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New questions on tax form

New questions on tax form

Old Apr 23rd 2021, 8:53 pm
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Default New questions on tax form

I've looked at the form for 2020, and it has some extra questions.
The first one has me baffled:

Indique se foi fiscalmente residente em território português até 31/03/2020

I got a translation of this as:
indicate if he was resident in Portugal for tax purposes until 03/31/2020

Surely this must mean before/on/after

Even then I don't understand the relevance - I thought you were tax resident for the entire year.

The following question asks if you want to use the new tax regime ...

Has anyone filled out these question yet?



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Old Apr 24th 2021, 7:05 am
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Default Re: New questions on tax form

(From background knowledge, as opposed to personal experience)

There were some alterations to NHR last year. Those apply to all new entrants who weren't resident by 31st March 2020.

Those who were resident by 31st March 2020 but had until March 31st 2021 to apply for NHR have the option of whether to be treated under pre-existing or new rules (or opt not to apply NHR at all). Similarly, those already registered and benefitting from NHR in previous years have the option to remain as they were, under the new regime, or neither. Hence the questions for those to whom it may apply. I think those will remain options that can be made in each remaining tax year for the lifetime of the benefit, where applicable.

I can't think of a circumstance under which old NHR wouldn't be the most beneficial possible, should one be fortunate enough to have qualified for that.

I can think of scenarios where if the choice is between new NHR or the general tax regime, the latter might be the better option, assuming my understanding of the new regime is correct.

Last edited by Red Eric; Apr 24th 2021 at 7:08 am.
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Old Apr 24th 2021, 10:09 am
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Default Re: New questions on tax form

So why do they not just ask the question instead of being vague about what seems like a random date to the uninitiated? "If resident in Portugal before 31/03/2021 do you wish to remain on the old Tax Regime under NHR?" or some such ...
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Old Apr 24th 2021, 1:17 pm
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Default Re: New questions on tax form

Originally Posted by ricko View Post
I've looked at the form for 2020, and it has some extra questions.
The first one has me baffled:

Indique se foi fiscalmente residente em território português até 31/03/2020

I got a translation of this as:
indicate if he was resident in Portugal for tax purposes until 03/31/2020

Surely this must mean before/on/after

Even then I don't understand the relevance - I thought you were tax resident for the entire year.

The following question asks if you want to use the new tax regime ...

Has anyone filled out these question yet?
Maybe relevant if one have applied for NHR status as the cut-off date for claiming it is the 31st March in the year following establishment of fiscal residency .
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Old May 1st 2021, 9:20 am
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Default Re: New questions on tax form

Originally Posted by Rambling archer View Post
So why do they not just ask the question instead of being vague about what seems like a random date to the uninitiated? "If resident in Portugal before 31/03/2021 do you wish to remain on the old Tax Regime under NHR?" or some such ...
It does do that, but the other way around - if you were resident before 31/3/2020 - do you wish to be taxed under the new rules - there might be an imaginary person who now wishes to pay taxes on previously non taxable pensions
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Old Jun 7th 2021, 11:35 am
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Default Re: New questions on tax form

New wording in Anexo L can be real mine field.
First question in 3.B ask if you had nhr by 31/12/2019, if you are work active.

Then there are new columns, Codigi Atividade (12/2010) and Codigi Atividade (230/2019).
If you are register for nhr under old rule, you have to use code in columns for (12/2010).

Big new section is under 6.B, where you can chose between old and new nhr tax rates.
Selecting box 07 and 10, you pick old tax rate.
You can only complete section 6.B if you first complete 5.B entering pension info.
Section 5A and 5B can NOT be completed at same time, either one or other.

