It was approved the right to compensatory interests for the payment arising from rules declared unconstitutional or illegal
Tax Portugal Alert
Law no. 9/2019 of 1 February, was officially published, which amends the General Taxation Law (“LGT”), that was approved by the Decree-Law no. 398/98, of 17 December.
This Law determines, with retroactive application, that public entities must pay compensatory interests in case of undue payment of taxes based on rules judicially declared as unconstitutional or illegal, adding paragraph d) to the number 3 of article 43 of LGT.
It is further clarified that this new paragraph is also applicable to judicial decisions of unconstitutionality or illegality prior to its entry into force, interest being due over taxes assessed after 1 January of 2011.
The referred Law entered into force on 2 February of 2019.