CIT / VAT – Waive / Flexibility of payments

In brief

CIT – Payments on account

Order 317/2022-XXIII, of the State Secretary of Tax Affairs, dated 14 November 2022, establishes the possibility of waiving the payment of half of the amount of the third advanced CIT payment. This concerns the tax period starting on or after 1 January 2022 and applies to the following taxpayers:

• Micro, small, medium sized companies or Small Mid Caps (the later being each individual company with less than 500 employees);
• Dominant companies in a group of companies taxed under the special regime of group taxation ("Regime Especial de Tributação de Grupos de Sociedades" or "RETGS"), provided all companies part of the group qualify as micro, small or medium sized companies and Small Mid Caps.

VAT – Flexibility of payments

Order 317/2022-XXIII, as well as Order 318/2022-XXIII, also of the Secretary of State for Tax Affairs, dated 15 November 2022, establish that taxable persons falling under the category of cooperatives, micro, small, medium or small-medium companies can benefit from the flexibility of payment of VAT in 3 or 6 monthly installments, amounting to EUR 25 or higher, under Decree-Law 125/2021, of 30 December 30, with the necessary adjustments. This applies to the VAT returns to be filed in the months of November and December 2022.

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