July 27, 2022:
Property Transfer Tax - New rates
The Rectification Statement no. 19/2022 rectifies the State Budget Law for 2022, changing the rates of Municipal Property Transfer Tax (IMT).
As a result, the Circular Letter no. 40119 releases the new practical tables of property transfer tax applicable from 28 June 2022 onward.
July 14, 2022:
Withholding Tax Table for Pensioners 2022 - Mainland Portugal
On July 4, 2022, Circular no. 7/2022 was published, which disclosed the table of IRS withholding tax no. VII (click to consult) for pensioners, with the exception of support payments, received by non disabled pensioners, with tax residence in Portuguese territory, except for the Autonomous Regions of Azores and Madeira.
Any retroactive amounts paid or made available to the pensioners are subject to an autonomous withholding tax, which cannot be added to the pensions of the months in which they are paid or made available, in order to calculate the IRS to be withheld. The withholding rate to be applied to retroactive amounts is the one corresponding to the value of the pensions regarding the month in which they are paid or made available.
July 13, 2022:
Ex-resident Tax Regime for the Years 2021, 2022 and 2023
Circular Letter no. 20243 was published on 30 June 2022, regarding the amendments to the IRS Code, which extended the IRS tax regime, applicable to former residents, to taxpayers who become resident for tax purposes in Portuguese territory in the years 2021, 2022 and 2023 and who meet the respective requirements.
Regarding the IRS declaration of 2021, which the general deadline for submission is between 01/04 and 30/06 of 2022, the taxpayer who becomes resident for tax purposes in Portuguese territory in the year in question and who wishes to benefit from the time limits of the new ex-residents regime, must meet the respective requirements for the purpose, being under the following conditions:
- Has filed the IRS tax return, claiming NHR status by 28-06-2022, and replacing it by the end of July 2022;
- If the IRS tax declaration has not been submitted, but claiming this new regime until 28-06-2022;
- Has benefited from the special deadline of 31-12-2022 for the submission of the IRS declaration and has informed the Portugues Tax Authority that he fulfils the conditions foreseen;
- Has filed a replacement declaration or a first declaration after the previous deadlines. In the case of applying for registration as a NHR until 31-03-2022, the option of the regime for former residents is subject to a previous application for cancellation of registration as a NHR.
The IRS declaration submission application has allowed, since 28 June, taxpayers who become tax resident in 2021 to use the ex-residents regime.
July 13, 2022:
Changes to Withholding Tax Tables
It was published today the dispatch that approves the changes to the withholding tables (click to consult), which are in force for the mainland in the year 2022, regarding income from dependent work paid or made available from 1 July.
This dispatch comes into force on 13 July 2022.
