The Legal 500

The Mozambican Public Procurement legal framework is regulated by Decree no. 54/2005 of 13/12, which approved the Regulations for Public Works Contracts and Supply of Goods and Services to the State (henceforth referred to as the “Regulations”).

A few months before 20 December 1999, when Macau became a special administrative region within the People’s Republic of China, the governments of Portugal and Macau - which, for the purposes of the agreement, includes the peninsula of Macau and the islands of Taipa and Coloane - signed an agreement to avoid double taxation and to prevent tax evasion in the area of income tax. The agreement, which was signed in Macau on 28 September 1999 and came into force retroactively as from 1 January 1999, closely follows the Organisation for Economic Co-operation and Development’s (OECD’s) model.

INTRODUCTORY NOTE – Law No 10/04, of 12 November 2004, on Petroleum Activities (LPA) regulates and defines the activities of prospecting, exploration, measurement, development and production of oil. This law repealed the pre-1978 legislation and the current legal regime is part of a wider legislative package intended to embrace a new phase for this sector in Angola.

In light of the ineffectiveness of tax litigation and the increased mistrust of taxpayers in relation to tax decisions, with the decision-makers very often hiding behind mere decisions of form, it is imperative that we weigh up alternative methods for resolving tax disputes, such as mediation, conciliation, and tax arbitration itself, in order to deal with disputes accumulated and arising out of relations between the State and the taxpayer, thus reversing the feeling of injustice in this area.

The 2010 State Budget Proposal is sparse in the area of tax changes, which is rare and commendable: the budget should not contain reforms or structural modifications to the tax system, since it does not guarantee the balancing of separate laws.

In light of the ineffectiveness of tax litigation and the increased mistrust of taxpayers in relation to tax decisions, with the decision-makers very often hiding behind mere decisions of form, it is imperative that we weigh up alternative methods for resolving tax disputes, such as mediation, conciliation, and tax arbitration itself, in order to deal with disputes accumulated and arising out of relations between the State and the taxpayer, thus reversing the feeling of injustice in this area.

A government bill on the 2010 budget was presented in the Portuguese parliament on 26 January.

Following the public discussions which took place after the approval of the Decree-Law no. 317/2009 of 30 October (Decree-Law 317/2009)1, the Decree-Law no. 3/2010 of 5 January (Decree-Law 3/2010) was published in the Official Gazette, imposing a prohibition on credit institutions to charge on automated teller machines2 (ATM) transactions, as well as, a prohibition on beneficiaries to charge payment transactions in automatic payment terminals and devices.

The EU Eco-Management and Audit Scheme (EMAS) is a voluntary scheme which is designed to recognise and reward proactive companies and organisations that undertake to evaluate, manage and improve their environmental performance. When an organisation proves that its environmental performance has been improved according to previously set objectives, as verified by an independent body, it can begin using the EMAS logo. The logo is not only proof that the organisation has set up a strict programme of environmental performance improvement, but also that it respects existing environmental legislation and that its employees play an important role in the process.

The Portuguese Securities Regulator (Comissão do Mercado de Valores Mobiliários, hereinafter “CMVM”) has recently launched a public consultation on a proposal for a new set of corporate governance rules and recommendations applicable to listed companies subject to Portuguese Law. When approved, this new regime will supersede the previous rules and recommendations enacted in 2007, thus introducing more stringent requirements for listed companies in Portugal. Among the proposed changes, remuneration and audit are the main areas of regulatory concern.

Portugal is the westernmost country of mainland Europe and is bordered by the Atlantic Ocean to the west and south and by Spain to the north and east and also encompasses two autonomous Atlantic regions, notably the Azores and Madeira archipelagos. Portugal has an area of 92,090 km2 and 10,676,910 inhabitants (2008 estimate). It is a founding member of the OECD and NATO and is member of the European Union since 1986.

Several countries have already introduced the concept of “temporary non-residents” into their tax orders, thus enabling them to lay down special rules regarding the taxation of income received by those who are habitually resident in these countries, but take up residence in another country for a certain period – which as a rule does not exceed 5 years and is very often a result of secondment - and subsequently return to their former country of residence.

September has brought a novelty concerning the access to the electronic communications infrastructure: the approval by the Ministry of the Environment of Decree-Law 258/2009, of 25th September.

On 27 August 2009, the Portuguese Directorate-General of Taxation (DGCI) approved Circular no. 21/2009, revoking the previous administrative instructions concerning VAT as a basis for charging Municipal Property Transfer Tax (IMT), whenever the parties waive that tax in real estate transactions.

“Unbundling” is now a familiar term to most in energy sector related markets and services. We are not at a time where the discussion of its definition is meaningful. We are at a time where its implementation might bring changes to our everyday life in the near future.

The government has proceeded to transpose into national law Directive no. 2008/8/EC of 12 February and Directive no. 2008/9/EC of 16 December via Portuguese Decree-Law no. 186/2009 of 12 August, thereby significantly amending the Value Added Tax (VAT) Code, the VAT system for Intra- Community Transactions (RITI) and applicable supplementary legislation.

