The new regulation facilitates management and may have a positive impact on financial liquidity in the capital group, whereas administrative activities related to the functioning of the VAT group are limited.
Due to the update of the withholding tables applicable to employment income (category A) and pensions (category H), received by residents in mainland Portugal, for the first and second semesters of 2023, the procedures to be adopted by the paying entities of such income have now been disclosed by the Personal Income Tax Services (DSIRS), as set out in the Administrative Information no. 1/2023, of 11/01 and Administrative Information no. 2/2023, of 11/01, respectively.
The obligation to submit form Model 10 ("Rendimentos e Retenções – Residentes"), regarding income paid or made available in 2022, may be exceptionally completed until 24 February 2023, without any increases or penalties, according to the Ministerial Order no. 8/2023, of 4 January.
Em 2023, o valor médio de construção por metro quadrado para efeitos do Imposto Municipal sobre Imóveis passa de EUR 512 para EUR 532, de acordo com a Portaria n.º 7-A/2023, de 3 de janeiro, recentemente publicada.
Among others, a new bracket has been created for personal income tax on savings income, a reduced tax rate has been established for entities with net revenues below €1 million, and limits have been placed on the effective use rule for determining the place of supply of certain services for VAT purposes and for the purposes of the Canary Islands General indirect tax (IGIC). A new temporary special tax regime for the Balearic Islands has also been defined.
Moreover, a temporary limit is placed in the corporate income tax regime for tax groups on the group's use of tax losses generated by its entities in the taxable period, and significant new legislation is introduced on the tax credit for investments in productions of films, series and live shows. Lastly, an important amendment has been made to the wealth tax legislation under which nonresident taxable persons will have to be liable for tax in Spain on the ownership of shares in entities with real estate assets in Spain.
The new law has also added flexibility to the special regime for workers assigned abroad, enhanced the tax treatment of carried interest from the management of private equity entities and set out new rules on the obligation to disclose corporate income tax information.
The Government approved, through Dispatch n.º 8/2022-XXIII, of 13 December, from the SEAF, a new flexibility of the tax calendar concerning the compliance in 2023 of certain tax obligations on invoicing, in particular regarding the following.