Portugal - Exceptional tax measures approved by the Portuguese Government to support businesses

1. What happens to tax obligations deadlines?

Corporate Income Tax

• Special payment on account to be made in March can be made until June 30, 2020, without any additions or penalties;
• 2019 annual tax return (Model 22) can be filed until July 31, 2020, without any interests or penalties; and
• First payment on account and the first additional payment on account to be made in July, can be made until August 31, 2020, without any interest or penalties.

2. What happens to tax payment obligations?

Withholding Taxes (Personal and Corporate Income Taxes)

• Can withholding taxes payments be made in instalments? Yes, in the following terms:
  • 3 monthly instalments without interest; or
  • 6 monthly instalments, with interest on arrears only in the last 3.
• Guarantee required? No
• What are the application requirements?
  • Companies or self-employed workers with a turnover of up to 10 million Euros in 2018 or who have started their activity since January 1, 2019 - Automatic application.
  • Companies or independent workers with a higher turnover - Application upon request, provided that there is a reduction in turnover of at least 20% in the average of 3 months prior to the obligation compared to the same period of the previous year.
• As from when is this measure applicable? Q2 2020.

VAT

• Can monthly or quarterly VAT payments be made in instalments? Yes, in the following terms:
  • 3 monthly instalments without interest, or
  • 6 monthly instalments, with interest on arrears only in the last 3.
• Guarantee required? No
• What are the application requirements?
  • Companies or self-employed persons with a turnover of up to 10 million Euros in 2018 or who have started their activity since January 1, 2019 - Automatic application.
  • Companies or self-employed workers with a higher turnover - Application upon request, provided that there is a reduction in the turnover of at least 20% in the average of 3 months prior to the obligation compared to the same period of the previous year.
• When does this measure take effect? Q2 2020.

3. What happens to current and new tax enforcement procedures?

• They are suspended for a period of 3 months.

4. What if there are delays in fulfilling obligations because of COVID 19?

• Taxpayers and certified accountants who are affected by situations of infection or prophylactic isolation declared or determined by a health authority can invoke such facts to justify delay in the fulfilment of tax return obligations.

5. What are the recommendations for using the services of the Portuguese Tax Authorities?

• Due to restrictions on access to face-to-face service, distance services (electronic services and call center) should preferably be used;
• Submission of applications through the e-counter of the Portuguese Tax Authorities website;
• Use of electronic payment mechanisms (namely, ATM, homebanking and MBWay);
• If it is not possible to use electronic payment mechanisms, in urgent and urgent cases, a previous appointment for face-to-face service must be made through the call center.