SlideShare a Scribd company logo
MEMO
Alterations in Portuguese Tax legislation introducing the concept of Trust
On 31 December 2014, the new drafting of the Portuguese Individual Income Tax Code
(IRS Code) was published into Law.
One of the alterations introduce was that for the first time the concept of Trust was
mentioned in the tax legislation.
As a result, any payments made by Trust structures, not connected to its dissolution
will now be deemed as “Category E income” (capital income).
In addition, the amounts received by the settler of the Trust structure as a result of the
dissolution of the same will now be deemed as “Capital gains”. Presumably this will
only apply the value received is higher than the value originally allocated to the Trust.
A flat rate of 28% should apply, being 35% if originated in a black listed jurisdiction.
The amount received by the beneficiaries of the Trust structure as a result of the
dissolution of the same will not be subject to IRS (income tax) but rather to a 10% flat
rate as gift tax (Imposto de Selo). This tax will only be applicable if the amount or asset
received originates in Portugal.
As Trust originated income is only explicitly mentioned in the DTA’s with USA and
Canada we believe such income may not benefit from the exemption under NHR. As a
result, when possible it would be advisable to prior to becoming NHR diverting the
source of income from a Trust structure to another type of structure.
Neville de Rougemont & Associados
2nd
February 2015

More Related Content

What's hot

What are the tax consequences When Selling a House Inherited in Austin? - www...
What are the tax consequences When Selling a House Inherited in Austin? - www...What are the tax consequences When Selling a House Inherited in Austin? - www...
What are the tax consequences When Selling a House Inherited in Austin? - www...
Leah Pomar
 
Managing taxes @ bec dom ppt
Managing taxes @ bec dom ppt Managing taxes @ bec dom ppt
Managing taxes @ bec dom ppt
Babasab Patil
 
Taxation rules for business
Taxation rules for businessTaxation rules for business
Taxation rules for business
Vertidigm
 
Real Estate Tax Advisor- Your Partner in Maximizing Returns (August 2015)
Real Estate Tax Advisor- Your Partner in Maximizing Returns (August 2015)Real Estate Tax Advisor- Your Partner in Maximizing Returns (August 2015)
Real Estate Tax Advisor- Your Partner in Maximizing Returns (August 2015)
Alex Gross
 
The morality of tax avoidance
The morality of tax avoidanceThe morality of tax avoidance
The morality of tax avoidance
Alexandru Mengheriş
 
Dutch Dividend Tax Act 1965
Dutch Dividend Tax Act 1965Dutch Dividend Tax Act 1965
Dutch Dividend Tax Act 1965
jeroenvdl
 
DC Trip 2011 - Tax Reform
DC Trip 2011 - Tax ReformDC Trip 2011 - Tax Reform
DC Trip 2011 - Tax Reform
Salt Lake Chamber
 
Avoiding Reqd Min Distributions can save $875,000 of taxes on a $2
Avoiding Reqd Min Distributions can save $875,000 of taxes on a $2Avoiding Reqd Min Distributions can save $875,000 of taxes on a $2
Avoiding Reqd Min Distributions can save $875,000 of taxes on a $2
Connie Dello Buono
 
Indirect Tax Update for week ending 25 April 2014
Indirect Tax Update for week ending 25 April 2014 Indirect Tax Update for week ending 25 April 2014
Indirect Tax Update for week ending 25 April 2014
Alex Baulf
 

What's hot (9)

What are the tax consequences When Selling a House Inherited in Austin? - www...
What are the tax consequences When Selling a House Inherited in Austin? - www...What are the tax consequences When Selling a House Inherited in Austin? - www...
What are the tax consequences When Selling a House Inherited in Austin? - www...
 
