Beginning in 2018, taxpayers with earnings exclusively from Local Lodging (Category B) will be exempt from SS contributions. Those who accumulate salaried income with self-employment earnings from “AL” will only be excused from monthly Social Security payments on their green receipts below a gross of €2,450 per month. Any excess shall be assessed at the rate of 21.4%. The measure is expected to encourage “AL” compliance which has already quadrupled over the past three years.
Porto city council approved today a tourist tax of two euros per night for all guests over the age of 13 beginning 01 March 2018. In announcing the new levy, Mayor Rui Moreira said that, in order to ensure Porto’s place as a sustainable tourist destination, holidaymakers must participate in the running costs of the municipality, given the wear and tear inherent in the tourist footprint.
The State Budget for 2018 introduces important revisions to the Simplified Regime. The Secretary of State for Fiscal Affairs, António Mendonça Mendes, declared that the measures “do not impact” taxpayers on low and middle incomes. At the same time, the changes “do not allow wealthier service providers to manipulate the existing system to simplify, rather than lower taxes”. “Who truly must justify expenses are those who, earning more than €100,000, have chosen not to apply standard accounting”.
Beginning 21 November 2017, it will be possible to carry out a money transfer between European destinations without incurring charges in just 10 seconds. Initially, only nine countries will benefit from this facility – Spain, Germany, Italy, Austria, Estonia, Latvia, the Netherlands, Finland and Lithuania. Unfortunately, the list does not as yet include Portugal. However, the initiative will be extended to all EU member states by November 2018.
The Ministry of Finance is committed to reimbursing taxpayers within 21 to 23 days on average, a target that may be even shorter for taxpayers who opt for automatic filing (12 days). The dates for IRS tax submissions remains the same as have been in place since 2015: between 01 April and 31 May.
The Tax Authority (“AT”) is working to automate IRS filing for taxpayers with dependent children as early as 2018. Last year, automatic IRS filing only benefited taxpayers without dependents. According to the latest “AT” data (2015), taxpayers with dependent children account for over 1.2 million households.
Government is studying a basic levy to Non-Habitual Resident pensions with possible introduction in the 2018 State Budget. According to the Jornal de Negócios, the step under consideration is applying a potential tax rate of 5-10%. Currently, NHR beneficiaries enjoy a 10-year tax holiday. The contemplated measure is said to be in the name of “good fiscal relations” with other European countries.
Based on the number of overnight stays last year (6.8 million) to be charged at 2 euros per night per person, the total anticipated revenue for the municipality is expected to reach 13 million euros. The city is preparing the process of applying the new tourist tax and anticipates implementing the new levy in January next year.
There are currently 1.6 million homeowners who pay their municipal property tax (IMI) in two or three instalments, waiting until the months of July and November to settle their accounts with the tax authority. As of 2018, they will be able to make full payment before the due date if it proves more convenient. This option is just one of many new measures of “Simplex + 2017″.