A glimpse at the findings

European Tax Survey
Portugal vs EMEA
January 2015
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
Table of contents
Executive Summary
Detailed Study Findings
Study design and methodology
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
Executive Summary
Setting the pavement
A glimpse at the findings
There have been great changes in the world of
tax over the past decades, due to several
confluent factors.
35% of Portuguese companies have physical
presence in 2 to 5 countries, whereas in EMEA, in
average, 40% of the companies have presence in
more than 20 countries.
But how much has this really affected Heads of
Tax?
In order to portray this changing landscape,
Deloitte has set out an annual survey, to track
these trends and give tax a voice.
The framework
940 organizations completed the questionnaire
in full. Partial responses were not utilized.
Surveys were sent electronically and could be
completed anonymously. The survey period
was June – July 2014. In Portugal, 28
companies responded to the questionnaire.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
For 42% of the Portuguese respondents, the most
difficult European economy for their organization
to operate in is Russia, significantly higher than
for EMEA respondents, which also place Russia
at the top as the hardest economy to operate in,
but only by 29% of the respondents.
Portuguese and EMEA respondents also agree
that The Netherlands is the most favorable
European economy to operate in (41% in Portugal
and 28% for EMEA respondents).
Executive Summary
A glimpse at the findings (ctd.)
31% of the Portuguese respondents have a more
general finance role, whereas in EMEA 28% of
respondents are responsible for Regional tax.
In Portugal, more than half of the respondents
(55%) are only responsible for their organization's
tax affairs in one country. Likewise, in EMEA the
highest percentage of respondents, 40%, are
responsible for just one country.
Portuguese respondents are especially focused
on general management of the department and
interaction with other parts of the business (79%
and 72%, respectively), as well as interacting with
the Board (52%). EMEA respondents, interact
less with the business (62%) and do not spend
so much time managing the department (67%).
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
In EMEA and in Portugal, most of the respondents
report to the CFO or Finance Director (35% in
EMEA and 34% in Portugal), followed closely by
reports to the CEO (31% and 30% respectively)
76% of Portuguese companies have 1 to 3 people
working in tax department. In EMEA, about 62%
of companies have that same amount of people
employed in the tax function.
In Portugal and in EMEA most of the tax
employees work at the headquarters in one office.
76% in Portugal and 67% in EMEA.
Currently, 69% of respondents have a shared
service center for Finance in Portugal, which is
clearly higher than the EMEA average.
Executive Summary
A glimpse at the findings (ctd.)
For 72% of Portuguese respondents and for 74%
of EMEA respondents, certainty around tax
liabilities are highly important when thinking about
success.
The Portuguese tax community is seeking
simplifications of the tax system (59%) and more
certainty around the future of the tax system
(52%). These results are in line with the EMEA
average.
In this context, for the majority of Portuguese
respondents (97%) there is a high degree of tax
uncertainty in their country, against a 60%
average from EMEA respondents.
The main cause for tax uncertainty results are
frequent changes to legislation for both Portugal
and EMEA, 93% and 67%, respectively.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
Another cause is ambiguity, weaknesses and
reversals in the doctrine of Tax Authorities or
publicly availably guidance, with 43% of
responses in Portugal and 56% in EMEA.
Portugal does not stand well regarding tax
certainty, when compared with EMEA. 62%
(versus 59% in 2013) consider that tax certainty in
Portugal is worse than in other European
countries, much higher than the 22% score for
EMEA.
Nevertheless, 41% of Portuguese respondents
consider that they have a good relationship with
their local Tax Authority in general. For the vast
majority of the Portuguese respondents (83%),
their relationship with Tax Authority is the same
compared to a year ago.
Executive Summary
A glimpse at the findings (ctd.)
According to 79% of the respondents, the local
Tax Authority is focusing mostly on Corporate
Income Taxes, followed by VAT (66%).This
tendency follows the EMEA average, except for
Transfer pricing and international tax, with 42% of
responses from EMEA and only 17% in Portugal.
62% of Portuguese respondents said that their
organization has been audited in the last three
years. As for EMEA, 83% of the respondents said
that their company has been audited in the past
three years.
