The Portuguese tax filing season is coming

Taxpayers must soon disclose income earned during the fiscal year of 2021.

 

Companies

Resident companies and other entities liable to Corporate Income Tax must file a ta return (Modelo 22) until June 30, and the IES/DA must be filed until July 15.

 

Individuals

Resident individuals must file a tax return during April, May, and June.

An individual is considered to be a tax resident of Portugal if one of the following conditions is met: the individual stays in Portugal for more than 183 days (continuously or not) during the calendar year or twelve months; or the individual has a residential accommodation available in Portugal on any day of the fiscal year, suggesting it is his habitual residence.

Please note that if an individual also qualifies as a resident for tax purposes in other countries, the tax residency status in each country must be determined according to the provisions of the applicable Double Tax treaties.

Individuals that qualify as residents for tax purposes in Portugal are liable to Portuguese personal income tax on worldwide income.

Nonresident individuals are only liable to income tax on the income obtained in Portugal, i.e., income paid or borne by Portuguese entities or due to work performed in Portugal. Where a tax withholding is not final, filing a yearly tax return is required.

Tax filing is required if a nonresident individual receives rental income from a Portuguese property or sells a Portuguese property.

 

Tax year

The tax year corresponds to the calendar year (January 1 up to December 31). However, under certain conditions, companies may adopt a different tax year.

 

Please note that penalties and compensatory interest will be due if the tax return is filed after the applicable deadline. Defaulting on filing obligations can soon escalate into an inspection and a tax dispute with the Portuguese Tax Authorities. Please note that penalties apply, in addition to interest, if a tax return is filed after the deadline has elapsed.

Our Tax Law team can assist you in complying with tax filing obligations. Please do not hesitate to contact us.

 

Disclaimer

This publication or document contains general information and is not intended to be comprehensive nor provide legal or tax advice or services. It should not be acted on or relied upon, or used as a basis for any decision or action that may affect you or your business. Professional legal advice should be requested for specific cases. We do not undertake any continuing obligation to advise on future legal amendments or the impact on the conclusions herein. Prior results do not guarantee a similar outcome. The contents of this publication or document may not be reproduced, in whole or in part, without the express consent of GFDL.

The information contained in this webpage is not to be used in place of proper and complete professional advice, as it does not constitute a binding legal opinion, nor does it not consider the particularities of your case.

Please seek advice before making any transactions. Contact us.