Global

Details

  • Service: Tax, International Corporate Tax, Global Transfer Pricing Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 3/21/2013

Portugal - Selection criteria for “large taxpayers unit” 

March 21: Portugal in early 2012 established a “large taxpayers unit” for purposes of monitoring and auditing large corporations and corporate groups.

The program provides for a “tax manager” to be appointed, to monitor and supervise the taxpayer’s obligations.


Under this program, taxpayers may obtain advance rulings with respect to the tax treatment of their operations or transactions.


Recent guidance (Decree-Law no. 107/2013 (15 March 2013)) sets forth the criteria for identifying taxpayers that will be subject to the “large taxpayers unit” program.


Read a March 2013 report [PDF 30 KB] prepared by the KPMG member firm in Portugal: Large Taxpayers Unit: selection criteria



KPMG observation

There are currently 290 economic groups subject to an integrated tax management by specialized tax inspectors of the Portuguese tax authorities. Taking into account the importance of the tax revenue generated by economic groups and the complexity of their transactions, it is expected that transfer pricing will be an area of particular focus.


In specific instances of cross-border transactions or those involving the acquisition of equity interests or financing arrangements, there may be an increase in tax controversies and disputes. Tax professionals in Portugal look to the recent guidance as yet offering more support for the proposition that taxpayers—in particular those that attract special attention from the tax authorities—need to be prepared to demonstrate the arm’s length nature of their related-party transactions. Tax compliance issues and litigation will most likely be on the table in the near future.



For more information, contact a tax professional with KPMG in Portugal:


Luís Magalhães

+351 210 110 087


Catarina Breia

+351 220 102 353




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