Tax Regime of Non-Habitual Residents
Circular no. 4/2019
The Portuguese Tax Authorities (“PTA”) published, on 09/10/2019, Circular no. 4/2019, regarding the Tax Regime of Non-Habitual Residents, stating the following: “(…)by the act of registration as a non-habitual resident the taxpayer acquires the right to be taxed under the respective tax regime. Consequently, if the taxpayer in any year, within 10 years of entitlement to the scheme, receives income from category A and / or B of activities listed in Ordinance no. 12/2010, of 7 January, as amended by Ordinance no. 230/2019, of 23 July – income from VAA activities – the right to be taxed according to the exceptional regime applicable to income from those activities is acquired upon verification of the respective assumptions. ”
The PTA further clarifies that “(…) to exercise the right to the tax regime of income derived from VAA activities, it is sufficient for the taxpayer to invoke it in the annual income statement by entering the appropriate VAA activity code in Annex L to the Model 3 declaration without the need for prior recognition by the TA of the activity invoked. ”
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Practice Area: Tax, Family Wealth and Social Security