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Compliance with tax obligations within the epidemiological situation caused by COVID-19

Compliance with tax obligations (COVID-19)

Order no. 153/2020 – XXII issued by the State Secretary for Tax Affairs

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In the context of the measures that have been adopted by the Portuguese Government as a way of mitigating the effects of the pandemic caused by COVID-19, Order no.153/2020 – XXII of 24 April 2020, issued by the State Secretary for Tax Affairs was recently published which (i) introduces additional flexibility measures regarding the fulfillment of tax obligations to ensure their filing in sequential order during this exceptional period and avoid compromising the way that companies and the Portuguese Tax Authorities usually operate, (ii) renew some procedures approved by previous orders (e.g. Order no 129/2020 – XXII of 27 March 2020, issued by the State Secretary for Tax Affairs) regarding the compliance of VAT declarative obligations and (iii) adjust the calendar of some tax obligations. 

Measures adopted in order to ensure the filing in sequential order of tax

a) Postponement of the legal deadline regarding the submission of the annual simplified business information return (“IES/DA”) to 7 August 2020, without any penalties; and 

b) Postponement of the legal deadline to prepare/submit the tax file and the transfer pricing documentation to 31 August 2020, without any penalties. 

Renewal of procedures regarding VAT declarative reporting obligations

a) The March 2020 VAT return (monthly VAT regime) and the January to March VAT Return 2020 (quarterly VAT regime) can be computed based on information/data included in the electronic invoicing system (“e-factura”);

b) If needed, the adjustment of the errors arising from the computation based on the “e factura” information/data should be carried out through a substitution VAT return, without any cost or penalties, provided that the referred return and corresponding payment/settlement occurs during August 2020; 

c) The referred measures are applicable in the following cases:

i. taxpayers with a turnover (computed in accordance with Article 42 of the Portuguese VAT Code) up to € 10,000,000 in 2019; 

ii. taxpayers that initiated their activity in or after 1 January 2020; or 

iii. taxpayers that restarted their activity in or after 1 January 2020 and had no turnover in 2019.

Adjustment to the calendar of some tax obligations

a) Flexibility of the submission and payment deadlines regarding periodic VAT returns, not subject to an instalments payment plan:

i. March and April 2020 VAT returns (monthly VAT regime):

a. Deadline for submission: until 18 May and 18 June 2020, respectively;

b. Tax payment deadline: until 25 May and 25 June 2020, respectively.

ii. January to March 2020 VAT return (quarterly VAT regime):

a. Deadline for submission: until 22 May 2020; 

b. Tax payment deadline: until 25 May.

b) The PIT and CIT withholdings regarding April and May 2020 may be delivered to the Portuguese Treasury until 25 May and 25 June 2020, respectively; 

c) The payment of the Stamp Duty regarding the months of April and May 2020 can be made until 25 May and 25 June, respectively.

© 2020 KPMG PORTUGAL – S.G.P.S., S.A., a Portuguese company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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