Criteria for the definition of taxpayers to be monitored by the Large Taxpayers Unit of the Portuguese Tax and Customs Authority have been published
Ordinance no. 318/2021 was published on 24 December, amending the criteria for the definition of taxpayers whose tax situation must be monitored by the Large Taxpayers Unit (“LTU”) (revoking Ordinance no. 130/2016, of 10 May).
Pursuant to this diploma, taxpayers whose tax situation must be monitored by the LTU are those who meet at least one of the following criteria:
i) Under the supervision of the Bank of Portugal;
ii) Under the supervision of the Insurance and Pension Funds Supervisory Authority, with the exception of those that carry out the activity of insurance distribution;
iii) Which are collective investment undertakings under the supervision of the Portuguese Securities Market Commission;
iv) Non-residents without a permanent establishment carrying out economic activity within the national territory subject to supervision by Banco de Portugal;
v) With a turnover, or total income, in the case of Holding Companies exceeding
– EUR 1.200M; or
– EUR 2.100M, in the case of an entity covered by no. 4 of article 121-A of the Corporate Income Tax Code;
b) With an overall value of taxes paid exceeding EUR 20M;
c) Which have in force a prior agreement on transfer pricing entered into under the terms of article 138 of the Corporate Income Tax Code;
d) Companies not covered by any of the previous sub-paragraphs that are considered relevant, considering, namely, their corporate relationship with the companies covered by those sub-paragraphs;
e) Companies belonging to a group, covered by the special taxation regime for groups of companies, under the terms of article 69 of the Corporate Income Tax Code, in which any of the companies belonging to the group, dominant or dominated, are covered by the conditions defined in any of the previous sub-paragraphs;
f) Individuals who have earned income exceeding EUR 750.000;
g) Individuals who directly or indirectly own, or are the effective beneficiaries of, assets, including goods and rights, worth more than EUR 5M;
h) Individuals with indications of wealth congruent with the income or assets referred to in paragraphs f) and g);
i) Individuals, as well as companies and other entities, which, not being covered by any of the previous sub-paragraphs, are considered relevant, taking into account their legal or economic relationship with taxpayers covered by sub-paragraphs f), g) and h).
In addition, the four-year period of validity of the register of these payers already provided by the previous ordinance has been maintained, with an automatic extension of this period being established whenever there are no reasons that justify an amendment.
Lastly, this diploma also provides for the annual update and disclosure of the list of taxpayers monitored by the Large Taxpayers Unit (except in the case of individuals) on the Tax Portal.
Click HERE to access the diploma.
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[Photo by: Enrique Alarcon, available at unsplash.com]