On 22 May 2023, the Portugal’s Secretary of State for Fiscal Affairs has issued Order No. 148/2023-XXIII. This order grants a brief extension for the submission of the annual corporate tax return and payment for the year 2022. Taxpayers now have until 6 June 2023 to fulfill their obligations without incurring any penalties. Originally it was due on 31 May 2023.
Additionally, the order clarifies that taxpayers who plan to claim the 7% notional interest deduction for capital contributions in 2022 can do so in their tax return, even if the contribution’s registration is pending with the Commercial Registry Office during the submission. It’s worth noting that the 7% notional interest deduction for capital contributions up to EUR 2 million has been repealed as of 1 January 2023. In its place, a new tax incentive has been introduced, allowing for a deduction of 4.5% on a net increase in eligible equity, with an additional 0.5% for small and medium-sized enterprises (SMEs).
