The Portuguese rules on international tax transparency (usually known as CFC rules, the abbreviation for Controlled Foreign Companies) are complex.
RPBA has prepared an infographic to help understand this subject and conclude on the transparent or opaque nature of non-Portuguese resident entities, with consequences at the level of the Portuguese Corporate Income Tax (“IRC”) or Personal Income Tax (“IRS”).
The Portuguese Personal Income Taxation of Non-Portuguese Investment Fund (IF) distributions, in particular under the OECD Model Tax Convention on Income and on Capital (OECD-MC) and the Portuguese Non-habitual tax resident (NHR) regime, is a complex topic, namely due to the diversity of legal and tax status among IFs. RPBA’s Infographic provides a step-by-step questionnaire for an accurate and full analysis of the matter.
The Portuguese Golden Visa provides free travel within the European Schengen area and the possibility to reside in Portugal. The beneficiaries of this Visa can also ensure that their family members obtain a fully valid residence permit in Portugal. Please take a look at RPBA’s infographic on the types of investment and requirements to obtain a Golden Visa in Portugal.
Special Tax Regime for non-habitual residents in PortugalUWU Solutions, Lda.
Portugal created a special regime for new residents (also applicable to Portuguese out bounds living abroad for many years) designed to promote the transfer of residence of skillful professionals, entrepreneurs and investors, by offering attractive tax opportunities at the individual level.
This summary provides a brief overview and explains the main guidelines and potential implications of this new regime for foreigners and for Portuguese individuals settling in Portugal after an extended period of living abroad.
The Portuguese non-habitual tax resident regime is granted to individuals who become resident for tax purposes in Portugal. This regime may grant an exemption on certain foreign source income as well as a 20% tax rate on employment and self-employment income deriving from high value added activities during 10 years. It targets non-resident individuals who are likely to establish residence in Portugal. View a few standard case studies on this RPBA’s infographic.
Recently, there have been some developments in Portugal’s non-habitual resident tax regime.
Among others, an amendment to the list of High Value-Added Activities was published and a General Ruling changed the procedure to acknowledge the activities regarded as High Value-Added.
In this newsletter we highlight these changes and share our insights.
Contact us should you require personalised advice on these matters.
Real estate, as an immovable factor, tends to be overtaxed in most countries and Portugal is no exception. Tax structuring and optimizing is crucial to minimize total acquisition costs and maximize investment returns.
RPBA’s updated presentation deals with this challenging topic incorporating the latest developments, including tax incentives on rehabilitation, the OECD Multilateral Instrument rules on “real estate rich” companies and also the brand new SIGI company (the Portuguese equivalent of the REIT – Real Estate Investment Trust).
The Portuguese Golden Visa is a special residence permit for investors which enables non-EU individuals to become resident in Portugal and move freely within the Schengen Zone. Please take a look at RPBA's detailed and updated presentation.
The Portuguese Personal Income Taxation of Non-Portuguese Investment Fund (IF) distributions, in particular under the OECD Model Tax Convention on Income and on Capital (OECD-MC) and the Portuguese Non-habitual tax resident (NHR) regime, is a complex topic, namely due to the diversity of legal and tax status among IFs. RPBA’s Infographic provides a step-by-step questionnaire for an accurate and full analysis of the matter.
The Portuguese Golden Visa provides free travel within the European Schengen area and the possibility to reside in Portugal. The beneficiaries of this Visa can also ensure that their family members obtain a fully valid residence permit in Portugal. Please take a look at RPBA’s infographic on the types of investment and requirements to obtain a Golden Visa in Portugal.
Special Tax Regime for non-habitual residents in PortugalUWU Solutions, Lda.
Portugal created a special regime for new residents (also applicable to Portuguese out bounds living abroad for many years) designed to promote the transfer of residence of skillful professionals, entrepreneurs and investors, by offering attractive tax opportunities at the individual level.
This summary provides a brief overview and explains the main guidelines and potential implications of this new regime for foreigners and for Portuguese individuals settling in Portugal after an extended period of living abroad.
The Portuguese non-habitual tax resident regime is granted to individuals who become resident for tax purposes in Portugal. This regime may grant an exemption on certain foreign source income as well as a 20% tax rate on employment and self-employment income deriving from high value added activities during 10 years. It targets non-resident individuals who are likely to establish residence in Portugal. View a few standard case studies on this RPBA’s infographic.
