90 is performed to the amount established in the Declaration referred to in article 120 of the own tax period concerned or, if insufficient, until the twelfth accounting period following, after made the deductions referred to in (a)) c) of paragraph 2 and with observance of paragraph 9 , both of article 90 2-In case of cessation of activity on the own tax period or until the twelfth accounting period subsequent to that to which the special payment on account, the part that can't have been deducted pursuant to the preceding paragraph, when it exists, is refunded upon request of the taxable person, directed to the head of the Department of finance at the headquarters area effective direction or permanent establishment in centralized accounting, that is filed within 90 days of the PRESIDENCY of the COUNCIL of MINISTERS 77 date of cessation of activity. 3-taxpayers may, without prejudice to paragraph 1, be reimbursed of the part that has not been deducted under the same precept at the end of the period laid down therein, upon request of the taxable person, directed to the head of the Department of finance at the headquarters area, actual direction or permanent establishment in centralized accounting, that is filed within 90 days after the end of the period. Article 94 [...] 1-[...]. 2 - […]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9 - […]. 10-in the case of income in kind, the withholding tax is levied on the amount corresponding to the sum of the market value of the assets or rights on the date the respect this obligation and the amount of tax withheld.

PRESIDENCY of the COUNCIL of MINISTERS Article 78 97 [...] 1-[...]: the) interest and other investment income, with the exception of profits and reserves, that they hold financial institutions subject, in relation to them, the IRC, even if exempted; b) […]; c) Profits and reserves distributed to entities to which the arrangements established in paragraph 1 of article 51, since participation in the capital remained in the ownership of the same entity, continuously, during the year preceding the date of your making available; d) […]; e) […]; f) […]; g) […]; h) interest and other income resulting from supply contracts, commercial paper or bonds, that is a debtor company whose share capital with voting rights held by the taxpayer at over 10%, directly, or indirectly through other companies in which the taxable person is dominant, since participation in the share capital remained on your ownership , continuously, during the year preceding the date of your placement available.

PRESIDENCY of the COUNCIL of MINISTERS-79 2 [...]. 3 - […]. 4 - […]. Article 98 [...] 1-[...]. 2-[...]: a) the verification of the assumptions resulting from Convention for the avoidance of double taxation or another international agreement or the applicable domestic legislation, through the presentation of the standard form adopted by order of the Member of Government responsible for the area of Finance: 1) certified by the competent authorities of their State of residence; or 2) accompanied by a document issued by the competent authorities of their State of residence, stating your residence for tax purposes in the period concerned and subject to income tax in that State; b) […]. 3 - […]. 4 - […]. 5 - […]. 6 - […].

PRESIDENCY of the COUNCIL of MINISTERS 80 7-The beneficiaries of the proceeds to check the conditions referred to in paragraphs 1 and 2 of this article and in paragraphs 3 et seq. of article 14, when has not been made within the time limits and proof under the conditions laid down, may request the total or partial refund of the tax that has been withheld at source within two years from the end of the year in which the chargeable event, upon presentation of a standard form to be adopted by order of the Member of Government responsible for the area of Finance: a) certified by the competent authorities of their State of residence; or b) accompanied by a document issued by the competent authorities of their State of residence, stating your residence for tax purposes in the period concerned and subject to income tax in that State; 8-the form provided for in the preceding paragraph shall, when necessary, be accompanied by other elements which make it possible to assess the legitimacy of the refund. 9-[previous paragraph 8]. 10-[previous paragraph 9]. 11-[previous paragraph 10]. Article 104 [...] 1-[...]. 2 - […]. 3 - […].

PRESIDENCY of the COUNCIL of MINISTERS 81


4-taxable persons are released from the obligation to make payments on account when the tax of the tax period of reference for the respective calculation is less than € 200.00. 5 - […]. 6 - […]. 7-there is no place for payment referred to in subparagraphs (a) (b)) and c) of paragraph 1 or the reimbursement referred to in paragraph 2 when your amount is less than € 25.00. Article 105 [...] 1-payments on account are calculated based on the tax paid pursuant to paragraph 1 of article 90 for the period immediately preceding that taxation should make such payments, net of the deduction referred to in subparagraph (e)) of paragraph 2 of this article and of the special payment on account to effect pursuant to article 106 2-[...]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7 - […].



PRESIDENCY of the COUNCIL of MINISTERS 82 8-for the purposes of paragraph 1, where applicable the special taxation regime for groups of companies, the amount of the special payment on account to be considered is the corresponding to the sum of the special payment on account of all the companies of the group, including the parent company. Article 106 [...] 1-Without prejudice to the provisions of subparagraph (a)) of paragraph 1 of article 104, the subject there mentioned are subject to a special payment on account to perform in two installments, until 31 July and 15 December of the year concerned, or, in the case of adopting a tax period does not coincide with the calendar year by the end of the 7th month and until 15 of 12 month of the respective tax period. 2-the amount of the special payment on account is equal to 1% of the turnover of the previous taxation period, with the minimum of € 1750.00, and, when superior, is equal to this limit plus 20% of the excess with the maximum limit of € 70000.00. 3-[Repealed]. 4 - […]. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9 - […]. 10-[...].

PRESIDENCY of the COUNCIL of MINISTERS 83 11-[...]:) [...]; b) […]; c) […]; d) taxable persons the application of the simplified system of determination of the collectable. 12-When the special regime is applicable to taxation of groups of companies, is due a special payment on account for each of the companies in the group, including the parent company, calculated in accordance with paragraph 2, and the latter the obligation to carry out the delivery of the value corresponding to the sum of the special payment on account so certain. 13-[Repealed]. Article 118 [...] 1-[...]. 2 - […].

