The deadline to execute the communications to be made under the Special Regime for Group Taxation (RETGS) ends in the end of March

Portugal - 03 / 11 / 2019

Tax Alert

Until the 31 March 2019, the following communications must be made to the Tax and Customs Authorities, through the start-up form or change of activity form to be submitted by electronic means:

In case of opting for the application of the Special Taxation Regime for Corporate Groups ("RETGS") in the fiscal year of 2019;
In case of changes to the composition of the Group which is already submitted to RETGS, when new companies are to be included in the fiscal year of 2019;
In case of changes to the Group composition, when a company leaves the group as a result of the disposal of the shareholding or by the non-compliance with other requirements, or other changes in the group composition, namely as a result of mergers and demergers operations, with reference to fiscal year of 2018, unless the change results from the ceasing of activities of a company part of the group, in which case the communication shall be made until the end of the deadline foreseen for the submission of the corresponding declaration of termination of activity (30 days from the ceasing of activities);
In the event of renouncing to the application of RETGS in the financial year of 2019, being the effects reported to the end of the fiscal year of 2018;
In the case of termination of RETGS with reference to the fiscal year of 2018.

We underline that currently the non-communication, within the aforementioned period, of the entry or exit of companies to or from the Group does not imply the termination of the regime for the remaining companies, but only the application of a penalty ranging between 1.000 and 22.500 euros.