Re: Unexpected tax document
 

A cliffhanger, eh?

I'll tune in again Monday for the next installment, then :D

Also yes, it isn't the easiest having a conversation in a non-native language filtered through protective layers and with ambient noise, is it? I've noticed that myself. I'm sure the baker thinks I'm going deaf.

Re: Unexpected tax document
 

Indeed, but then at least in person you have got a chance. When we had to communicate with the Tax office in mid-pandemic it was phone only (the phone call being to refuse an in-person appointment!!! carefully made online) and the amount of noise going on in the background combined with an obviously bored and un-interested chap who could not even be bothered to speak more slowly when requested - well it was was stressful and our previously good impression of the service of the Finanças (online and in person - avoided the phone!) went seriously downhill.

Re: Unexpected tax document
 

Sorry to tell you but you'll need to keep hanging from that cliff a bit longer - there was no call or email today. Why do I always believe them when they say they'll call and they always disappoint me?

Re: Unexpected tax document
 

If you completed a return and have been assessed, you will always get this document - however with covid etc, it might have been delivered to a wrong address by the postman (could have been a substitute postman, etc),

Re: Unexpected tax document
 

I assme it was one that was not forwarded to me ( I was stranded in UK lockdown at that time)

Re: Unexpected tax document
 

After giving finanças 2 weeks to get back to me we rang and made another appointment to see the head of finanças so finally I have something to report.
So, regarding the e faturas we were told that we didn't get the full amount that we had earned in the deduções de coleta because we hadn't selected englobamento on our return. So that bit was easy if a bit unsatisfying.

We then spent the next hour discovering that we didn't need to report rental income that we get from the UK because of the double tax agreement. The man said each year he thought we were very benevolent in putting that income on our tax returns!! To avoid confusion my husband wrote the following statement to which agreed "If you are declaring rental income in the UK you do NOT need to declare it anywhere on the Portuguese tax return" !!!
This means that for years we have been overpaying tax here. He said we could submit yet another return and get a refund for this year but not previous years. He said we had 120 days from when the payment was due ie 31/8/21 so I think we'll do that!

Re: Unexpected tax document
 

I have to admit to being completely baffled by that on both counts.

I'll be interested in what TonyJ1 has to say on the matter.

Re: Unexpected tax document
 

I think you have to declare all your worldwide income, although you may not have to pay PT tax on some or all of it.

Re: Unexpected tax document
 

You are correct and the tax person incorrect. If on the nhr, then not taxable, but otherwise it will be taxable, though credit will be given for taxes incurred (up to the Portuguese tax liability)

Re: Unexpected tax document
 

Unfortunately that is what is in the rules

Re: Unexpected tax document
 

I think that even on NHR the foreign income is still relevant and needs to be declared, even though it may not be taxable.

My understanding is the following example:

Single NHR with exempt foreign income of 50,000, no englobamento for PT interest, tax credits not taken into account, relevant net PT income from his job (say doctor) of 7,000 and further 10,000 net PT income from AL.

I think the way AT would calculate the tax liability for those 10,000 from AL (which is not taxed at flat rate of 20%) is the following:

They would add 50,000 (exempt) + 7,000 (work) + 10,000 (AL) = 67,000

Then tax 7,000@20% (NHR), and the final 10,000 would be taxed @45% as they fall into the 36,967-80,882 bracket, bringing the overall tax liability to 1,400 + 4,500 = 5,900.

If the exempt foreign income were to be completely ignored, which I think would be wrong, then the taxable income would be calculated as 7,000 + 10,000 = 17,000, with tax due of 1,400 + 2,635 = 4,035, or nearly 2,000 less than the tax in the first scenario.

Re: Unexpected tax document
 

Is there a table of `tax allowable expenses` for 2021 anywhere, for UK pensioner, as tax resident of PT
Would they all be deductible with NHR status?

Re: Unexpected tax document
 

No, you don't get the deductions if you're not being taxed under the general tax regime.

Re: Unexpected tax document
 

I'm still not clear on how those deductions could be allowed in part. Surely under those circs, they're either all allowed or all not allowed.

Re: Unexpected tax document
 

OK, so as a normal tax payer, is there a list of such allowances, if so where would I find it.