The State Budget (OE) for 2017 sets out a number of changes to the Portuguese tax system in the area of Consumption and Income Taxes, with repercussions on the daily lives of individuals and companies.

These changes will have an impact on several areas of business management, particularly accounting operations, human resources management processes and compliance with reporting obligations.

The main changes for next year include:

• Changes to VAT in import processes, the reporting of invoice details, the revision of List II of the VAT Code and the VAT refund to the Security Forces and Services, social solidarity institutions (IPSS) and the Santa Casa da Misericórdia de Lisboa.

• Regarding Special Consumption Taxes (IEC), it is worth highlighting the planned change to the tax on alcohol, alcoholic beverages and beverages with added sugar or other sweeteners ("IABA"). The measure provides for certain alcoholic beverages and beverages with added sugar or other sweeteners to be heavily taxed, under the so-called "Fat Tax" or "Sugar Tax".

• The main changes to IRS (personal income tax) set out in the 2017 State Budget concern the Meal Allowance; local accommodation; taxpayers with disabilities; joint taxation; deadlines for submitting the IRS Return - Form 3; changes to the IRS brackets; taxation of allowances and compensation received by Volunteer Firefighters; IRS consignment; automatic IRS Return - Form 3; the Surcharge; the Public Capitalisation Scheme and the option for joint taxation.

• The main changes to IRC (corporate income tax) set out in the 2017 State Budget concern the Taxation Period; the Reinvestment Scheme; the Simplified Scheme; Autonomous Taxation; the Special Payment on Account; Companies' Accounting Obligations and the Taxation Scheme for Internal Results.

Find out about all the changes in more detail in the eBook that our partner Primavera has prepared for you, here. 

Written by:
Openlimits

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