According to 35% of Portuguese respondents
their company will be very likely to litigate if the
outcome of a tax audit was not satisfactory,
against 11% of EMEA respondents that find it very
likely to litigate.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
In Portugal and in EMEA, the vast majority of the
respondents have not been asked to justify their
tax strategy neither by their internal nor by their
external stakeholders. Nevertheless, 59% of the
Portuguese respondents have had their tax
strategy signed off by the board, which is slightly
lower than in EMEA (63%).
Corporate tax strategy also appears not to be an
increasing focus of discussion and scrutiny in
Portugal (55% of the respondents, compared to
43% for EMEA).
Portuguese tax strategies are different from other
countries in EMEA, in the sense that they adopt a
different approach to tax planning (69% against
33% in EMEA), or develop additional disclosure
around tax in financial statements (46% in
Portugal against 35% in EMEA) to respond to the
increased scrutiny.
Executive Summary
A glimpse at the findings (ctd.)
More than half of Portuguese respondents believe
that the BEPS Action Plan is not very important to
their tax department and that it will not create any
impact in their organization's tax strategy. Only
21% consider it important.
In addition, 48% of the respondents in Portugal
and in EMEA believe that the BEPS Action Plan is
not very important for their organization's
board/leadership.
Almost all Portuguese respondents (97%) replied
that they have not started planning for the impact
of likely changes resulting from the BEPS Action
Plan. For those who have, provision has been
made for base erosion via interest and other
financial payments.
More than half of Portuguese respondents
consider that BEPS will create no or negligible
impact on their organisation’s tax strategy.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
Detailed Study
Findings
© 2015.
2014. Para informações, contacte Deloitte & Associados, SROC S.A.
1. In how many countries does your organization
have a physical presence, such as an office?
39%
20+
28%
10%
6-10
7%
10%
11-20
EMEA
7%
Portugal
22%
2-5
35%
20%
1
24%
0%
5%
Key
takeaway
10%
15%
20%
25%
30%
35%
40%
45%
35% of Portuguese companies have physical presence in 2 to 5 countries. In EMEA, in
average, 40% of the companies have presence in more than 20 countries.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
2. What area of tax or finance are you responsible
for:
Other (please specify)
0%
10%
26%
More general finance role
31%
3%
3%
Specific tax – for a specific area of tax such as indirect tax,
corporate tax
EMEA
28%
28%
Regional tax – tax activities in more than one country, but
not across the world
10%
19%
17%
Global tax – tax activities around the world
0%
Key
takeaway
Portugal
24%
Country tax – for all tax in one particular country
5%
10%
15%
20%
25%
30%
35%
31% of the Portuguese respondents have a more general finance role, whereas in EMEA
28% of respondents are responsible for Regional tax.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
3. For how many countries do you personally have
responsibility for your organisation’s tax affairs?
12%
20+
0%
11%
11-20
7%
9%
6-10
EMEA
14%
Portugal
28%
2-5
24%
40%
1
55%
0%
10%
Key
takeaway
20%
30%
40%
50%
60%
In Portugal, more than half of the respondents (55%) are only responsible for their
organization's tax affairs in one country. Likewise, in EMEA the highest percentage of
respondents, 40%, are responsible for just one country in terms of tax affairs.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
4. Who do you report to:
5%
Other (please specify)
Treasurer
7%
0%
0%
17%
Tax director
3%
8%
Main Board
EMEA
17%
Portugal
5%
Financial controller
7%
34%
35%
CFO or Finance Director
30%
31%
CEO
0%
Key
takeaway
5%
10%
15%
20%
25%
30%
35%
40%
In EMEA and in Portugal, most of the respondents report to the CFO or Finance Director
(35% in Portugal and 34% in EMEA), followed closely by reports to the CEO (31% and 30%
respectively).
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
5. How many people (full time equivalents) are
employed in the tax function or department in your
country?
2%
3%
20+
16-20
11-15
7-10
1%
0%
0%
7%
4%
EMEA
0%
Portugal
12%
4-6
3%
62%
1-3
76%
19%
0
10%
0%
Key
takeaway
10%
20%
30%
40%
50%
60%
70%
80%
76% of Portuguese companies have 1 to 3 people working in the tax department. In EMEA,
about 62% of companies have that same amount of people employed in the tax function.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
6. Where are these people located?
11%
Other (please specify)
A mixture of overseas and in your country
Overseas
3%
2%
0%
0%
0%
EMEA
Portugal
14%
10%
A mixture of headquarters and in the business locations
5%
10%
They sit in various locations such as in the businesses where
they are located
67%
They are all at headquarters in one office
76%
0%
Key
takeaway
10%
20%
30%
40%
50%
60%
70%
80%
In Portugal and in EMEA most of the tax employees work at the headquarters in one office.
