Speaking to Jornal de Negócios, tax lawyer António Schwalbach, who is well versed in such matters, explained the ruling, including the Constitutional Court’s (TC) conclusion.
This unprecedented decision has declared the list of high-value-added professions covered by tax benefits for non-habitual residents unconstitutional, a problem that now also extends to the new tax incentives for scientific research and innovation that have replaced them.
The provision of the Income Tax Code that provided for a rate of just 20% on the income of non-habitual residents (NHRs), provided that it fell within a list of high-value-added activities defined by order of the Minister of Finance, violates the principle of legality, insofar as such a list should have been defined by law.
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