Mr. Hermínio Neto is a qualified professional with over 10 years of experience in various sectors, including retail, catering, banking, accounting consultancy, financial management, and taxation. After starting his career in Brazil, Mr. Neto moved to Portugal, where he continued to expand his knowledge and skills.
With a solid academic background, Mr. Neto completed his bachelor’s degree in accounting sciences in Brazil and is currently finishing his master’s dissertation in Accounting at the University of Algarve in Portugal.
Currently, Mr. Neto works as a Tax Consultant at Collegium, offering:
- Regular consultancy for individual clients and companies, both resident and non-resident, on accounting and tax issues, analysing the impact and implications of specific transactions.
- Compliance with tax obligations related to personal income tax (IRS), value-added tax (IVA), corporate income tax (IRC), property transfer tax (IMT), municipal property tax (IMI), social security, and other accessory declarations.
- Identifying cross-border situations and providing solutions, such as cases of international double taxation and the activation of tax treaties.
Why is this topic so important these days?
Mr. Neto: Taxation has always been a crucial aspect of economic policy, but its importance has been magnified in recent years due to several factors. The global economy is becoming increasingly interconnected, which complicates tax regulations and compliance. Additionally, governments are under pressure to increase revenues to fund public services and infrastructure, especially in the wake of the COVID-19 pandemic. Effective taxation policies are essential for maintaining economic stability and fairness.
What are the main challenges in taxation currently?
Mr. Neto: One of the primary challenges is keeping up with the rapid pace of change in the global economy. Digitalization and the rise of the gig economy have introduced new complexities in tax enforcement and collection. Another challenge is the increasing sophistication of tax evasion and avoidance schemes, which require constant vigilance and innovation from tax authority. Lastly, there is a need for greater international cooperation to address tax base erosion and profit shifting by multinational companies.
How do the tax challenges in Portugal compare to those in other countries?
Mr. Neto: Portugal faces many of the same challenges as other developed countries, such as adapting to digitalization and preventing tax evasion. However, there are unique aspects to consider, such as the need to modernize our tax administration and ensure compliance without stifling economic growth. Compared to larger economies, Portugal has to be particularly strategic in balancing tax competitiveness with revenue generation to attract foreign investment while maintaining a fair tax burden on its residents. The evidence of that, was the end of the non-habitual resident – NHR scheme in the end of 2023 and now the announcement of a revamped version of the NHR to be regulated in 2024 / early 2025.
What areas do clients need the most support in these days?
Mr. Neto: Clients are increasingly seeking guidance on international tax compliance and planning. With businesses operating across multiple jurisdictions, understanding and navigating different tax laws is critical. There is also a growing demand for advice on digital taxation, as more companies shift to online operations. In addition, individuals and businesses alike are looking for strategies to optimize their tax liabilities while remaining compliant with evolving regulations, particularly for digital nomads and expatriates.
What does Mr. Neto think this means for the future?
Mr. Neto: The future of taxation will likely involve greater integration and standardization at the international level. We can expect to see more treaties and agreements aimed at harmonizing tax policies and closing loopholes. Technology will play a significant role in this evolution, with advancements in data analytics and blockchain potentially transforming tax administration and enforcement. For businesses and individuals, staying informed and adaptable will be key to navigating the changing landscape.
Are there any trends in taxation, and if so, which ones are the most promising?
Mr. Neto: One promising trend is the move towards more transparent and fairer tax systems, driven by international initiatives such as the OECD’s Base Erosion and Profit Shifting (BEPS) project. Another trend is the increasing use of technology to streamline tax processes and improve compliance. For example, real-time reporting and digital invoicing are becoming more common, reducing the administrative burden on taxpayers and increasing efficiency for tax authorities. In addition, environmental taxation is gaining traction as governments look to incentivize sustainable practices and generate revenue for green initiatives. The discussion on taxing wealth is back on the agenda, with a global tax on these individuals now being considered, which could be disruptive as governments look to create new revenue streams, so this is likely to be high on the agenda for the next few years.
Collegium provides integrated BPO and consulting services ranging from accounting and management solutions, payroll and HR administration services and comprehensive tax consultancy services. Since 1994 Collegium has become a trusted partner for companies that are new to the market or for well-known international brands doing their business in Portugal and the region.
Website:Â www.collegium.pt
