Consumption and Wealthy Taxation

There is no recommended background knowledge.

The content will be developed on the basis of a theoretical and theoretical-practical approach, building a basic frame of reference through both lectures and practical cases.

These approaches will be complemented, from an application perspective, with case analysis and problem solving.

The development of skills will be enhanced through the interpretation of legislation and its application to concrete situations.

The following methodology is summarized:

• Expository method. For this purpose, we use the various materials that are convenient for us (blackboard, slide projection, etc.).
• Interrogative/interactive method, in which students will be asked questions at the end of the lesson about the main contents taught;
• In the discussion and presentation of practical cases, the above methods (expository and interactive) will be used simultaneously.

The overall aim of the curricular unit (CU) is to provide students with basic knowledge so that they can develop their own skills, enabling them to consider the options open to companies and individuals, in the context of all the rules and decisions of a tax nature, within the scope of the taxation of consumption and real state, in a context that is relatively unstable due to constant legislative change.

In this context of accelerated change, both in the economic environment of operations and in the tax legislation itself, the aim is to combine theory with the resolution of practical cases, within the framework of the legislation in force at any given time. In other words, the aim is to prepare students with a solid base of knowledge that will enable them to provide an adequate response to tax management problems, whatever the rules in force.

The UC’s specific objectives are:

• To understand the importance of taxation for decision-making;
• To study and understand the structure of the Portuguese tax system in order to distinguish and characterize the various types of tax, and in particular the operating mechanisms in terms of consumption and real state taxation;
• Understand and justify why consumption and wealth are taxed in the current tax systems (European Union and OECD).
• Study the tax rules in question in the UC from a perspective of identifying the mutual relationships established with accounting;
• To train senior business staff and competencies with solid theoretical and practical skills and knowledge in the field of tax advice and execution, with a view to the safe and consistent management of tax aspects in the field of consumption and real state taxation.

1. Introduction

• General aspects of taxes (concept and classification)
• The Portuguese tax system

1. Theoretical justification for consumption and property taxes

• Benefit principle and ability to pay principle
• Comparative analysis of consumption and wealth taxation in the European Union and OECD

1. Consumption taxation in Portugal: VAT and Excise Duties

• Introduction
• Personal incidence
• Real incidence: tax base
• Exemptions
• Taxable value
• Right to deduct
• Determination of tax payable
• Obligations of taxable persons

1. Real state taxation in Portugal: IMI, IMT and IS

4.1 Tax on the ownership and use of real state

4.1.1 IMI – Municipal Real Sate Tax

• Introduction: characteristics and principles
• Incidence: personal and real
• Exemptions
• The problem of determining VPT – Taxable Asset Value
• Applicable rates
• Settlement and payment
• Tax benefits
• The effect of VPT on IRS/IRC

4.1.2 Additional to IMI

• Fundamental characteristics
• Real incidence
• Subjective incidence
• Taxable value
• Taxable persons
• Taxes
• Form and period of assessment
• Payment
• Deduction from personal income tax and corporate income tax

4.2 Taxes on the transfer of property

4.2.1 IMT – Municipal Real State Transfer Tax

• Introductory concepts
• Incidence (Real and Personal) and exemptions
• Taxable amount
• VPT and book value
• Rates
• Assessment and collection
• Tax benefits

4.2.2 CIS – Stamp Duty Code (and TGIS)

• Characteristics and nature of the tax
• Incidence rules
• Exemptions
• Determination of the tax base
• Rates
• Assessment and collection
• Tax benefits.
• Study of the CIS in its traditional form of taxation (not real state taxation)

4.3 Special Taxes/Contributions (particular cases of the Special C. s/ponte Vasco da Gama, CRIL/CREL and CRIP/CREP)

4.4 Resolution and discussion of practical cases on consumption and real state taxation

NAO

Any collection of VAT, IMI, IMT and IS Tax Codes. Edition 2024.

Lima, Emanuel Vidal, Código do Imposto sobre o valor Acrescentado Comentado e anotado, Porto Editora, Porto 2011.
Basto, José Guilherme Xavier (1993), A tributação do Consumo e a sua Coordenação Internacional, Ciência e Técnica Fiscal, n.º 178. Lisboa: Ministério das Finanças.
Palma, Clotilde Palma (2023), Introdução ao Imposto sobre o Valor Acrescentado. 6ª edição, Coimbra: Almedina.
Palma, Clotilde Celorico (2006), Estudos sobre o Imposto sobre o Valor Acrescentado. Coimbra: Almedina.
Correia, Arlindo e tal (2010), Vinte anos de Imposto sobre o Valor Acrescentado em Portugal: Jornadas fiscais em homenagem ao Professor José Guilherme Xavier de Basto. Coimbra: Almedina.
Matias, Vasco (1999), A contribuição autárquica e a reforma da tributação do património. Lisboa: Vislis Editora.
Sá Gomes, Nuno (2005), Tributação do Património. Lisboa: Almedina.