Monday, November 21, 2016

Changes to the additional IMI represent break 30 million in revenue – the Observer

the changes to The additional IMI will represent a reduction of the order of 30 million euros in relation to the projection of the initial tax revenue, said this Monday the secretary of State for Fiscal Affairs, Fernando Rocha Andrade.

On Friday, HP introduced changes to the additional Municipal Property Tax (IMI), initially foreseen in the proposal of the State Budget for 2017 (OE2017), increasing the rate of 0.3% to 0.7% (to apply the properties with equity value above 600 thousand euros and up to a million euros) and exempting this 'surcharge' is also the real estate allocated to the trade.

These are the changes, said the ruling on the sidelines of a conference in Lisbon on the next OE, represent "a slight reduction of revenue, possibly around 30 million euros", in relation to the projection opening (160 million euros).

The accounts of Rocha Andrade are based on the differences between the balances of the models initially presented by the Government and the current one, counting himself, on the one hand, the exclusion of a set of buildings of that taxation and, on the other, the fees are now higher, completing the ruler that the recipe turns out to be lower than that stated in the proposal for OE to 2017.

"in This particular case, it was not necessary to find other measures that colmatassem this low of 30 million euros in tax revenue," said the secretary of State, explaining that, at this time, the Government already has prospects in relation to the evolution of tax revenue in 2017 that will allow you to say that "this reduction can be accommodated" in the review of other forecasts.

But Rocha Andrade did not want to give more details and have saved the details of the accommodation and the outlook to positive tax revenue for the dissemination of the final draft of the OE2017, adding that this information will be disclosed only at that time.

The ruler clarified yet who are outside of the additional IMI all the properties that are considered commercial, industrial and service, and as to the shopping centres, said: "I presume that the shopping malls are correctly classified as commercial real estate and, therefore, excluded from the incidence of this tax".

About criticism about the instability in the tax caused by changes in the measures that count in the next budget, Rocha Andrade said that a "serious analysis" of the OE 2017 shows that "there is a stability in the rates and on the fundamental rules of the major taxes and there are few changes in the remaining taxes," if they are excluded from the two new taxes that, as a whole, represent very little of the total tax revenue.

so, I would say that, in essence, the tax system does not have change", he concluded.

On Friday, the PS presented a proposal for a change to be the additional to IMI relating to the sum of the values of property tax (VPT) of the urban buildings located in the Portuguese territory, being excluded those classified as 'commercial, industrial or services' and 'other', which, in practice, excludes the real estate affects the economic activities.

On the other hand, the tax rates apply have been increased compared to what was initially foreseen in the Government’s proposal: the owners of real estate whose VPT global stands between 600 thousand euros and one million euros will pay a fee of 0.7% and those who hold property above that value will pay a fee of 1%.

Another proposed change refers to real estate companies with headquarters in tax havens, about which will be levied a special rate of 7.5% on the value exceeding 600 billion euros of VPT.

In the design of the OE 2017, the executive provided for the application of a rate of 0.3% payable by the owners of real estate VPT global, excluding only the industrial buildings and licensed for activity tourism.

The measure also included a deduction of 600 thousand euros to taxpayers-individuals or businesses with agricultural activity, industrial or commercial, which only would have to pay this additional 0.3% in the seat of IMI on the VPT above that amount.

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