Recently, there have been some developments in Portugal’s non-habitual resident tax regime.
Among others, an amendment to the list of High Value-Added Activities was published and a General Ruling changed the procedure to acknowledge the activities regarded as High Value-Added.
In this newsletter we highlight these changes and share our insights.
Contact us should you require personalised advice on these matters.
Real estate, as an immovable factor, tends to be overtaxed in most countries and Portugal is no exception. Tax structuring and optimizing is crucial to minimize total acquisition costs and maximize investment returns.
RPBA’s updated presentation deals with this challenging topic incorporating the latest developments, including tax incentives on rehabilitation, the OECD Multilateral Instrument rules on “real estate rich” companies and also the brand new SIGI company (the Portuguese equivalent of the REIT – Real Estate Investment Trust).
The Portuguese Golden Visa is a special residence permit for investors which enables non-EU individuals to become resident in Portugal and move freely within the Schengen Zone. Please take a look at RPBA's detailed and updated presentation.
RPBA has updated its newsletter on the Portuguese Golden Visa regime. It provides a detailed overview of the relevant aspects of investing in Portugal through the purchase of real estate property, the acquisition of a business, money transfers and other means for the purpose of obtaining and renewing a residence permit.
Status of non-habitual tax resident both for EU/EEA non-residents who plan
on establishing permanent residency in Portugal, and for temporary residents.
The Portuguese Golden Residence Permit Program, which we refer to at Henley&Partners as PRIP–thePortugalResidence- by-Investment Program, is a five year investment-based residence process for non EU nationals. The residence permit allows free circulation in the Schengen Zone of 26 states and only requires an average of seven days per year stay in Portugal over this period, which can also count towards citizenship eligibility after six years.
The Canary Islands Hub have an Economic and Tax System (REF) of their own, fully approved by the EU, which applies double taxation conventions and fiscal transparency.
Guide for a successful establishment in Spain from ChinaAGM Abogados
Practical guide for all those Chinese companies that would like to establish in Spain:
•Major Corporate Structures.
•Example of a Process Type.
•Regulation regarding Subsidiaries.
•Main Taxes.
•Double Taxation.
•Workplace.
•Helps to attract investments.
•Residence in Spain.
•Other aspects to consider.
•Obtaining NIE (Foreigner Identity Number).
Real estate, as an immovable factor, tends to be overtaxed in most countries and Portugal is no exception. Tax structuring and optimizing is crucial to minimize total acquisition costs and maximize investment returns.
RPBA’s updated presentation deals with this challenging topic incorporating the latest developments, including tax incentives on rehabilitation, the OECD Multilateral Instrument rules on “real estate rich” companies and also the brand new SIGI company (the Portuguese equivalent of the REIT – Real Estate Investment Trust).
The Non Habitual Resident (“NHR”) and Madeira Free Zone (“MFZ”) regimes offer ample opportunities for those who wish to live in Portugal or manage their investments through Portugal. This presentation is designed with Dutch clients in mind and exemplifies some of the many possibilities that the said regimes enable to conduct life or business in a tax efficient manner.
RPBA has in-depth knowledge and experience with both regimes and can advise you on the best solutions to take full advantage of them.
Please do not hesitate to contact us if you consider moving your personal residence to Portugal or taking advantage of the MFZ to structure your business.
It is important to note that the Portuguese “Golden Visa” is a residence by investment program and not a nationality by investment program.
In this sense, to obtain the nationality based on the Golden Visa it is important to fulfill two requirements:
1. Have at least five years of legal residence;
2. Have a Portuguese language knowledge test (level A2).
Please take a look at RPBA’s infographic on the topic.
Doing Business / Investing in Portugal (A quick guide)TAG Alliances
Created by: ESPANHA E ASSOCIADOS
Portugal is a unique European country to live or invest, evidencing, among other things, a pleasant all year climate, friendly people, passionate food, safety and a beautiful Atlantic coast-line with endless landscape views. Being part of EU since 1986, Portugal has seen significant growth since then, being now an indisputable modern western country, well-served in terms of network connections, business friendly laws, competitive and qualified professionals and, at the same time, a cost of living well below the EU average, which represents a clear advantage when you are thinking about investing or living abroad.