Managing taxes @ bec dom ppt
Managing taxes @ bec dom ppt Managing taxes @ bec dom ppt
Managing taxes @ bec dom ppt
 
Taxation rules for business
Taxation rules for businessTaxation rules for business
Taxation rules for business
 
Real Estate Tax Advisor- Your Partner in Maximizing Returns (August 2015)
Real Estate Tax Advisor- Your Partner in Maximizing Returns (August 2015)Real Estate Tax Advisor- Your Partner in Maximizing Returns (August 2015)
Real Estate Tax Advisor- Your Partner in Maximizing Returns (August 2015)
 
The morality of tax avoidance
The morality of tax avoidanceThe morality of tax avoidance
The morality of tax avoidance
 
Dutch Dividend Tax Act 1965
Dutch Dividend Tax Act 1965Dutch Dividend Tax Act 1965
Dutch Dividend Tax Act 1965
 
DC Trip 2011 - Tax Reform
DC Trip 2011 - Tax ReformDC Trip 2011 - Tax Reform
DC Trip 2011 - Tax Reform
 
Avoiding Reqd Min Distributions can save $875,000 of taxes on a $2
Avoiding Reqd Min Distributions can save $875,000 of taxes on a $2Avoiding Reqd Min Distributions can save $875,000 of taxes on a $2
Avoiding Reqd Min Distributions can save $875,000 of taxes on a $2
 
Indirect Tax Update for week ending 25 April 2014
Indirect Tax Update for week ending 25 April 2014 Indirect Tax Update for week ending 25 April 2014
Indirect Tax Update for week ending 25 April 2014
 

Similar to Memo trusts new pt tax legislation

New Legislation Enhances the Benefits of a Section 1042 Tax-Deferred Sale
New Legislation Enhances the Benefits of a Section 1042 Tax-Deferred SaleNew Legislation Enhances the Benefits of a Section 1042 Tax-Deferred Sale
New Legislation Enhances the Benefits of a Section 1042 Tax-Deferred Sale
Christopher T. Horner II
 
Tax structure of pakistan
Tax structure of pakistanTax structure of pakistan
Tax structure of pakistan
Abdul Basit
 
Introduction to tax accounting accounts next gen
Introduction to tax accounting   accounts next genIntroduction to tax accounting   accounts next gen
Introduction to tax accounting accounts next gen
Arpit Umrewal
 
Fundamentals of Taxation Presentation.pptx
Fundamentals of Taxation Presentation.pptxFundamentals of Taxation Presentation.pptx
Fundamentals of Taxation Presentation.pptx
VelJune
 
TAXATION IN INDIA
TAXATION IN INDIATAXATION IN INDIA
TAXATION IN INDIA
manuelmathew1
 
Indirect taxation.ppt
Indirect taxation.pptIndirect taxation.ppt
Indirect taxation.ppt
Kiruba Devi
 
Global E-Book_2015 GT NED
Global E-Book_2015 GT NEDGlobal E-Book_2015 GT NED
Global E-Book_2015 GT NED
Arthur Gude
 
Filer and Non-filer defined
Filer and Non-filer definedFiler and Non-filer defined
Filer and Non-filer defined
Muhammad Nadeem
 
Susko Cap Gains and Alt Min Article
Susko Cap Gains and Alt Min ArticleSusko Cap Gains and Alt Min Article
Susko Cap Gains and Alt Min Article
Peter Susko
 
Tax planning introduction fall 2012
Tax planning introduction fall 2012Tax planning introduction fall 2012
Tax planning introduction fall 2012
dphil002
 
Tax
TaxTax
Tax Law Essay
Tax Law EssayTax Law Essay
Tax Law Essay
Angie Willis
 
Perhitungan PPh Badan - Riki Ardoni
Perhitungan PPh Badan - Riki ArdoniPerhitungan PPh Badan - Riki Ardoni
Perhitungan PPh Badan - Riki Ardoni
Riki Ardoni
 
repot international accounting.docx
repot international accounting.docxrepot international accounting.docx
repot international accounting.docx
IqramahammedAhmed
 
Fiscal cliff jan_11_13
Fiscal cliff jan_11_13Fiscal cliff jan_11_13
Fiscal cliff jan_11_13
theretirementengineer
 
Personal Tax Return in England
Personal Tax Return in EnglandPersonal Tax Return in England
Personal Tax Return in England
accountdirect
 
Rationale up to Flow of Research
Rationale up to  Flow of Research Rationale up to  Flow of Research
Rationale up to Flow of Research
Mae Angelie Decena
 
