Caiado Guerreiro & Associados: Newlsetter March 201303/07/2013

LEGAL

REIMBURSEMENT OF THE SOCIAL SECURITY TAX AS A WAY OF PROMOTING THE HIRING OF YOUNG WORKERS
Government order No. 65-a/2013 amended the regime of promotion of the hiring of unemployed young people via the reimbursement of all or part of the single social security tax (TSU) to the employer. Therefore, unemployed young people between 18 and 30 years old, registered in the job centre for at least 6 consecutive months or that have not engaged in any activities, including academic oriented activities in the 12 months prior to application are now covered by this regime. In turn, the employer shall be a natural or legal person, whose incorporation, activity and tax situation are regularized, and shall also have organized accounting. The employer will further have to undertake maintaining the level of employment in the company during the period of financial support, being repaid, in compensation, of the TSU paid, up to a maximum value of € 175 per month. The employment contract can be entered into with or without term, full-time or part-time, up to a maximum of 20 workers per company. Said government order shall remain in force until January 14, 2014.
For any further information on this matter please contact: Sara Sousa Rebolo

NEW LAW REDUCES POWER OF THE MUNICIPALITES OVER THE MUNICIPAL COMPANIES
In early March the new law of the business sector of the State entered into force. This law has reformed the legal framework of local business activities and local holdings, by introducing limitations to the control of the Municipalities over the municipal companies. In view of this Law, the municipalities were devoid of the ability to appoint the managers of municipal companies, ending up only with the possibility to appoint their representatives in the General Assemblies of these companies, thus becoming the choice of the managers limited to the will of the company. The previously existing power of amending the statutes of said companies was also removed, as well as the power to approve the strategic and activity’s plan, the budget and accountability, which is now the responsibility of the General Assembly. This law is part of the measures ordered by the Troika and represents a clear decrease of local autonomy in the management of the municipal companies.
For any further information on this matter please contact: Maria Margarida Torres

THE LAW OF PRIVATE COPYING IS DELAYED
The Secretary of State for Culture, Jorge Barreto Xavier, admitted that the Private Copy law will hardly be proposed for approval in the Parliament this month. After saying, in January, that he intended to have the legislative process advancing in February, the release in Brussels of a report from the European Commissioner António Vitorino on Private Copy and Copyright Protection, will delay the process, since, as Mr. Barreto Xavier noticed, the same will have to be taken into account. It is recalled that this regards a legislation that aims to protect and financially compensate authors, editors or producers of the private reproduction of protected works. It is intended, for example, to apply levies for equipment that play music and video, such as MP3 players, mobile phones, hard drives, memory cards and USB flash drives.
For any further information on this matter please contact: Ricardo Costa Macedo


BUSINESS

GALP INCREASED ITS PROFITS IN 2012
In comparison with the previous year, Galp had a significant increase of 43% of its profits in 2012. These values are due to an increase of 24% in exports out of the Iberian Peninsula and to the greater production of oil and natural gas in Brazil, since in March 2012 Galp Energia has increased its participation in Petrogal Brazil, and now holds 70% of its capital. In addition, in overall terms, the average production of Galp increased 49% over the past year. However, this scenario outweigh falls in consumption recorded in the field of gas and electricity. According to Galp, this break is due to increased imports of electricity in Spain and to an increasing presence of coal in Portugal.
For any further information on this matter please contact: Tatiana Cardoso

PORTUGAL IS IN THE INVESTMENT RADAR OF CHINA MOBILE
The Chinese giant, China Mobile, has defined five markets for internationalization, including Portugal. The domestic market shall be the gateway to Brazil and Africa. China Mobile is evaluating the Portuguese market as a target of its internationalization strategy. The largest global telecommunications operator in number of customers is already examining the national macroeconomic framework with a view to future investments. China Mobile is still studying other markets, besides the Portuguese, to start its bet outside of China. Brazil, South Africa, Germany and North Korea are the possibilities on the table, according to the English speaking Chinese newspaper “Morning Whistle ". Portugal Telecom is of interest to the operator since it holds shares in the Brazilian mobile operator Oi, it is in Angola with Unitel, Multitel and ELTA, in Mozambique with Listas Telefónicas de Moçambique and ISP Teledata, holds a participation in Cape Verde’s Telecom and Directel, has 51% of the Companhia Santomense de Telecomunicações, in Sao Tome and Principe, and is also in Namibia, Kenya and Timor. Portugal Telecom seems to be the strongest candidate but, however, Zon is also being considered, for its presence in Angola.
For any further information on this matter please contact: Ricardo Rodrigues Lopes

PORTUGUESE COMPANIES ARE INVESTING IN MACAU
Portuguese companies continue to invest heavily in Macau, a former Portuguese territory in China until 1999, a privileged gateway to the Asian market. Companies expect to benefit from favorable conditions for the expansion of their businesses in a market that is widely developing and with numerous opportunities for the growth of business solutions. ROFF, a national group of SAP solutions, and the producer of children’s wear Metro Kids Company are two of the companies that will strengthen, soon, the Portuguese presence in Macau. The investment in the Asian market has provided for a significant increase in the turnover of many companies, including Banco Comercial Português (BCP), which recorded, in Macau, net profits of 177.5 million patacas (16.52 million Euros) in 2012, in a year with 450% and 300% increases in bank credits and deposits.
For any further information on this matter please contact: Ana Castro Gonçalves