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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case PT-2020-31/1218 Updated – measures in Portugal

Fiscal support measures to micro, small and medium businesses

Medidas fiscais de apoio às micro, pequenas e médias empresas

Country Portugal , applies nationwide
Time period Temporary, 01 August 2020 – 31 December 2021
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Deferral of payments or liabilities
Author Heloisa Perista and Maria da Paz Campos Lima (CESIS) and Eurofound
Case created 02 October 2020 (updated 10 May 2021)

Background information

The Law 29/2020, of 31 July, establishes fiscal support measures to micro, small and medium businesses, and cooperatives in the frame of the response to the new coronavirus SARS-CoV-2 and the disease COVID-19.

These measures are (article 1):

  • temporary suspension of the payment on account of the corporate income tax (IRC);
  • the possibility of reimbursement of the non-deducted part of the payment on account;
  • a maximum deadline to the reimbursement of the value-added tax (VAT), the IRC and the personal income tax (IRS).

Content of measure

The Law 29/2020, of 31 July, establishes fiscal support measures to micro, small and medium businesses, and cooperatives:

  • Temporary suspension of the payment on account of the corporate income tax (IRC) (article 2);
  • The possibility of advance reimbursement in full of the part of the payment on account that was not deducted until 2019 (article 3);
  • The definition of 15 days following the delivery of the tax declaration as the maximum deadline to the reimbursement of the value-added tax (VAT), the IRC and the personal income tax (IRS) when the amount of the deduction at source, payment on account or VAT payment are higher than the tax due (article 4).

These measures will be in force until the end of the year when the exceptional and temporary measures in response to the epidemic SARS-CoV-2 and the decease COVID-19 cease.

Updates

The following updates to this measure have been made after it came into effect.

04 May 2021

This case was updated since an official end date until 31 December 2021 for the exceptional regime of payment in instalments for tax debts was found in Decree-Law no. 24/2021 of 26 March.

19 April 2021

Decree-Law no. 24/2021 of 26 March approves an exceptional regime of payment in instalments for tax debts and social security contribution debts. The government now decides:

  1. To extend the schemes of deferral of tax obligations, particularly under the Corporate Income Tax Code.
  2. To approve an exceptional scheme of payment in instalments for tax debts and social security debts, which provides that, in instalment plans for debts relating to events occurring between 1 January and 31 March 2021 and for debts falling due in the same period, the first instalment will be paid in the second month following that in which the order authorising payment in instalments is notified. The same delay applies to the resumption of payment of instalments for plans approved before 1 January 2021.
  3. For companies in insolvency, special revitalisation process or out-of-court reorganisation regime with an approved plan and in compliance with this plan, it is foreseen the possibility of including in the ongoing reorganisation plans tax debts whose taxable event occurs between 1 January and 31 March 2021. It is also allowed that, in the same situations, if the instalment plans in progress end before 31 December 2021, the number of instalments applicable to the new debts may be extended until that date.

Use of measure

This information is not available.

Target groups

Workers Businesses Citizens
Does not apply to workers SMEs
Other businesses
Does not apply to citizens

Actors and funding

Actors Funding
National government
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Unknown

Involvement

The involvement of social partners is unknown.

Views and reactions

These views are naot known.

Sources

  • 29 August 2020: Lei n.º 29/2020
  • 26 March 2021: Decreto-Lei n.º 24/2021 (data.dre.pt)

Citation

Eurofound (2020), Fiscal support measures to micro, small and medium businesses, case PT-2020-31/1218 (measures in Portugal), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.