March 26, 2020
At a press conference, the Finance Minister, Mário Centeno, presented the following tax and social security measures, related with the COVID-19 pandemic.
Flexibilization of the payment of taxes by companies and self-employed workers in the 2nd quarter of 2020
• At due date, the payment of taxes can be made as follows:
– Under the general terms (one single instalment);
– Three monthly instalments; no late assessment interest are due; there is no need to present a guarantee;
– Six monthly payments; late assessment interest are due on the three last instalments; there is no need to present a guarantee;
• Applicable to the payment of VAT (monthly and quarterly regimes), and PIT and CIT withholding taxes;
• Applicable to companies and self-employed workers with a turnover up to Euro 10 million, with reference to 2018 (or that have started their activity from 1st January 2019 onward); other companies and self-employed workers can request the same measure, provided that they have suffered a decreased of at least 20% on their turnover (with reference to the average of 3 month prior to the month in which the payment of taxes should be made, of the same period in the previous tax year);
Other measures have already been announced on 9th March 2020, related with the postponement of deadlines to comply with tax obligations, namely:
• Postponement to 30 June 2020 of the special payment on account (as a rule, 31st March);
• Postponement to 31st July 2020 of the filing of the CIT form and payment of any CIT due (as a rule, 31 May);
• Postponement to 31st August 2020 of the first payment on account and of the additional payment on account (as a rule, 31st July).
Reduction of the amount of social security contributions due in March, April and May 2020
• Reduction by 1/3 of the amount of social security contributions due in the months of March, April and May 2020;
• The payment of the remainder amounts is postponed and should be made in the 3rd quarter 2020 onwards (in the same terms as those foreseen for the payment of taxes in the 2nd quarter 2020);
• The measure applies immediately to companies up to 50 workers;
• Companies with up to 250 workers can benefit from these measures, in case of a decrease of their turnover equal or higher than 20%.
Suspension of tax and social security compulsory collection procedures
• Suspension, for 3 months, of ongoing and new tax and social security compulsory procedures.
Source: PwC Portugal