What You Need To Know About Withholding Tax in Portugal

international accounting , regulatory filings, to name a few.

Read also on: International financial reporting , EU VAT rules, doing business overseas “>Employed in Portugal? Keeping up with the interminable list of Portuguese laws prevailing in the country can be a constant struggle. You could face a lot of complications in the form of unforeseen tax liabilities without proper tax counsel. Any business conducted on foreign land means additional regulations and taxes and there is more reason to stay abreast of the changing tax laws. Here’s a glance at the revised Portuguese withholding tax rates for 2012. The Portuguese Tax and Custom Administration issued a circular listing the revised withholding tax rates on salaries and pensions for resident individuals in Portuguese Mainland, on 13 February 2012.

Withholding Tax on Wages earned by Unmarried Taxpayers Unmarried taxpayers, with up to four dependent children, would be subject to 0 percent to 40 percent withholding tax, and taxpayers, with five or more dependent children would be subject to a withholding tax of 0 percent to 39 percent.

Withholding Tax on Wages earned by Married Taxpayers Married taxpayers where only one spouse is earning with up to four dependent children would attract a withholding tax of 0 percent to 37.5 percent and those with five or more dependent children would attract a withholding tax of 0 percent to 36.5 percent. If both spouses are earning, withholding tax rates range within 0 percent to 40 percent.

Withholding Tax Rates on Wages of Disabled Persons Disabled persons will be subject to a withholding tax within the range of 0 percent to 33.5 percent on their income.

Withholding Tax Rates for Pensioners Unmarried pensioners, and married taxpayers where both of the spouses are pensioners, would be subject to a withholding tax within 0 percent to 40 percent. If only one spouse is a pensioner, the withholding tax rate would be 0 percent to 34.5 percent. Pensioners with disabilities will be subject to withholding tax rates of within 0 percent to 24.5 percent.

The only way to avoid any violation of these tax laws is to take the help of a professional expert, who can aid you in dealing with the challenges. An experienced consultant would assist you in structuring and documenting your overseas assignment and help you in identifying and exploiting the tax planning opportunities available. As problems in business can happen at any point, it is imperative to have the assistance of a professional, who can also help in other areas like international accounting , regulatory filings, to name a few.

Read also on: International financial reporting , EU VAT rules, doing business overseas

Related Articles – international accounting, international financial accounting, eu vat rules, doing business overseas,

Email this Article to a Friend!

Receive Articles like this one direct to your email box!
Subscribe for free today!

http://www.amazines.com/software/article_detail.cfm/4236336?articleid=4236336