Factsheet for measure
PT-2020-31/1218
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Updated
– measures in Portugal
Fiscal support measures to micro, small and medium businesses
Medidas fiscais de apoio às micro, pequenas e médias empresas
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):
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temporary suspension of the payment on account of the corporate income tax (IRC);
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the possibility of reimbursement of the non-deducted part of the payment on account;
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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:
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Temporary suspension of the payment on account of the corporate income tax (IRC) (article 2);
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The possibility of advance reimbursement in full of the part of the payment on account that was not deducted until 2019 (article 3);
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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.
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04 May 2021
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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.
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19 April 2021
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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:
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To extend the schemes of deferral of tax obligations, particularly under the Corporate Income Tax Code.
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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.
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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.
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Use of measure
This information is not available.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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SMEs
Other businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
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No special funding required
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Unknown
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Unknown
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: Unknown
Involvement
The involvement of social partners is unknown.
Views and reactions
These views are naot known.
Sources
