On 9 March 2020, the Government of Portugal issued Order no. 104/2020-XXII to introduce several tax measures in response to the COVID-19 pandemic. The key tax measures are following:
- Extended the deadline for first installment of special payment on account from 31 March to 30 June 2020;
- Extended the annual income tax return submission deadline from 31 May 2020 to 31 July 2020
- Extended the deadline for first installment of payment on account from 31 July 2020 to 31 August 2020; and
- In case of infection or preventative isolation of taxpayers and their accountants will be allowed for a delay to comply tax reporting obligations.
On 18 March 2020, the government declared that self-employed persons and companies with a turnover of up to EUR 10 million in fiscal year 2018 or that have started the operation after 1 January 2019, it will be allowed to delay the withholding tax (WHT) payment.
The Government will allow WHT payment in 3 installments with no late payment interest and WHT payment in 6 installments with late payment interest being due only over the last 3 installments.
Law No. 1A/2020 of 19 March 2020, was published in the official gazette and thereby adopts tax measures in a law-decree from 13 March 2020 in response to the pandemic. Tax Measures in the law provide temporary and exceptional relief for taxpayers as well as suspensions of the statute of limitations and certain judicial holidays. The effective date of the law is 13 March 2020.