RPBA has updated its newsletter on the Portuguese Golden Visa regime. It provides a detailed overview of the relevant aspects of investing in Portugal through the purchase of real estate property, the acquisition of a business, money transfers and other means for the purpose of obtaining and renewing a residence permit.
Status of non-habitual tax resident both for EU/EEA non-residents who plan
on establishing permanent residency in Portugal, and for temporary residents.
The Portuguese Golden Residence Permit Program, which we refer to at Henley&Partners as PRIP–thePortugalResidence- by-Investment Program, is a five year investment-based residence process for non EU nationals. The residence permit allows free circulation in the Schengen Zone of 26 states and only requires an average of seven days per year stay in Portugal over this period, which can also count towards citizenship eligibility after six years.
The Canary Islands Hub have an Economic and Tax System (REF) of their own, fully approved by the EU, which applies double taxation conventions and fiscal transparency.
Guide for a successful establishment in Spain from ChinaAGM Abogados
Practical guide for all those Chinese companies that would like to establish in Spain:
•Major Corporate Structures.
•Example of a Process Type.
•Regulation regarding Subsidiaries.
•Main Taxes.
•Double Taxation.
•Workplace.
•Helps to attract investments.
•Residence in Spain.
•Other aspects to consider.
•Obtaining NIE (Foreigner Identity Number).
Real estate, as an immovable factor, tends to be overtaxed in most countries and Portugal is no exception. Tax structuring and optimizing is crucial to minimize total acquisition costs and maximize investment returns.
RPBA’s updated presentation deals with this challenging topic incorporating the latest developments, including tax incentives on rehabilitation, the OECD Multilateral Instrument rules on “real estate rich” companies and also the brand new SIGI company (the Portuguese equivalent of the REIT – Real Estate Investment Trust).
The Non Habitual Resident (“NHR”) and Madeira Free Zone (“MFZ”) regimes offer ample opportunities for those who wish to live in Portugal or manage their investments through Portugal. This presentation is designed with Dutch clients in mind and exemplifies some of the many possibilities that the said regimes enable to conduct life or business in a tax efficient manner.
RPBA has in-depth knowledge and experience with both regimes and can advise you on the best solutions to take full advantage of them.
Please do not hesitate to contact us if you consider moving your personal residence to Portugal or taking advantage of the MFZ to structure your business.
It is important to note that the Portuguese “Golden Visa” is a residence by investment program and not a nationality by investment program.
In this sense, to obtain the nationality based on the Golden Visa it is important to fulfill two requirements:
1. Have at least five years of legal residence;
2. Have a Portuguese language knowledge test (level A2).
Please take a look at RPBA’s infographic on the topic.
Doing Business / Investing in Portugal (A quick guide)TAG Alliances
Created by: ESPANHA E ASSOCIADOS
Portugal is a unique European country to live or invest, evidencing, among other things, a pleasant all year climate, friendly people, passionate food, safety and a beautiful Atlantic coast-line with endless landscape views. Being part of EU since 1986, Portugal has seen significant growth since then, being now an indisputable modern western country, well-served in terms of network connections, business friendly laws, competitive and qualified professionals and, at the same time, a cost of living well below the EU average, which represents a clear advantage when you are thinking about investing or living abroad.
As an EU outermost region, the Canary Islands have an Economic and Tax System (REF) of their own, fully approved by the EU, which applies double taxation conventions and fiscal transparency (Canary Islands Hub)
The Portuguese tax regime for non-habitual residents (NHR) is motivating high net worth individuals, pensioners and high value added professionals like digital nomads to relocate to Portugal, either on a permanent or on a temporary and expatriate basis. The regime is granted to individuals who become resident for tax purposes in Portugal without having been so in the five years preceding its acquisition. Non-habitual resident individuals may enjoy such status for a ten-year period, after which they will be taxed under the standard regime. This regime may grant an exemption on foreign source income as well as a limited taxation on Portuguese domestic source income deriving from high value added activities. Entrants into the NHR regime that became Portuguese tax residents after April 1st 2020 are subject to a flat tax rate of 10% on foreign-sourced pensions (instead of the previous exemption), as well as on other payments, such as pre-retirement benefits and "lump-sum" payments from pension funds and similar retirement schemes. With effect as from January 1st, 2022, Sweden - following the precedent of Finland - terminated its tax treaty with Portugal. RPBA has revised, updated and developed its newsletter, explaining this regime in great detail.
