Tax Simplification Measures - Legislative changes

Real Estate Transfer Tax (IMT)

• It is highlighted the preference for electronic submission of documentation related to the tax registration value appraisal of urban properties, and exemption from submission by the taxpayer when the Municipal Council submits it directly to the Tax Authority;
• Possibility of obtaining a certificate  through the Tax Authority’ website attesting that the taxpayer has regularly and habitually engaged in the activity of purchasing real estate for resale in the two previous years, for the purpose of applying the IMT exemption.

Personal Income Tax (PIT)

• The deadline for communications regarding the composition of the household and the existence of a parental responsibility regulation agreement, as well as the submission of proof of attendance at an eligible educational institution for the purpose of excluding taxation on income earned by dependents, now due by the end of February of the year following the relevant facts.
• A withholding tax exemption for income from categories B, E, and F is established when the withholding tax amount is less than € 25 and is not final tax withholding.
• The deadline for submitting the “Modelo 44” return, for the purpose of reporting the rents received in previous year, is moved to the end of February of the year following the income year.
• The deadline for communications regarding property rents or properties used for professional or business activities, and expenses related to the acquisition of goods and services within the scope of the activity, is moved to the end of February of the year following the operations.
• The communication to be made by entities providing custody and administration services for crypto-assets or managing crypto-asset trading platforms must report operations involving crypto-assets by the end of February of the year following the operations.
• The deadline for submitting “Modelo 10” and “Modelo 37” declarations are now extend to the end of February each year.

Corporate Income Tax (CIT)

• The issuance of an invoice, in accordance with the VAT Code, is considered as the document proving the acquisition of goods or services.
• For the acceptance of impairment losses on assets due to abnormal causes, whose fiscal net value is equal to or less than € 10,000, the requirement for communication or submission of a substantiated explanation is no longer necessary.
• It is established that the option or waiver of including the taxable profit or loss attributable to a permanent establishment outside Portuguese territory can be communicated within 30 days after its establishment, if it is constituted after the end of the third month of the tax period.
• The exemption from withholding tax under CIT is extended whenever the amount of each withholding is less than € 25.

Stamp Duty

• It is established that, whenever the tax is to be settled by the Tax Authority, the respective collection or refund will only proceed if the amount is equal to or greater than € 10. Previously, this rule only provided for settlement and not for refunds.
• The obligation for both public and private entities to submit an annual stamp duty statement is repealed.

Tax procedure

• Change to the voluntary regularisation phase in the tax inspection procedure. Following the taxpayers’ request for voluntary regularisation, the Tax Authority will provide the taxpayer with a draft document with the conditions for regularisation. The taxpayer may accept such conditions or request the scheduling of a regularisation meeting.

Tax compliance

• Digital forms for submitting “Modelo 3” (PIT) and “Modelo 22” (Corporate Income Tax) returns, and the Simplified Business Information (IES), must be made available at least 90 days prior to the respective filing deadlines, compared to the previous 120-day window.