The proposal for a law on ‘start-ups’ stipulates that “employees of all companies who are qualified” with that status “shall not be taxed until the moment of disposal of shares thus acquired”.
Bill No. 56/XV, which has already entered Parliament, defines the legal concepts of ‘startup’ and ‘scaleup’, and also introduces amendments to the Personal Income Tax Code (CIRS), the Tax Benefits Statute (EBF) and the Investment Tax Code, measures approved by the Council of Ministers last week.
In its justification, the government refers to the taxation of remuneration schemes based on share options (“stock options”), “constituting an aspect of central importance in attracting and retaining highly qualified professionals in the field of new technologies, particularly relevant in the start-up and ignition phase ‘startups’ ecosystem in Portugal”🇧🇷
Taking into account the specificity of these compensation schemes “- and to ensure that no tax is levied until the income is actually realized – it is ensured that employees of all companies classified as ‘startup’ are not taxed until the disposal of shareholdings acquired in this way “reads in the document.
In addition, it is expected that the same regime can be used by qualified companies such as micro, small and medium-sized companies or small and medium capitalization companies (‘small mid cap’), as well as all those who, given their business structure, demonstrably develop their activity in the innovation sector “deposit.
In addition, to further stimulate and encourage investment by companies in research and development (R&D), the system of tax incentives for research and business development (SIFIDE II) is being strengthened by increasing the reporting period from eight to twelve years. expenses that have not been deducted due to insufficient collection and, as well as the increase from 110% to 120% in connection with expenditure on R&D activities related to projects for the ecological design of products”.
in turn, “proceed with the amendments promoted by Law No. 75-B/2020 of December 31, which approved the state budget for 2021, which introduced measures to combat fraud and tax planning in SIFIDE II, in particular in the component of indirect investments, in the part referring to capital participation and contributions to investment funds, changes are foreseen to avoid situations of double taxation between the financing entity and the entity developing the R&D activity, making the largest range of benefit for direct investment”the government argues in its justification.
For example, the diploma provides for the amendment of the status of tax benefits, more specifically the tax incentive for acquiring participations in ‘start-ups’, which “the gains referred to in paragraph 7 of paragraph b) of paragraph 3 of article 2 of the IRS Code are only taxed under the current regime and are taken into account at 50% of their value when the plan is transferred by an entity that is in the year prior to the grant of the plan, is recognized as a ‘start-up’, under the terms of the applicable legal regime, and completes at least one” of a package of requirements.
That is, “are classified as micro, small or medium sized companies or as small to medium capitalization companies” or “develop their innovation activities, taking into account entities that have spent on investments in research and development (R&D), patents, industrial designs or models or computer programs equal to at least 10% of their expenditures or turnover “🇧🇷
Tax according to the conditions of the diploma “it is subject to the retention of the rights underlying the securities generating the profits or equivalent rights for a minimum period of one year, with the profits taxed at the earliest of the following times”🇧🇷 “alienation of securities or similar rights acquired through the exercise of the option”, determined by the positive difference between the realization value and the exercise price of the option or right, plus what was paid for the acquisition of that option or right; or “loss of resident status in Portuguese territory”.
Taxpayers who directly or indirectly own not less than 10% of the share capital or voting rights of the entity granting the plan and members of governing bodies of the entity granting the plan are excluded from the benefit.
Source: DN