3-non-resident taxpayers and obtaining income not attributable to a permanent establishment situated in Portuguese territory for which there is no place to the obligation to submit the Declaration referred to in article 120 are also required to present the PRESIDENCY of the COUNCIL of MINISTERS 84 Declaration of registration, in any tax office or other legally authorised location until the expiry of the deadline for delivery of the periodic Declaration of income provided for in article 120 4-Declaration of entry in the register shall contain, in respect of persons and other entities mentioned conferences in paragraphs 2 and 3 of article 8, the annual tax period wishing to adopt. 5-whenever changes occur in any of the particulars given in the Declaration of registration, should the taxable person deliver the respective statement of changes within 30 days from the date of the change, unless another period is expressly provided for. 6-IRC taxpayers must submit the Declaration of termination within 30 days of the date of cessation of activity. 7 - […]. Article 120 [...] 1-[...]. 2 - […]. 3 - […]. 4 - […]. 5-[...]: a) in respect of income derived from real estate, excepted the gains resulting from your sale, the earnings referred to in subparagraph (b)) of paragraph 3 of article 4 and the income referred to in paragraphs 3 and 8) (c) of paragraph 3 of article 4, until the last day of the month of may of the year following that to which they relate;

PRESIDENCY of the COUNCIL of MINISTERS 85 b) [...]; c) […]. 6 - […]. 7-[Repealed]. 8-the correction referred to in paragraph 2 of article 51-A must be effected by sending replacement declaration within 60 days from the date of verification of the fact that the determined, regardless of whether that day be useful or not useful, on each of the tax periods where ever the expiry of sending the periodic Declaration of income. 9 - […]. 10-[...]. Article 123 [...] 1-[...]. 2 - […]. 3 - […]. 4-the books, accounting records and respective supporting documents must be kept in good order for a period of 12 years. 5 - […]. 6 - […]. 7 - […]. 8 - […].

PRESIDENCY of the COUNCIL of MINISTERS 86 9-[...]. Article 130 [...] 1-IRC taxpayers, except exempt pursuant to article 9, are required to keep in good order during the period of 12 years, a process of tax documents for each tax period, which must be made up to the end of the period for delivery of the Declaration referred to in point (c)) of paragraph 1 of article 117 with the accounting and tax elements to be defined by order of the Member of Government responsible for the area of finance. 2 - […]. 3-taxpayers whose tax situation must be accompanied by the unit of the major contributor, according to the criteria laid down in Ordinance of the Member of Government responsible for the area of finance provided for in paragraph 3 of article 68-B of the general tax law, and other entities to which is applied the special regime for taxation of groups of companies are required to carry out the delivery of tax documentation process in conjunction with the annual statement referred to in point (a) c) of paragraph 1 of article 117 4-[...]. Article 138 [...] 1-[...].

PRESIDENCY of the COUNCIL of MINISTERS 87 2-where the taxpayer wishes to include under the agreement transactions with entities with which there are special relations residing in country with which it has been concluded a Convention for the avoidance of double taxation, and the agreement has bilateral or multilateral character, must request that the request referred to in the preceding paragraph , is subject to the respective competent authority under the mutual agreement procedure to establish for this purpose. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9 - […].»

Article 3 Amendment to the code of the personal income tax Are added to Collective the IRC code, approved by Decree-Law No. 442-B/88 of 30 November, articles 23-A, 28A, 28B, 28 C, 31-A, 31-B, 45-, 47-, 50A, 51-A, 51-B, 51-C, 51-D, 54-A, 75- , 86-, 86-B and 91-A, as follows: ' article 23 – the PRESIDENCY of the COUNCIL of MINISTERS 88 non-deductible Costs for tax purposes-1 are not deductible in determining taxable profit the following charges, even when accounted for as an expense of the period of taxation: a) the IRC, including the autonomous taxation, and any other taxes that directly or indirectly relate to profits; b) undocumented expenses; c) charges no documentation comply with the provisions of paragraphs 3 and 4 of article 23, as well as the costs highlighted in documents issued by taxpayers with tax identification number non-existent or invalid or by taxpayers whose cessation of activity has been declared off the record in accordance with paragraph 6 of article 8; d) illicit expenditure, in particular those arising from behaviour that appears indicating the Portuguese criminal law violation, even if occurring outside the territorial scope of your application;

and) fines, penalties and other charges, including compensatory interest and arrears, for infractions of any nature that have no contractual origin, as well as by opposing any regulation behaviors on the exercise of the activity; f) taxes, fees and other taxes relating to third parties that the taxable person is not legally obligated to support;

PRESIDENCY of the COUNCIL of MINISTERS 89 g) reparations by scanning events whose risk is insurable; h) The allowances and charges with compensation for relocation in the worker's own car, at the service of the employer, not invoiced to customers, carried in any capacity where the employer does not possess, for each payment made, a map through which is possible to control the movements referred to in those documents, in particular the respective locations , length of stay, purpose and, in the case of mission worker, dependable identification of the vehicle and of the respective owner, as well as the number of kilometres travelled, except in so far that there is room for taxation in IRS in sphere of the respective beneficiary; I) The costs of a car without a driver of light passenger or mixed vehicles, in the part corresponding to the value of the depreciation of these vehicles that, pursuant to points (a) (c)) and e) of paragraph 1 of article 34, is not accepted as an expense;


j) fuel costs in so far as the taxable person does not make proof that the same respect the possessions belonging to the active or your used under lease and which are not exceeded the normal consumption; k) the cost of the pleasure boats and aircraft for passengers who are not public service exploitation affects transportation or intended to be rented in the course of normal activity of the PRESIDENCY of the COUNCIL of MINISTERS 90 taxable person; l) capital losses carried out relating to pleasure boats, private aircraft and light passenger or mixed vehicles, which are not related to the operation of public transport service or intended to be rented in the course of normal activity of the taxable person, except in so far as it corresponds to the tax value depreciable asset under e) of paragraph 1 of article 34 is still not accepted as spent; m) interest and other forms of remuneration of supplies and loans made by the partners to society in so far in excess of the rate set by order of the Member of Government responsible for the area of finance, except in the case of applying the regime established in article 63 of the IRC code; No related expenses) profit-sharing by members of governing bodies and employees of the company, when the respective amounts are not paid or placed at the disposal of the beneficiaries until the end of the tax period following;



the) Without prejudice to the provisions of the preceding paragraph, the expenses relating to profit sharing by members of governing bodies, when beneficiaries are holders, directly or indirectly, of shares representing at least 1% of the share capital, in part in excess of twice the monthly salary earned in the period of PRESIDENCY of the COUNCIL of MINISTERS 91 taxation to respect the result in participating; p) A contribution on the banking sector; q) amounts paid or owed, at any title, natural or residing outside Portuguese territory conferences, and then subjected to a tax scheme identified by order of the Member of Government responsible for the area of finance as a clearly more favourable tax regime, unless the taxpayer can prove that such charges correspond to transactions effectively carried out and not have an abnormal or exaggerated amount character. 2-do not compete for the formation of the taxable income capital losses and other losses related to equity instruments, in part of the value that corresponds to the dividends or capital gains arising from the disposal of shares of the same entity that have benefited, in the tax period or in the four previous periods, the deduction provided for in article 51 of credit for international economic double taxation provided for in article 91 or the deduction provided for in article 51-C.



