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2011 Budget Law Highlights and Year End Developments
On 31 December 2010, Portugal announced their Budget Law for 2011. Amendments are in force from 1 January 2011 onwards. Additionally, on 27 December 2010, several amendments were made to the VAT Code and the "VAT on Intra-Community Transactions Regime" a second phase of the implementation of the so-called VAT package. Taxand Portugal provides an outline of the main changes to the Budget Law and the VAT Package.
With Portugal announcing their amended Budget Law to be in force from January 2011, resident and non-resident companies should be aware of the tax changes that may affect them. Changes to outbound and inbound dividends, limitations on the deduction of capital losses, domestic capital gains exemption, property tax exemption for closed REITS are just a number of provisions that have been amended.
There have also been several amendments to the VAT Packages. One of the main amendments is the introduction of a more efficient exemption control mechanism regarding cases on the importation of goods followed by an intra-community supply.
Your Taxand contact for further queries is:
Fernando Castro Silva
T. + 351 21 382 12 00