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Decree Law No. 215/89

Publication: Republic Diary No. 149/1989, Series I of 1989-07-01
  • Issuer: Ministry of Finance
  • Diploma Type: Decree Law
  • Number: 215/89
  • Pages: 2578 - 2591

Summary in plain english

What is it?

This decree-law approves the Tax Benefits Statute (EBF).

Here you may find the rules which grant an advantage or apply a tax relief to taxpayers, considering the results of the normal scheme.

What are tax benefits?

The tax benefits are exceptional measures aimed to reduce or eliminate the tax to be paid.

It may take many forms:

    • tax exemptions and reductions (for instance, the exemptions regarding the patronage);
    • deductions to the tax base and to the taxable income - they consist of rebates that the taxpayers may apply on their personal income tax, namely in expenses regarding health, education, training, home expenses, real estate and food allowances;
    • amortizations - extinction of a debt through periodical payments.
How are the tax benefits established?

They may derive:

    • directly from the law. It is the law which determine them (for instance, the income of disabled holders or the intellectual property income);
    • from one or more posterior acts of recognition, by the tax administration. In such cases, the taxpayers must submit a request;
    • The tax administration may not recognize the benefit, in certain situations (for instance if the taxpayer stops paying for the contributions).

How are the tax benefits transferred?

The right to tax benefits is, overall, untransferable between living individuals. It may, however, be transferred by death.

How are the tax benefits extinguished?

As a rule, they expire within five years (this is the case for pension funds and for the contributions of employers to social security).

As most tax benefits are temporary, this is the most frequent way to extinguish them.

The tax benefits are also extinguished when, namely:

    • the acquired assets are given a different destination from the one granted upon the attribution of the benefit;
    • there is a non-compliance with the tax obligations by the company;
    • there is a non-compliance with the company’s objectives.

The extinction of the tax benefits have as consequence the automatic restitution of the tax’s general rule (the fact or situation at stake is taxed).


The supervision is carried out by the Tax and Customs Authority, the Regional Directorate of Tax Affairs and the other competent entities.

This supervision serves to verify:

    • if the tax benefits’ pre-requisites are maintained;
    • if the holder of the right to the benefits complies with the imposed obligations.
The tax benefits may have a structural or temporary nature
    • structural nature: in such cases, they prevail due to political will, favouring certain sectors, economic activities or public policies.
    • Example: fiscal benefits regarding the job creation, the savings, the financial system and the real estate.

    • temporary nature: these are established for a certain period.
    • Example: tax benefits regarding, for instance, the purchase of shares, within the scope of privatizations, purchase of computers and health insurances.

Original Version


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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.