3-are not accepted as an expense of the taxation period supported with the disposal of equity instruments, whatever the title for that operates, of entities resident or domiciled in a country, territory or region subject to a clearly more favourable tax regime contained in list approved by order of the Government 92 PRESIDENCY of the COUNCIL of MINISTERS responsible for finance. 4-the Tax and Customs Authority must provide the information concerning the cadastral situation of taxable persons, that is considered relevant for the purposes of the second part of subparagraph (c)) of paragraph 1. 5-If you do not check the requirement set out in paragraph n) of paragraph 1, the value of the IRC assessed in respect of the tax period following the IRC that stopped being paid as a result of the deduction of amounts that have not been paid or placed at the disposal of the parties concerned within the time limit indicated, plus the corresponding compensatory interest. 6-for the purposes of verification of the percentage fixed in paragraph o) of paragraph 1, the beneficiary holds indirectly the shares of the share capital of the company when they are in the ownership of the spouse, their ascendants or descendants up to the 2nd degree, being also apply, mutatis mutandis, the rules on the classification of ownership established in the commercial companies code.

7-the provisions of paragraph q) of paragraph 1 shall also apply to amounts indirectly paid or owed, at any title, or natural persons resident outside Portuguese territory conferences and there subject to a clearly more favourable tax regime, when the taxpayer has or should have knowledge of your destination, assuming that knowledge when there are special relationships, in accordance with paragraph 4 of article 63 , between the taxpayer and the said individuals or collective or between the PRESIDENCY of the COUNCIL of MINISTERS 93 taxpayer and the agent, trustee or an intermediary who undertakes the payment to individuals or collectives. 8-Tax and customs authority notifies the taxpayer to production of the proof referred to in subparagraph q) of paragraph 1 and, to this end, be set a time limit of not less than 30 days. 9-in the case of professional societies subject to the tax transparency regime, may be fixed by order of the Member of Government responsible for the area of finance the maximum number of vehicles and the respective value for the purposes of deducting the corresponding charges. Article 28-the impairment losses on receivables 1-can be deducted for tax purposes the following when impairment losses recorded in the same period of taxation or in previous taxation periods:) those relating to claims resulting from normal activity, including interest for delay in performance of an obligation, which, at the end of the period of taxation can be considered doubtful and are identified as such in the accounts; b) those relating to receipts for charge recognized by insurance companies. 2-Can also be deducted for tax purposes the impairment, and other fixes, recorded in the same period of taxation or in previous taxation periods, when constituted, pursuant to regulations issued by the Bank of Portugal, generic and abstract in character, by the entities subject to your supervision and branches in Portugal of credit institutions and other institutions of the COUNCIL of MINISTERS PRESIDENCY financial 94 based in another Member State of the European Union for the coverage of specific credit risk and country risk and losses in securities and other applications. 3-impairment losses and other value corrections referred to in the previous paragraphs that should not subsist, by leave of the objective conditions that determined, positive components of the taxable profit of the respective tax period. Article 28-B impairment losses in claims 1-for the purposes of the determination of impairment losses provided for in point (a)) of paragraph 1 of the preceding article, the following shall be considered as doubtful debts those where the risk of default is properly justified, what applies in the following cases: a) the debtor has pending enforcement proceedings, insolvency proceedings, special process of revitalization or business recovery procedure ADR under the system recovery ADR companies (SIREVE), approved by Decree-Law No. 178/2012, of 3 August; b) claims have been lodged in court or arbitral tribunal; c) the credits are in arrears for more than six months from the date of the respective maturity and there is objective evidence of impairment and arrangements have been made for your receipt. 2-the amount of the impairment loss of accumulated credits referred to in subparagraph (c)) of the preceding paragraph may not exceed the following percentages of amounts in arrears: PRESIDENCY of the COUNCIL of MINISTERS to 25% to 95) credits in arrears for more than 6 months and up to 12 months; b) 50% for loans in arrears for more than 12 months and up to 18 months; c) 75% for loans in arrears for more than 18 months and up to 24 months; d) 100% for loans in arrears for more than 24 months. 3-are not considered doubtful debts: a) the credits on the State, autonomous regions and local authorities or those in which these entities have rendered endorsement; b) the credits covered by insurance, with the exception of the corresponding to the percentage importance of discovered mandatory, or any kind of collateral; c) claims on natural persons or holding conferences, directly or indirectly, in accordance with paragraph 6 of article 69, more than 10% of the share capital of the company or members of its governing bodies, except in the cases referred to in (a)) and b) of paragraph 1;

d) claims on companies, directly or indirectly, in accordance with paragraph 6 of article 69, in more than 10% of the share capital, except in the cases referred to in (a)) and b) of paragraph 1. Article 28-C 1 banking Companies-the annual amount accumulated impairment losses and other fixes for specific credit risk and country risk referred to the PRESIDENCY of the COUNCIL of MINISTERS 96


paragraph 2 of article 28-may not exceed what the implementation of the minimum limits required by virtue of the warnings and instructions from the supervisory entity. 2-impairment losses and other value corrections referred to in the preceding paragraph are only accepted when relating to claims resulting from normal activity, not including the claims excluded by the rules issued by the supervisory authority and the following: a) the credits in the State, autonomous regions, municipalities and other public bodies have rendered endorsement; b) the credits covered by rights in rem over immovable property; c) the credits guaranteed by credit insurance contract or bond, with the exception of the corresponding to the percentage importance of discovered required; d) Credits under the conditions laid down in (c)) and d) of paragraph 3 of article 28-B.

