Approval and changes on the withholding tax rates applicable in 2022 in Portugal Mainland, Azores and Madeira

It should be noted that the non-delivery, total or partial, of said amounts represents a tax offence, besides the joint liability of the substitute taxpayer for the outstanding tax, plus compensatory interest due from the delivery date until the end of the deadline for the submission of the corresponding return by the original taxpayer or until the date of delivery of the tax withheld, if previous.

The referred Order entered into force on 31 December of 2021. However, said withholding tax rates should be applicable only on income paid or made available to the respective beneficiaries as of 2022.

The new withholding tax rates applicable to the same income obtained by resident taxpayers in the Azores were also republished, with the withdrawal of Order no. 12408-A/2021, 14 December, by Order no. 874-A/2022 of 20 January, which was rectified by Rectification Declaration no. 56-A/2022, 24 January. Order no. 874-A/2022 entered into force on 21 January 2022 but it should be applicable as of 1 January 2022.

Finally, Order no. 11943-A/2021, which approved the new withholding taxes applicable on employment income and pensions obtained by resident taxpayers in Portugal Mainland in 2022, was rectified by Rectification Declaration no. 56-B/2022, 2 December, because the increase of net incomes of pensioners was not safeguarded in previous withholding tax rates.