By DENNIS SWING GREENE [email protected]
Dennis Swing Greene is Senior Partner and International Fiscal Consultant for euroFINESCO s.a.
Increase economic stimulus vs. reduce budget deficit
The massive introduction of economic stimuli, mostly based on deficit spending, worsen already exaggerated budget imbalances.
Not surprisingly, just one year later, the pendulum had already reversed direction, heightening the need for spending restraint and tax increases.
By late spring, Portugal’s heavy budget crisis contributed to downward pressure on the European single currency, drawing intervention from Brussels to force even more drastic measures.
IRS measures:
Inflation adjustment of 0.8%
• Further redistribution measures:
– caps on benefits for higher
earners;
– increased benefits for modest
earners;
– IMI exemptions lowered;
– Royalty exemptions capped.
• Elimination of CGT exemption on
shares portfolios;
• Further reduction in bank secrecy;
• 50% punitive taxation on executive
bonuses.
• Simplified Regime
– Upper income limit for services
increases from 100,000 to
150,000 Euros;
– Elimination of minimum tax;
– Isolated Act confines eliminated New IRS Declaration periods:
– on paper: 1st phase: March;
2nd phase: April
– via internet: 1st phase: April;
2nd phase: May
• Energy conservation and efficiency tax credits;
• Elimination of computer tax credit;
• Lottery winnings taxed in Stamp Duty rather than IRS;
• Tax Amnesty for offshore investments with 5% levy;
• Tax incentives for certain Risk Capital investments.
Next: The three-year Stability & Growth Plan
Dennis Swing Greene is Chairman and International Fiscal Consultant for euroFINESCO s.a. Consultations can be scheduled in Guia (Albufeira) 289561333, Lisbon (Chiado) 21342421 and in Funchal (Sé), Madeira 291221095.
3″>features
