PORTUGAL Law and Practice Contributed by: Tânia de Almeida Ferreira, João Pedro Albuquerque, Filipe Gomes da Silva and Pedro Neves, CCA Law Firm
4.2 Pillar One – Amount A Portugal is a member of the OECD/G20 Inclusive Framework on BEPS and has taken part in the dis - cussions relating to Pillar One. That said, Portugal has not issued a separate or detailed public statement setting out a specific posi - tion on Amount A. Portugal’s involvement has there - fore been shown primarily through its participation in the multilateral negotiations, rather than through dis - tinct domestic policy communications. As a member state of the EU, Portugal’s approach is generally consistent with the common position devel - oped at EU level. At said level, the European Commis - sion has indicated that the implementation of Amount A within the EU is expected to proceed following the entry into force of the OECD Multilateral Convention, the final text of which remains under negotiation. 4.3 Pillar Two Portugal has implemented the global minimum tax under Pillar Two into domestic law. As expected, the Portuguese domestic law establish - es a 15% minimum effective taxation standard appli - cable to large multinational enterprise (MNE) groups and large-scale domestic groups with consolidated annual revenues of at least EUR750 million in at least two of the four preceding tax periods, consistent with the applicable Directive and the OECD threshold. The Income Inclusion Rule (IIR) and the Qualified Domestic Minimum Top-Up Tax (QDMTT) apply to tax periods beginning on or after 1 January 2024. The Undertaxed Profits Rule (UTPR) applies to tax periods beginning on or after 1 January 2025. As a result, the main operative components of Pillar Two have been effective in Portugal since the 2024. Overall, Portugal’s implementation closely follows the structure, definitions, and timelines set at EU and OECD levels, ensuring consistency with the broader international rollout of the global minimum tax while incorporating the rules directly into Portuguese domestic law.
4.4 Specific Features or Deviations of Pillar Two The Portuguese legislation expressly states that guidance issued within the OECD/G20 Inclusive Framework on Pillar Two must be considered when interpreting and applying the domestic minimum tax provisions. This includes the official Commentary to the Model Rules as well as any subsequent Admin - istrative Guidance endorsed by the Inclusive Frame - work. Accordingly, the domestic regime is intended to be interpreted consistently with the evolving interna - tional framework, thereby promoting alignment with the technical clarifications and interpretative positions developed at OECD level. 4.5 Digital Services Tax Portugal does not impose a broad, standalone digital services tax. Instead, the Portuguese system relies on sector-spe - cific charges targeting certain digital and audiovisual business models. One notable example arises under the audiovisual and cinema regime, which provides for a 4% levy on certain audiovisual commercial commu - nications, including those disseminated through vid - eo-sharing platform services and on-demand audio - visual services (commonly referred to as Advertising Tax). Under the same legislative framework, subscription- based video-on-demand providers may also be sub - ject to an annual charge of 1% over relevant income (usually referred as Netflix Tax). 5. Anti-Avoidance and Anti-Evasion Measures 5.1 Definition and Identification of Tax Fraud, Evasion, Tax Avoidance and Abusive Schemes Portuguese law defines tax fraud as intentional con - duct aimed at preventing the correct assessment or payment of tax, avoiding the payment of tax due or obtaining undue tax advantages, refunds or financial benefits resulting in a loss of public revenue. Criminal
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