3-capital losses of applications referred to in paragraph 2 of article 28-the must match the sum of the differences between the cost of applications arising from the recovery of claims resulting from normal activity and the respective market value, when this is lower. 4-the annual amounts accumulated impairment losses and other fixes, referred to in paragraph 2 of article 28-A, must not exceed the minimum values resulting from the application of the standards issued by the supervisory authority. 5-the arrangements specified in this article, everything that is not here, PRESIDENCY of the COUNCIL of MINISTERS especially provided for 97, obey the specific rules applicable. 6-When the cancellation of provisions for general credit risks, as well as impairment losses and other fixes to no value provided for in paragraph 2 of article 28-A, are considered income from taxation period, in first place, those who have been accepted as tax expense in the respective tax period. Article 31-the change of methods of depreciation and amortization and changes in the life of non-current assets 1-depreciation and amortization methods must be uniformly followed in successive tax periods. 2-Can, however, check out these methods and changes in the useful life of assets where the same are justified on economic or technical reasons and are accepted by the tax authority and customs.

3-the preceding paragraphs shall not affect the variation of quotas of depreciation or amortisation in accordance with the regime more or less intensive or with other conditions of use of the respective elements, however, minimum quotas for the tax period be deducted for the purposes of determining the profit of other periods of taxation. 4-for the purposes of the preceding paragraph, minimum quotas of depreciation or amortisation are calculated on the basis of rates equal to half of the set according to the straight line method, without prejudice to the next paragraph.

PRESIDENCY of the COUNCIL of MINISTERS 98 5-the use of quotas of depreciation or amortisation less than those mentioned in the preceding paragraph depends on communication to the Tax and Customs Authority, carried out by the end of the tax period in which the quotas identify practice and the reasons for its use. 6-the provisions of the last part of paragraph 3 and in paragraph 5 shall not apply to active elements that are reclassified as non-current assets held for sale. Article 31-B impairment losses on non-current assets 1-Can be accepted as tax expenses impairment losses on non-current assets from abnormal causes, including disaster-proven, natural phenomena, exceptionally rapid technical innovations or significant changes with an adverse effect in the legal context.

2-for the purposes of the preceding paragraph, the taxpayer must obtain the acceptance of the Tax and Customs Authority, upon duly substantiated exposure, to present by the end of the first month of the tax period following the occurrence of the facts that determined the exceptional devaluations, accompanied by supporting documentation, in particular the decision of the competent management body confirming those facts justification of the respective amount, as well as the indication of the treatment of assets, when the slaughter, dismantling, abandonment or destruction of these do not occur in the same tax period.

PRESIDENCY of the COUNCIL of MINISTERS 99 3-When the facts that determined the exceptional devaluation of assets and slaughter, dismantling, abandonment or destruction occur in the same tax period, the tax net value of fixed assets, possible recoverable values can be accepted as spent the period, provided that: a) is proven the physical dismantling slaughter , abandonment or destruction of goods, through the respective auto, signed by two witnesses, and identified and verified the facts that gave rise to exceptional devaluation; b) the self is accompanied by discriminating relationship of the elements in question, containing, for each asset, the description, the year and the cost of acquisition, as well as the net accounting value and the net fiscal value;



c) is communicated to the tax office in the area where those goods are, at least 15 days, the place, date and time of slaughter, dismantling, abandonment or destruction and the total net tax value. 4-subparagraphs (a)) c) of the preceding paragraph shall also apply in the situations referred to in paragraph 2, during the period of taxation in which issued the slaughter, dismantling, abandonment or destruction PRESIDENCY of the COUNCIL of MINISTERS of 100. 5-acceptance referred to in paragraph 2 is the responsibility of the Director of finance at the headquarters area, actual direction or a permanent establishment of the taxable person or of the Director of the unit of the major contributor, in the case of companies included in the scope of its mission. 6-the documentation referred to in paragraph 3 must integrate the process of tax documents, in accordance with article 130 7-impairment of depreciable or Amortizable assets that are not accepted fiscally in terms of the preceding paragraphs shall be considered as an expense, in equal parts, during the remaining useful life of that asset or, without prejudice to article 46 until the preceding period in which the slaughter, decommissioning, abandonment, destruction or the transmission.

Article 45 – to intangible assets, investment properties and non-consumable biological assets 1-is accepted as fiscal expenditure in equal parts during the first 20 tax periods after the initial recognition, the acquisition cost of the following intangible assets when recognized independently, in accordance with accounting standards, the individual accounts of the taxpayer: the) elements of intellectual property such as trademarks , permits, PRESIDENCY of the COUNCIL of MINISTERS 101 production processes, models or other rights assimilated, acquired for valuable consideration and who have not limited temporal duration; b) goodwill acquired in a concentration of business activities. 2-the acquisition cost, the major repairs and improvements and the improvements of investment properties that are subsequently measured at fair value is accepted as expense for tax purposes, in equal parts, during the period of life that follows the minimum share of depreciation that would be fiscally accepted if this asset remain recognised at acquisition cost. 3-the cost of acquisition of biological assets non-consumable, which are subsequently measured at fair value, is accepted as expense for tax purposes, in equal parts, during the period of life that follows the minimum share of depreciation that would be fiscally accepted if this asset remain recognised at acquisition cost.

4-the provisions of paragraph 1 shall not apply: a) The intangible assets acquired in the context of mergers, demergers or asset input, when it is applied the special arrangements laid down in article 74; b) goodwill in respect of shares; c) The intangible assets acquired to entities resident in a country, territory or region subject to a clearly more favourable tax regime contained in list approved by order of the Member of the PRESIDENCY of the COUNCIL of MINISTERS 102 Government responsible for the area of finance. Article 47-the date of acquisition of the shares for the purposes of this code, it is considered that: a) the date of acquisition of the shares acquired or allocated to the taxable person by incorporation of reserves or replacement, in particular by amending the respective nominal value or the transformation of society, is the date of acquisition of the shares to which they gave rise; b) the date of acquisition of the shares acquired or allocated to the taxable person in the context of merger, Division or exchange of shares when you apply the special scheme provided for in article 74 or article 77, as appropriate, and are valued for tax purposes at the value it had the shares delivered by partners , is the date of acquisition of the latter;


