The submission of the Monthly Stamp Tax Declaration becomes mandatory only in 2021
Portugal -
Tax Alert Portugal
The Monthly Stamp Tax Declaration (“DMIS”), as well as assessment and payment obligations, are subject to changes within the scope of the implementation of extraordinary and urgent measures in response to the epidemiological situation originated by the new coronavirus (COVID-19), as disclosed by Order no. 121/2020-XXII, of 24 March, of the Secretary of State for Tax Affairs.
Considering all the technical constraints arising from the implementation of the new DMIS form, intensified by the present emergency situation, the Portuguese Government decided to approve the following measures:
- The new DMIS becomes mandatory only for facts subject to Stamp Tax occurred from 1 January 2021 onwards;
- Stamp Tax assessment and payment obligations referring to 2020 can still be fulfilled through the former procedure and form that was in force until December 31, 2019, i.e., by completing and submitting the multi-tax form approved by Ordinance No. 523/2003, of 4 July;
- The compensation scheme available to offset previous tax assessed and paid to subsequent assessments and tax payments, whenever, after the first assessment made, the underlying operation is cancelled or the corresponding tax value is reduced as a result of error or invalidity, can still be used by taxpayers until 20 January 2021;
- Stamp Tax assessment and payment obligations referring to January, February and March 2020, can be fulfilled by 20 April 2020 with no penalties. Subsequent obligations can be complied with until the 20th day of the following month where the taxable event occurred.
This Order revoked the previous Orders no. 5/2019.XXI and no. 14/2020.XXII.
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