Page 14 - The Portugal News - Online Issue
P. 14

14 The Portugal News • 19 Jan 2018                              Business


                                                                                Number of new companies up


                                                                                as insolvencies fall


                                                                                The number of new companies in Portugal last year was up 12.2 percent
                                                                                The number of new companies in Portugal last year was up 12.2 percent
                                                                               The number of new companies in Portugal last year was up 12.2 percent
                                                                               The number of new companies in Portugal last year was up 12.2 percent
                                                                                The number of new companies in Portugal last year was up 12.2 percent
                                                                               on the previous year, at 45,386, while the number of insolvencies fell 6.3
                                                                               on the previous year, at 45,386, while the number of insolvencies fell 6.3
                                                                                on the previous year, at 45,386, while the number of insolvencies fell 6.3
                                                                                on the previous year, at 45,386, while the number of insolvencies fell 6.3
                                                                                on the previous year, at 45,386, while the number of insolvencies fell 6.3
                                                                                percent to 5,888, according to figures released by
                                                                                percent to 5,888, according to figures released by Iberinform, a company
                                                                               percent to 5,888, according to figures released by
                                                                               percent to 5,888, according to figures released by Iberinform, a companyIberinform, a company
                                                                                percent to 5,888, according to figures released by Iberinform, a companyIberinform, a company
                                                                               specialising in credit insurance.
                                                                                specialising in credit insurance.
                                                                               specialising in credit insurance.
                                                                                specialising in credit insurance.
                                                                                specialising in credit insurance.
                                                                                 The incorporation of   in 2018, followed by Porto,  highest totals, at 1,555
                                                                               new companies in 2018    with 8,179 new          and 1,400 respectively,
                                                                               rose by 4,921 last year,  companies, up 15.1     marking a 7.6 percent
       Bank of Portugal chairman Carlos Costa
       Bank of Portugal chairman Carlos Costa
       Bank of Portugal chairman Carlos Costa
      Bank of Portugal chairman Carlos Costa                                   while insolvencies fell by  percent.             decrease on 2017 in
      Bank of Portugal chairman Carlos Costa
                                                                               396, according             Only six districts saw a  Lisbon and an increase of
      Morais Pires to appeal €1.2M                                             to Iberinform, a subsidiary  decrease in the number of  5.3 percent in Porto.
                                                                                                                                  The largest increases in
                                                                               of
                                                                                                        new companies set up in
                                                                               Spain’s Crédito y Caución.   2018, with the largest drop  insolvency by district were
      Banco de Portugal fine                                                   of startups was in Lisbon  seen in Horta, in the  seen in Angra do
                                                                                 The largest number
                                                                                                        Azores, of 16.2 percent.
                                                                                                                                Heroísmo (up 90 percent
                                                                               district, where 15,829 new  As to insolvencies in  from 2017) and Horta (up
      The Former BES director Amílcar Morais Pires has announced he is to
      The Former BES director Amílcar Morais Pires has announced he is to
      The Former BES director Amílcar Morais Pires has announced he is to
      The Former BES director Amílcar Morais Pires has announced he is to      companies were set up,   2018, Lisbon and Porto  60 percent).
      The Former BES director Amílcar Morais Pires has announced he is to
      appeal the Banco de Portugal decision to fine him €1.2 million for alleged1.2 million for alleged
      appeal the Banco de Portugal decision to fine him €
      appeal the Banco de Portugal decision to fine him
      appeal the Banco de Portugal decision to fine him €€1.2 million for alleged1.2 million for alleged
      appeal the Banco de Portugal decision to fine him €1.2 million for alleged  15.6 percent) more than  were the districts with the       TPN/Lusa
      infringement in the BES Angola case
      infringement in the BES Angola case
      infringement in the BES Angola case
      infringement in the BES Angola case
      infringement in the BES Angola case
          n a statement, Pires  from the regulator and  knows,” the statement   IRS 2018 - EXPENSES 1-6
          said that he will appeal  other members of the  reads.
          the Banco  de Portugal  administration the     Pires also accuses     nº 2: Medical Expenses
      Idescision to “the only  problems the BES Angola  Banco de Portugal and the
      competent court,”        faced.”                 directors of attempting to  How can I save on my taxes?
      accusing the institution of  For Pires, it is a  find scapegoats for a     Of all the credits and deductions available, medical expenses are customarily the
      wanting to create in public  “perversely unfair and  “gravely and extremely  single largest for most taxpayers. In 2018, the tax credit is set at 15% and includes health
      opinion “a perception of  notoriously interested”  harmful act for the    insurance premiums. Before examining the ins and outs, let’s examine some of the
      convictions and          decision.               Portuguese state that they
      judgements defined by the  “The intervention I had at  commited in July/August  basics about claiming credits.
      courts.”                 BES was to make it work,  2014, when they       Question: What kind of expenses are eligible for a medical tax credit?
                                                                                Question: What kind of expenses are eligible for a medical tax credit?
                                                                               Question: What kind of expenses are eligible for a medical tax credit?
                                                                                Question: What kind of expenses are eligible for a medical tax credit?
                                                                                Question: What kind of expenses are eligible for a medical tax credit?
        According to Expresso,  beween 2012 and        controlled BES.”        euroFINESCO:FINESCO:
                                                                                euro
                                                                                euroFINESCO: A 15% tax credit is allotted on these non-reimbursed medical
                                                                                euroFINESCO:FINESCO:
                                                                               euro
      the supervisor “considers  2013,which has previously  BES former president  expenses:
      that it was proved that  been poorly managed by  Ricardo Salgado, is also  • Services from medical professionals such as doctors, dentists, physiotherapists, etc.
      these directors acted in a  Álvaro Sobrinho, as the  appealing the sentance of  •  Laboratory analyses; Surgery and hospitalisation;
      willful manner to conceal  Banco de Portugal     €1.8 million.         TPN/Lusa  • Dentures and orthodontic braces:
                                                                                • Eyeglasses (lenses only) and hearing aids (when accompanied by a doctor’s
                                                                                prescription);
                                                                                • Prescribed medical treatments; prescribed & un-prescribed medications (6% VAT);
                                                                                • Nursing care;
                                                                                • Prescribed treatments taxed at 23% VAT (subject to limitations);
                                                                                • Ambulances and special transport;
                                                                                • Necessary travel outside the country when treatment is unavailable in Portugal;
                                                                                • Interest on loans to pay for medical treatment;
                                                                                • Health Insurance.
                                                                                 uestion: What expenses cannot be claimed?
                                                                                 uestion: What expenses cannot be claimed?
                                                                                 uestion: What expenses cannot be claimed?