The European Commission has launched on July 28 a public consultation on the proposal for a revised Block Exemption Regulation and Guidelines on Vertical Restraints (supply and distribution agreements). The Commission thus chooses to renew the rules in force since January 2000, putting to rest the doubts regarding the future of this Regulation, which expires on the May 31, 2010.

In January 2010, the decree-law that enacts the Accounting Standardisation System and repeals the Official Chart of Accounts (POC) will enter into force. This legislation was passed as part of a reform that is intended to be structural in nature and apply horizontally across the national accounting system. The reform takes shape in four different legislative instruments: the legislation that enacts the Accounting Standardisation System, the one that amends the IRC (Corporate Tax) Code, the one that sets up the new Accounting Standardisation Committee and the one that sets up the Accountants' Association.

The publication of Decree-Law 49/2009 of 26 February brings with it the compulsory addition of biodiesel to the road diesel used in Portugal in the percentage, by volume, of 6% in 2009 and 10% in 2010. Nevertheless, road diesel must comply with European standard EN 590 and thus until such time as this standard is altered, the maximum percentage of diesel that may be added is only 5%. Once again though, the national legislature has taken the initiative in the apparent hope that the country can influence the advance of the European process in respect of biofuel use.

The most important statute governing employment law in Portugal is the new Labour Code (Law no. 7/2009, of 12th February).

The basis of real estate rights in Portugal is of Roman law origin and the system is, con­sequently, that of civil law. Property owner­ship as well as other rights "in rem" are gov­erned by the Civil Code and the right to own property constitutes a fundamental right of the citizens foreseen in the Portuguese Constitution.

Portugal is the western most country of mainland Europe and is bordered by the Atlantic Ocean to the west and south and by Spain to the north and east and also encompasses two autonomous Atlantic regions, notably the Azores and Madeira archipelagos. Portugal has an area of 92,090 km2  and 10,676,910 inhabitants (2008 estimate). It is a founding member of the OECD and NATO and is member of the European Union since 1986.

On 1 January 2009, the National Energy Certification and Quality of Air in Buildings System (SCE), as set out in Ministerial Order 4661/2007, of 5 June (the .MO.), came fully into force. This means that nearly all the properties that have already been built or those that will be built in the future in Portugal are or will come under this system.

Portugal is the western most country of mainland Europe and is bordered by the Atlantic Ocean to the west and south and by Spain to the north and east and also encompasses two autonomous Atlantic regions, notably the Azores and Madeira archipelagos. Portugal has an area of 92,090 km2 and 10,676,910 inhabitants (2008 estimate). It is a founding member of the OECD and NATO and is member of the European Union since 1986.

Poland has an area of 322,575 km² and 38 million inhabitants. It is a member of the OECD and NATO and since 2004 has been a member of the European Union. The 20th anniversary of the 1989 political transformation and the adoption of a market economy is approaching. During these 20 years and especially since its accession to the European Union, Poland has seen dynamic development economically, socially and politically, confirming it as one of the most important economies in Central Europe.

The 2009 State Budget was prepared during the second six months of 2008 and enacted by Parliament in October of last year. It was however prepared under certain assumptions which did not materialise; the eurozone went into recession in the third quarter of 2008, that is to say, there was a negative growth in GDP during the last two quarters which is expected to worsen in 2009, the Bank of England interest rates in the British pound zone reached their lowest level (1.5% in 315 years!) while the European Central Bank also lowered the euro interest rate on 15 January, drawing near to its all-time low (2%).

The very credible official German institution - the ISW - even admitted that it was possible that German GDP would decrease 3% in 2009. Production at the three largest American car manufacturers dropped between 30% and 40% in 2008. French car company Renault also saw sales fall worldwide by over 4% in 2008. In Spain, the number of cars sold fell by over 40% in 2008 while the sale of houses decreased 28% in October last year. The Bank of Portugal too announced a more pessimistic forecast.

The GDP level predicted for Portugal in 2009 was to decrease to - 0.8% while inflation in 2009 would not exceed 1% and unemployment would reach 8.6%. And that very credible German institute . the ISW - forecast inflation in the region of 0.6% and unemployment of around 8.9% for Portugal. The 2009 State Budget Bill was therefore prepared and enacted on the assumption of a growth in GDP in the eurozone of 1.3% in 2008 and 0.2% in 2009 and of a growth in Portuguese GDP of 0.8 in 2008 and 0.6 in 2009, as well as an inflation rate of 2.5% and an unemployment rate in the region of 7.6%.

