Flexibilization of payments – taxes

In the context of the COVID-19 disease pandemic, the Government has been adopting a set of extraordinary and urgent measures in a number of areas, including implemented and regulating schemes to support voluntary compliance with tax obligations.
In this sense, and with a view to the essential objective of ensuring liquidity to companies and preserving their activity, the Government decided to extend the deferral regimes of tax obligations, through the publication of Decree-Law No. 24/2021 of March 26 (amendment to Decree-Law No. 10-F/2020 of March 26), which establishes an exceptional and temporary regime for compliance with tax obligations, within the framework of the covid-19 disease pandemic.

Scope
In the first half of 2021 (payments in April, May and June).

Payment obligations (Tax)
Irs and IRC source holds.
VAT monthly scheme.

Payment flexibility
Until the end of the voluntary payment period; or
In three or six monthly instalments, of an amount equal to or greater than (euro) 25.00, without interest.

Payment period for monthly instalments
the first instalment on the date of fulfilment of the payment obligation in question;
The remaining monthly instalments on the same date as the following months.

Conditions of uptake
Taxable persons who:

  • have obtained in 2019 a turnover up to the maximum limit of classification as micro, small and medium enterprise, pursuant to Article 2 of the Annex to Decree-Law No. 372/2007 of 6 November, in its current wording (i.e. companies with annual turnover up to EUR 50 million), and which cumulatively declare and demonstrate a decrease in the invoicing reported through the e-invoice of at least 25 % of the monthly average for the full calendar year of 2020 compared to the same period of the previous year; or
  • have main activity framed in the classification of economic activity of accommodation, catering and the like, or of culture; or
  • Have started or restarted the activity on or after January 1, 2020.

With regard to the payment of VAT quarterly (1st quarter of 2021), the provision to the supply plan under the conditions identified above may be made by all taxable persons falling within the quarterly VAT system, without complying with the other conditions of access.

Decree-Law No. 24/2021 of March 26 also regulated a special regime for deferring tax obligations in the event of Corporate Income Tax, under the following conditions:

Payment obligations (Tax)
Irc resettlement of the 2020 tax period payable in 2021.

Payment flexibility
By the deadline for the delivery of the Model22 declaration of the 2020 tax period; or

In four monthly instalments, of value equal to or greater than 25 € and without interest.

Payment period for monthly instalments
the first instalment of at least 25% of the IRC payable in Model 22 (overhead) by the deadline for the delivery of the Model22 declaration of the 2020 tax period;
The remaining three monthly instalments of the same amount, up to the same date as the following months.

Conditions of uptake
Irc taxable persons may benefit from the flexibility of the payment of the IRC back-to-charge for the 2020 tax period:

  • who have obtained a turnover of 2020 up to the maximum limit of classification as micro, small and medium-sized enterprise, in accordance with Article 2 of the Annex to Decree-Law No. 372/2007 of 6 November, in their current wording (i.e. companies with annual turnover up to 50 million euros).

It applies to the 2020 tax period other than the calendar year, with the necessary date adjustments.

It shall also apply to deliveries made by the dominant company as a result of the application of the Special Regime for The Taxation of Groups of Companies, provided for in Articles 69 et to the IRC Code, when all the companies in the group meet the conditions laid down in turnover.

Limitations to payments on account
Reduction of the second payment on account of IRC of the tax period to be made in 2021

The second payment on account of IRC may be reduced by 50% by taxable persons who have obtained a turnover in the period 2020 up to the maximum limit of classification as a micro enterprise, pursuant to Article 2 of the Annex to Decree-Law No. 372/2007 of 6 November, in its current wording (i.e. companies with annual turnover up to EUR 2 million), if the taxable person finds, by the information at his disposal, that the amount of the payment on account already made is equal to or greater than the tax that will be due on the basis of the tax base of the 2021 tax period.

Where the taxable person finds, on the basis of the information at his disposal, that, as a result of the reduction of 50% of the second payment on account under the terms referred to, an amount exceeding 20% of that which, under normal conditions, would have been delivered, may be set up until the last day of the deadline for the third payment. , without any burden or charges.

It applies to the 2021 tax period other than the calendar year, with the necessary adjustments of dates.

It shall apply to deliveries made by the dominant company as a result of the application of the Special Regime for The Taxation of Groups of Companies, provided for in Articles 69 et to follow of the IRC Code, when all the companies that are part of the group meet the expected conditions of turnover.

Third payment on irc account of the tax period to be made in 2021

The third payment on account of IRC has no provision plan provided for and must be made by December 15, 2021, when due in whole or in part in accordance with the waiver or reduction under the rules of Article 107 of the IRC Code.
It is also noteable that The OE2021 (Law No. 75-B/2020 of 31 December) approved through Article 374 the suspension of payments on account, as follows:

  1. In 2021, entities classified as cooperatives or as micro, small and medium-sized enterprises, by the criteria defined in Article 2 of the Annex to Decree-Law No. 372/2007 of November 6, may be exempted from payments on account, defined by Articles 105 to 107 of the IRC Code.
  2. Entities covered by the waiver provided for in the preceding paragraph, which wish to make the payment on account, may make such payment, in accordance with the terms and within the time limits defined by law.
  3. The provisions of the preceding paragraphs and Article 3 of Law No. 29/2020 of 31 July, relating to the early return of special unused payments on behalf, is applied with the entry into force of this Law.

Article prepared by the Technical Fiscal Committee – Centros de Conhecimento

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