                                                                                Q Q Q Q Question: What expenses cannot be claimed?uestion: What expenses cannot be claimed?
                                                                               euroFINESCO:FINESCO:
                                                                                euroFINESCO:FINESCO:
                                                                               euro
                                                                                euroFINESCO:  The following expenses do not qualify for a tax credit:
                                                                                euro
                                                                                • any reimbursed medical expenses;
                                                                                • non-essential travel expenses;
                                                                                • products such as cosmetics and hygiene products (identifiable by the 23% VAT):
                                                                                • “natural” remedies, such as medicinal herbs and teas;
                                                                                • mattresses, pillows, chairs, etc.
                                                                                • sports equipment, exercise apparatus, etc.
                                                                                • jacuzzi, air conditioners, etc.
                                                                                Question: How do I go about substantiating medical expenses?
                                                                                Question: How do I go about substantiating medical expenses?
                                                                                Question: How do I go about substantiating medical expenses?
                                                                               Question: How do I go about substantiating medical expenses?
                                                                               Question: How do I go about substantiating medical expenses?
                                                                                euroFINESCO:
                                                                                euroFINESCO: FINESCO: “NIB, se faz favor!” Always give your fiscal number for the invoice.
                                                                                euro
                                                                               euroFINESCO: FINESCO:
                                                                               euro
                                                                                Finanças now uses an interactive digital system and your tax credit is now assigned
                                                                                automatically. Nevertheless, paper invoices are still necessary for treatment from
                                                                                abroad. If you received partial reimbursement from your insurance company, a
                                                                                summary statement, detailing expenses not repaid by the medical plan is necessary.
                                                                                Question: How can I tell if a treatment or medication is eligible for a tax
                                                                                Question: How can I tell if a treatment or medication is eligible for a tax
                                                                               Question: How can I tell if a treatment or medication is eligible for a tax
                                                                               Question: How can I tell if a treatment or medication is eligible for a tax
                                                                                Question: How can I tell if a treatment or medication is eligible for a tax
                                                                               credit?
                                                                               credit?
                                                                                credit?
                                                                                credit?
                                                                                credit?
                                                                                euro
                                                                               euroFINESCO:FINESCO:
                                                                                euroFINESCO:FINESCO:
                                                                                euroFINESCO: Easy! On your invoice, if the VAT is at 0% or 6%, then it is deductible. If
                                                                               euro
                                                                                the “IVA” is at the normal rate (23%), you’re out of luck.
                                                                                Question: Last year I had a major operation. Is there an upper limit to the
                                                                                Question: Last year I had a major operation. Is there an upper limit to the
                                                                               Question: Last year I had a major operation. Is there an upper limit to the
                                                                               Question: Last year I had a major operation. Is there an upper limit to the
                                                                                Question: Last year I had a major operation. Is there an upper limit to the
                                                                               tax credit?
                                                                                tax credit?
                                                                               tax credit?
                                                                                tax credit?
                                                                                tax credit?
                                                                                euroFINESCO:FINESCO:
                                                                                euroFINESCO: Yes. The maximum of €1 000 is based on 15% of total medical
                                                                                euro
                                                                               euro
                                                                               euroFINESCO:FINESCO:
                                                                                expenses.
                                                                                Question: I received medical treatment abroad.  Are these expenses
                                                                               Question: I received medical treatment abroad.  Are these expenses
                                                                                Question: I received medical treatment abroad.  Are these expenses
                                                                               Question: I received medical treatment abroad.  Are these expenses
                                                                                Question: I received medical treatment abroad.  Are these expenses
                                                                               allowable?
                                                                               allowable?
                                                                                allowable?
                                                                                allowable?
                                                                                allowable?
                                                                               euro
                                                                               euroFINESCO:FINESCO:
                                                                                euroFINESCO: While there are medical expenses from abroad that you can claim, the
                                                                                euro
                                                                                euroFINESCO:FINESCO:
                                                                                authorities may ask to have translations and authentication of documents. This can be a
                                                                                tedious, expensive process, making it advisable to omit any minor claims.
                                                                               Next:
                                                                                      Education
                                                                                      Education
                                                                                      Education
                                                                                      Education
                                                                               Next:  Education
                                                                                Next:
                                                                                Next:
                                                                                Next:
                                                                                Dennis Swing Greene is an International Tax Specialist and Chairman of
                                                                                euro
                                                                                euroFINESCO s.a
                                                                                                    www.eurofinesco.com
                                                                               euroFINESCO s.aFINESCO s.a
                                                                               euro                 www.eurofinesco.com
                                                                                                    www.eurofinesco.com
                                                                                euroFINESCO s.aFINESCO s.a.    www.eurofinesco.comwww.eurofinesco.com
   9   10   11   12   13   14   15   16   17   18   19