76% in Portugal and 67% in EMEA.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
7. How many people (full time equivalents) are
employed in all of the tax functions throughout your
organisation?
17%
20+
24%
7%
16-20
11-15
3%
7%
0%
11%
7-10
EMEA
14%
Portugal
10%
4-6
7%
35%
1-3
0
52%
14%
0%
0%
Key
takeaway
10%
20%
30%
40%
50%
60%
In Portugal and in EMEA most of the organizations have 1 to 3 employees in tax functions.
52% in Portugal and 35% in EMEA.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
8. Do you have a shared service center for Finance
within your organization?
48%
No
31%
EMEA
Portugal
52%
Yes
69%
0%
10%
Key
takeaway
20%
30%
40%
50%
60%
70%
80%
Currently, 69% of respondents have a shared service center for Finance in Portugal, which
is clearly higher than the EMEA average.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
9. When thinking of what success looks like for you,
which of the following are most important?
Other (please specify)-HIGH
46%
13%
18%
13%
Other (please specify)-MEDIUM
36%
Other (please specify) - LOW
75%
74%
72%
Certainty around tax liabilities-HIGH
24%
24%
Certainty around tax liabilities-MEDIUM
2%
3%
Certainty around tax liabilities- - LOW
Close integration with the business and its strategy-HIGH
52%
35%
Close integration with the business and its strategy-MEDIUM
Close integration with the business and its strategy- - LOW
3%
45%
8%
EMEA
46%
Good relationship with the tax authority-HIGH
52%
50%
45%
Good relationship with the tax authority-MEDIUM
Tax returns and compliance filed on time-HIGH
73%
41%
24%
Tax returns and compliance filed on time-MEDIUM
55%
3%
3%
Tax returns and compliance filed on time - LOW
53%
Low Effective Tax Rate-HIGH
59%
37%
41%
Low Effective Tax Rate-MEDIUM
0%
0%
Key
takeaway
Portugal
4%
3%
Good relationship with the tax authority - LOW
Low Effective Tax Rate - LOW
58%
10%
10%
20%
30%
40%
50%
60%
70%
80%
For 72% of Portuguese respondents and for 74% of EMEA respondents, certainty around
tax liabilities are highly important when thinking about success.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
10. Which tax risks and uncertainties concern you
most, weigh on your mind or keep you awake at
night?
Other (please specify)-HIGH
Other (please specify)-MEDIUM
70%
0%
10%
0%
20%
Other (please specify) - LOW
100%
66%
69%
Change of tax regulation-HIGH
30%
31%
Change of tax regulation-MEDIUM
Change of tax regulation-- LOW
3%
0%
30%
31%
39%
41%
30%
28%
20%
Technology and systems-HIGH
Technology and systems-MEDIUM
Technology and systems-- LOW
Tax resources-HIGH
7%
42%
Tax resources-MEDIUM
Tax resources- - LOW
17%
Governance -HIGH
28%
Governance -MEDIUM
38%
Portugal
38%
66%
41%
16%
21%
Governance - LOW
Increased tax authority scrutiny -HIGH
35%
11%
Increased tax authority scrutiny - LOW
24%
32%
35%
Compliance --HIGH
Compliance -MEDIUM
21%
21%
Compliance - LOW
0%
44%
46%
41%
Increased tax authority scrutiny -MEDIUM
Key
takeaway
EMEA
66%
20%
40%
48%
45%
60%
80%
100%
120%
The main concern for Portuguese respondents (69%) are changes of tax regulation.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
11. What change(s) to your country’s tax legislation
do you think would have the greatest positive impact
on your country’s commercial competitiveness?
2%
3%
Other (please specify)
14%
10%
Simpler compliance systems and processes
1%
3%
Fewer tax audits
22%
Reduction of the employment tax rate by 1-2% in the rate
14%
12%
10%
Reduction of the corporate tax rate by 1-2% in the rate
Reduction of the income tax burden/ tax rate by 1-2% in
the rate
7%
Reduction of the indirect tax burden – GST/VAT by 1-2%
in the rate
Portugal
3%
Very predictable and collaborative tax authority
EMEA
11%
14%
10%
21%
54%
59%
Simplification of the tax system
15%
14%
Improved tax incentives
44%
More certainty around the future of the tax system
0%
Key
takeaway
10%
20%
30%
40%
50%
52%
60%
70%
The Portuguese tax community is seeking simplifications of the tax system (59%) and more
certainty around the future of the tax system (52%). These results are in line with the
EMEA average.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
12. Please rank the following major European
economies in order of most challenging/difficult for
your organization to operate in, in terms of tax?
