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Portugal: Tax compliance relief measures (COVID-19)

Portugal: Tax compliance relief measures (COVID-19)

The authorities issued Order no. 153/2020 – XXII to provide relief with respect to certain tax compliance obligations in response to the coronavirus (COVID-19) pandemic.

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The guidance includes measures allowing taxpayers to postpone (without penalties):

  • The time to file the annual simplified business information return (IES/DA)—to 7 August 2020
  • The time to file the tax file and transfer pricing documentation—to August 2020. 

The relief measures allow for individual (personal) income tax and corporate income tax withholdings for April 2020 to be paid by 25 May 2020 and for May 2020 to be paid by 25 June 2020.

Payment of the stamp tax (duty) regarding the months of April and May 2020 are due by 25 May and 25 June, respectively.
 

VAT relief

The guidance also provides relief with respect to value added tax (VAT).

The monthly VAT return and the January to March VAT return 2020 (quarterly VAT regime) can be computed based on information available from the electronic invoicing system (e-factura). Subsequent adjustments made by means of a substitution VAT return can be filed (without penalties) by certain eligible taxpayers, provided that the adjustments are made by August 2020. Eligible taxpayers are those with turnover up to €10 million in 2019 and that either started business activity on or after 1 January 2020, or that restarted their business activity on or after 1 January 2020 and had no turnover in 2019.

The submission and payment deadlines regarding periodic VAT returns, not subject to an instalments payment plan, have been revised.

  • Monthly VAT regime
    • March 2020 VAT returns must be submitted by 18 May 2020 and VAT must be paid by 25 May 2020.
    • April 2020 VAT returns must be submitted by 18 June 2020 and VAT must be paid by 25 June 2020.
  • Quarterly VAT regime
    • January to March 2020 VAT return must be submitted by 22 May 2020 and VAT must be paid by 25 May 2020.


Read a May 2020 report prepared by the KPMG member firm in Portugal

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