Covid-19 – Tax & Social Security measures
The Portuguese Government approved a new framework for companies to operate in during the Covid-19 outbreak.
Flexibility in the payment of taxes and Social Security contributions have been implemented, allowing for a lesser strain on companies’ cashflow. Furthermore, Tax and Social Security collection proceedings will be suspended for at least three months.
Tax payments in relation to the second quarter of 2020 (April, May and June), companies and individuals will be able to file and pay VAT, Personal Income Tax and Corporate Income Tax withholdings in instalments.
Payment in instalments up to three months interest free. Payments in six installments, with interest due in relation to the last three payments.
Other amendments to CIT compliance deadlines include:
- Special Advance Payments (payable in March) will be due until June 30th.
- CIT tax return will be filed, and CIT paid until July 31st
- Advance payments and Additional payments on account for CIT purposes are postponed from July to 31st August.
Social Security Contributions
Companies will be entitled to make fractional payments limited to one third of contributions due on salaries. The payment of the remainder will be postponed to the third quarter of 2020.
Only companies without any Social Security or Tax debts are eligible.