(c)) date of acquisition of the shares acquired by the receiving or acquiring company in the context of mergers, demergers or asset entry when you apply the special scheme provided for in article 74 or article 77, as appropriate, and are valued for tax purposes at the value it had shares in the merged company, spun-off or transferring , is the date of acquisition of the shares in recent societies. Article 50-the income from patents and other industrial property rights PRESIDENCY of the COUNCIL of MINISTERS 103 1-compete for the determination of taxable profit in only half the value of your income from contracts which have as their object the transfer or the temporary use of the following industrial property rights subject to registration: a) patents; b) industrial designs. 2-the provisions of the preceding paragraph shall also apply to income arising from the infringement of industrial property rights mentioned therein. 3-the provisions of paragraph 1 depends on the verification of the following cumulative conditions: (a)) industrial property rights have resulted from research and development activities performed or contracted by the taxpayer; b) the transferee use industrial property rights in the pursuit of an activity of commercial, industrial or agricultural nature; c) the results of the use of industrial property rights by the transferee does not materialise in the delivery of goods or services giving rise to tax deductible expenses on the transferor, or in this society is integrated into a group of companies to which to apply the special arrangements laid down in article 69, where between one or another and the transferee special relations exist pursuant to paragraph 4 of article 63; d) the transferee is not an entity resident in a country, territory or region where it is subject to a clearly more favourable tax regime contained in Ordinance of the Government member in charge of PRESIDENCY of the COUNCIL of MINISTERS 104 finance area. 4-the provisions of this article shall not apply to income arising from ancillary benefits included in the service contracts referred to in paragraph 1, which, for this purpose, should be ring-fenced from the proceeds from the sale or the temporary use of industrial property rights. 5-income to which the provisions of paragraph 1 are also considered in only half of your value for the purpose of calculating the fraction referred to in paragraph b) of paragraph 1 of article 91 article 51-the detention period of participation 1-for the purposes of verification of the requirement set out in subparagraph (b)) of paragraph 1 of the preceding article , shall apply the provisions of article 47-the.

2-If the detention of minimum participation referred to in paragraph 1 of the preceding article to verify before completing the period of 12 months, should fix-if the deduction that has been made, without prejudice to the consideration of the tax credit for international double taxation proceed, in accordance with article 91. 3-in cases where the taxable transfer your seat or effective direction to the Portuguese territory, counting the period of 12 months referred to in point (a) (b)) of paragraph 1 of the preceding article or paragraph 1 of article 51-C begins at the moment in which this transfer occurs. Article 51-B PRESIDENCY of the COUNCIL of MINISTERS the 105 requirements for the application of the system of elimination of economic double taxation of profits and reserves distributed 1-proof of compliance with the requirements laid down in article 51 should be done through declarations or documents confirmed and authenticated by the competent public authorities of the State, country or territory where the entity that distributes the profits or reserves have your headquarters or effective direction. 2-Tax and Customs Authority shall demonstrate the lack of veracity of the statements or documents referred to in the preceding paragraph or the information in them, when the entity that distributes the profits or reserves have your headquarters or effective direction in: a) Member State of the European Union; b) Member State of the European economic area that is linked to administrative cooperation in the field of taxation equivalent to the established in the framework of the European Union; c) State, country or territory with which Portugal has a Convention for the avoidance of double taxation or international agreement on Exchange of information in tax matters. 3-in all other cases, having founded evidence of lack of truthfulness of the statements or documents referred to in paragraph 1, or of information in them, it is up to the taxpayer to demonstrate compliance with the requirements provided for in article 51 by any other means of proof. 4-in the absence of declarations and documents referred to in paragraph 1, compliance with the requirements provided for in article 51 may be proved by any other means of proof.

PRESIDENCY of the COUNCIL of MINISTERS-106 5 declarations and documents referred to in the preceding paragraphs must integrate the process of tax documents referred to in article 130. Article 51-C capital gains and capital losses arising from the disposal of shares 1-do not compete for the determination of taxable profit taxpayers of IRC based or effective direction in Portuguese territory gains and losses incurred upon sale, whatever the title for that operates and regardless of the percentage of participation, of shares held continuously for a period of not less than 12 months provided that, on the date of its transmission, are complied with the requirements set out in (a)), (c)) and e) of paragraph 1 of article 51, as well as the requirement laid down in point d) of paragraph 1 or in paragraph 2 of the same article.

2-the provisions of the preceding paragraph shall also apply to capital gains and losses arising from the transmission of other equity instruments linked to shares there referred to, in particular additional benefits. 3-the preceding paragraphs shall also apply to capital gains and capital losses arising from the disposal of shares and other equity instruments in the context of mergers, demergers, entry of assets or exchange of shares in the company not covered by the special scheme provided for in articles 73 et seq., when performed by the merged, de-merged or contributing companies contributors , or by the members of the merged, de-merged or contributing companies acquired, since the latter are the COUNCIL of MINISTERS PRESIDENCY 107 IRC taxpayers with registered office or effective direction in Portuguese territory. 4-the provisions of paragraph 1 shall not apply to capital gains and losses realized upon disposal of shares when the value of real estate or real rights on immovable property situated in Portuguese territory, with the exception of immovable property affects the activity of agricultural, industrial or commercial nature that does not consist in the lease or in the purchase and sale of immovable property , represents, directly or indirectly, more than 50% of the asset.



Article 51-D permanent establishment 1-the provisions of this subsection shall apply to profits and reserves, as well as to the capital gains and capital losses incurred pursuant to article 51-C, which are attributable to a permanent establishment situated in Portuguese territory of an entity resident in a Member State of the European Union, provided that it meets the requirements and conditions laid down in article 2 of Directive No. 2011/96/EU , of the Council of 30 November. 2-the provisions of this subsection is still applicable to profits and reserves, PRESIDENCY of the COUNCIL of MINISTERS distributed 108, as well as to the capital gains and capital losses incurred pursuant to article 51-C, which are attributable to a permanent establishment situated in Portuguese territory of an entity resident in a Member State of the European economic area subject to obligations of administrative cooperation in the field of taxation equivalent to those laid down in the framework of the European Union , since this entity meets the requirements and conditions comparable to established in article 2 of Directive No. 2011/96/EU of Nov 30.



