The withholding taxes rates applicable in 2020 were approved
Tax Alert Portugal
The withholding tax rates applicable to employment income (category A) and pensions (category H), obtained by the resident taxpayers in mainland Portugal, during 2020, were approved by Order no. 785/2020, of Secretary of State for Fiscal Affairs, and disclosed by the Tax Authorities in Circular no. 2/2020, of 22 January.
It should be noted that the non-delivery, total or partial, of said amounts represents a tax offence according to the law, despite of the substitute's liability for the compensatory interest due from the delivery date until the end of the deadline for the submission of the corresponding return by the original responsible or until the date of delivery of the tax withheld, if previous.
The referred Order entered into force on 22 January of 2020. Therefore, said withholding tax rates should be applicable to income paid or made available to the respective beneficiaries as from the referred date.