The 2019 deadline for submitting IRS tax returns online in Portugal is 30th June. Today we consider whether a company car in Portugal should be declared in your income taxes.
Taxpayers in Portugal continue to have issues of concern and recurring doubts, one of which relates to whether or not to declare the company car in the annual tax return submitted to the tax authorities. The answer is yes, the vehicle must be declared to the IRS if there is a written agreement.
If a taxpayer is given a car by their Portuguese company as part of a salary bonus, and they are expressly responsible for the expenses of check-ups, cleaning and similar general upkeep, they must declare this in the IRS, says António Gaspar Schwalbach, Associate at Telles Advogados law firm and member of the General Council of the Portuguese Bar Association, to the Living Money.
The specialist lawyer also says that "the personal use of a car that generates costs for the employer constitutes an accessory remuneration (in kind), when there is a written agreement to that effect". He also states that the value of this asset must be specified in the annual declaration of remuneration that the company pays to the employee in January for IRS purposes.
From the original Portuguese article: Tenho de declarar o carro da empresa no IRS? (Dinheiro Vivo)