UK
9%
0%
11%
Spain
15%
29%
Russia
42%
12%
Netherlands
EMEA
19%
Portugal
15%
Italy
8%
19%
Germany
8%
17%
France
11%
0%
Key
takeaway
5%
10%
15%
20%
25%
30%
35%
40%
45%
42% of Portuguese respondents say that the most difficult European economy for their
organization to operate in is Russia. For EMEA respondents Russia is the hardest
economy to operate in as well, but the percentage is much lower than in Portugal, at only
29%.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
13. Please rank the following major European
economies in order of most favorable or easiest for
your organization to operate in, in terms of tax.
23%
UK
Spain
12%
0%
23%
12%
Russia
15%
28%
Netherlands
41%
Portugal
3%
Italy
Germany
EMEA
8%
23%
0%
11%
France
4%
0%
Key
takeaway
5%
10%
15%
20%
25%
30%
35%
40%
45%
Concerning favorable European economies for their organization, most of the respondents
in Portugal (41%) find the Netherlands as the most favorable one. 28% of EMEA
respondents share the same opinion.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
14. Do you think there is a high degree of tax
uncertainty in your country (in which you are
based)?
40%
No
3%
EMEA
Portugal
60%
Yes
97%
0%
Key
takeaway
20%
40%
60%
80%
100%
120%
For the majority of Portuguese respondents (97%) there is a high degree of tax uncertainty
in their country. This almost unanimous response contrasts with a 60% average from
EMEA respondents.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
14a. If Yes, what are the two most significant
causes of tax uncertainty in your country?
Another factor (please specify)
6%
0%
18%
Long duration of tax disputes
39%
24%
18%
Weaknesses and ambiguity in advance clearance or ruling
system
EMEA
43%
24%
Retrospective changes to legislation
7%
67%
Frequent changes to legislation
93%
0%
Key
takeaway
Portugal
56%
Ambiguity, weaknesses and reversals in the Tax Authorities’
doctrine or publicly available guidance
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The main cause for tax uncertainty are frequent changes to legislation for both Portugal and
EMEA, 93% and 67%, respectively. Another cause is ambiguity, weaknesses and reversals
in the Tax Authorities’ doctrine or publicly available guidance with 43% of responses in
Portugal and 56% in EMEA.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
15. Overall, do you believe tax certainty in your
country is:
42%
About the same as in other European countries
14%
22%
EMEA
Less than other European countries
62%
36%
Greater than other European countries
24%
0%
Key
takeaway
10%
20%
30%
40%
50%
60%
70%
Portugal does not score well when compared with the other countries surveyed: 62%
(versus 59% in 2013) consider that tax certainty in Portugal is not as good as in other
countries, much higher than the 22% score for EMEA.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
Portugal
16. With reference to the country in which you are
based, how would you describe the relationship with
your local Tax Authority in general?
2%
3%
Extremely poor
3%
Poor
13%
29%
Neither good nor bad
EMEA
38%
59%
Good
41%
7%
Excellent
3%
0%
Key
takeaway
Portugal
10%
20%
30%
40%
50%
60%
70%
41% of Portuguese respondents consider that they have a good relationship with their local
Tax Authority in general. Only 3% of the Portuguese respondents consider they have an
extremely poor and, identically, an excellent relationship with their local Tax Authority.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
17. How is your relationship with your Tax Authority
compared to a year ago?
