6 August 2020
Portugal published Law No. 27-A/2020 in the Official Gazette on 24 July 2020, which entered into force on 25 July and provides for the Supplementary 2020 Budget and an Economic and Social Stabilization Program in light of the COVID-19 pandemic. Some of the key tax measures include:
Measures are also provided to exclude offshore entities from the support measures provided by the law where an entity's headquarters or effective management is in a country, territory, or region with a clearly more favorable tax regime. Companies controlled by such offshore entities are also excluded.
Further to the above, Law No. 27-A/2020 also provides for the introduction of an additional solidarity bank levy to finance the social security financial stabilization fund. The levy applies at a rate of 0.02% on the average value of certain liabilities and a rate of 0.00005% on off-balance sheet derivatives. The levy is payable by credit institutions whose head office or place of effective management is in Portugal, as well as subsidiaries and branches in Portugal of credit institutions outside Portugal.
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