The government has decided to extend 16 tax benefits that were at risk of expiring for another year, until the tax authorities carry out a new assessment. Among the incentives extended are, for example, exemptions from personal income tax, corporate income tax, VAT, and stamp duty. The idea is to review the benefits system and ensure a reduction in expenditure of around €90 million.

At issue is a new law that requires the Executive to submit to Parliament every year, during the first half of the year, a quantitative report on all tax benefits granted by the State. According to Público, and since the Government wants to assess the purposes of each one, the deadline has been extended, namely to December 31, 2020, so that the tax authorities can assess the set of support measures.

For example, banks based in other countries will continue, for now, to benefit from a corporate income tax exemption on interest on loans and gains from swap contracts granted to banks based in Portugal, according to the same publication.


Benefits that will continue (for now)
  • IRS exemption on interest from retirement savings accounts;
  • IRS or IRC exemption on interest from external loans;
  • IRC incentive on financial services provided by public entities;
  • IRC benefit on interest from swaps and loans from foreign banks;
  • IRC exemption on interest from deposits in foreign banks;
  • Corporate income tax exemption for regional wine commissions;
  • Corporate income tax exemption for integrated waste management system operators;
  • Corporate income tax exemption for sports, cultural, and recreational organizations;
  • Corporate income tax exemption on income derived from vacant land;
  • Support for road transport of passengers and goods;
  • IRS and IRC support for car-sharing and bike-sharing expenses;
  • Accounting for bicycle fleet expenses;
  • Cultural patronage;
  • IRS deduction for part of donations;
  • VAT support for the transfer of goods and services free of charge;
  • Stamp duty exemption for merchant navy shipowners on external loans.
 



Source: idealistanews
Legislação e Finanças