The reduced ISV rate that until now covered motorhomes will be eliminatedleaving these vehicles subject to the normal tax rate, according to a government proposal on tax benefits, sent to Parliament on Tuesday.
According to current legislation, motorhomes benefit from a reduced rate corresponding to 30% of the Vehicle Tax (ISV), with the Government’s proposal dictating the repeal of this legal provision and subjecting these vehicles to normal tax rates.
The diploma also revokes the ISV exemption for vehicles manufactured before 1970 and that, in the system still in force, translates into an intermediate rate, corresponding to 95% of the tax.
In both situations, the measure applies from January 1, 2023.
With this proposal, which, after the approval of the Council of Ministers, is going to be discussed in the Assembly of the Republic, the Government continues with the exercise of evaluating the fiscal benefits -as foreseen in the report prepared by the Working Group responsible for studying them-, advancing in the expansion of those that were concluded effective and the non-renewal of those that were inadequate or unnecessary in view of the objectives set at the time of their creation.
It is in this context that the cessation of the benefit for automobiles prior to 1970 is justified, the proposal pointing out its “bad expression”, taking into account the number of identified beneficiaries.
With this proposal, the Government also proceeds to revoke some benefits that, according to the initial text of the document, “in view of their intrinsic characteristics and objective practical effects, it was understood that they did not deserve sufficient relevance, in the current socioeconomic context, to benefit from a particularly favorable tax treatment compared to the regime of taxation rules.
This case includes the elimination of “harmful fiscal benefits for the environment”, with the Government’s proposal to eliminate colored and marked oil from the list of intermediate VAT rates and eliminate the reduced ISP rate for colored and marked oil and heating fuel.
Therefore, the proposal foresees that it remains “Taxes at a reduced rate colored diesel and marked with the additives defined by ordinance of the competent members of the Government in the areas of finance and energy”provided that these changes apply from January 1, 2023.
The objective, says the document, was to eliminate “tax benefits harmful to the environment” and comply with the priority of the Government’s program “to discourage polluting activities that endanger environmental and climate sustainability, in line with a green fiscal policy ”.
The document proposes, on the other hand, the extension of the validity of tax benefits in the field of intellectual property and scientific patronage, also providing for the alignment of the expiration date of cultural and scientific patronage.
In addition, the proposal clarifies, with regard to the tax benefit related to loans from abroad and rental income from imported equipment, “that the transfer of the contractual position enjoys the nature of simplified recognition”, except that the transfer of the associated benefit to contracts concluded until December 31, 2020 depends on the authorization of the member of the Government.
Still within the scope of the Tax Benefits Statute, and with regard to workers posted abroad, the Government’s proposal determines that “for the purposes of numeral 1 [que determina as condições em que se pode beneficiar de isenção de IRS]they are only considered residents under the terms of subsection d) of paragraph 1 of article 16 of the SRI Code” [ “são residentes em território português as pessoas que, no ano a que respeitam os rendimentos: Desempenhem no estrangeiro funções ou comissões de caráter público, ao serviço do Estado Português”].
With this bill, the Government is empowered “to revoke from the legal text tax benefits that are currently expired by virtue of the general rule of expiration of tax benefits, thus avoiding errors in the interpretation and application of the law.”
Source: Observadora
