Considering that the Monthly Stamp Tax Return ("DMIS") became fully operational at the beginning of 2021 and that some doubts still persist that may condition its correct submission, the Portuguese Tax Authority ("AT") has determined, through Order 42/2021.XXII, of 12 February, that DMIS submitted with "mere errors" may be replaced until the end of the first semester of 2021, without any penalty.
We remind that, after the successive postponements of the implementation of this measure approved by the 2018 State Budget Law (Law no. 114/2017, of 29 December), the Monthly Stamp Tax Return (so-called "DMIS") will have to be mandatory submitted, for the first time, by 20 February 2021 regarding taxable events occurred in January.
In this article we describe the factors determining the tax residence of individuals and legal entities or the existence of permanent establishments in the main Latin American countries, and in Spain and Portugal, along with the interpretation methods that in some cases the tax authorities of these countries have issued to take into account (or not) distortions caused by the health crisis.
For some years the tax authorities and the courts have upheld as a general rule that late-payment interest was not deductible for corporate income tax purposes before the current Corporate Income Tax Law (Law 27/2014, of November 27, 20109) whereas it was deductible after that law came into force. The National Appellate Court has now come to the opposite conclusion.
The law transposing Council Directive (EU) 2018/822 of May 25, 2018 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements (known as DAC 6) was published in the Official State Gazette on December 30, 2020. For now, however, the dates when it will be necessary to begin to make the relevant reporting are not known.