The Portuguese Government approved a new review to the deferral scheme foreseen for tax compliance obligations by Dispatch no. 90/2021-XXII, 16 March, which makes the tax calendar more flexible concerning the VAT payment due regarding January 2021 by taxpayers subject to the monthly regime, as well as the delivery of IRS or IRC withholding taxes due in February.
Garrigues has boosted the tax department in Portugal by taking on Miguel Pimentel to coordinate the Portuguese international taxation practice. Pimentel joins partners Pedro Miguel Braz, department director and coordinator of the Portuguese tax litigation practice, and Fernando Castro Silva, in charge of the tax advisory practice, on the task of leading a team with more than thirty practitioners. Garrigues tax department has in this way strengthened its positioning in the Iberian market: today it was recognized for another year running as Tier 1 in the Chambers Europe directory for both Portugal and Spain.
The Corporate Income Tax Law states (article 15.f) that expenses incurred to carry out activities that are against the law are not deductible. The Supreme Court concluded in a judgment delivered on February 8, 2021 that this concept should be construed narrowly.
Until the 31 March 2021, the following communications must be made to the Tax and Customs Authorities, through the start-up form or change of activity form to be submitted by electronic means:
The Portuguese Government approved a new review of the flexibility scheme on tax obligations compliance through Dispatch n.º 72/2021-XXII, of 10 March.
The new Model 56 statement was approved by Ordinance no. 50/2021, of 5 March, for the assessment and payment of the extraordinary contribution on suppliers of the National Health Service (“SNS”) of medical devices and medical devices for diagnosis in vitro and its accessories due in 2021 onwards.
On March 10, 2021, Royal Decree-Law 4/2021, of March 9, 2021, was published, which transposes Council Directive (EU) 2016/1164 of 12 July 2016, amended by Council Directive (EU) 2017/952 of 28 May 2017 (ATAD II Directive), as regards “hybrid mismatches”, and amends the corporate income tax and nonresident income tax laws.
The Portuguese Government approved, through Dispatch n.º 52/2021-XXII, of 25 February, a new review of the payment flexibility scheme for the payment of the VAT to the State, now assessed in December 2020 by the taxpayers under monthly returns or in the 4th quarter of 2020 by the taxpayers under quarterly returns.
According to various courts, claiming or not claiming tax benefits is a right not an electable tax option, so taxpayers are allowed to correct their self-assessments even after the end of the filing period for the tax concerned.