The Portuguese tax regime for non-habitual residents is motivating high net worth individuals, pensioners and high value added professionals to relocate to Portugal, either on a permanent or on a temporary and expatriate basis. The regime is granted to individuals who become resident for tax purposes in Portugal without having been so in the five preceding years. Non-habitual resident individuals may enjoy such status for a ten-year period, after which they will be taxed under the standard regime. This regime may grant an exemption or reduced rate on foreign source income as well as a limited taxation on Portuguese domestic source income deriving from high value added activities. Our presentation does not contemplate changes envisaged by the proposed Budget Law for 2023 (an update will be made when such Law is approved).
The Federal High Court, Lagos ("FHC") has revoked the decision of the Tax Appeal Tribunal ("TAT") in Gazprom Oil and Gas Nigeria Limited (Gazprom) v. Federal Inland Revenue Service (FIRS) relating to services which Gazprom received from a non-resident company. In Nigeria, the interpretation of destination and source principles of international taxation keeps swinging. Will there ever be an end?
The Portuguese non-habitual tax resident (NHR) regime is granted to individuals who become resident for tax purposes in Portugal. This regime may grant an exemption on certain foreign source income as well as a 20% tax rate on employment and self-employment income deriving from high value-added activities during 10 years. Entrants into the NHR regime that became Portuguese tax residents after April 1st 2020 are subject to a flat tax rate of 10% on foreign-sourced pensions (instead of the previous exemption), as well as on other payments, such as pre-retirement benefits and "lump-sum" payments from pension funds and similar retirement schemes. It targets non-resident individuals who are likely to establish residence in Portugal. View a few standard case studies on this RPBA’s infographic.
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
1. International Tax Transparency (Controlled Foreign Entities) – General rule
Rua Abranches Ferrão, n.º 10, 9.º Piso, Fracção G, 1600-001 Lisboa, Portugal
T.: (351) 212 402 743 F.: (351) 210 103 898 E.: geral@rpba.pt
No imputation is due
/ the entity is not tax
transparent
Is the entity resident in a
territory included in the
Portuguese tax havens’
blacklist, as approved by
Ministerial Order no.
292/2011, of November
8th (Please check the
blacklist in the last page)?
Participations in a non-
Portuguese resident
entity?
Taxpayer subject
to the
Portuguese
Personal Income
Tax (“IRS”) or
Corporate
Income Tax
(“IRC”)
NO
Is the effectively paid
Corporate Income Tax less
than half of the IRC that
would have fictitiously
been due in Portugal, if the
entity was resident in
Portugal?
OR
YES
NO
Voting rights in a non-
Portuguese resident
entity?
Rights over the income
or assets of a non-
Portuguese resident
entity?
OR
ORDoes the taxpayer hold
directly or indirectly in
25% or more:
Please check the
exceptions on the
following pages:
Resident in
Portugal
YES
1
The entity is prima
facie tax transparent:
The profits or the income
of the non-resident entity
in each tax period, as
fictively determined under
the IRC Code, deducted
from the Corporate Income
Tax paid in its State of
residence, are imputed to
the taxpayer resident in
Portugal in proportion to
his/its direct or indirect
control, the latter being
taxed under IRS or IRC, as
appropriate.
2. Rua Abranches Ferrão, n.º 10, 9.º Piso, Fracção G, 1600-001 Lisboa, Portugal
T.: (351) 212 402 743 F.: (351) 210 103 898 E.: geral@rpba.pt
Are the incorporation and
holding of the non-resident
entity based on valid
economic reasons?
YES
Is the entity resident or
established in another
Member State of the
European Union or of the
European Economic Area?
NO
Does the non-resident entity
develop an agricultural,
commercial, industrial or
service rendering activity?
