Sobre o IRPS no rendimento do aluguer.

Question

Good afternoon Distinguished professionals.

When a warehouse rent is paid and the owner does not have a VAT invoice, it is imperative that the tenant deducts 20% of IRPS and delivers it to the State monthly. And maybe give a copy of the proof to the landlord.

I would like to know what the tenant's fiscal and tax responsibilities are on a monthly or annual basis.

Thank you

Answer 1

Dear Member,

Our opinion is as follows:

There are specific conditions under which the landlord may not include VAT on the invoice; however, the invoice must clearly state the reason why VAT is not charged, such as:

• The landlord is registered under the Simplified Tax Regime for Small Taxpayers (ISPC), pursuant to Law No. 5/2009;
• If the landlord has an annual turnover below 750,000.00 MT, they may fall under the VAT exemption regime, in accordance with Article 35 of the VAT Code (CIVA);
• If the turnover is greater than 750,000.00 MT but less than 2,500,000.00 MT, the landlord may fall under the simplified taxation regime, as provided in Article 42 of the VAT Code.

Tenant’s obligations:

• Request a properly issued invoice, which must include a clear indication of the applicable VAT regime and legal basis. If the landlord is subject to ISPC, no withholding tax is required;
• Withhold 14% at source, in accordance with Article 65, No. 4 of the Personal Income Tax Code (CIRPS) (i.e., 20% minus 30% of 20%);
• Provide the landlord, by January 20th of each year, with a statement indicating the amounts paid in the previous year, the tax withheld, and the income amount on which the tax was based, as per Article 39 of the CIRPS Regulation.

This interpretation assumes that the landlord is an individual.

We hope this has been helpful. We remain at your disposal.