Option or changes to the tax group under the special regime for group taxation (RETGS)

03 / 12 / 2021

Tax Alert Portugal

Until the 31 March 2021, the following acts must be reported to the Tax Authority, through the start-up form or the 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 2021;
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 2021;
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 2020, 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 2021, being the effects reported to the end of the fiscal year of 2020;
In the case of termination of RETGS with reference to the fiscal year of 2020.

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.