Companies complain of paying too many fees in Portugal



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The tax authorities increasingly charge various top taxes instead of taxes, such as IRC and VAT. The caveat comes in a study commissioned by CIP.

Companies complain of paying too many taxes and contributions in Portugal. This is the conclusion of a study by the consulting firm EY and the Sérvulo law firm, at the request of the CIP – Confederação Empresarial de Portugal, which will be discussed today in an Internet session.

In Portugal, more than 4,300 fees are charged, of which 2,900 are for public companies. The Portuguese Environment Agency is the entity responsible for the highest number of fees, with a total of 600.

“Not only is the number of existing fees excessive and absolutely expensive, but there are innumerable difficulties encountered in their determination for each of the sectors of the business fabric”, refer to the conclusions of the study.

Lack of transparency

“Several times,” says the document, “the guarantee of proportionality and transparency in terms of the amounts thereof” is open to discussion. The analysis concludes that the Portuguese tax system is moving from a tax collection model (such as VAT and IRS) to one based on a multiplicity of tax figures, such as taxes and contributions.

In 2018, tax collection was 37.1% of GDP, placing Portugal in 17th place in the European Union. The tax machinery, the study emphasizes, “has been focusing on certain sectors of economic activity that are presumed to have greater tax capacity compared to others.”

Attention is also drawn to the “lack of transparency in rates, the difficulty in identifying the applicable legal basis, the lack of uniformity and the consequent dispersion and incompleteness of the information” and also the complexity of the structure of collection and allocation of charges. revenue from fees. Some entities are unaware of the “self-imposed” rates.

Many of these rates have appeared in recent years and not only in companies. Tourist taxes, for example, affect overnight stays in accommodation. In companies, in addition to the additional solidarity in the banking sector, the contribution in medical devices was created.

“Innovative calculation”

The authors of the study propose “an innovative calculation of the weight of the tax burden of companies considering the taxes paid on turnover, instead of the generally used criterion of taxes on GDP.”

In 2017, companies will have paid 20% of their turnover in taxes, placing Portugal in 11th place among the 27 in the European Union. In 2008, according to the accounts of EY and Sérvulo, the country would be in position 16.



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