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Portugal Budget Bill 2010
On 27 January 2010 the Portuguese government presented the Budget Bill for 2010 to Parliament. The Budget which comes amidst calls for fiscal consolidation and public deficit control was subject to intense negotiation in order to secure its approval in Parliament. As the final vote in Parliament is only expected mid-march, it is likely that the final text may still be subject to some amendments until final approval. Garrigues, Taxand Portugal investigate the changes in their latest newsletter.
The last few months of 2009 saw prolific tax changes, namely the alignment of the corporate tax with the new accounting system, taxation of severance payments to management, the new inward expatriate regime, widening of the banking secrecy rules and new tax incentives under the investment tax code. The proposals included in the Budget Bill for 2010 keep the tax changes to a bare minimum, adjust targeted tax incentives and align certain provisions with EC Law. The major novelties are the revival of the 2005 tax amnesty, the penalty taxation on bonus payment and a proposal to enact domestic arbitration on tax matters.
This newsletter provides an insight into the most significant proposals included in the Budget Bill for 2010, which once approved will generally apply from 1 January 2010.
Your Taxand contacts for further queries are:
Fernando Castro Silva
Miguel C. Reis