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Decree Law No. 109/2020


Publication: Republic Diary No. 253/2021, Series I of 2020-12-31
  • Issuer: Presidency of the Council of Ministers
  • Diploma Type: Decree Law
  • Number: 109/2020
  • Pages: 8 - 9

Summary in plain english

What is it?

This decree-law establishes an exemption from stamp duty on export credit insurance policies.

Given the public health emergency of international scope, declared by the World Health Organization on 30 January 2020, as well as the classification, on 11 March 2020, of the COVID-19 disease as a pandemic, the Government has been approving a set of extraordinary and urgent measures in several matters.

What is going to change?

This decree-law allows the following contracts to benefit from stamp duty exemption in relation to tax events occurring up to 31 December 2022:

1) Export credit insurance policies, granted with or without a State guarantee, provided that, in any case, the tax constitutes a burden on the exporter and the latter is acting within the scope of its export activity;

2) The guarantees of obligations, in the form of bank guarantees in the external order or insurance-guarantees in the external order, provided that, in either case, the tax constitutes a burden for the exporter and the exporter is acting in the scope of its export activity.

What advantages does it bring?

This decree-law allows the creation of a tax incentive for the internationalisation of Portuguese companies.

In order to combat the economic losses caused by the COVID-19 disease pandemic, it is essential to adopt measures to revitalise internationalisation and export by Portuguese companies.

When does it enter into force?

This decree-law enters into force on the day following its publication and takes effect from 1 January 2021.

Original Version

LEGAL TRANSLATOR

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CONSOLIDATED LEGISLATION

Legislative consolidation integrates the various amendments and rectifications made into an original legal diploma in order to make its consultation more accessible to the citizen.