Caiado Guerreiro & Associados: Newsletter December 201312/16/2013
EXTRAORDINARY RENEWAL REGIME FOR FIXED TERM EMPLOYMENT CONTRACTS
The law number 76/2013 was published on the past 7th of November and establishes a new regime of extraordinary renewal for fixed term employment contracts, as well as the regime and calculation form for the applicable compensation to those referred contracts. This law is applicable to the fixed term employment contracts executed under the Portuguese Labor Code approved by the Law number 7/2009 of 12th of February, that reach the maximum duration limit within 2 years after the entry into force of the Law number 76/2013. Under this new law extraordinary renewal, up to two times, of the fixed term employment contracts are allowed, but the total duration of those extraordinary renewals cannot exceed twelve months, under the penalty of conversion on non-fixed term contract. The regime and calculation mode of the applicable compensation to the employment contract that are object of this extraordinary renewal are regulated in the Law number 96/2013 of 30th of August.
For any further information on this matter please contact: Maria Margarida Torres
TAX INCENTIVES TO ENTREPRENEURIAL INVESTMENT
The Government, through communication of 14th November of 2013, informed that it was approved in Ministry Council the granting of tax incentives to eight entrepreneurial projects. These incentives are valued in 151 million Euros. The projects represent investments that by their own merit demonstrated special interest to national economy and allowed the application of the benefits legally regulated. The benefits in question take the form of credits in respect of corporate income tax entities, exemptions of stamp duty and council tax, over promptly. The chosen projects are from different areas, such as cellulose industry, tourism, food industry, and investments in construction and equipment’s in order to improve the quality and the production levels of the corporations that benefited from the incentives.
For any further information on this matter please contact: Tânia Pinheiro
MONITORING SYSTEM OF INVESTMENT PROJECTS
The Decree-Law number 154/2913, of 5th of November, created a monitoring system of investment projects in order to boost the national economy, including the national project with high potential (PIN). The creation of a favorable context to private investment constitutes a priority of the XIX Constitutional Government, by promoting a sustainable economic growth. To improve the business environment, reduce the context costs, following the best practices in the context of the Organization for Economic Cooperation and Development (OCDE), are means of capitation of new investors and for the reinforcement of the existent ones. The present Decree-Law also proceeds to the creation of the Interministerial Council to Investment and the Permanent Committee of the Investor Support (CPAI) in order to comply the desideratum of making Portugal a friendly country.
For any further information on this matter please contact: Ana Castro Gonçalves
NEW PRIVATIZATION FOR 2014
TAP, CP Cargo and REN’s last phase privatizations are on the list of privatizations for 2014. The Great Lisbon and Oporto’s public transport companies are going to be concessioned to private investors in the next year. The process will start as soon as the restructuring process of Carris, Lisbon’s Metro, Transtejo, STCP and Oporto’s Metro are concluded. The Executive/Government wants to continue the privatization program agreed with Troika, although it had exceeded the target of € 5.5 thousand millions, foreseen for such program. On the agenda to 2014 it is the CP Cargo sale, the REN’s last phase of privatization and launching the sale of TAP, The Portuguese Airline Company, if market conditions permit.
For any further information on this matter please contact: Maria Leonor Piconez
GROWTH OF THE ECONOMIC RELATIONS BETWEEN PORTUGAL AND SPAIN
At the end of two consecutive quarters of economical growth, Portugal announces its exit of recession, evidencing prosperity and confidence signs to the international markets. In an interview to the Spanish newspaper “El País”, Mr. Zeinal Bava referred diverse progresses achieved by the Portuguese economy: “the Portuguese SMB’s are more competitive, and the exportations continue to positively surprise every months”, and he also said that “the companies transformed their business models, the banks resolved the major part of their problems, and the public accounts, without having in count the interest payments, are balanced, and we had two followed quarters of growth, although it only marginal”. Nowadays, more than 500 Spanish companies are registered in Portugal, with an investment of over 22 thousand million Euros. In accordance with the ICEX- Invest in Spain’s data, the boundaries existent between Portugal and Spain have as consequence the commercial exchange between the two economies that, this year is around 20 thousand million Euros, which represents a growth superior to 10% in relation to the past year. For any further information on this matter please contact: Marta Paiva
NEW STATUTE OF THE BIG CONTRIBUTORS IN ANGOLA
It was recently published in the Angolan Official Magazine the Presidential Decree number 147/13, of 1st of October. This diploma, recognizes the necessity of differentiated and personalized treatment to some contributors that represent a significant weight in the tax receipts of the country, creating the Statute of Big Contributors. This new regime establishes the criteria to classify Big Contributors, their rights and obligations, as well as the operation of specific tax office – The Big Contributors Tax Office (RFGC). It is also created a special tax regime of Corporate Groups, where it is established that the entities that are in corporation groups can be taxed as integrant part of the group, by filling determined requisites. It is also established a new regime of transfer pricing that confers to the Tax National Direction the power to correct the taxable base, in order to that transactions made between related entities is done in accordance with normal market rules.
For any further information on this matter please contact: Ricardo Rodrigues Lopes