I received a vehicle from my uncle as a donation. Is this subject to any taxation, and if so, what is the tax rate and who is obliged to pay it?
The donations classified as being gratuitous transfers in terms of Stamp Duty are subject to the incidence of this tax under article no. 1 of the Stamp Duty Code.
In accordance with article 2, paragraph 2 of the same code, in these transfers taxable persons are those for whom the assets are transferred. It should be noted that in case one of these persons are married or are in a civil partnership, direct descendants and direct relatives in the ascending line would be exempt from tax payment in accordance with article 6 of the Stamp Duty Code.
In the case of a car, the taxable amount, in accordance with article no. 14, paragraph 2 of the mentioned code, is its market value. Market value corresponds to the difference between the acquisition price and the product of this value by the coefficient of devaluation, in accordance with the table approved under the Ministerial Decree No. 383/2003 of May 14th.
The taxable amount is subject to the rates present in the general table of the Stamp Duty Code, where the amount of due tax is inscribed. In the case of a vehicle, the rate applied is 10%, in accordance with section 1.2 of the mentioned table.
To ensure compliance with all obligations, declaration Model 1 of the Stamp Duty, with respective annexes, should be submitted to the local finance office before the end of the third month after the gratuitous transfers of the asset.
In accordance with article 45 of the Stamp Duty Code, tax on gratuitous transfers is paid in full before the end of the second month following the notification. If the amount of tax due is greater than €1,000, the Tax Authority allows it to be paid in a maximum of 10 installments and in no less than €200 per installment.
The first installment is due in the second month following the notification and the remaining ones should be paid every six months. However, if you pay the total amount of tax until the end of the second month following the notification, you will benefit from a reduction of 0.5% in each installment, with the exception of the first.
For more information, please feel free to contact Guimafluxo.
As we all know, the entities are required by law, since 1995, to have a qualified professional in supporting accounting and fiscal organization, usually called the Accountant.
About 20 years ago, this professional was seen only as a "bookkeeper" that simply put on paper all relevant information to state interests and other entities. However, over the years, it importance for societies was growing, particularly for companies and individuals and in their relations with the state and other institutions. More recently, we have witnessed the increasing added value that this professional has proved within each company or business structure which he collaborates. It is required of him a perfect command of heterogeneity of skills to fulfill the functions entrusted to him and which are of public interest.
In the current economic environment is absolutely necessary increasing grow in a consistent and cost effective manner. To this end, it is essential to meet market challenges with strategic clarity and operational efficiency. For all of this to become reality, it is imperative to have support from an external professional, with extensive knowledge of the market and fair view of the business. In other words, companies today, not only can develop using the "know-how", but have to perfectly master another crucial method, the "know-know."
As previously mentioned, a Chartered Accountant plays an increasingly important role in society. However, due to limitations of its college’s rules, as well as technical and operational aspects, this professional does not acquire a broad vision to assist companies in their sustained growth. In this context, it is imperative to contact a professional with wider views, the so-called management consultant. This has a decisive role in the accounting and tax development (which the entities are obliged to perform), but more importantly in the active decision-making on the direction of the company; to participate, for example, in human resources management, financial restructuring, in sustained growth, in entrepreneurship and internationalization.
This aid proves to be extremely important in startups, in the development and testing of ideas and in the creation of systems and in the creation of active support structures and subsequently, in the control of costs and fundraising on financial resources. In the case of consolidated companies, it is crucial to focus on national and international growth, in which this professional, will have an active role in implementation plans, processes, and, perhaps, access to finance.
In this context, it becomes imperative having a consultant with the capacity to create innovative, fast and functional solutions to get in the competitive world of business in which they are surrounded by an increasingly aggressive competition in a constantly evolving market.
For the commitment to achieving mutual success and the achievement of tangible value, we help businesses to implement strategies to meet all legal and tax duties and thrive through the power of collaboration.