According to the Authority of Tributaries and Customs (AT), in property acquired by credit institutions “within the scope of repayment of private credit and held for sale,” the system provided for in the IMI code applies, specifying that tax is due to “the third year following, inclusively, the year in which The building began appearing in the inventory of the company whose intent is to sell it.”
This understanding of AT appears in binding information, now published, in which the taxpayer who requested it (a trust) asked the tax authorities whether this type of company could benefit from the temporary suspension of the IMI “in respect of premises acquired in repayment Credits that are recorded under non-current assets held for sale.”
In response to AT, he points out that in these cases, that is, when the acquisition of real estate is in danger due to the fact that its owner is unable to repay the loan, this does not mean that the acquisition and sale of real estate is an independent activity, separate from the main activity, ” Rather, it is a form of carrying out the main activity itself,” because what is at stake is “the need to complete the process of repaying private credit, which is the basic essence of banking activity.”
Thus, the IMI payment suspension regime provided for in the law applies to banks, within the scope of repayment of private credit held for sale, “provided that the accounting requirements and prudential rules of the Bank of Portugal are complied with”.
“To this end, the applicant must submit a document extracted from its accounting information system stating unambiguously the date of extraction, the identification of the property and the date on which it was designated as a non-current asset destined for sale,” refers to the same information from the AT, which adds Also, in order for the system to be applied, it is “not necessary” for the banking institution to be registered in the taxpayer register as practicing the activity of buying and selling real estate.
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