copy the linklink copied!Portugal
Portugal has met all aspects of the terms of reference (ToR) for the calendar year 2018 (year in review) and no recommendations are made.
In the prior year report, Portugal received one recommendation. This recommendation has been addressed and is removed.
Portugal can legally issue two types of rulings within the scope of the transparency framework. In practice, Portugal has issued rulings within the scope of the transparency framework as follows:
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24 past rulings;
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For the period 1 April 2016 - 31 December 2016: two future rulings;
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For the calendar year 2017: 11 future rulings, and
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For the year in review: 11 future rulings.
Peer input was received from one jurisdiction in respect of the exchanges of information on rulings received from Portugal. The input was generally positive, noting that information was complete, in a correct format and received in a timely manner.
copy the linklink copied!Introduction
This peer review covers Portugal’s implementation of the BEPS Action 5 transparency framework for the year 2018. The report has four parts, each relating to a key part of the ToR. Each part is discussed in turn. A summary of recommendations is included at the end of this report.
copy the linklink copied!A. The information gathering process
Portugal can legally issue the following two types of rulings within the scope of the transparency framework: (i) cross-border unilateral APAs and any other cross-border unilateral tax ruling (such as an ATR) covering transfer pricing or the application of transfer pricing principles and (ii) permanent establishment rulings.
Past rulings (ToR I.4.1.1, I.4.1.2, I.4.2.1, I.4.2.2)
For Portugal, past rulings are any tax rulings within scope that are issued either: (i) on or after 1 January 2014 but before 1 April 2016; or (ii) on or after 1 January 2010 but before 1 January 2014, provided they were still in effect as at 1 January 2014.
In the prior year peer review report, it was determined that Portugal’s undertakings to identify past rulings and all potential exchange jurisdictions were sufficient to meet the minimum standard. Portugal’s implementation in this regard remains unchanged, and therefore continues to meet the minimum standard.
Future rulings (ToR I.4.1.1, I.4.1.2, I.4.2.1)
For Portugal, future rulings are any tax rulings within scope that are issued on or after 1 April 2016.
In the prior year peer review report, it was determined that Portugal’s undertakings to identify future rulings and all potential exchange jurisdictions was sufficient to meet the minimum standard. Portugal’s implementation in this regard remains unchanged, and therefore continues to meet the minimum standard.
copy the linklink copied!B. The exchange of information
Legal basis for spontaneous exchange of information (ToR II.5.1, II.5.2)
Portugal has the necessary domestic legal basis to exchange information spontaneously. Portugal notes that there are no legal or practical impediments that prevent the spontaneous exchange of information on rulings as contemplated in the Action 5 minimum standard.
Portugal is a party to international agreements permitting spontaneous exchange of information, including (i) the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011) (the Convention), (ii) the Directive 2011/16/EU with all other European Union Member States and (iii) double tax agreements in force with 77 jurisdictions.1
Completion and exchange of templates (ToR II.5.3, II.5.4, II.5.5, II.5.6, II.5.7)
In the prior year peer review report, it was determined that Portugal’s completion and exchange of templates was sufficient to meet the minimum standard, except for the timely exchange of information on future rulings (ToR II.5.6). Portugal received a recommendation to ensure the speedy exchange of all future rulings. Portugal has now addressed this issue, all future rulings have been exchange in a timely manner and the accordingly the recommendation is removed.
For the year in review, the timeliness of exchanges is as follows:
Conclusion on section B
Portugal has the necessary legal basis for spontaneous exchange of information, a process for completing the templates in a timely way and has completed all exchanges on time. Portugal has met all of the ToR for the exchange of information process and no recommendations are made.
copy the linklink copied!C. Statistics (ToR IV)
The statistics for the year in review are as follows:
copy the linklink copied!D. Matters related to intellectual property regimes (ToR I.4.1.3)
Portugal offers an intellectual property regime that is subject to transparency requirements under the Action 5 Report (OECD, 2015[5]).2 It states that the identification of the benefitting taxpayers will occur as follows:
New entrants benefitting from the grandfathered IP regime: Portugal did not identify any new entrants benefitting from the grandfathered IP regime that should be subject to spontaneous exchange of information with other jurisdictions.
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Third category of assets: not applicable as the regime does not allow the third category of IP assets to qualify for the benefits.
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Taxpayers making use of the option to treat the nexus ratio as a rebuttable presumption: not applicable as the regime does not allow the nexus ratio to be treated as a rebuttable presumption.
Notes
← 1. Parties to the Convention are available here: www.oecd.org/tax/exchange-of-tax-information/convention-on-mutual-administrative-assistance-in-tax-matters.htm. Portugal also has bilateral agreements with Algeria, Andorra, Austria, Bahrain, Barbados, Belgium, Brazil, Bulgaria, Cabo Verde, Canada, Chile, China (People’s Republic of), Colombia, Côte d’Ivoire, Croatia, Cuba, Cyprus, Czech Republic, Denmark, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Guinea-Bissau, Hong Kong (China), Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Japan, Korea, Kuwait, Latvia, Lithuania, Luxembourg, Macau (China), Malta, Mexico, Moldova, Morocco, Mozambique, Netherlands, Norway, Oman, Pakistan, Panama, Peru, Poland, Qatar, Romania, Russia, San Marino, Sao Tome and Principe, Saudi Arabia, Senegal, Singapore, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, Tunisia, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Venezuela and Viet Nam.
Note by Turkey: The information in this document with reference to “Cyprus” relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Turkey recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Turkey shall preserve its position concerning the “Cyprus issue”.
Note by all the European Union Member States of the OECD and the European Union. The Republic of Cyprus is recognised by all members of the United Nations with the exception of Turkey. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus.
← 2. Partial exemption for income from patents and other industrial property rights.
Metadata, Legal and Rights
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