3%
Worse
7%
90%
EMEA
The same
83%
Portugal
7%
Better
10%
0%
Key
takeaway
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
83% of the Portuguese respondents consider that their relationship with the Tax Authority is
the same compared to a year ago. 10% consider that the relationship is better and 7%
consider it worse.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
17a. If you answered 'Better' or 'Worse', do you
believe your relationship with the Tax Authority has
changed due to:
Another factor (please specify)
44%
0%
Inconsistent approach and advice from tax authority
11%
Focus on risk-based approach from tax authority
11%
Decreased level of scrutiny from tax authority
20%
60%
11%
Portugal
44%
Increased level of scrutiny from tax authority
More conservative tax strategy on your part
20%
0%
0%
11%
More aggressive tax strategy on your part
20%
0%
Key
takeaway
EMEA
0%
10%
20%
30%
40%
50%
60%
70%
Respondents who said their relationship was better or worse with the Tax Authority justified
this answer with the focus on risk-based approach from the Tax Authority.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
18. With reference to the country in which you are
based, in which area is the local Tax Authority
focusing most?
Other (please specify)
2%
0%
5%
3%
Nothing in particular
9%
7%
Customs and Excise duty
Transfer pricing and international tax
42%
17%
EMEA
23%
Personal income taxes
Portugal
38%
55%
VAT
5%
Property taxes
66%
17%
72%
Corporate income taxes
0%
Key
takeaway
10%
20%
30%
40%
50%
60%
70%
79%
80%
90%
According to 79% of the respondents, the local Tax Authority is focusing mostly on
Corporate Income Taxes, followed by VAT (66%).This tendency follows the EMEA
average, except for Transfer pricing and international tax, with 42% of responses from
EMEA and only 17% in Portugal.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
19. With reference to the country in which you are
based, has your organisation been audited by a
department of a tax administration in the last three
years?
17%
No
38%
EMEA
Portugal
83%
Yes
62%
0%
10%
Key
takeaway
20%
30%
40%
50%
60%
70%
80%
90%
62% of Portuguese respondents said that their organization has been audited in the last
three years, While as for EMEA 83% of the respondents said that their company been
audited in the past three years.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
20. If your organisation was subject to a tax audit
and the outcome was not satisfactory in your
opinion, how likely do you think your organisation
would be to litigate in Court to seek a more
satisfactory resolution?
4%
3%
Don’t know
11%
Very unlikely to litigate
7%
13%
Quite unlikely to litigate
7%
EMEA
42%
It depends
19%
Quite likely to litigate
24%
11%
Very likely to litigate
35%
0%
Key
takeaway
Portugal
24%
5%
10%
15%
20%
25%
30%
35%
40%
45%
According to 35% of Portuguese respondents their company will be very likely to litigate if
the outcome of a tax audit was not satisfactory. Only 11% of EMEA respondents find it very
likely to litigate.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
21. Over the past twelve months, have you been
asked to justify your tax strategy by any of the
following internal stakeholders?
Other (please specify)
7%
0%
64%
62%
Not been asked
7%
3%
Employees
EMEA
7%
Investor relations
17%
15%
Corporate affairs
21%
0%
Key
takeaway
Portugal
14%
10%
Non-executive directors
10%
20%
30%
40%
50%
60%
70%
In Portugal (62%) and in EMEA (64%) most of the respondents have not been asked to
justify their tax strategy by their internal stakeholders.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
22. Over the past twelve months, have you been
asked to justify your organisation’s tax strategy by
any of the following external stakeholders?
Other (please specify)
2%
0%
80%
79%
Not been asked
14%
17%
Shareholders
EMEA
NGOs/Campaigners
2%
0%
MPs
2%
0%
5%
7%
Journalists
0%
Key
takeaway
Portugal
10%
20%
30%
40%
50%
60%
70%
80%
90%
In Portugal (79%) and in EMEA (80%) most of the respondents have not been asked to
justify their tax strategy by their external stakeholders.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
23. Do you think there is generally an increased
level of discussion and scrutiny around corporate
tax strategy at the moment compared with a year
ago?
43%
No
55%
EMEA
Portugal
57%
Yes
45%
0%
Key
takeaway
10%
20%
30%
40%
50%
60%
55% of the respondents in Portugal consider that there is not an increased level of
discussion and scrutiny around corporate tax strategy. For EMEA respondents, 57%
consider that there has been more discussion and scrutiny around corporate tax strategy.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
23a. If yes, how are you responding to the increased
scrutiny around the tax strategy of organizations?
