News
Tânia de Almeida Ferreira, Partner and Coordinator of CCA Law Firm's tax department, in statements to the Lusa agency, comments on the new IRS tax reduction regime, in particular with regard to the potential obligation of landlords, who terminate a lease agreement before its deadline, to return the IRS discount they enjoyed, even if they acted with just cause.
Since the beginning of this year, a tax benefit has been put in place, which offers a reduction in the autonomous IRS tax on income from rents pertaining to agreements lasting longer than two years. However, in order to avoid misuse of such tax benefit, it was decided that, whenever the lease agreement “ceases to be in force before the expiry of its term or its renewal periods, for reasons attributable to the landlord, the right to tax reductions shall cease to exist [...] with effect from the beginning of the agreement or its renewal.
According to Tânia de Almeida Ferreira, this tax rule does not "make it clear that there will be no penalty in cases where the termination of the lease agreement is not on the initiative of the landlord, but due to violation of the tenant’s obligations", that is, due to non-payment of rents or the execution of unauthorized works. Therefore, the lawyer considers that "it would be useful if the wording of the law did not give rise to various interpretations, otherwise the tax dispute between taxpayers and the Tax and Customs Authority will be enhanced, in the framework of a measure that is intended, through tax relief, to boost the rental market".
- LUSA