Taxation of Legal Entities

CB1. Basic knowledge is recommended in Taxation I and II

This course unit has the following objectives:

OA1. To identify the objectives and principles of a tax system;

OA2. To characterize the Portuguese tax system and compare it with European and international tax systems;

OA3. To outline the corporate taxation regime from the company’s incorporation to its winding-up and closure, specifically regarding income taxation;

OA4. To train business professionals with knowledge in the field of corporate taxation.

After, the student should possess the following competencies:

CD1. To characterize the Portuguese tax system and compare it with European and international tax systems regarding corporate taxation;

CD2. To analyze different corporate tax options regarding income taxation;

CD3. To provide tax advice and management to companies across the various stages of their growth process.

The syllabus for the Corporate Taxation course covers the following topics:

P1 – Objectives and principles of a tax system

P2 – Comparison of the Portuguese tax system within the European Union and the OECD

P3 – Taxation and the organizational form of economic activity

P3.1 – Simplified taxation regimes

P3.2 – Taxation regime for transparent companies

P3.3 – General regime for determining profit and the taxable base for Corporate Income Tax (IRC)

P4 – Special Corporate Income Tax (IRC) regimes

P4.1 – Special tax regime for corporate groups (RETGS)

P4.2 – Special tax regime for mergers, demergers, and asset contributions

P5 – Tax regime for companies undergoing dissolution, liquidation, and insolvency

The assessment of this course unit is based on two modalities:

A) Continuous Assessment

MA1. - Group work (group size depending on the number of enrolled students) on one of the proposed topics, with oral presentation in class and written submission in the last class of the course unit. The topics of the work are assigned by the lecturer.

MA2. - Final Examination (E), to be held during the regular assessment period(s). This examination will include theoretical, practical and/or theoretical-practical questions covering the topics taught. A minimum grade of 6 is required on the examination to obtain a passing grade; therefore, a grade lower than required will invalidate the grade for the work, and only the grade for the examination will be considered.

The final grade (CF) is obtained by applying the following formula:

CF = 50%T + 50%E

Students who obtain 10 or more points are approved; no oral exams are conducted. Grade improvement during the resit period applies only to the "final exam" component; the grade for the assignment is not considered. If a student does not follow the previously described assessment methodology, they have access to an assessment during the resit period through an exam prepared and graded for 100%.

B) Assessment by Examination

MA3. Individual written exam (100%), held during the periods stipulated in the academic calendar (regular, resit, and special, according to regulations). Mandatory.

Common provisions for both systems

Legislation consultation: In written exams, consultation of the Codes and other unannotated tax legislation is permitted, under terms to be disclosed by the instructor, given that learning aims at the application of the rule and not its memorization.

Guidelines for the use of Artificial Intelligence (AI):

All assessment elements (MA1, MA2 and MA3) are carried out in person and individually, therefore the use of generative AI tools is not permitted in their completion - Level 0 (completely without AI). In study and preparation, AI may be used as support, provided that the student critically confirms the information in legal and doctrinal sources, given the rapid obsolescence in the face of legislative changes.

Suspected Fraud: In the event of well-founded suspicion of fraud detected during the exam correction phase, the student will be summoned to take an oral exam to verify the knowledge and skills demonstrated. This verification is carried out by a jury consisting of the course instructor and two other instructors from the same area. If the student fails to prove that they possess the knowledge and skills demonstrated in the written exam, the exam will be annulled.

Attendance and Working Students (TE):

The work component (MA1) presupposes attendance in classes. Students with Working Student status, or other status that exempts them from attendance, may opt for the Examination Assessment regime (B), in which the final grade is entirely determined by the written exam.

Grade Improvement: The final grade may be improved by taking an exam during the resit period or a special improvement period, according to the regulations, with the higher grade prevailing.

NAO