Flash News NA 13/2021
Extension of tax benefits and amendments to tax codes in Portugal
Concerning tax relief measures, and within the financial system and capital market, several benefits have been extended until December 31st, 2025.
On April 20, 2021, Law No 21/2021 was published in the Official Gazette, amending the Statute of Tax Benefits, the Stamp Duty Code, the Investment Tax Code, the Vehicle Tax Code, the Single Circulation Tax Code and creates an extraordinary measure of time-counting within the CIT.
• Statute of Tax Benefits
Concerning tax relief measures, and within the financial system and capital market, several benefits have been extended until December 31st, 2025, among which are those relating to financial services of public entities as well as swaps and loans of non-resident financial institutions.
As regards the remaining tax advantages, the one concerning the Free Trade Zone of Madeira and the Free Zone of the island of Santa Maria is extended until 31 December 2027 and in the field of intellectual property, the benefit is extended until 31 December 2021.
• Stamp Duty Code
In terms of Stamp Duty, we emphasize the extension of the exemption, with effect since January 1, 2021, from the reporting of securities or equivalent rights carried out in a regulated market or in a multilateral or organized trading system, as well as the reporting and the financial guarantee carried out by financial institutions, namely by credit institutions and financial companies, with the interposition of central counterparties.
• Investment Tax Code
In this context, the main amendments concern Articles 2 and 43, which extend the deadline to 31 December 2021, in the granting of contractual tax advantages with a duration of up to 10 years from the completion of the investment project, of investment projects of which the relevant applications are of an amount equal to or greater than EUR 3 000 000.
In view of the national regional State aid map, the deadline for the application of the ceilings on tax concessions granted to undertakings under the contractual tax relief scheme to the investment is also extended until 31 December 2021 productive and RFAI.
• Vehicle Tax Code
Starting July 1, 2021, is revoked the exemption applicable to light goods cars, open-ended cars, without a closed box or a closed box, without an integrated bodywork cab, with a gross weight of 3500 kg, without four-wheel drive.
• Single Circulation Tax Code
Starting July 1, 2021, is revoked the exemption applicable to vehicles of category D, when authorized or licensed for the transport of large objects.
• IRC
At corporate tax, the deadline for the reinvestment of realisations for the purposes of the reinvestment scheme is suspended, as well as the deadlines for the reporting of collection deductions associated with the Investment Support Tax Scheme (RFAI) and SIFIDE II during the taxation periods 2020 and 2021.
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