CHANGES TO CORPORATE TAX INTRODUCED BY ACT 48/2015, OF 29 OCTOBER

I. Calculation of the reduction of income resulting from specific intangible assets -

From 1. July 2016, the tax incentive from the reduction of income from certain intangible assets will be calculated as follows (Art. 23. 1, 2 and 3 LIS):

• Direct expenses related to the creation of the asset, excluding those (derived from sub-contracting with associated third parties per 30%)
• Divided into: direct costs directly related to the creation of the asset
• Per 60%

Financial expenses, repayments and non-related expeses will not be taken under consideration.

The above mentioned REDUCTION will be deducted from the financial base.

 

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CHANGES TO VALUE ADDED TAX INTRODUCED BY ACT 48/2015, OF 29 OCTOBER

I. Services related to exports  to forwarders and shipping agents are EXEMPT (Art. 21.5º.68 LIVA. This exemption is retroactive to 1. January 2015)

II. Import of goods that are allocated to duty-free shops subject to warehousing system other than customs warehousing are EXEMPT(Art. 65.d.69 LIVA) 

II The simplified method can only be applied when in the prior year none of the following limits was overcome  (Art.70 LIRPF):

• 250.000 € untaxed income for the whole economic activities.
• 250.000 € purchases in goods and services. Art. 31.1.3ª LIRPF)

(Above mentioned limits are only applicable in 2016/17. Limit for 2018: 150,000 €)

III. Civil societies which become Corporations after 1. January 2016 will be able to deduct the result of multiplying VAT + equivalence surcharge to the stock inventoried on the termination date. (Art.155 LIVA and 60 of RIVA).

 

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CHANGES TO PERSONAL INCOME TAX INTRODUCED BY ACT 48/2015, OF 29 OCTOBER

 

Premiums up to 1,500€ paid by the employer to a health insurance in order to cover disease of a disabled employee who has the condition of worker, spouse or descendant of the employer are EXEMPT. (Art. 42.3.c LIRPF, for direct method and art. 30.2.5ª LIRPF for objective method)

The objective method can only be applied when in the prior year none of the following limits was overcome: 

• 250.000 € untaxed income for the whole economic activities.
• 250.000 € purchases in goods and services. Art. 31.1.3ª LIRPF)
• 125.000 € operations in which it is compulsory to issue an invoice

The above mentioned limits are only valid in 2016 and 2017.

Deduction percentages for donations set aside for

carrying out priority sponsorship operations have risen by FIVE percentage points in 2016

 

 

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