Tax Foundation University 2017, Part 2: Understanding How Fiscal Changes Impa...
Tax Foundation University 2017, Part 2: Understanding How Fiscal Changes Impa...Tax Foundation University 2017, Part 2: Understanding How Fiscal Changes Impa...
Tax Foundation University 2017, Part 2: Understanding How Fiscal Changes Impa...
Tax Foundation
 
A Way Out
A Way OutA Way Out
A Way Out
A Way OutA Way Out

Similar to Memo trusts new pt tax legislation (20)

New Legislation Enhances the Benefits of a Section 1042 Tax-Deferred Sale
New Legislation Enhances the Benefits of a Section 1042 Tax-Deferred SaleNew Legislation Enhances the Benefits of a Section 1042 Tax-Deferred Sale
New Legislation Enhances the Benefits of a Section 1042 Tax-Deferred Sale
 
Tax structure of pakistan
Tax structure of pakistanTax structure of pakistan
Tax structure of pakistan
 
Introduction to tax accounting accounts next gen
Introduction to tax accounting   accounts next genIntroduction to tax accounting   accounts next gen
Introduction to tax accounting accounts next gen
 
Fundamentals of Taxation Presentation.pptx
Fundamentals of Taxation Presentation.pptxFundamentals of Taxation Presentation.pptx
Fundamentals of Taxation Presentation.pptx
 
TAXATION IN INDIA
TAXATION IN INDIATAXATION IN INDIA
TAXATION IN INDIA
 
Indirect taxation.ppt
Indirect taxation.pptIndirect taxation.ppt
Indirect taxation.ppt
 
Global E-Book_2015 GT NED
Global E-Book_2015 GT NEDGlobal E-Book_2015 GT NED
Global E-Book_2015 GT NED
 
Filer and Non-filer defined
Filer and Non-filer definedFiler and Non-filer defined
Filer and Non-filer defined
 
Susko Cap Gains and Alt Min Article
Susko Cap Gains and Alt Min ArticleSusko Cap Gains and Alt Min Article
Susko Cap Gains and Alt Min Article
 
Tax planning introduction fall 2012
Tax planning introduction fall 2012Tax planning introduction fall 2012
Tax planning introduction fall 2012
 
Tax
TaxTax
Tax
 
Tax Law Essay
Tax Law EssayTax Law Essay
Tax Law Essay
 
Perhitungan PPh Badan - Riki Ardoni
Perhitungan PPh Badan - Riki ArdoniPerhitungan PPh Badan - Riki Ardoni
Perhitungan PPh Badan - Riki Ardoni
 
repot international accounting.docx
repot international accounting.docxrepot international accounting.docx
repot international accounting.docx
 
Fiscal cliff jan_11_13
Fiscal cliff jan_11_13Fiscal cliff jan_11_13
Fiscal cliff jan_11_13
 
Personal Tax Return in England
Personal Tax Return in EnglandPersonal Tax Return in England
Personal Tax Return in England
 
Rationale up to Flow of Research
Rationale up to  Flow of Research Rationale up to  Flow of Research
Rationale up to Flow of Research
 
Tax Foundation University 2017, Part 2: Understanding How Fiscal Changes Impa...
Tax Foundation University 2017, Part 2: Understanding How Fiscal Changes Impa...Tax Foundation University 2017, Part 2: Understanding How Fiscal Changes Impa...
Tax Foundation University 2017, Part 2: Understanding How Fiscal Changes Impa...
 
A Way Out
A Way OutA Way Out
A Way Out
 
A Way Out
A Way OutA Way Out
A Way Out
 

Recently uploaded

一比一原版牛津布鲁克斯大学毕业证(牛布毕业证)如何办理
一比一原版牛津布鲁克斯大学毕业证(牛布毕业证)如何办理一比一原版牛津布鲁克斯大学毕业证(牛布毕业证)如何办理
一比一原版牛津布鲁克斯大学毕业证(牛布毕业证)如何办理
meboh
 
一比一原版加拿大多伦多大学毕业证(uoft毕业证书)如何办理
一比一原版加拿大多伦多大学毕业证(uoft毕业证书)如何办理一比一原版加拿大多伦多大学毕业证(uoft毕业证书)如何办理
一比一原版加拿大多伦多大学毕业证(uoft毕业证书)如何办理
onduyv
 
