Special Payments on Account waived
The Portuguese State Budget for 2022 is still pending approval after being rejected last year (a rejection leading to new elections).
Considering the rejected State Budget Proposal foresaw the elimination of special payments on account, the Government issued an Order (Order 92/2022-XXII, of March 2022) to waive the first installment payment, which is due on March 31st.
If the new proposal is rejected, the first installment now waived can be paid until October – the deadline for the second installment payment.
Up to now, the Special Payment on Account is payable:
- in March of each year; or
- in two installments in March and October or the third and the tenth month of the corresponding tax year if a different fiscal year applies.
The Special Payment on Account is deductible for CIT purposes in the corresponding tax year. However, if there is an excess, it is deductible during the following six fiscal years, after which it is refunded.
The special payment on account is not owed in the first and second years of activity.
Special Payment on Account is not required by taxpayers filing CIT and IES returns on time during the previous two tax years.
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