Other (please specify)
No change
0%
0%
15%
0%
4%
8%
A reduced amount of tax planning
25%
Ensuring there is buy-in to formal group tax strategy
Portugal
33%
Adopting a different approach to tax planning
69%
35%
Developing additional disclosure around tax in financial
statements
46%
12%
8%
There is no increased scrutiny for our business
0%
Key
takeaway
EMEA
15%
10%
20%
30%
40%
50%
60%
70%
80%
Portuguese strategies are different from other countries in EMEA, in the sense that they
adopt a different approach to tax planning (69% against 33% in EMEA), or develop
additional disclosure around tax in financial statements (46% in Portugal against 35% in
EMEA) to respond to the increased scrutiny.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
24. Has your tax strategy been signed off by the
board?
37%
No
41%
EMEA
Portugal
63%
Yes
59%
0%
Key
takeaway
10%
20%
30%
40%
50%
60%
70%
59% of the Portuguese respondents have had their tax strategy signed off by the board,
which is slightly lower than in EMEA (63%).
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
25. How often do you personally appear before the
board to discuss tax strategy?
34%
Never
14%
42%
Ad hoc or as requested
31%
4%
More frequently than quarterly
7%
EMEA
Portugal
1%
Quarterly
10%
5%
Twice a year
17%
13%
Once a year
21%
0%
Key
takeaway
5%
10%
15%
20%
25%
30%
35%
40%
45%
In Portugal, discussions with the board occur essentially ad hoc or as requested (31%).
Portuguese tend to appear more often in front of the board, only 14% of the respondents
have never appeared in front of the board against 34% in EMEA.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
26. How often is tax discussed at the board?
I don't know
17%
0%
3%
Never
14%
47%
Ad hoc or as requested
24%
9%
10%
More frequently than quarterly
Portugal
9%
Quarterly
14%
9%
10%
Twice a year
7%
Once a year
28%
0%
Key
takeaway
EMEA
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
According to 28% of Portuguese respondents, they discuss tax at the board once a year.
Most EMEA respondents (47%) discuss tax at the board ad hoc or as requested.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
27. What are the main activities that occupy your
time?
5%
Other (please specify)
3%
17%
Dealing with suppliers
17%
Transfer pricing
48%
35%
32%
Technical tax work
31%
2%
Public relations
10%
39%
Provision of management information
45%
13%
Overseas tax audits
10%
19%
M&A and transactions
24%
EMEA
35%
Managing projects outside of tax
38%
9%
Lobbying/representation on technical matters
Portugal
17%
33%
Interaction with the board
52%
62%
Interaction with other parts of the business
20%
HR/People management
17%
Technology projects (tax compliance)
38%
24%
29%
Tax authority relationships
41%
67%
General management of department
0%
Key
takeaway
72%
10%
20%
30%
40%
50%
60%
70%
79%
80%
90%
Portuguese respondents are especially focused on general management of the department
and interaction with other parts of the business (79% and 72%, respectively), as well as
interacting with the Board (52%). EMEA respondents interact less with the business (62%)
and do not spend so much time managing the department (67%)
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
28. How important is the BEPS Action Plan currently
to your tax department?
12%
Very important
3%
28%
Important
21%
EMEA
Portugal
40%
Not very important
52%
20%
Not important at all
24%
0%
Key
takeaway
10%
20%
30%
40%
50%
60%
More than a half of Portuguese respondents believe that the BEPS Action Plan is not very
important to their tax department. Only 21% consider it important.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
29. How important is the BEPS Action Plan currently
to your organisation’s board/leadership?
3%
Very important
3%
26%
Important
21%
EMEA
Portugal
48%
Not very important
48%
23%
Not important at all
28%
0%
Key
takeaway
10%
20%
30%
40%
50%
60%
The same number of respondents in Portugal and in EMEA (48%) believe that the BEPS
Action Plan is not very important for their organization's board/leadership.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
30. Has your company started planning for the
impact of likely changes resulting from the BEPS
Action Plan?
69%
No
97%
EMEA
Portugal
31%
Yes
3%
0%
20%
Key
takeaway
40%
60%
80%
100%
120%
Almost all Portuguese respondents (97%) replied that they have not started planning for the
impact of likely changes resulting from the BEPS Action Plan.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
30a. If yes, for which Actions of the BEPS plan have
you made provision for?
4%
Other (please specify)
12%
Base erosion via interest and other financial payments
100%
4%
Permanent establishments
44%
Transfer pricing documentation
EMEA
Portugal
8%
Transfer pricing of intangibles
16%
Hybrids
12%
Not selected
0
Key
takeaway
0,2
0,4
0,6
0,8
1
1,2
All of the Portuguese respondents have made provision for base erosion via interest and
other financial payments
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
31. How do you think your organization’s tax
strategy will be affected by BEPS?