3-the provisions of this subsection is still applicable to profits and reserves, as well as the capital gains and losses incurred pursuant to article 51-C, which are attributable to a permanent establishment situated in Portuguese territory of an entity resident in a State which is not in the list of countries, territories or regions subject to a clearly more favourable tax regime , approved by order of the Member of Government responsible for the area of finance, which has been celebrated for the avoidance of double taxation Convention, providing for administrative cooperation in the field of taxation equivalent to that established in the framework of the European Union and that in this State is subject to and not exempt from a tax identical or substantially similar to IRC. Article 54-the Profits and losses of a permanent establishment situated outside the territory of the COUNCIL of MINISTERS PRESIDENCY 109


Portuguese 1-the taxpayer with headquarters or effective direction on Portuguese territory may opt for non-compete for determining your taxable profit of the profits and the losses attributable to a permanent establishment situated outside the Portuguese territory provided that cumulatively the following requirements arise: a) the profits attributable to that permanent establishment are subject and not exempt from a tax referred to in article 2 of Directive No. 2011/96/EU , of the Council of 30 November 2011, or a tax identical or substantially similar to IRC whose rate applicable to such legal profit not less than 60% of the IRC rate referred to in paragraph 1 of article 87;

b) that permanent establishment is not located in a country, territory or region subject to a clearly more favourable tax regime contained in list approved by order of the Member of Government responsible for the area of finance. 2-for the purposes of this article, the concept of permanent establishment is what results from application of Convention for the avoidance of double taxation concluded by Portugal or, in your absence, to the application of article 5 3-in the case of exercise of the option provided for in paragraph 1, the taxable income of the taxpayer should reflect the operations with the respective permanent establishments situated outside the territory and be Portuguese PRESIDENCY of the COUNCIL of MINISTERS 110 fixed of the expenses corresponding to the income attributable to such permanent establishments or to assets these affections in order to match what would be obtained if these were separate and independent companies. 4-the provisions of paragraph 1 shall not apply to the profits to be attributed to the permanent establishment, including those from the alienation or other purposes affectation of assets affects to that establishment, up to the amount of losses attributable to the permanent establishment which contributed to the determination of the taxable income of the taxpayer in 12 previous taxation periods.

5-In case of transformation of a permanent establishment in society, the provisions of articles 51 and 51-C and paragraph 3 of article 81 does not apply to profits and reserves distributed to the taxpayer for this society, nor to capital gains arising from the disposal of shares or liquidation of that company, up to the amount of losses attributable to the permanent establishment which contributed to the determination of the taxable income of the taxpayer for the taxation periods 12 us earlier. 6-the option referred to in paragraph 1 shall cover at least all permanent establishments located in the same jurisdiction and be maintained for a minimum period of three years from the date on which your application begins. 7-in the desafetação of assets of a permanent establishment situated outside the Portuguese territory, it is considered realizable value the respective market value.

PRESIDENCY of the COUNCIL of MINISTERS 111 8-in the case of exercise of the option provided for in paragraph 1, shall not apply to profits and losses attributable to a permanent establishment situated outside the Portuguese territory the provisions of article 91, or other methods of elimination of double international taxation under Convention for the avoidance of double taxation concluded by Portugal. 9-in the case of the profits and losses attributable to a permanent establishment situated outside the Portuguese territory no longer apply the provisions of paragraph 1: a) do not compete for the determination of the taxable income of the taxpayer losses attributable to the permanent establishment, including those from the alienation or other purposes affectation of assets affects this establishment , up to the amount of the profits attributable to the permanent establishment which is not applied to the determination of the taxable income of the taxpayer in 12 previous taxation periods laid down in paragraph 1; b) in the case of transformation of a permanent establishment in society, shall not apply the provisions of articles 51 and 51-C and paragraph 3 of article 81 and booking profits distributed, nor to capital gains arising from the disposal of shares and the liquidation of that company, respectively, up to the amount of the profits attributable to the permanent establishment which is not applied to the determination of the taxable income of the taxpayer in the PRESIDENCY of the COUNCIL of MINISTERS 12 112 periods previous tax laid down in paragraph 1. 10-the option and the renunciation of applying the provisions of paragraph 1 shall be communicated to the Tax and Customs Authority by sending, by electronic transmission of data, the Declaration referred to in article 118, until the end of the third month of the tax period in which they intend to start or stop the respective application.



Article 75-the transmission of tax benefits and the deductibility of expenses for financing 1-the tax benefits of the merged are transmitted to the recipient company, since this takes place the respective assumptions and applied the special arrangements laid down in article 74 2-financing expenditures net of merged by these not deducted, as well as the unused portion of the limit referred to in paragraph 3 of article 67 , can be considered in determining the taxable income of the recipient company in a merger that is applied the special arrangements laid down in article 74, until the end of the period that have the merged, in accordance with the provisions of paragraphs 2 and 3 of the said article 67 3-the preceding paragraphs shall also apply in terms of order of the Member of Government responsible for the area of finance that PRESIDENCY of the COUNCIL of MINISTERS 113 set the criteria and control procedures to adopt in cases of split operations or active input the application of the special arrangements laid down in article 74, since authorisation is obtained from the Member of Government responsible for the area of finance upon request to submit the Tax and Customs Authority within 30 days of the date of the application for registration of those operations in the commercial registry.

Article 86-scope 1-Can opt for the simplified regime for determination of the collectable, resident taxpayers, non-exempt or subject to a special tax regime, engaged in primarily an activity of commercial, industrial or agricultural nature and to check, cumulatively, the following conditions: (a)) have obtained, in the period immediately preceding taxation, an annual amount of gross income not exceeding € 200,000.00; b) your balance total for the period immediately preceding taxation does not exceed € 500,000.00; (c)) are not legally obligated to the statutory audit; d) the respective share capital is held by more than 20%, directly or indirectly, in accordance with paragraph 6 of article 69, by entities that do not satisfy any of the conditions laid down in paragraph 1(a) above, PRESIDENCY of the COUNCIL of MINISTERS 114 except when venture capital companies or venture capital investors; and) Adopt the accounting standards scheme for micro-entities approved by Decree-Law No. 36-A/2011, March 9; f) have not waived the application of the system in the three previous years, with reference to the date on which the application of the system.

