The Portuguese Government made public a set of measures for the second trimester of 2020 through the communication issued by the Council of Ministers on 19 March. From a tax standpoint, such measures include a flexibility on the payment of taxes (VAT, PIT and CIT withholding payments) in the 2.º trimester of 2020.
Thus, “on the due date of the payment obligation it can be fulfilled in one of three ways: immediate payment in the usual terms, payment in instalments in three monthly instalments without interest, or in six monthly instalments, with interest for late payment applicable to the last three,” he said, adding that for payments in instalments it will not be necessary to provide any guarantee.
These measures are intended for “payments of VAT, in the monthly and quarterly regimes, and the delivery to the State of the withholding of personal and corporate income tax” and “are applicable to self-employed workers and companies with turnover of up to 10 million euros in 2018, or starting operations as of January 1, 2019”.
The remaining companies or self-employed workers may require the same flexibility in the payment of tax obligations in the second quarter, when they have seen a decrease in turnover of at least 20% in the average of the three months preceding the month in which this obligation exists, in view of the the same period last year, “he added.
Source KPMG
