Taxing your already heavily taxed income....

Unhappy Guest · Post by **Unhappy Guest** » Tue Dec 14, 2004 6:08 pm

I'm still here.....but only just .

I have read in todays Portugal News that from next month any cash one brings into the country (ie..Bank Transfer) will be subject to an automatic 5% Tax.......Can this be true ???.surely not, cant even be legal as ones money has already been taxed in the UK and now taxed again when we bring it here....and from next month ??

Comments pls..from a REAL miserable sod....

iane · Post by **iane** » Tue Dec 14, 2004 7:47 pm

Im replying to this simply to get it back to the top of the page - I have read this article and have to say I do not understand what it is saying.

This issue seems to need clarification perhaps from one of the various financial operators in the region as on the face of it there could be a problem here.

Guest · Post by **Guest** » Tue Dec 14, 2004 8:37 pm

Yes I read that too.......and I'm very alarmed because I also do not really understand this.......If this is the case then everybody here building or buying property is in big trouble.......and the already badly hit realestate market......is going to really suffer..........
I do think this is a priority message and need some urgent professional input...

Gary/Gaynor · Post by **Gary/Gaynor** » Tue Dec 14, 2004 8:40 pm

Dont believe it myself must be against EU rules. Where did you get your info from ? The one thing the EU promotes is free trade between borders so this would contravine with the rules. Mind you Im no lawyer !!

G & G

Guest · Post by **Guest** » Tue Dec 14, 2004 8:48 pm

Front Page ..Portugal News......and on the Internet....Passed by outgoing Government so will now stay....The deal is that the Gov can Tax us 5% on all money coming in.......and then they wont investigate where it came from or where it goes to.....license to money launder for 5%.....as I'm a Coke dealer this is excellent news for me........I've been looking for a country to Launder my millions for some time..and from January the paper says this is legal....
Bet those Irish chaps are smiling too........All that cash stashed under the bed.....

Debs G · Post by **Debs G** » Tue Dec 14, 2004 9:17 pm

Well if this does happen it means that both my parents and my in laws probably won't be buying retirement property here after all

I don't know what that will mean for us........

Guest · Post by **Guest** » Tue Dec 14, 2004 9:29 pm

I've just read this posting.......So what about credit cards etc..It just sounds like another ill thought out mess.........in fact it really is becoming very embarrasing........I'm the one that has tried to protect the Portuguese people against the wingers and moaners.on these sites....but alas it seems to be true that the powers that be are shooting themselves in the foot time and time again....IF this is true then and I reiterate IF.....then its all over in a big way...nobody is going to pay 5% on incoming money.....it WIL be the final straw.........Can they be SO stupid.....( My husband just said YES....!!!)

Gary/Gaynor · Post by **Gary/Gaynor** » Tue Dec 14, 2004 9:36 pm

The EU will not allopw this. Remember Portugal are small fry compared to say France, Germany and the UK so do you think these boyos will let money flow from there countries into a nearly tax free haven. I know where my money lies (betting wise) Sorry Portugal dont really mean you are small fry your lovely !!!!

Gary

PS If Im wrong I will be moving my money out of Jersey (joke)

digger · Post by **digger** » Tue Dec 14, 2004 10:24 pm

I’ve not seen this newspaper article but if in any doubt (as I am) talk to your bank

iane · Post by **iane** » Wed Dec 15, 2004 9:03 am

Yet again good sense from digger !! (Cant you please write something I disagree with - Im in danger of becoming a poodle

)

One thing none of us should be too reliant on is that legislation (or just "actions") will be regulated by the EU - there are countless cases in the various courts against virtually all EU governments over breaches of EU protocols and this does not seem to stop our French or German (or any other) friends from making illegal rules, taking the money and then paying the modest fine several years later .

As has been said, if this is as it seems in the Portugal News (I must say it was a very badly written and unclear article) the repercussions could be very serious for a lot of "small" people and needs to be clarified soonest.

Guest · Post by **Guest** » Wed Dec 15, 2004 10:41 am

Come on Digger ..do you really think my friendly Bank Manager here knows anything about finance..when I first came here I tried to ask about simple things..Sisa and import taxes etc etc.......tried two Banks...they just shrug their shoulders.......Dont have a clue and dont want to know...extra work you see.....anyway just the long line will put you off.......

Remember the Off Shore fiasco.........even all the so called financial advising companies differed greatly in their advise and eventually after all the hullaboo....Government did as they said they would......
NOW they say its January when they will start the practice...Not sure how it will work...IF its true......but everybody should be aware that it might just hit them on Jan 1st...???

biffa · Post by **biffa** » Wed Dec 15, 2004 1:24 pm

I think that what is proposed is a tax on repatriation of undeclared funds held outside Portugal. In other words a kind of amnesty.

The tax man says "You bring your undecalred funds back into Portugal to boost the economy and we will charge you a nominal 5% tax on it" This is a fairly familiar ploy by tax authorities to get funds back in from offshore held accounts. As the extreme left stated this could make Portugal a huge laundromat for dirty money as 5% is a very cheap rate to clean it up. I think the Mafia charge more than that!

This would not effect non residents at all. What will affect all EU citizens is the forthcoming EU Savings Tax Directive due to be implemented on 01.07.2005

Unhappy Guest · Post by **Unhappy Guest** » Wed Dec 15, 2004 2:22 pm

Now I understand.......Thank you Biffa ...Purely an amnesty for residents that have stashed away money off shore and the Gov now wants it back in the system..and at 5% ..yes its a good deal for those residents.......

Guest · Post by **Guest** » Wed Dec 15, 2004 2:25 pm

Ref the Tax Directive........anybody know if it will be retrospective....ie....I know I must formally declare interest gained in Offshore or whatever bank accounts.....and it will be transparant.......but will they/can they look back over past years and then Back Tax Us (Me) ..!!?? Horror of horrors..

biffa · Post by **biffa** » Wed Dec 15, 2004 4:21 pm

Tax Directive not retrospective and takes effect from 01.07.2005, however depending on country concerned there may be exchange of information rather than a withholding tax thus your home country could I suppose ask you how long you have had those funds offshore

Taxing your already heavily taxed income....

Taxing your already heavily taxed income....

Bank transfers

EUSTD