Fiscal query

[Karen Ann]

Hi
I hope there is someone out there who can help us,I'm sure there is. We have now had our apartment for nearly two years. Last year we had a bill from the Fiscal Rep in March (at that time we still hadn't received our Fiscal cards) which had to be paid before the end of April.
Just before Christmas (early December) we received our Fiscal cards through the post. I understand that we are only just in March, however, we haven't received a Fiscal bill yet and I am a little confused ~ I know it doesn't take much, however I want to get it right.
Our apartment isn't in a tourist area at all, therefore we don't rent it out and don't receive any income at all from it.
My queries are:
1. When do Fiscal bills generally go out?
2. Why did the Fiscal rep send us our cards at that time, he (or the solicitor) must have had them for about 18 months? I actually asked the solicitor for them at the time of our purchase, she sent us a photocopy of them.
3. Before we made our payment last year, we were asked about income received also anything we wanted to claim against the property. What can we claim against the property?
4. Can we go and pay our own Fiscal bill, if so where do we go?

I just need some advice from others who are old hands with this.

Many Thanks, in advance,
Karen

[kteee]

It sounds as though the bill was for IMI - PT equivalent to council tax, payable in April on every property (or in 2 payments April and September if it is over a certain amount - not sure what the limit is)

It can be paid by multibanco or at the Finanças

I don't know why they held on to the cards for so long - they do take a while to come through, but if they sent you a photocopy they must have had them already

If you aren't reporting any income in Portugal then I don't think you can claim any expenses either

Hope this helps

[sanreen]

Could someone advise me if you still require a Fiscal Rep in Portugal? I was reading a letter either in the Resident or the News on 18 February, that there was a question over the requirement of a Fiscal Rep as we were in the EU. Did anyone else read this?

[biffa]

Fiscal representation is still required for non residents with property or some other fiscal activities in Portugal

[sanreen]

Thank you Biffa for your answers to my queries. Much appreciated.

[Al Garb]

As is often the case there is a difference between Portugal and the EC

EC tells Portugal to end discriminatory taxation of non-residents

The European Commission has formally requested Portugal to change its tax provisions according to which non-resident taxpayers have to appoint a fiscal representative if they obtain taxable income in Portugal.

In a statement, the Commission considers the provision incompatible with the free movement of persons and the free movement of capital as guaranteed by Articles 18 and 56 of the EC Treaty and Articles 36 and 40 of the EEA Agreement.

The request takes the form of a Reasoned Opinion (second step of the infringement procedure provided for in Article 226 of the EC Treaty). If there is no satisfactory reaction to the Reasoned Opinion within two months, the EC may decide to refer the matter to the European Court of Justice.

Under Portuguese Law, non-resident taxpayers who obtain taxable income in Portugal have to appoint a fiscal representative in order to represent them before the Portuguese tax authorities and to guarantee the fulfilment of their fiscal duties.

The EC understands that the aim of this requirement is to guarantee payment of taxes and prevent tax evasion. These are recognised requirements of public interest.

However, the EC is of the opinion that a general obligation imposed on non-residents to appoint a fiscal representative goes beyond what is necessary to ensure these objectives and thus impedes the free movement of persons and the free movement of capital as laid down in Articles 18 and 56 of the EC Treaty and in the EEA-Agreement.

[Karen Ann]

Thanks for this information Al, unfortunately, I am still a little confused. Do we have to have a Fiscal Rep, is this a bill we have to pay. The reason I'm asking this is that last year we had already received our bill via email from the Fiscal Rep which had to be paid in April. We haven't heard a thing from him this year yet. I'm, therefore not sure we even have a Fiscal Rep now.
I don't want to get in trouble for not paying this, let's face it if it's a bill that needs to be paid, I want to pay it, however, if we don't need to pay it, then I don't.
I would just like to say that we don't have any income from our property at all as we don't rent it out to anyone, it is just for our use only (not sure whether that has any bearing on the fiscal rules).

Karen

As is often the case there is a difference between Portugal and the EC

EC tells Portugal to end discriminatory taxation of non-residents

The European Commission has formally requested Portugal to change its tax provisions according to which non-resident taxpayers have to appoint a fiscal representative if they obtain taxable income in Portugal.

In a statement, the Commission considers the provision incompatible with the free movement of persons and the free movement of capital as guaranteed by Articles 18 and 56 of the EC Treaty and Articles 36 and 40 of the EEA Agreement.

The request takes the form of a Reasoned Opinion (second step of the infringement procedure provided for in Article 226 of the EC Treaty). If there is no satisfactory reaction to the Reasoned Opinion within two months, the EC may decide to refer the matter to the European Court of Justice.

Under Portuguese Law, non-resident taxpayers who obtain taxable income in Portugal have to appoint a fiscal representative in order to represent them before the Portuguese tax authorities and to guarantee the fulfilment of their fiscal duties.

The EC understands that the aim of this requirement is to guarantee payment of taxes and prevent tax evasion. These are recognised requirements of public interest.

However, the EC is of the opinion that a general obligation imposed on non-residents to appoint a fiscal representative goes beyond what is necessary to ensure these objectives and thus impedes the free movement of persons and the free movement of capital as laid down in Articles 18 and 56 of the EC Treaty and in the EEA-Agreement.

[biffa]

Fiscal representation is still required for non residents with property or some other fiscal activities in Portugal.

It matters not if you have income from the property or not. The EU are challenging this rule as it does not fit with the concept of free movement within the EU by EU nationals but at moment you need to appoint a fiscal rep

[steve]

What are the sanctions if a non resident does not appoint a fiscal rep?

[biffa]

You would transgress Article 130 of the IRS (individual tax code) or Article 118 of the IRD (corporate tax code) and Article 19 of the LGT (general tax law). As to actual sanctions - presumably those transgressions are punishable by fines somewhere within the law but the main problem is that the tax department will only deal with a correctly registered fiscal representative in the case of non residents so you may not get to hear about any tax nasties aimed at you until it is too late. The law states very clearly that ignorance of the need to appoint a fiscal rep is no defence.

[e-richard]

And presumably, they would have to write to your officially appointed fiscal rep to notify you of the transgression