Category Taxation in Portugal

Portugal to Tax Digital Devices

August 25, 2014 Taxation in Portugal

Digital Device TaxLISBON – Digital devices in portugal may soon become more expensive, as the government looks for new revenue streams to compensate artists in the country for losses arisign from digital piracy.

Late last week the Cabinet of Portugal approved a proposal to implement a new tax on the sale of numerous digital devices, including hard drives, mobile phones, and tablets, , with the collected revenues to be distributed to artists.

Portugal already has a tax on the sale of blank media such as CDs, DVDs and cassettes, but due to the decline in the use of such technology, the revenues collected from the tax has fallen by 90 percent in the last 8 years alone, only reaching EUR 600 000 last year.

The tax will be based on the storage capacity of the device, with the exact rate to be between EUR 0...

Read More

Portugal Launches Tax Lottery

February 11, 2014 Taxation in Portugal

Tax LotteryLISBON – Taxpayers in Portugal are now being offered rewards of cash and luxury cars in exchange for meeting their everyday tax obligations.

Late last week the Minister to the Presidency and Parliamentary Affairs of Portugal Luis Marques Guedes announced that starting from April this year the government will run a new lottery aimed at discouraging off-the-record cash sales and business transactions.

Under the rules of the new lottery, dubbed the Factura da Sorte or Lucky Invoice, all purchases made through a cash register in a retail store or with a properly issued invoice by other small service providers will be allocated with a lottery number for individual buyers, to be drawn for a weekly prize.

The government hopes that the incentive will discourage taxpayers and businesses from t...

Read More

Portugal’s Dropping Corporate Taxes

October 15, 2013 Taxation In EuropeTaxation in Portugal

flag of portugalLISBON – Portugal is looking to improve national business competitiveness and draw in international investors by cutting corporate taxes.

In a statement made on October 14th the Secretary of State for Fiscal Affairs of Portugal Paulo Nuncio said that the Cabinet of Portugal has approved a 2 percent cut to the rate of corporate income tax, from the current 25 percent to 23 percent, to be implmented by the end of next year.

The reduced tax rate is expected to directly diminish the government’s revenue by approximately EUR 70 billion, but Paulo Nuncio said that the loss will be indirectly balanced out by new the revenues arising from increased business activity in the country.

Paulo Nuncio noted that with the lowered rate Portugal will be better able to compete for international investme...

Read More

Constitutional Court Decision Derails Portugal Budget Plan

April 8, 2013 Taxation in Portugal

2 eurLISBON – Following a recent decision of the Constitutional Court, Portugal is once again scrambling to find new sources of revenues, but tax hikes have already been ruled out by the Prime Minister.

In a televised broadcast aired on March 7th the Prime Minister of Portugal Pedro Passos Coelho announced that the government will now look at further reducing the public funding granted to education and health programs in the country, following a decision by the Constitutional Court which ruled that several parts of the government’s proposed revenue saving plan couldn’t not be allowed to go forward.

Late last week the Constitutional Court of Portugal rejected four (worth EUR 1...

Read More

Portugal Approves New Austerity Hikes

November 28, 2012 Taxation in Portugal

Vitor GasparLISBON – Portugal hopes to see its revenues rise by 30 percent next year, which could enough to secure further bailout payments and to allow the country to participate on international credit markets.

On November 27th the parliament of Portugal voted on the national budget plan for 2013, approving an array of new taxes, tax increases, and spending cuts aimed at increasing the government’s revenues by EUR 5.3 billion.

As part of the new tax package, from 2013 all individual taxpayers will be required to pay a new social solidarity tax of 2.5 percent on their incomes.

At the same time, the threshold for the top marginal tax rate will be reduced from EUR 153 000 per year to EUR 80 000 per year, and the top tax rate will be increased from 46.5 percent to 48 percent.

Middle income earners will...

Read More