Below, we highlight the most relevant tax matters included in said Law.

Special regime for the settlement of tax, customs and social security debts

The 2019 State Budget Law introduces a special regime for the settlement of tax, customs and Social Security debts.

Under this regime, the settlement of said debts, by the initiative of the taxpayers, with reference to taxable events occurred up to 31 December 2017, benefits from interest, penalties and legal charges pardon, provided the debt is fully paid until 31 December 2019.

In this context, and contrary to the State Budget Proposal initially made public, the Law approved and now published does not establish the possibility to benefit from a 10% discount on the value of the debt subject to settlement, in case of its full payment.

Taxpayers must apply for this this special regime until 30 June 2019 and settle the full debt subject to the regime until 31 December 2019.

Legislative authorizations and maintenance of the Special Contribution on Current Invisible Operations

The following legislative authorizations are granted to the President for the amendment of the Codes below stated:

• Customs Code, approved by Decree-Law no. 5/06, of October 4;
• Capital Gains Code, approved by Presidential Legislative Decree no. 2/14, of October 20; and,
• Stamp Duty Code, approved by the Presidential Legislative Decree no. 2/14, of October 20.

In view of its relevance, it is important to point out that the Special Contribution applicable to the Invisible Current Transactions remains in force during 2019.

For additional information regarding this subject, please refer to the document attached (in Portuguese) which contains the part of the 2019 State Budget Law related to the abovementioned information.