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What is it? What are the benefits?
Companies with tax losses in 2020, having made profits in previous years, shall not be subject to the increased rates of autonomous taxation, as provided for in article 88(14) IRC Code.
The State Budget 2021 provides that this rate will not apply for the 2020 and 2021 tax periods.
Who can benefit?
Companies.
For more information you can consult the Deloitte page, State Budget 2021 and the PEES.
Relevant legislation:
What is it? What are the benefits?
In view of the current economic context, a particular consideration of tax losses is warranted, giving them a specific and transitional framework with the following rules:
Who can benefit?
Companies.
For more information you can consult the tax change document issued by the Association of Certified Accountants and the PEES.
Relevant legislation:
What is it? What are the benefits?
In the concentrations of SMEs carried out in 2020, disregard the limit of use of tax losses by the incorporating company(by reference to the assets of the companies involved in the transaction), with the rule of non-distribution of profits, for 3 years, without, during the same period, the application of state surcharge (where applicable).
Consider the transmissibility of tax losses in the acquisition of shareholdings of SMEs which, in 2020, have been considered 'companies in difficulties', for the use of these tax losses by the acquiring company, with the rule of non-distribution of profits and the commitment to maintain jobs for 3 years.
Who can benefit?
Companies.
This measure is still under development, however, for more information you can consult the PEES.
What is it? What are the benefits?
Refund of the Extraordinary Investment Tax Credit, creating for investment expenses incurred in the second half of 2020 and the first half of 2021, a deduction to the collection of IRC, corresponding to 20 % of investment expenses up to a limit of 5 million euros, to be used for a maximum period of 5 years, with the obligation to maintain jobs during the period of use of the tax credit , with a minimum of three years.
Who can benefit?
Entities which are principally engaged in a commercial, industrial or agricultural activity may benefit from this incentive and, cumulatively, fulfil the following conditions:
What are the eligible expenses?
Investment expenses in assets susceptible to personal use may not be considered for the purposes of this tax benefit, such as:
For more information you can consult the Association of certified accountants page.
Relevant legislation:
What is it? What are the benefits?
The IVAucher consists of a temporary mechanism that enables companies to accumulate the VAT cost of an expense and discount that same amount against a purchase made in the following quarter.
The amount accumulated and discounted represents the total of the VAT. Thus, whenever a company incurs a cost and the respective invoice, for example, for €100 in a restaurant, hotel or local accommodation or even through attending a performance, the €23 VAT may be accumulated and discounted against the next expense. The VAT amount discounted shall always be that specified on the invoices communicated to the Taxation Authority.
Who can benefit?
This measure exclusively targets the tourism sector and covers only three types of company: restaurants, accommodation (hotels, local accommodation, etc.) and cultural venues.
How to apply?
The discounting of the VAT should take place through a direct and immediate discount on the purchase made in the following quarter.
The VAT amount may be accumulated between January and March and discounted against purchases in the following quarter, thus between April and June.
For further information, please consult the State Budget for 2021.
What is it? What are the benefits?
Possibility of payment of VAT, calculated in the periodic statement for the 3rd quarter of 2020 and 1st half of 2021
All companies and independent workers are eligible.
For more information see the page of Tax Authority.
Relevant legislation:
Eligible companies can opt to pay VAT related to the second half of 2020 as follows:
The first installment is due on the date of compliance with the obligation and the remaining installments are due on the same day of the following months.
Who can benefit?
All companies and self-employed workers can immediately apply for payment in instalments, as long as they meet one of the following conditions:
• Micro companies with turnover of up to 2 million euros and a 25% drop in turnover in 2020, compared to 2019;
• SMEs with turnover of up to 50 million euros with a 25% turnover drop in 2020, compared to 2019;
• Activity within the sectors closed under the terms of the State of Emergency, including catering, accommodation and culture.
Any other company or self-employed person may benefit from this incentive, if they prove with a statutory auditor (ROC) or certified accountant (CC) certificate that:
When the communication of the elements of the invoices through the E-fatura does not reflect the totality of the operations carried out in relation to the transfer of goods and services subject to VAT (even if exempt), the measurement of the drop of invoicing must be made with reference to the revenue.
How to access?
Application via the Finance Portal. The application will be:
• Automatically validated in the case of companies that verify one of the conditions of immediate access to the fractional payment; or
• Manually validated for the remaining companies that demonstrate a decrease of activity, with respective ROC or CC certification.
For more information see the page of the Tax Authority.
Relevant legislation:
Decree n.º 2-A/2020, of 20 March
Decree-law n.º 10-F/2020, of 26 March
Eligible companies may choose to submit the periodic VAT declarations for November and December 2020 and January, February, March, April and May 2021, of the monthly regime, and the declarations to be delivered in November 2020, as well as in February and May 2021, of the quarterly regime (referring, respectively, to the 4th quarter of 2020 and 1st quarter of 2021), within the legal term provided for in no. 1 of article 41 of the CIVA, can be submitted until the 20th of each month, and payment can be made until the 25th of each month.
Who can benefit?
All companies and self-employed workers who meet one of the following conditions:
Relevant legislation:
Circular Letter n.º 30224, of 1 July, of AT
Order n.º 129/2020-XXII, of 27 March, of SEAF
This measure is intended to return to the organizers of congresses, fairs, exhibitions, seminars, conferences and the like the amount equivalent to VAT deducted from the Tax and Customs Authority with the expenses incurred for the direct needs of participants pursuant to Article 21(2) (d) of the CIVA. Support cannot go beyond half the VAT spent.
What are the benefits?
Under this scheme, the amount equivalent to 50 % of the VAT incurred and not deductible in the costs incurred for the direct needs of the participants relating to the organisation of congresses, fairs, exhibitions, seminars, conferences and the like may be refunded when they result from contracts concluded directly with the service provider or through entities legally qualified to that end and have been proven to contribute to performing activities which are liable to VAT.
The following expenditures shall be considered:
Who can benefit?
Entities with the Main Portuguese Classification of Economic Activities «82300 – Organization of fairs, congresses and other similar events»
How to access?
The application for refund is submitted through the Tourism of Portugal portal, on the SGPI platform, from the second month following the issuance of the supporting documents and until the end of the one-year period from the date of issue of these documents.
More information can be available in the Tourism of Portugal page.
Relevant legislation:
Tax collections (onging and forthcoming) of the Tax and Social Security Authority will be suspended during the first quarter of 2021 (by 31 March).
During this period, it is also impossible to execute attachment and pay installment plans for debt to Social Security.
For the regularization of the tax situation, automatic installment plans for debt that are under tax execution will be created, up to € 5,000 euros for individuals and up to € 10,000 for companies. The installment plans have a grace period of 2 additional months.
For more information see the dedicated page of the Tax Authority.
This extraordinary regime provides for the admissibility of payment of contributions due in November and December 2020 by self-employed persons or employers (contributions from the company's responsibility), in three or six instalments, without interest, between:
Self-employed persons or employers who choose to defer the payment of contributions are not dependent on the delivery of an application for that purpose, simply by indicating, in February 2021, on the respective pages of Direct Social Security (Segurança Social Direta), the payment period they wish to see applied.
Finally, it is established that failure to comply with any of the access requirements for deferral of payment of contributions, or failure to pay any of the instalments, will be penalised with the immediate repayment of all other missing instalments, as well as the termination of the interest exemption.
Who can benefit?
The right to the extraordinary deferral of the payment of social contributions for the months of November and December 2020 to:
Relevant legislation:
Avoid face-to-face contacts with tax authority services. Electronic and telephone services of the Tax Authority (AT) should be used preferentially.
Relevant Legislation