1%
3%
Other (please specify)
38%
No or negligible impact
52%
45%
Increased cost of compliance and documentation
35%
EMEA
14%
9%
Review/amend IP strategy
3%
22%
Review/amend entire international tax strategy
10%
0%
Key
takeaway
Portugal
23%
Review/amend financing strategy
10%
20%
30%
40%
50%
60%
More than a half of Portuguese respondents consider that BEPS will create no or negligible
impact in their organization's tax strategy.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
32. What size is your company revenue, in Euros?
10 Billion or more
5-9.9 billion
2.5 - 4.9 billion
9%
0%
7%
0%
12%
0%
8%
7%
1.0 - 2.49 billion
EMEA
14%
14%
350 - 999.9 million
Portugal
17%
21%
100 - 349.9 million
28%
Less than 100 million
52%
5%
7%
Not selected
0%
Key
takeaway
10%
20%
30%
40%
50%
60%
52% of Portuguese companies have a size of less than 100 million euros of revenue and
21% are between 100 and 349.9 million euros. As for EMEA, 28% have less than 100
million and 17% are between 100 and 349.9 million euros.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
33. What industry sector do you operate in?
Other (please specify below)
10%
1%
Travel, Hospitality & Leisure
3%
5%
Technology, Media & Telecommunications
2%
Real Estate
Public Sector & Government
0%
14%
3%
1%
Private Equity
1%
Metals & Mining
1%
0%
14%
3%
17%
Manufacturing
Infrastructure & Capital Projects
0%
7%
Healthcare & Life Sciences
4%
7%
3%
3%
Energy & Resources
Consumer Business & Retail
15%
3%
0%
0%
7%
7%
Business & Professional Services
Aerospace & Defence
5%
0%
0%
1%
2%
Not selected
0%
Key
takeaway
Portugal
10%
10%
Engineering & Construction
Automotive
EMEA
9%
3%
Financial Services & Insurance
Charities & Not-for-Profit
21%
3%
5%
10%
15%
20%
25%
21% of the respondents in Portugal operate in the Manufacturing sector, which is the one
with the higher expression in Portugal and in EMEA (17%).
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
Study design and
methodology
©©2015.
2015.Para
Parainformações,
informações,contacte
contacteDeloitte
Deloitte&&Associados,
Associados,SROC
SROCS.A.
S.A.
Study design and methodology
There have been great changes in the world of
tax over the past decades. As companies
become increasingly global in their reach and
operations, the international workings of tax and
its disparity between countries has become of
paramount importance and interest.
The rate and scope of change in businesses
themselves have also driven an evolution of tax
departments. Rapid business change in process,
structure and acquisitions mean that tax teams
need to keep on top of these things as they
happen.
But how much has this really affected Heads of
Tax? What keeps them awake at night? Which
jurisdictions are the really tricky ones and where
in Europe is becoming easier to work?
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
Drafting of the questionnaire
In order to portray this fast changing landscape,
Deloitte has set out an annual survey, to track
these trends and give tax a voice.
The responses were often surprisingly unanimous
for such disparate organisations operating in such
different economies, both in size and structure.
Feelings about some issues ran hot and some
trends are strengthening when compared with
data from previous years.
Study design and methodology
The collection process
940 organisations completed the questionnaire in
full. Partial responses were not utilised. Surveys
were sent electronically and could be completed
anonymously. The survey period was June – July
2014. In Portugal 28 companies responded to the
questionnaire.
Results, analysis, and validation
The DeloitteDEX team is responsible for analyzing
the data from the study. DeloitteDEX is a family of
proprietary products and processes for diagnostic
benchmarking applications. The DeloitteDEX
team uses a variety of research tools and
information databases to provide benchmarking
analyses measuring financial and/or operational
performance.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.
Deloitte member firm clients’ performance can be
measured against that of their peer group(s). The
process identifies competitive performance gaps
and can help management to understand how to
improve the performance of business processes
by identifying and adopting leading practices on a
company, industry, national, or global basis, as
appropriate.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and
their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not
provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected
network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the
insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed to becoming the standard of
excellence.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively,
the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible
for any loss whatsoever sustained by any person who relies on this communication.
© 2015. Para informações, contacte Deloitte & Associados, SROC S.A.

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