The service, now
open for early
access, is the first of its kind and is meant to solve many confusions and
inaccurate tax reporting in the expat community.
Everyone living in
Portugal with foreign income needs to file a tax return at the end of each tax
year in Portugal.
Due to the
complexity of the NHR scheme, filing a correct tax return in Portugal can be
very difficult. The form for annual tax returns in Portugal allows people to
input types of income common in Portugal such as employment, self-employment
and capital income, but expats with income from various foreign sources such as
U.S. LLCs and S-Corps, UK Ltds, different types of savings accounts etc often
remain unclear on how to report this income. Nearly every NHR return raises
complex questions of international taxation of the type normally dealt with by
international tax lawyers, but it is the local high street accountants who are
expected to offer reliable support. In practice, expats who consult 3-4
professionals or even the tax authorities realise that there could equally be
3-4 interpretations.
The experts at Fresh
Portugal explain that the NHR system exempts certain types of income in
Portugal, mostly foreign sourced income that is exposed to potential taxation
in the country where it comes from. However, even the concept of "foreign
sourced" income alone is extremely confusing. Does "foreign source"
mean that the client is foreign or that the work was done overseas? Dividends
from overseas companies are normally exempt from taxation from Portugal but
what is an overseas company? Is a company registered in a different country
automatically an overseas company even if it is managed from Portugal?
After helping
hundreds of expats, normally those with high income, Fresh Portugal has
already Joana the tax bot, an
automated chatbot that provides basic advice to expat on taxation in Portugal.
With the launch of FreshReturns, a service
at an affordable price point, Fresh Portugal is completing its offering to all
expats in Portugal and aims to bring NHR confusion to an end.
Is this editorial or advertorial? We should be told ...
By Russell Taylor from Other on 21 Oct 2022, 16:59