一比一原版新加坡南洋理工大学毕业证(本硕)ntu学位证书如何办理
一比一原版新加坡南洋理工大学毕业证(本硕)ntu学位证书如何办理一比一原版新加坡南洋理工大学毕业证(本硕)ntu学位证书如何办理
一比一原版新加坡南洋理工大学毕业证(本硕)ntu学位证书如何办理
hedonxu
 
一比一原版英国伦敦大学亚非学院毕业证(soas毕业证书)如何办理
一比一原版英国伦敦大学亚非学院毕业证(soas毕业证书)如何办理一比一原版英国伦敦大学亚非学院毕业证(soas毕业证书)如何办理
一比一原版英国伦敦大学亚非学院毕业证(soas毕业证书)如何办理
duxss
 
一比一原版(uwlc毕业证书)美国威斯康星大学拉克罗斯分校毕业证如何办理
一比一原版(uwlc毕业证书)美国威斯康星大学拉克罗斯分校毕业证如何办理一比一原版(uwlc毕业证书)美国威斯康星大学拉克罗斯分校毕业证如何办理
一比一原版(uwlc毕业证书)美国威斯康星大学拉克罗斯分校毕业证如何办理
qevye
 
一比一原版英国伦敦商学院毕业证(lbs毕业证书)如何办理
一比一原版英国伦敦商学院毕业证(lbs毕业证书)如何办理一比一原版英国伦敦商学院毕业证(lbs毕业证书)如何办理
一比一原版英国伦敦商学院毕业证(lbs毕业证书)如何办理
gedsuu
 
Offences relating to public servants.pptx
Offences relating to public servants.pptxOffences relating to public servants.pptx
Offences relating to public servants.pptx
ssuser369aa3
 
Central Industrial Security Force coffee table book
Central Industrial Security Force coffee table bookCentral Industrial Security Force coffee table book
Central Industrial Security Force coffee table book
AravindMenon37
 
一比一原版朴次茅斯大学毕业证(uop毕业证)如何办理
一比一原版朴次茅斯大学毕业证(uop毕业证)如何办理一比一原版朴次茅斯大学毕业证(uop毕业证)如何办理
一比一原版朴次茅斯大学毕业证(uop毕业证)如何办理
onduyv
 
Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...
Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...
Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...
AHRP Law Firm
 
How to Review a Contract Faster and More Efficiently
How to Review a Contract Faster and More EfficientlyHow to Review a Contract Faster and More Efficiently
How to Review a Contract Faster and More Efficiently
PracticeLeagueLegalt
 
production-orders-under-article-18-of-the-budapest-convention-on-cybercrime-a...
production-orders-under-article-18-of-the-budapest-convention-on-cybercrime-a...production-orders-under-article-18-of-the-budapest-convention-on-cybercrime-a...
production-orders-under-article-18-of-the-budapest-convention-on-cybercrime-a...
ElenaLazr2
 
一比一原版多伦多都会大学毕业证(TMU毕业证书)学历如何办理
一比一原版多伦多都会大学毕业证(TMU毕业证书)学历如何办理一比一原版多伦多都会大学毕业证(TMU毕业证书)学历如何办理
一比一原版多伦多都会大学毕业证(TMU毕业证书)学历如何办理
woywevt
 
一比一原版(glasgow毕业证书)格拉斯哥大学毕业证如何办理
一比一原版(glasgow毕业证书)格拉斯哥大学毕业证如何办理一比一原版(glasgow毕业证书)格拉斯哥大学毕业证如何办理
一比一原版(glasgow毕业证书)格拉斯哥大学毕业证如何办理
ooqzo
 
一比一原版(trent毕业证书)加拿大特伦特大学毕业证如何办理
一比一原版(trent毕业证书)加拿大特伦特大学毕业证如何办理一比一原版(trent毕业证书)加拿大特伦特大学毕业证如何办理
一比一原版(trent毕业证书)加拿大特伦特大学毕业证如何办理
mecyyn
 