2-in the period from the beginning of the activity in the simplified system of determination of the collectable if the other requirements, in accordance with the annualized value of estimated income in the Declaration of commencement of activity. 3-the option for the application of the simplified system of determination of the collectable must be formalized by taxpayers: a) in the Declaration of commencement of activity; b) in the statement of changes referred to in article 118, to present by the end of the 2nd month of the tax period in which they wish to begin the application of the simplified system of determination of the collectable. 4-the simplified system of determination of the collectable ceases when leave to check the respective requirements or the taxpayer waives the right to your application. 5-the simplified system of determination of the collectable ceases PRESIDENCY of the COUNCIL of MINISTERS still 115


When the taxable person fails to fulfil the obligations and reporting of invoices issued referred to, respectively, in the VAT code and in paragraph 1 of article 3 of Decree-Law No. 198/August 24, 2012, without prejudice to the other penalties. 6-the effects of termination or resignation of the simplified system of determination of the collectable refer to the 1st day of the tax period in which (a)) let to verify any of the requirements referred to in paragraph 1 or if the cause of termination provided for in the preceding paragraph; b) is communicated the renunciation of applying the simplified system of determination of the collectable on the terms and time limits laid down in point (b)) of paragraph 3. Article 86-B determination of the collectable 1-collectable matter relevant to the purposes of this simplified scheme is obtained by applying the following coefficients: a) 0.04 sales of goods and products, as well as the supply of services carried out in the framework of activities, restaurants and hotels and similar beverages; b) 0.75 of income from professional activities listed in table referred to in article 151 of the IRS code; (c) other income from 0.10) services and fees for the operation; d) 0.95 of the income from contracts for the transfer object or temporary use of intellectual property or CHAIRMANSHIP of the 116 industrial COUNCIL of MINISTERS or the provision of information relating to experience gained in a industrial, commercial or scientific sectors, other investment income, the positive result of income, the positive balance of capital gains and losses and other accretions to wealth; and 1.00 acquisition value) of accretions on a royalty-free basis determined in accordance with paragraph 2 of article 21-2 the value determined in accordance with the preceding paragraph may not be less than 60% of the annual value of the guaranteed minimum monthly retribution. 3-in the sale of fuels, tobacco, vehicles subject to tax on the vehicles and on alcohol and alcoholic beverages do not consider themselves, for the purposes of determination of the collectable pursuant to paragraph 1, the amounts corresponding to the excise duty and tax on the vehicles. 4-the provisions of article 64 shall apply, mutatis mutandis, in the determination of the collectable pursuant to paragraph 1. 5-The coefficients set out in (a)) and c) of paragraph 1 and the limit laid down in paragraph 2 are reduced by 50% and 25% in the period from the commencement of activity tax and in the tax period following, respectively. 6-capital gains and capital losses correspond to the difference between the value of realization, net of charges that may be incurred, and the acquisition value less impairment losses and other fixes, the depreciation or amortization that have been fiscally accepted and, in respect of depreciable or Amortizable assets, minimum quotas of depreciation or amortisation for the period in which this simplified scheme is applied to determination of the collectable.

PRESIDENCY of the COUNCIL of MINISTERS 117 7-the purchase price fixed in accordance with the provisions of the preceding paragraph is updated by applying the currency devaluation coefficients published by order of the Member of Government responsible for the area of finance, in accordance with the terms and conditions set forth in article 47 8-grants related to non-current assets are depreciable assets when respect or repayable included in the field by the amount collectable proportionally to match the minimum share of depreciation or amortisation or, in all other cases, in accordance with the procedure laid down in article 22 9-in the case of the correction of the basic accounting values used for the discharge of matter collectable pursuant to paragraph 1 by indirect methods, in accordance with article 90 of the general tax law , shall apply, with any necessary adaptations, the provisions of articles 57 to 62-10 when the taxpayer has benefited from the application of the arrangements provided for in article 48, not being implemented reinvestment by the end of the tax period following completion, in addition to the collectable period of taxation the difference or the proportional share of the difference referred to in paragraphs 1 and 4 of that article not included in taxable profit increased in 15%. Article 91-the tax credit for international economic double taxation 1-the deduction referred to in point (b)) of paragraph 2 of article 90 shall apply by option of the taxpayer, when on this collectable matters have been included profits and reserves, distributed by resident entity outside the Portuguese territory which comply with the requirements provided for in this article and which does not apply the provisions of article 51 of COUNCIL of MINISTERS PRESIDENCY 118 2- deduction provided for in paragraph 1 corresponds to the lowest of the following amounts: a) fraction of the income tax paid abroad by the resident outside the Portuguese territory and by entities that held directly and indirectly, corresponding to the profits and reserves distributed to the taxpayer, under the conditions laid down in paragraphs 3 and 4;

b) fraction of the IRC, computed before the deduction provided for in this article, corresponding to the profits and reserves, plus the corrections provided for in paragraphs 1 and 3 of article 68, net of expenses directly or indirectly supported for your collection, and deducted from the credit provided for in article 91 3-the deduction provided for in paragraph 1 is only applicable to income tax paid abroad by entities in which the IRC taxable person based or effective direction in Portuguese territory holds directly or indirectly, in accordance with paragraph 6 of article 69, a contribution of not less than 5% of the capital or of the voting rights, since such participation remained in your title, continuously, during the 12 months prior to distribution, or is kept for the time necessary to complete that period. 4-the deduction provided for in this article shall not apply to income tax paid abroad by entities resident or domiciled in a country, territory or region subject to a clearly more favourable tax regime contained in list approved by order of the Member of Government responsible for the area of finance, or by entities owned indirectly by the taxpayer of IRC based or effective direction in PRESIDENCY of the COUNCIL of MINISTERS 119 Portuguese through those. 5-proof of compliance with the requirements laid down in the preceding paragraphs and the amount of tax actually paid on the profits and reserves included in collectable matter should be done by the taxpayer through declarations or documents confirmed and authenticated by the competent public authorities of the State, country or territory where the entity that distributes the profits or reserves, and entities owned by this in accordance with the preceding paragraph , have your head office or effective direction. 6-declarations and documents referred to in the preceding paragraph shall integrate the process of tax documents referred to in article 130 7-the option mentioned in paragraph 1 is exercised in the periodic Declaration of income.» Article 3 amendment to the implementing Decree No. 25/2009, of September 14 article 2 of the implementing Decree No. 25/2009, of September 14, amended by law No. 64-B/2011, of 30 December, shall be replaced by the following: ' article 2 [...] 1 - […]. 2-the cost of an active element is the respective purchase price, plus: a) the expenses incurred up to the accessories your start-up or use; b) Of improvements necessary or useful, in accordance with the applicable accounting standards.

