Newsletter August 2018

Legal Updates

Suspenion Ahead?

On July 5th, the European Parliament adopted Resolution No. 2018/2645 (RSP), setting September 1st as the deadline for the United States of America’s review of Privacy Shield, under penalty of suspension.

Privacy Shield is enshrined in Article 45.º of the General Data Protection Regulation and ensures that the United States of America guarantees the adequate level of protection required by applicable legal standards in the EU with respect to the transfer of personal data from of the European Economic Area.

In the event that the legal data protection standards are not fully respected, transfers of personal data based on Privacy Shield may be considered unlawful and require appropriate additional safeguards by affected organizations


Contradicting the tax authority

In view of the most recent interpretation of the Tax and Customs Authority (TA) regarding the application of the Additional to the Municipal Property Tax (AIMI), which applies in the case of land for the construction of commercial and service buildings, 30 disputes about the payment of this tax were introduced during 2017.

As a result of these disputes, the Administrative Arbitration Centre (CAAD) has been opposed to what is the understanding of TA, giving reasons to taxpayers, striving for exemption from this tax in the situations under consideration. The number of arbitration awards in this regard is expected to increase.

The TAA, taking note of these decisions, has already initiated re-evaluation processes of the same to the Constitutional Court.


Business Updates

Portugal Startup +

The Government presented to technological companies in Portugal 19 measures within the scope of the National Strategy for Entrepreneurship, which includes an investment with international capital intervention of around 300 million euros.

Under the StartUp Voucher Program, launched in 2016 to stimulate investment, generate employment and foster the competitiveness of the economy, aimed at developing projects that are still more premature, about 400 jobs will be created, including potential projects from the Lisbon region. The StartUp Center will also be created, a digital platform that will allow the mapping of all Portuguese StartUp and Incubators as well as the gathering of all the information about the available support lines.

One of the innovations presented is a tax incentive measure under which a StartUp under operating for under six years may pay part of the salary to its employees through equity investments in the company. In addition, a financial package of EUR 10 million is planned for companies under four years of age and own capital of at least 15%.


Social enterpreneurship in Algarve

Applications for the “Partnerships for Impact” financing instrument, which is part of the CRESC Algarve 2020 Regional Operational Program, are now open until September 4th. Two million euros are thus available to support the creation, implementation or expansion of initiatives of Innovation and Social Entrepreneurship (hereinafter, ISE), in areas such as employment, education and health.

The Operational Program CRESC Algarve 2020 aims at the balanced development of the Algarve region, making it “more competitive, resilient, enterprising and sustainable”.

Applications can be submitted at the Balcão 2020, with ISE eligible for a development plan of 1 to 3 years and costing more than 50,000 euros.

This financing instrument implies that 30% of the total cost of the project is borne by one or several social investors, which may be public entities, private entities or social economy entities.

Thus, innovative products, platforms or services with positive social implications, presented by cooperatives, mutual associations, mercies, foundations, entities with the status of Private Institution of Social Solidarity will be supported