Are there any transitional tax measures to mitigate the impact of COVID-19?

It what regards tax obligations, it was announced the extension of the deadline for compliance with the following obligations:

  • Deadlines to comply with tax obligations (payment and submission of the tax returns) regarding Industrial Tax were postponed until May 29 for taxpayers within Group B and June 30 for taxpayers within Group A.
  • Payment of social security contributions due by employers (8%), regarding the 2nd quarter of 2020, may be paid in 6 instalments (July to December), without interest.
  • Urban Property Tax ("Imposto Predial Urbano") may be paid in 4 instalments - 1st until de end of April; 2nd until the end of June; 3rd until the end of August; and 4th until the end of October

A tax credit is granted for a period of 12 months of the VAT paid upon importation of capital and raw material goods necessary to the “basic basket” ("cesta básica").

Costs with goods imported or produced locally, services provided and monetary funds allocated to provide humanitarian help shall be deemed as deductible for tax purposes.

Pursuant to a notice issued by AGT, it was decided to suspend all external tax audits.

 

There are measures regarding the interaction between taxpayers and the Tax and Customs Authority (“AGT”) due to the impact of the COVID -19?

During the public calamity situation in force, tax and customs offices will have reduced workforce and perform services with reduced working time. Pursuant to the diploma that approved the calamity situation, the work schedule goes from 8 a.m. to 3 p.m., The Taxpayer Support Centre (“Central de Apoio ao Contribuinte”) will continue to operate from 8 a.m. to 2 p.m.

To clarify any queries regarding tax matters and for purposes of fulfilment of tax obligations, AGT recommends taxpayers to:

For customs issues, contacts should also be made preferably using the available platforms and email addresses.

 

 

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This information is being updated on a regular basis.

The information provided and the opinions expressed herein have been prepared with the help of VdA Legal Partners and are of a general nature. They are not in lieu of appropriate legal advice in connection with specific cases.