Opinions above are my own and I take no responsivity for others tax affairs. Always consult accountant if in doubt.
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Old Jun 7th 2021, 1:34 pm
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Default Re: New questions on tax form

I can think of scenarios where if the choice is between new NHR or the general tax regime, the latter might be the better option, assuming my understanding of the new regime is correct.[/QUOTE]

What scenarios are they, if I may ask?
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Old Jun 7th 2021, 2:31 pm
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Default Re: New questions on tax form

Originally Posted by CamemBert View Post
Originally Posted by Red Eric View Post
I can think of scenarios where if the choice is between new NHR or the general tax regime, the latter might be the better option, assuming my understanding of the new regime is correct.
What scenarios are they, if I may ask?
You may indeed - welcome to the forum, by the way

The most pertinent would be if you have a modest income, consisting of all or mostly non-government service pension from abroad. The allowance (deduct 4,104€ from the gross before applying tax calculation) and deductions (absolute minimum of 250€ off the tax due after that calculation) you'd get under the general tax regime might work out better than being taxed at a flat 10%. I haven't got to grips with exactly where the break-even and better point is yet, as it doesn't affect me.
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Old Jun 7th 2021, 2:43 pm
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Default Re: New questions on tax form

Originally Posted by Red Eric View Post
You may indeed - welcome to the forum, by the way

The most pertinent would be if you have a modest income, consisting of all or mostly non-government service pension from abroad. The allowance (deduct 4,104€ from the gross before applying tax calculation) and deductions (absolute minimum of 250€ off the tax due after that calculation) you'd get under the general tax regime might work out better than being taxed at a flat 10%. I haven't got to grips with exactly where the break-even and better point is yet, as it doesn't affect me.
Thank you - that makes perfect sense! And many thanks for the kind word of welcome.
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Old Jun 7th 2021, 7:24 pm
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Default Re: New questions on tax form

Originally Posted by EU.flag View Post
New wording in Anexo L can be real mine field.
First question in 3.B ask if you had nhr by 31/12/2019, if you are work active.

Then there are new columns, Codigi Atividade (12/2010) and Codigi Atividade (230/2019).
If you are register for nhr under old rule, you have to use code in columns for (12/2010).

Big new section is under 6.B, where you can chose between old and new nhr tax rates.
Selecting box 07 and 10, you pick old tax rate.
You can only complete section 6.B if you first complete 5.B entering pension info.
Section 5A and 5B can NOT be completed at same time, either one or other.

Opinions above are my own and I take no responsivity for others tax affairs. Always consult accountant if in doubt.
Very pertinent input at just the right time, thank you !!
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Old Jun 17th 2021, 9:56 am
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Default Re: New questions on tax form

Anyone recently done their nhr tax return?
Usually it takes 2-3 days for it to be approved, but this year mine is still pending review nearly two weeks after submission.
How long it took for your return to be approved?
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Old Jun 17th 2021, 10:18 am
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Default Re: New questions on tax form

Originally Posted by EU.flag View Post
Anyone recently done their nhr tax return?
Usually it takes 2-3 days for it to be approved, but this year mine is still pending review nearly two weeks after submission.
How long it took for your return to be approved?
​​​​​​My accountant submitted mine 4 weeks ago, still waiting for approval

Hth
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Old Jun 17th 2021, 10:52 am
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Default Re: New questions on tax form

Originally Posted by dingg View Post
​​​​​​My accountant submitted mine 4 weeks ago, still waiting for approval

Hth
Yup - we went to chat with our accountant in May to organise our NHR submissions for Tax and being a good citizen, had already submitted their declaration a month earlier and was still waiting for the approval then, so now that the whole country is scrambling to put in their declarations, it is anybody's guess how long the back log is going to be - I really think Finanças is going on a go slow this year just to add to the difficulties of an already dire admin-process year!
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Old Jun 17th 2021, 2:43 pm
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Default Re: New questions on tax form

Originally Posted by EU.flag View Post
Anyone recently done their nhr tax return?
Usually it takes 2-3 days for it to be approved, but this year mine is still pending review nearly two weeks after submission.
How long it took for your return to be approved?
Yup, you are absolutely right same situation..Previous years all done within the week
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Old Jun 17th 2021, 5:09 pm
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Default Re: New questions on tax form

Originally Posted by dingg View Post
​​​​​​My accountant submitted mine 4 weeks ago, still waiting for approval

Hth
Same here
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