Portugal: Tax impact of the first draft proposal of the new Budget Law
The Portuguese Government has submitted the first draft of the Portuguese State Budget Law for 2017 (Law proposal n.o 37/XII) to the Parliament for discussion and approval. It includes, among other things, the following proposals:
- Changes to the Decree-Law 193/2005, of 7 November 2005;
- inclusion of perpetual debt securities;
- inclusion of specific bank capital securities - Additional Tier 1 (AT1) and Tier 2 (T2) instruments - that comply with the requirements set out by EU Regulation n.º 575/2013 (the so-called Capital Requirements Regulation).
- A new rule regarding the listing of countries, territories, or regions qualifying as a more favorable tax regime (the so-called blacklisting).
The new Budget Law will, if approved, be applicable with effective date 1 January 2017.
We will continue to monitor the information and inform customers accordingly, as soon as the details are published by the Portuguese Tax Authorities.
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