The new forms for reducing the amount of corporate income (IRC) tax to be withheld (MOD. 01-DJR) and for the partial refund of IRC (MOD. 02-DJR) withheld on the payment of interest and royalties between associate companies from different European Union Member- States under the Interest and Royalties Directive were approved in February. The directive, which had already been transposed into national law, set up a tax regime for interest and royalties payments, guaranteeing equal tax treatment for national and cross-border transactions and eliminating double taxation by abolishing taxes on interest and royalty payments in the Member-State from which they derive, and having these taxed solely in the Member-State of residence of the actual beneficiary.

The EC Treaty enshrines several economic freedoms: free movement of workers, capital and services and freedom of establishment safeguarded by a prohibition on discrimination which, over the years, has shown huge potential for calling into question various Member-State tax provisions in the field of direct taxation.

The EC Treaty enshrines several economic freedoms - free movement of workers, capital and services and freedom of establishment - safeguarded by a prohibition on discrimination which, over the years, has shown huge potential for calling into question various Member-State tax provisions in the field of direct taxation.

The Partnership for Mozambique, formed by law firms PLMJ and

MGA, is particularly geared towards supporting investments in the

tourism area in Mozambique, bringing together their many specialised

skills to provide local support and legal assistance for potential

investors.legal_incentives_and_guarantees_for_tourism_investment_in_mozambique

Within the context and as a reaction to the international financial turmoil, governments and regulators of the financial markets have been implementing extraordinary measures and taking other steps aimed at enhancing the regulatory environment of the sector and increasing investors' protection. The wide-ranging aim of these initiatives is to mitigate the detrimental effects of the current liquidity crisis, to promote financial stability and to restore investors' confidence in the financial markets.

The 2009 State Budget Bill was presented to Parliament on 15 October. The general discussion and voting on the Bill are scheduled for 5, 6 and 7 November while the special discussion and voting and final overall discussion and voting are scheduled for the 27 th and 28 th of the same month.

Confidentiality and legal privilege protection of internal communications produced by in-house lawyers was secured by Lisbon’s Commerce Tribunal, in a recent decision ruled within the scope of administrative offence proceedings started by the Portuguese Competition Authority

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The recently published Decree-Law 55/2008 of 26 March has set out the regulatory provisions necessary for implementing incentive measures for the speedier recovery of areas in Portugal that suffer most from typical inland regional problems, as provided for in the Tax Benefits Statute (EBF).

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The Portuguese Government has recently enacted the Decree-Law nr. 72/2008, published in the Portuguese Official Gazzette on 16 April 2008, on contracts of insurance, which represents a significant milestone in the evolution of the regime applicable to contracts of insurance in Portugal.

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Since December 2006, it is possible to obtain a permanent certificate of the commercial registry in Portuguese language. With the entry into force of Decree-law number 73/2008, of 16 April, a "bilingual" commercial registry is created, being the English language the one chosen for that purpose.

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Antitrust rules are provided for by Articles 81 and 82 of the EC Treaty, which ban restrictive business practices and abuses of dominant positions.

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The Cape Verde of today is a country that is open to foreign investment and, since it enjoys socio-political and exchange stability, it is a fairly credible option for governments, companies and international financial institutions.

This Information Bulletin is intended for general distribution to clients and colleagues and the information contained herein is provided as a general and abstract overview. It should not be used as a basis on which to make decisions and professional legal advice should be sought for specific cases. The contents of this Information Bulletin may not be reproduced, in whole or in part, without the express consent of the author. If you should require further information on this topic, please contact Dr. Rogério M. Fernandes Ferreira, Equity Partner and Head of the Tax Practise Area at PLMJ - e.mail: rff@plmj.pt, tel: (351) 213 197 358; fax: (351) 213 197 514.

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1- NEW LAW ON INSURANCE CONTRACTS

2- THE PURSUIT OF INSURANCE ACTIVITIES BY UNAUTHORISED ENTITIES

3- CONSUMER PROTECTION UNDER THE NEW LEGAL REGIME ON INSURANCE CONTRACTS: GENERAL DUTIES OF INFORMATION

4- INITIAL DECLARATION OF RISK

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On 23 April 2008, the European Parliament formally approved, without amendments, the Council's common position on the new Mediation Directive. Following its signature by the President of the European Parliament and by the President of the Council, the new Directive will enter into force on the twentieth day following its publication in the Official Journal of the European Union. The purpose of the Directive is to facilitate access to dispute resolution and to promote the amicable settlement of disputes by encouraging the use of mediation and by ensuring a sound relationship between mediation and judicial proceedings.

Awaiting approval by the Parliament of the Republic is a government-proposed bill aimed at reducing the normal VAT rate from 21% to 20% (and from 15% to 14% in the case of transactions deemed to take place in Madeira and the Azores), with effect from 1 July. Similarly to the previous changes in VAT rat, the entry into force of this legislative amendment will raise some practical difficulties as regards the application of the law and, as has been the norm in such situations in the past, will be regulated by government guidelines.

The Government has, recently, approved a proposal to reduce the standard rate of the Value Added Tax (VAT) from 21% to 20%, with effects from July 1 onwards.

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