2015 has been a year of many changes for those who have properties for rent. One of the main changes involves the obligation of landlords to have to issue electronic receipts for monthly income tax through the Tax Portal (Portal das Finanças).
This law came into force on May the first, however the tax office has given more time to landlords to adapt to these new requirements. Thus, landlords may continue to issue receipts for income on paper and will not be subject to the payment of fines, providing they will re-issue all these receipts on the tax portal, before the 1st of November.
But this is not the only change that landlords have to face in 2015. Landlords are, from this year, obliged to notify the Tax Authorities of leases and subleases, as well as any changes to these contracts or when they finish.
This possibility is also already available on the Tax Portal and if you just rented your property for long term and plan to register the contract as normal at the local tax office, please note that this is no longer available and the registration of the contract needs to be done electronically. Also landlords will have to check at the Tax Portal if their current rental contracts are registered and if not, they should do so by November, to avoid any fines.
Electronic receipts required for incomes above the 69.87 euros
Landlords who opt for category F (long term rents) and have an annual incomes higher than 838.44 euros (ie 69.87 euros per month) are required to issue monthly income electronic receipt by the amounts received.
Exemptions to the new obligation
Are exempted from this obligation, landlords who have received in the previous year, less than 838.44 euros of rents and have no electronic mailbox. Are also exempt, landlords who by December 31st of last year, were over 65 years. Although older than 65 are exempt, they may opt to issue electronic receipts and if so, shall be subject to the general rules issued by this route.
The completion of this e-receipt is done at the Tax Portal, following the procedures that are listed on the portal. Income receipts are issued in duplicate, and the original is with the tenant and the duplicate with the issuer. The electronic receipts are available on the Tax Portal for four years, so if you want to refer to them, simply go to ‘site’ and can see the history of the last two years.
You can also cancel an electronic receipt income, but to do so, the issuer must submit the cancelation prior to the deadline for the submission of the yearly tax declaration.
Paper receipts until November
The electronic receipts are already available on the website since May, however landlords can continue to spend discharge paper receipts until November without having to pay a fine. Once arrived in the month of November, landlords must pass the electronic receipts of the months between January and October, together with the receipt of November. Our suggestion is that you don’t leave to November to start issuing electronic receipts.
Annual reporting of revenues
Those Landlords exempted of issuance of electronic receipts, are however required to submit to the Tax Authorities by the end of January of each year, a statement with the breakdown of category F income of the previous year.
Contracts communication requirement
For each lease or sublease, any changes or terminations, one electronic communication must be provided. This should be done by the end of the month following of the start of the lease, sublease, change, termination, etc. Where there is more than one landlord, the statement may be submitted by only one of them, with proper identification of the remaining owners. If there is room for settlement of stamp duty, this will be made following the submission of the contract. When this is finished, you issue a single billing document that proves the payment of the tax.
Please remember, we have special packages for landlords which allows them to have peace of mind, while we deal with all their tax affairs, assuring that you are complaint with the law. Feel free to contact us or pop in for a friendly chat.