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Results: 4 Answers
Corporate Tax
8.
Indirect taxes
8.1
What indirect taxes (eg, goods or service tax, consumption tax, broadcasting tax, value added tax, excise tax) could a corporate taxpayer be exposed to?
 
Portugal
Value added tax (VAT) applies to:

  • the supply of goods and supply of services for consideration;
  • the importation of goods; and
  • intra-EU acquisitions of goods.

The rates of VAT are as follows:

  • standard rate - 23% (22% in the Autonomous Region of Madeira and 18% in the Autonomous Region of Azores);
  • intermediate rate - 13% (12% in the Autonomous Region of Madeira and 9% in the Autonomous Region of Azores); and
  • reduced rate - 6% (5% in the Autonomous Region of Madeira and 4% in the Autonomous Region of Azores).

To the extent that the output of a corporate taxpayer is subject to VAT and not exempt, or is exempt but with a right to deduct the VAT on inputs (eg, exporting activity), the VAT will not be a final burden (financial effect only).

There are also other indirect taxes, such as:

  • the tax on fuel, electricity and energy products (with exemptions, subject to some requirements, where these are used to produce energy, for example);
  • stamp duty on loans and interest (with some exemptions for loans between financial institutions and some intra-group loans);
  • stamp duty on insurance policies;
  • stamp duty on some transfers of business units;
  • transfer tax on real estate; and
  • autonomous/separate taxation of car expenses, representation expenses and travel expenses (potential mixed-use expenses, incurred both for company activity and for the private benefit of the employee), to the extent that they are not subject to personal income tax as fringe benefits.
For more information about this answer please contact: António de Oliveira from AFDO-ADV
8.2
Are transfer or other taxes due in relation to the transfer of interests in corporate entities?
 
Portugal
On the transfer of business units, stamp duty may apply at a rate of 5%, to be paid by the acquirer. However, no tax is levied on the transfer of shares. Capital gains on the transfer of shares may or may not be taxed: there is a participation exemption regime; and for non-residents without a permanent establishment in Portugal to which the gain may be attributable, an exemption may apply. Taxation may further be prevented by an applicable double tax treaty.

For more information about this answer please contact: António de Oliveira from AFDO-ADV