Possibility of partial or total reduction of the value of the 1st and 2nd payments on account of the IRC of 2020, whose legal term ends on 08/31/2020 and 30/09/2020.
By SEAF Order No. 104/2020-XXII of March 9, the deadline for making the 1st payment on behalf of the 2020 IRC (1st PPC) was extended to 08/31/2020.
Thus, the dates for making payments on behalf of IRC in 2020 are as follows:
- 1st PPC (31/08/2020)
- 1st PPC (30/09/2020)
- 1st PPC (15/12/2020)
Notwithstanding the dates set out above, pursuant to Article 12 of Law No. 27-A/2020, of July 24, which proceeded to the second amendment to Law No. 2/2020 of March 31 (State Budget for 2020), and the amendment of several diplomas, the possibility of extraordinary limitation of the 1st and 2nd payment on account of the IRC of 2020 was created.
Possibility of a 50% reduction in the value of the 1st and 2nd PPC of the 2020 IRC
The regime provided for in Article 107 of the IRC Code shall apply, with the necessary adjustments, to the first and second payments on account for the 2020 tax period, up to a limit of 50 % of its amount, provided that the monthly average of invoicing reported through the E-invoice for the first six months of 2020 evidencies a break of , at least 20 % compared to the average for the same period of the previous year or, for those who started the activity on or after 1 January 2019, in relation to the average of the period of activity previously elapsed.
Possibility of exemption from the 1st and 2nd PPC of the 2020 IRC
The regime provided for in Article 107 of the IRC Code shall also apply, with the necessary adjustments, to the total quantity of the first and second payments on account for the 2020 tax period, provided that:
- The average monthly invoicing reported through the E-invoice for the first six months of 2020 is a decrease of at least 40 % compared to the average for the same period of the previous year or, for those who started the activity on or after 1 January 2019, in relation to the average of the period of activity previously elapsed; Or
- where the taxable person’s main activity is classified as the economic activity of accommodation, catering and the like; Or
- When the taxable person is classified as a cooperative; Or
- When the taxable person is classified as micro, small and medium enterprise, according to the criteria defined in Article 2 of the annex to Decree-Law No. 372/2007 of November 6.
The taxable person’s main activity shall be deemed to fall within the classification of economic activity of accommodation, catering and the like where the turnover for those activities corresponds to more than 50 % of the total turnover obtained in the previous tax period.
Where the special regime of taxation of groups of companies, provided for in Articles 69 and following of the IRC Code, applies in deliveries to be made by the dominant company, the following shall be taken into account:
- The decrease in turnover shall be measured taking into account the amount corresponding to the algebraic sum of the amount obtained by each of the group companies in the 2020 tax period, including the dominant company, as well as the composition of the group in the 2020 tax period in force on the last day of the deadline for making the first payment on account;
- Where one or more companies carry on a core activity falling within the classification of economic activity of accommodation, catering and the like, and the turnover of that activity corresponds to more than 50 % of the total turnover of that company or of those companies in the preceding tax period, the limitation referred to in paragraph 3 shall be applied, first, by subtracting from the payment on account due by the dominant company the payment which would be due by each of those companies if it were not applied the special tax regime, without prejudice to the subsequent application of paragraphs 2 and 3 in relation to other companies.
The framework in the classification of cooperative, micro, small and medium enterprise, economic activity of accommodation, catering and the like or of a breakdown of turnover referred to in paragraphs 2 and 3 shall be certified by an accountant certified on the Finance Portal.
Where the taxable person finds, on the basis of the information available to him, whereas, as a result of the total or partial reduction of the first and second payments on account, it may no longer be paid more than that provided for in Article 107(2) of the IRC Code, may regularise the amount concerned until the last day of the deadline for the third payment (15/12/2020), without any burden or charges, subject to certification by certified accountant (CC) in the Finance Portal.
In the 2020 tax period, compensatory interest due as a result of the limitation, termination or reduction of payments on account shall be counted day by day, from the expiry of the period set for the last payment on account to the date on which, by law, the settlement is to be made.
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