COVID-19: Portuguese Government approved new postponement in the fulfillment of tax obligations

Portugal - 04 / 30 / 2020

Tax Alert Portugal

As we have been following, the Portuguese Government has approved several successive exceptional measures to mitigate the effects of the COVID-19 pandemic in Portugal.

In this context, the Secretary of State for Tax Affairs, through Order no. 153/2020-XXII, of 24 April, approved the extension of the tax deadlines indicated below, as well as the simplification of fulfillment of some tax obligations, without the application of any penalties:

Extension of the deadline to submit the Annual Account and Tax Information return (“IES”) of 2019 from July 15th to August 7th;
Extension of the deadline for preparation and submission (where mandatory) of the tax file for the 2019 fiscal year, including the transfer pricing documentation, from July 15th to August 31st;
Extension of the deadline for delivering withholding tax of CIT and PIT and Stamp Tax regarding April and May, from May 20th to May 25th and from June 20th to June 25th, respectively;
As had been approved for the February VAT periodic return, the VAT periodic returns for March and for the first quarter of 2020 (1Q/2020) may be submitted without supporting documents. This situation may be regularized provided that the corresponding VAT return is substituted (and resulting adjustments, when due, are paid) in August. This measure is applicable to taxpayers with a turnover of up to EUR 10,000,000 in 2019 or when they started (or restarted, without obtaining any turnover in 2019) the activity on or after 1 January 2020;
In the same way, and as had been approved for the February VAT periodic return, March and April VAT periodic returns may be submitted until May 18th and June 18th, respectively, and corresponding VAT may be paid until May 25th and June 25th, by reference to the returns indicated, without prejudice to choose to pay this tax in installments pursuant to Decree-Law No. 10-F/2020 of March 26.
The quarterly VAT return 1Q/2020 may be submitted until May 22th and the corresponding VAT may be paid until May 25th, also without prejudice to choose to pay this tax in installments under the terms of Decree-Law no. 10-F/2020 of March 26.