一比一原版新加坡国立大学毕业证(本硕)nus学位证书如何办理
一比一原版新加坡国立大学毕业证(本硕)nus学位证书如何办理一比一原版新加坡国立大学毕业证(本硕)nus学位证书如何办理
一比一原版新加坡国立大学毕业证(本硕)nus学位证书如何办理
ucoux1
 
一比一原版(monash毕业证书)莫纳什大学毕业证如何办理
一比一原版(monash毕业证书)莫纳什大学毕业证如何办理一比一原版(monash毕业证书)莫纳什大学毕业证如何办理
一比一原版(monash毕业证书)莫纳什大学毕业证如何办理
bzofm
 
Legal Research and Legal Methodology-1.pptx
Legal Research and Legal Methodology-1.pptxLegal Research and Legal Methodology-1.pptx
Legal Research and Legal Methodology-1.pptx
varalakshmillm
 
一比一原版英国桑德兰大学毕业证(uos学位证)如何办理
一比一原版英国桑德兰大学毕业证(uos学位证)如何办理一比一原版英国桑德兰大学毕业证(uos学位证)如何办理
一比一原版英国桑德兰大学毕业证(uos学位证)如何办理
zv943dhb
 
Asian legal busiess india you are invited
Asian legal busiess india you are invitedAsian legal busiess india you are invited
Asian legal busiess india you are invited
digitalrashi12
 

Recently uploaded (20)

一比一原版牛津布鲁克斯大学毕业证(牛布毕业证)如何办理
一比一原版牛津布鲁克斯大学毕业证(牛布毕业证)如何办理一比一原版牛津布鲁克斯大学毕业证(牛布毕业证)如何办理
一比一原版牛津布鲁克斯大学毕业证(牛布毕业证)如何办理
 
一比一原版加拿大多伦多大学毕业证(uoft毕业证书)如何办理
一比一原版加拿大多伦多大学毕业证(uoft毕业证书)如何办理一比一原版加拿大多伦多大学毕业证(uoft毕业证书)如何办理
一比一原版加拿大多伦多大学毕业证(uoft毕业证书)如何办理
 
一比一原版新加坡南洋理工大学毕业证(本硕)ntu学位证书如何办理
一比一原版新加坡南洋理工大学毕业证(本硕)ntu学位证书如何办理一比一原版新加坡南洋理工大学毕业证(本硕)ntu学位证书如何办理
一比一原版新加坡南洋理工大学毕业证(本硕)ntu学位证书如何办理
 
一比一原版英国伦敦大学亚非学院毕业证(soas毕业证书)如何办理
一比一原版英国伦敦大学亚非学院毕业证(soas毕业证书)如何办理一比一原版英国伦敦大学亚非学院毕业证(soas毕业证书)如何办理
一比一原版英国伦敦大学亚非学院毕业证(soas毕业证书)如何办理
 
一比一原版(uwlc毕业证书)美国威斯康星大学拉克罗斯分校毕业证如何办理
一比一原版(uwlc毕业证书)美国威斯康星大学拉克罗斯分校毕业证如何办理一比一原版(uwlc毕业证书)美国威斯康星大学拉克罗斯分校毕业证如何办理
一比一原版(uwlc毕业证书)美国威斯康星大学拉克罗斯分校毕业证如何办理
 
一比一原版英国伦敦商学院毕业证(lbs毕业证书)如何办理
一比一原版英国伦敦商学院毕业证(lbs毕业证书)如何办理一比一原版英国伦敦商学院毕业证(lbs毕业证书)如何办理
一比一原版英国伦敦商学院毕业证(lbs毕业证书)如何办理
 
Offences relating to public servants.pptx
Offences relating to public servants.pptxOffences relating to public servants.pptx
Offences relating to public servants.pptx
 
Central Industrial Security Force coffee table book
Central Industrial Security Force coffee table bookCentral Industrial Security Force coffee table book
Central Industrial Security Force coffee table book
 
一比一原版朴次茅斯大学毕业证(uop毕业证)如何办理
一比一原版朴次茅斯大学毕业证(uop毕业证)如何办理一比一原版朴次茅斯大学毕业证(uop毕业证)如何办理
一比一原版朴次茅斯大学毕业证(uop毕业证)如何办理
 
Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...
Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...
Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...
 
