Maria da Graça Martins
 
 

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// STATE OF CONTINGENCY COVID-19 IN PORTUGAL | IN EFFECT SINCE SEPTEMBER 2020

Since 15 Sptember, here are the Key measures for mainland Portugal to fight COVID-19

  • Gatherings limited to 10 people;

  • Commercial establishments cannot open before 10am (with exceptions);

  • Opening hours of establishments between 8 pm and 11 pm, by municipal decision;

  • In shopping center catering areas, maximum limit of 4 people per group;

  • Prohibition on selling alcoholic beverages at service stations and, after 8 pm, in all establishments (except meals);

  • Prohibition of consumption of alcoholic beverages on public roads;

  • Reopening school between 14 and 17 September:

  • Contingency plans in all schools;

  • Distribution of PPE;

  • Reference of action in case of suspected case, positive case or outbreaks;

  • In restaurants, cafes and pastry shops 300m from schools, maximum limit of 4 people per group;

  • District intervention brigades to contain and stabilize outbreaks.

Additional measures are excepted to be put in place.

// COVID-19 | Tax measures | July/ 2020

TAX MEASURES TO SUPPORT MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs) AND COOPERATIVES | LAW N ° 29 / 2020,31 JULY Law 29/2020, July 31

Tax measures to support micro, small and medium-sized enterprises as part of the COVID-19 response establishes the following measures:

  • The temporary suspension of the payment of the Corporation Tax deposit (IRC - Imposto sobre o Rendimento das Pessoas Colectivas)

  • In 2020, the possibility of reimbursement of the special deposit withdrawn in 2019, without the need to comply with the time limit defined in paragraph 3 of article 93 of the IRC Code;

  • When the amount of withholding tax and down payments exceed the amount of the tax due, the refund will be made within 15 days of the filing of the corresponding declaration. (Law n ° 29/2020 of July 31)

// COVID-19 | Tax measures | April / 2020

“NEWS: 03.04.2020” | COVID-19 “ Tax measures “Decree-Law no. 10-F / 2020, of 26 March”

what Measures HAVE BEEN TAKEN by the portuguese government?

In mid-December 2019, the new coronavirus, Covid-19, appeared in the Chinese province of Hubei. It quickly reached neighboring countries and in a few weeks, spread to various regions of the globe. The devastating effects of its spread on health and economies call for extreme measures. In Portugal, on March 22, 2020, the State of Emergency entered into force for a period of 15 days, with more than likely its extension until the beginning of May, at least. The Government, charged with the execution of the Decree of the President of the Republic no. 14-A / 2020, of 18 March, has been publishing a set of rules aimed at implementing extraordinary and urgent measures to restrict rights and freedoms , in particular with regard to movement rights and economic freedoms, in conjunction with European authorities, with a view to preventing the transmission of the virus: https://www.portugal.gov.pt/download-ficheiros/ficheiro.aspx ? v = 3f8e87a6-3cf1-4d0c-b5ee-72225a73cd4f link

In tax matters, the first measures are as follows:

On March 9, the Government announced the extension of the deadlines for compliance with tax obligations (declarative and payment) related to Company Income Tax:

- Postponement of Special Payment on Account from 31 March 2020 to 30 June 2020,

- Extension of the delivery of the Model 22 declaration from 31 May 2020 to 31 July 2020 and

- Extension of the first payment on account and the first additional payment on account from 31 July 2020 to 31 August 2020.

Regarding the exceptional framework for the functioning of the judicial and administrative activity, Decree -Law no. 10 -A / 2020, of 13 March, and Law no. 1 -A / 2020, of 19 March were approved that came to establish, namely:

• Legal vacation regime applied to tax periods that run in favor of taxpayers and that respect acts of judicial challenge, gracious claim, hierarchical appeal or other procedures of the same nature, as well as the deadlines for the practice of acts within the scope of the same tax procedures (cf. article 7 of Law no. 1-A / 2020 of 19 March).

• Application of the just impediment regime in the fulfillment of tax declaratory obligations, in relation to certified taxpayers or accountants, applies in situations of infection or prophylactic isolation declared or determined by a health authority. (cf. Order No. 104/2020 - XXII - SEAF)

Decree-Law no. 10-F / 2020, of 26 March, with retroactive effect to 12 March 2020, amended in accordance with Statement of Rectification no. 13/2020, of 28 March, enshrines a set additional measures aimed at protecting citizens and businesses, with a view to maintaining employment and jobs, creating the conditions so that, as far as possible, household income is preserved, as well as the survival of businesses ( https://dre.pt/application/conteudo/130779505)

Thus, in terms of support for small and medium-sized companies, it makes the payment of taxes and social contributions more flexible, maintaining the timely payment of contributions.