YES
NO
NO
The entity is secunda
facie tax
transparent:
The profits or the income
of the non-resident entity
in each tax period, as
fictively determined
under the IRC Code,
deducted from the
Corporate Income Tax
paid in its State of
residence, are imputed to
the taxpayer resident in
Portugal in proportion to
his/its direct or indirect
control, the latter being
taxed under IRS or IRC, as
appropriate.
The entity is not tax
transparent
Please check the
remaining exceptions
on the next page:
International Tax Transparency (Controlled Foreign Entities) – Exception according to residence
2
YES
NO
YES
Is this activity supported by
staff, equipment, assets and
premises?
3. Rua Abranches Ferrão, n.º 10, 9.º Piso, Fracção G, 1600-001 Lisboa, Portugal
T.: (351) 212 402 743 F.: (351) 210 103 898 E.: geral@rpba.pt
The entity is not tax
transparent
The entity is tax
transparent:
The profits or the income
of the non-resident entity
in each tax period, as
fictively determined under
the IRC Code, deducted
from the Corporate
Income Tax paid in its
State of residence, are
imputed to the taxpayer
resident in Portugal in
proportion to his/its direct
or indirect control, the
latter being taxed under
IRS or IRC, as appropriate.
YES
NO
DISCLAIMER: This infographic is updated until
January 14th, 2021. Although great care has
been taken when drafting this infographic,
Ricardo da Palma Borges & Associados (RPBA)
- Sociedade de Advogados, S.P., R.L. does not
accept any responsibility whatsoever for any
consequences arising from the use of the
information contained herein. The information
is provided solely for general purposes, cannot
be regarded as legal or other advice. It is
strongly recommended to take professional
legal advice appropriate for your case before
making any decisions.
Is the income of the non-resident
entity derived in more than 25%
from one or more of the following
categories of income ?
Interest or any other capital income?
Royalties or any other income derived from intellectual property,
image rights or rights of similar nature?
Dividends and income derived from the disposal of shares of capital?
Income derived from financial leasing?
Income derived from transactions proper of the banking business
even if not carried on by credit institutions, relating to insurance,
business or from other financial activities entered into with entities
in special relations for the purposes of the Portuguese transfer
pricing provision?
Income from invoicing companies that earn commercial and services
income derived from goods and services purchased from and sold to
related entities, for the purposes of the Portuguese transfer pricing
provision and that add no or little economic value?
International Tax Transparency (Controlled Foreign Entities) – Exception according to activities
3
OrAnd
OrAnd
OrAnd
OrAnd
OrAnd
4. Rua Abranches Ferrão, n.º 10, 9.º Piso, Fracção G, 1600-001 Lisboa, Portugal
T.: (351) 212 402 743 F.: (351) 210 103 898 E.: geral@rpba.pt
Portuguese Tax Havens’ Blacklist, as approved by Ministerial Order no. 292/2011, of November 8th
Anguilla Guyana Puerto Rico
Antigua and Barbuda Honduras Qatar
The Netherlands Antilles Hong Kong The Solomon Islands
Aruba Jamaica American Samoa
Ascension Jordan Samoa
The Bahamas The Queshm Island St. Helena
Bahrain Kiribati St. Lucia
Barbados Kuwait St. Kitts-Nevis
Belize Labuan San Marino
Bermuda Lebanon St. Pierre and Miguelon
Bolivia Liberia St. Vincent and the Grenadines
Brunei Liechtenstein The Seychelles
The Channel Islands (Alderney, Guernsey, Jersey,
Great Sark, Herm, Little Sark, Brechou, Jethou and
Lihou)
The Maldives Swaziland
The Isle of Man
Svalbard Islands (Spitsbergen archipelago and the
Bjornoya island)The Northern Marianas Islands
The Cayman Islands The Marshall Islands Tokelau
The Cocos o Keeling Islands Mauritius Tonga
The Cook Islands Monaco Trinidad and Tobago
Costa Rica Montserrat Tristão da Cunha Island
Djibouti Nauru Turks and Caicos Islands
Dominica Natal Tuvalu
United Arab Emirates Niue Uruguay
The Falkland Islands Norfolk Island Vanuatu
Fiji Oman The British Virgin Islands
Gambia Palau The U.S. Virgin Islands
Grenada Panama Yemen
Gibraltar Pitcairn Island
“Other Pacific Islands not specifically mentioned”
Guam French Polynesia 4