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<\/a><\/p>\n1. What is the Municipal Surtax?<\/span><\/strong><\/p>\n The municipal surtax is an additional tax to the IRC, the revenue of which goes to local municipalities. Each municipality can set a rate up to a legal limit (currently 1.5% for the general surtax), applied to the taxable profit subject and not exempt from IRC.<\/span><\/p>\n There is also a reduced surtax<\/strong> applicable to companies with turnover under \u20ac150,000, depending on the municipality\u2019s decision.<\/span><\/p>\n 2. Companies with Establishments in Several Municipalities<\/span><\/strong><\/p>\n When a company has permanent establishments in more than one municipality<\/strong>, the surtax must be calculated proportionally<\/strong>, based on the net added value (VAL)<\/strong> generated by each establishment.<\/span><\/p>\n 3. How to calculate the surtax based on VAL?<\/span><\/strong><\/p>\n Steps:<\/span><\/p>\n 1. Determine the VAL<\/strong> of each establishment.<\/span><\/p>\n 2. Calculate the percentage<\/strong> each represents of the company\u2019s total VAL.<\/span><\/p>\n 3. Apply the municipal surtax rate<\/strong> to the total taxable profit, weighted by each municipality\u2019s share.<\/span><\/p>\n Example:<\/span><\/strong><\/p>\n \u2022 Lisbon: VAL = \u20ac60,000<\/span><\/p>\n \u2022 Porto: VAL = \u20ac40,000<\/span><\/p>\n \u2022 Total VAL = \u20ac100,000<\/span><\/p>\n \u2022 Company profit = \u20ac200,000<\/span><\/p>\n \u2022 Lisbon Rate: 1.5%, Porto Rate: 1.0%<\/span><\/p>\n Calculation:<\/span><\/strong><\/p>\n \u2022 Lisbon: 60% of \u20ac200,000 = \u20ac120,000 \u2192 1.5% = \u20ac1,800<\/span><\/p>\n \u2022 Porto: 40% of \u20ac200,000 = \u20ac80,000 \u2192 1.0% = \u20ac800<\/span><\/p>\n Total Surtax: \u20ac2,600<\/span><\/strong><\/p>\n 4. Where to declare in Model 22?<\/span><\/strong><\/p>\n This allocation is made in Table 10 of Model 22 and annex A<\/strong>, stating:<\/span><\/p>\n \u2022 Attributed profit per municipality;<\/span><\/p>\n \u2022 Applicable rate;<\/span><\/p>\n \u2022 Calculated surtax.<\/span><\/p>\n Internal documentation must be solid and justifiable, especially regarding VAL per establishment and allocation criteria.<\/span><\/p>\n Correctly calculating the municipal surtax in Model 22 requires a sound understanding of tax law and structured internal accounting. The proportional approach ensures fair and lawful taxation, avoiding fiscal risks.<\/span><\/p>\n