At the same time, it suspends until June 30, 2020, tax enforcement proceedings in progress or that may be initiated by the Tax and Customs Authority and Social Security.

Among the approved measures, the possibility of making the terms and conditions for payment of contributions due to the Pension Fund of Lawyers and Solicitors more flexible.

1 - Pursuant to article 1 of the aforementioned diploma, the obligations to deliver VAT and withholding taxes on IRS and IRC, in the second quarter of 2020, which must be carried out by taxable persons who:

- have achieved a turnover of up to € 10,000,000.00 in 2018, or

- whose activity falls within the sectors closed by application of article 7 of Decree no. 2-A / 2020, of 20 March, or even,

- who started their activity on or after 1 January 2019,

can be fulfilled:

a) In the terms and on the dates foreseen in the mentioned articles; or

b) In three or six monthly installments, without interest.

2 - The monthly installments relating to the installment plans are due as follows:

a) The first installment on the date of fulfillment of the payment obligation in question;

b) The remaining monthly installments on the same date as subsequent months.

3 - This measure is also applicable to taxpayers who have resumed activity on or after January 1, 2019, when they did not obtain turnover in 2018.

4 - Applications for payments in monthly installments referred to in paragraphs b) and c) of paragraph 1 are submitted electronically, until the end of the voluntary payment period.

5 - Taxpayers not covered may request payments in installments, when they declare and demonstrate a reduction in the invoicing communicated through the E-invoice of at least 20% in the average of the three months preceding the month in which this obligation exists, in view of the year-on-year period.

6 - Installment payments do not depend on the provision of guarantees.

7 - The demonstration of the reduction in invoicing must be carried out by certification of statutory auditor or certified accountant.

8 - In the cases mentioned in point 5, when the communication of the elements of the invoices through the E-Invoice does not reflect the totality of the operations carried out subject to VAT, even if exempt, related to the transmission of goods and services, referring to the periods in analysis, the verification of the invoice breakage must be made with reference to the turnover, with the respective certification of statutory auditor or certified accountant.

9 - To the current installment plans relating to tax enforcement proceedings, the regime provided for in paragraph 1 of article 7 of Law no. 1-A / 2020, of 19 March, that is, the judicial vacation regime, without prejudice to being able to continue to be punctually fulfilled. (See https://dre.pt/web/guest/pesquisa/-/search/130473088/details/normal?l=1)

Infra can be consulted the official sites with all the relevant information.

MARIA DA GRAÇA MARTINS

NHR | Last developments | Oct /2019 update

"NEWS: 16.10.2019” | NHR « Instruction n. 4/2019 »

what measures have been taken BY THE PORTUGUESE GOVERNMENT IN NHR Regime?

The Portuguese tax administration has modified the list of added high-value professions, as well as the procedure for obtaining RNH status.

A new list of high added value professions (EVA) has been created and its application takes effect from January 1, 2020:

I - The professionals mentioned below must meet one of the following conditions:

(a) a level 4 qualification in the European qualifications framework, or (b) competence level 35 of the International Standard Classification of Education, or (c) five years of duly proven professional experience:

• Managing Directors,

• Administrative directors, commercial directors

• Production managers, Specialized service managers

• Hotel, restaurant, retail and other service managers

• Specialist physicists, mathematicians, engineers and technicians

  • Doctors

• Dentists and Stomatologists

• University and higher education teachers

• ICT technologists

• Authors, journalists and linguists

• Creative and performance artists

• Intermediate science and engineering technicians and professionals

• ICT technicians

• Market-oriented farmers and skilled workers in agriculture and animal husbandry

• Skilled workers oriented towards forestry, fishing and hunting

• Skilled workers in industry, construction and crafts

• plant and machine operators and fitters, namely stationary machine and machine operators

II - Executives and managers of companies that set up productive investments in projects eligible for tax benefits under a concession contract concluded under the Investment Tax Code .

As far as the procedure for obtaining RNH status is concerned, the regime now provides for prior recognition.

Taxpayers are required to declare, each year, income derived from the exercise of a registered high added value profession. To this end, they must be able to prove their eligibility in the event of a tax audit.

MARIA DA GRAÇA MARTINS

 

// Personal Income Tax (IRS) | Withholding taxes (2020) "NEWS: 21.01.2020"

Official Gazette n ° 14/2020, series II of 2020-01-21 UPDATE TO 2020 SCHEDULES ON EMPLOYEE INCOME AND PENSIONS

As every year, the Ministry of Finance publishes the new rates of withholding taxes on employee income and retirement pensions (Income categories A and H) The announced update of rates corresponds to a decrease of 0.3%. (site: https://dre.pt/application/conteudo/128277571)

MARIA DA GRAÇA MARTINS