Tag Archives: taxation

Tax dispute resolution to follow EU directive

08 Monday Jul 2019

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Settling cross-border tax conflicts within the European Union will follow new guidelines that entered into legislation as of 01 July as announced by the EU Commission. According to a recent  directive, taxpayers confronted with double tax disagreements within the EU that arise from differing interpretations of bilateral tax treaties can initiate a joint agreement procedure, leading countries to either settle the issues or accept a arbitration made by an independent advisory committee. The criteria applies to income or capital earned on or after 01 January 2018.

NHR and taxation of foreign income

13 Wednesday Mar 2019

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The guidelines of the Doctrine Declaration (“Ficha Doutrinária”) dated 04 December 2017 clarify tax liabilities based on nº 5 of article 81º of the IRS Code. Assessment of income from foreign sources classified under categories E (capital), F (long-term rent) and G (capital gains) earned by taxable persons considered to be Non-Habitual Residents follows the exemption method where the source country has the power to tax this income under the applicable Double Taxation Agreement. This rule infers that the tax exclusion does not hold for jurisdictions without such an agreement in place. Tax-exempt income must still be reported annually in Portugal to determine the final tax rate to be applied to total aggregate income subject to assessment.