PRESIDENCY of the COUNCIL of MINISTERS-120 3 [...]. 4 - […]. 5 - […]. 6 - […].»

Article 4 systematic Changes 1-subsection II of section II of chapter III of the IRC code, composed by articles 26 to 28-C, is replaced by title ' measurement and losses from impairments in current assets». 2-the subsection III of section II of chapter III of the IRC code, composed by articles 29 to 34 is replaced by headed ' depreciation, amortization and impairment losses on non-current assets». 3-the subsection IV of section II of chapter III of the IRC code, composed by articles 39 and 40 shall be replaced by «Provisions» title. 4-the subsection IX of section II of chapter III of the IRC code, composed by articles 51 to 51-D, is replaced by headed ' deduction of profits and reserves distributed and capital gains and losses arising from the disposal of shares». 5-Are added to the section II of chapter III subsection IV-the IRC code, composed by articles 39 and 40, with the title «Provisions», and the subsection VIIIA, composed by article 50-A, headed ' income from patents and other industrial property rights. 6-Are added to chapter III of the IRC code section III-A, made up of the PRESIDENCY of the COUNCIL of MINISTERS article 121


54-A, headed ' permanent establishments of resident entities ', and section VII, consisting of articles 86-and 86-B, with the title «simplified system of determination of the collectable».

Article 5 system of accounting standards applicable to entities of the simplified scheme notwithstanding the provisions of subparagraph (c)) of paragraph 1 of article 2 of Decree-Law No. 36-A/March 9, 2011, companies that apply the simplified system of taxation provided for in article 86 of the IRC code may adopt the accounting standards scheme for micro-entities provided that diploma regardless of the number of employees. Article 6 Transitional Standard 1-the provisions of paragraph 1 of article 45 of the IRC code, in wording by this Act, applies only to assets acquired on or after 1 January 2014. 2-the provisions of article 50 of the IRC code, in wording by this Act, applies only to patents and industrial designs registered on or after 1 January 2014. 3-the provisions of article 51 C of the IRC code, in wording by this Act, shall apply to the share of the positive difference between capital gains and capital losses, carried out before 1 January 2001, yet not included in taxable income pursuant to subparagraphs (a) and (b))) of paragraph 7 of article 7 of law No. 30-G/2000 , of 29 of PRESIDENCY of the COUNCIL of MINISTERS last December, 122 or paragraph 8 of article 32 of law No. 109-B/2001, of 27 December, when the reinvestment has been implemented in the respective legal deadline, the acquisition of shares.

4-The groups of companies to which authorisation was granted for the application of the system of consolidated profits taxation, whose period of validity was still in progress at the date of entry into force of law No. 30-G/2000, of 29 December, which have chosen to pass to apply the special regime for taxation of groups from the tax period which started in the year 2001 and that in view of the amendments made to article 69 of the IRC code, the parent company will be taken over by another company which meets the requirements to be considered dominant society and choose the inclusion of companies in the group which is, or will be as a result of those changes, the dominant company, the internal results still pending incorporation into taxable income may continue to be granted the treatment that had been adopted by the end of the period of taxation that began in 2000. 5-the wording by this law to article 52 of the IRC code shall apply to tax losses calculated in tax periods beginning on or after 1 January 2014. 6 us taxation periods started between 2014 and 2017, the limit referred to in paragraph b) of paragraph 1 of article 67 of the IRC code, without prejudice to the maximum deductible limit provided for in paragraph 3 of the same article, is 60% in 2014, 50% in 2015, 40% in 2016 and 30% in 2017. 7-the wording by this law to paragraphs 3 to 6 of article 76 of the IRC code applies-PRESIDENCY of the COUNCIL of MINISTERS 123 if the transactions taking place on or after 1 January 2014. 8-the wording by this law to article 93 of the IRC code shall apply to special payments on account relating to taxation periods beginning on or after 1 January 2014.

Article 7 development of the IRC rate taking into account the results achieved by the reform of personal income taxation conferences operated by this law, the IRC rate referred to in paragraph 1 of article 87 of the IRC code, should be reduced to 21% in the year 2015, aiming to set a range between 17% and 19% in 2016 on the basis of an assessment and the evolution of the economic and financial situation of the country. Article 8 Rule set Are deleted paragraphs 10 and 11 of article 14, paragraph 5 of article 23, point (e)) of paragraph 1 of article 26, paragraphs 4 to 7 of article 30, articles 35, 36, 37 and 38, paragraph 2 of article 41, article 45, paragraphs 4 and 7 of article 48 , paragraphs 11 and 12 of article 51, article 65, paragraph f) of paragraph 4 and article e) of paragraph 8 of article 69, paragraph 8 of article 74, paragraph 2 of article 75, article 85, paragraph 4 of article 88, paragraphs 3 and 13 of article 106, paragraph 7 of article 120 and paragraph 3 of article 140 of the IRC code approved by Decree-Law No. 442-B/88 of 30 November. Article 9 1-Republishing is republished, in the annex to this law, which is an integral part, the IRC code, PRESIDENCY of the COUNCIL of MINISTERS 124 approved by Decree-Law No. 442-B/88 of 30 November, with the current wording. 2-for the purposes of republication which reads: ' Finance Minister ' and ' Directorate General of taxes» read, respectively ' member of the Government responsible for the area of finance» and «Tax and Customs Authority».

Article 10 takes effect without prejudice to the provisions of article 7, this law applies to taxation periods beginning, or to tax facts that occur, on or after 1 January 2014.

Seen and approved by the Council of Ministers of October 2013 10 Prime Minister the Minister of Presidency and Parliamentary Affairs

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