How to Review a Contract Faster and More Efficiently
How to Review a Contract Faster and More EfficientlyHow to Review a Contract Faster and More Efficiently
How to Review a Contract Faster and More Efficiently
 
production-orders-under-article-18-of-the-budapest-convention-on-cybercrime-a...
production-orders-under-article-18-of-the-budapest-convention-on-cybercrime-a...production-orders-under-article-18-of-the-budapest-convention-on-cybercrime-a...
production-orders-under-article-18-of-the-budapest-convention-on-cybercrime-a...
 
一比一原版多伦多都会大学毕业证(TMU毕业证书)学历如何办理
一比一原版多伦多都会大学毕业证(TMU毕业证书)学历如何办理一比一原版多伦多都会大学毕业证(TMU毕业证书)学历如何办理
一比一原版多伦多都会大学毕业证(TMU毕业证书)学历如何办理
 
一比一原版(glasgow毕业证书)格拉斯哥大学毕业证如何办理
一比一原版(glasgow毕业证书)格拉斯哥大学毕业证如何办理一比一原版(glasgow毕业证书)格拉斯哥大学毕业证如何办理
一比一原版(glasgow毕业证书)格拉斯哥大学毕业证如何办理
 
一比一原版(trent毕业证书)加拿大特伦特大学毕业证如何办理
一比一原版(trent毕业证书)加拿大特伦特大学毕业证如何办理一比一原版(trent毕业证书)加拿大特伦特大学毕业证如何办理
一比一原版(trent毕业证书)加拿大特伦特大学毕业证如何办理
 
一比一原版新加坡国立大学毕业证(本硕)nus学位证书如何办理
一比一原版新加坡国立大学毕业证(本硕)nus学位证书如何办理一比一原版新加坡国立大学毕业证(本硕)nus学位证书如何办理
一比一原版新加坡国立大学毕业证(本硕)nus学位证书如何办理
 
一比一原版(monash毕业证书)莫纳什大学毕业证如何办理
一比一原版(monash毕业证书)莫纳什大学毕业证如何办理一比一原版(monash毕业证书)莫纳什大学毕业证如何办理
一比一原版(monash毕业证书)莫纳什大学毕业证如何办理
 
Legal Research and Legal Methodology-1.pptx
Legal Research and Legal Methodology-1.pptxLegal Research and Legal Methodology-1.pptx
Legal Research and Legal Methodology-1.pptx
 
一比一原版英国桑德兰大学毕业证(uos学位证)如何办理
一比一原版英国桑德兰大学毕业证(uos学位证)如何办理一比一原版英国桑德兰大学毕业证(uos学位证)如何办理
一比一原版英国桑德兰大学毕业证(uos学位证)如何办理
 
Asian legal busiess india you are invited
Asian legal busiess india you are invitedAsian legal busiess india you are invited
Asian legal busiess india you are invited
 

Memo trusts new pt tax legislation

  • 1. MEMO Alterations in Portuguese Tax legislation introducing the concept of Trust On 31 December 2014, the new drafting of the Portuguese Individual Income Tax Code (IRS Code) was published into Law. One of the alterations introduce was that for the first time the concept of Trust was mentioned in the tax legislation. As a result, any payments made by Trust structures, not connected to its dissolution will now be deemed as “Category E income” (capital income). In addition, the amounts received by the settler of the Trust structure as a result of the dissolution of the same will now be deemed as “Capital gains”. Presumably this will only apply the value received is higher than the value originally allocated to the Trust. A flat rate of 28% should apply, being 35% if originated in a black listed jurisdiction. The amount received by the beneficiaries of the Trust structure as a result of the dissolution of the same will not be subject to IRS (income tax) but rather to a 10% flat rate as gift tax (Imposto de Selo). This tax will only be applicable if the amount or asset received originates in Portugal. As Trust originated income is only explicitly mentioned in the DTA’s with USA and Canada we believe such income may not benefit from the exemption under NHR. As a result, when possible it would be advisable to prior to becoming NHR diverting the source of income from a Trust structure to another type of structure. Neville de Rougemont & Associados 2nd February 2015