Business and Covid-19 in Europe
European Employment Law Update 2021: Flexibility and teleworking
This edition of the European Employment Law Update is perhaps one of the most innovative editions that have been published in recent years. In fact, some of the regulations analyzed in this guide seemed impossible to apply just a few years ago.COVID-19: European Commission extends and adds flexibility to temporary framework for authorization of state aid
On April 3, 2020 the European Commission announced the adoption of an amendment extending and adding flexibility to the Temporary Framework adopted on March 19, 2020 to enable Member States to give State aid for research, testing and production of coronavirus related products, and also to grant greater volumes of aid in under the categories already allowed in under the original Temporary Framework.COVID-19: European Commission adopts temporary framework to authorize State aid
On March 19, 2020, the European Commission issued a communication setting out a Temporary Framework that provides for more flexible and quicker authorization of State aid granted to support the economy in the current COVID-19 outbreak. The Temporary Framework is based on article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU), which makes it possible to authorize aid intended to remedy a serious disturbance in the economy of a Member State.COVID-19: Spanish and European Union Intellectual Property Offices announce extension of deadlines
Royal Decree No. 463/2020 declaring a state of alert in Spain to manage the COVID-19 public health crisis was published on March 14, 2020. Among other measures designed to respond to the outbreak and alleviate its consequences, all court and administrative time limits have been suspended for fifteen natural days (i.e. until March 29, 2020). This period, however, may be extended if necessary.
COVID-19: Portugal new rules on telecommuting and on the operating hours of establishments
It was published in the Portuguese Official Gazette, the Council of Ministers’ Resolution no. 101-A/2021, of 30 July, which establishes the state of calamity throughout mainland Portugal until the 11:59 hours of the 31st of August 2021 and foresees the applicable legal regime.COVID-19: payments on account and depreciations for a longer period than the maximum period established for tax purposes
In the context of the current COVID-19 pandemic, new measures were approved to enable companies to increase their cash flows.COVID-19 - Portugal: Tax obligations - new postponement of deadlines
The Government approved new extensions of deadlines to comply with the following tax obligations:COVID-19: Postponement of the deadline to submit the Modelo 22 return and others
The Government approved, through Dispatch n.º 191/2021-XXII, of 15/06, the extension of the deadlines to comply with the following tax obligations.COVID-19: The deadline to comply with the obligation to submit the transfer pricing documentation has been postponed
It has been published in the official website of the Portuguese Tax Authority, the postponement of the deadline to comply with the obligation to prepare and submit the transfer pricing file, to which large taxpayers are subject, under article 130, no. 3, of the Corporate Income Tax (IRC) Code, to July 22th, 2021 (in line with the postponement of the submission of the IES/DA).Portugal: New rules for teleworking and staggered working hours
It was published in the Official Gazette the Resolution of the Council of Ministers no 74-A/2021, June 7th, 2021, which, declared the state of calamity in mainland Portugal until 23:59 hours of June 27th, 2021 and stated the applicable rules.Portugal: New rules for teleworking regime
It was published in the Official Gazette the Resolution of the Council of Ministers no 70-B/2021, 4th July, which, among other measures, establishes new rules for teleworking regime, applicable from 14th July, 2021.COVID-19: The VAT exemption applicable to domestic and intra-Community supplies of goods needed to combat the effects of the outbreak was extended from April to December
The VAT exemption applicable to domestic supplies and intra-Community acquisitions of goods, needed to combat the effects of the COVID-19 disease by the State and other public bodies or by non-profit organizations, was extended from 30 April to 31 December 2021, by Law no. 33/2021 of 28 May.COVID-19: Portugal published a Decree-Law providing for an exceptional measure to compensate for the increase in the minimum monthly wage
The exceptional compensation measure is applicable, throughout Continental Portugal, to all employers, regardless of their legal form (as well as individuals with one or more employees), corresponding to a one-off cash subsidy paid by IAPMEI - Agência para a Competitividade e Inovação, I. P. (IAPMEI, I. P.), or by the Instituto do Turismo de Portugal, I. P. (Turismo de Portugal, I. P.).Portugal: Decree-Law amending the Regime for Support to Progressive Resumption is published
As the Government had already announced, with the publication of Decree-Law n.º 32/2021, May 12th, surgical amendments were made to Decree-Law n.º 46-A/2020, July 30th.European Employment Law Update 2021: Flexibility and teleworking
This edition of the European Employment Law Update is perhaps one of the most innovative editions that have been published in recent years. In fact, some of the regulations analyzed in this guide seemed impossible to apply just a few years ago.COVID-19: Calamity state and mandatory telework regime in all municipalities in Portugal
It was published in the Official Gazette the Resolution of the Council of Ministers no. 45-C/2021, in force since 00h00 of May 1st 2021, declaring the state of calamity in the context of the COVID-19 pandemic. Inter alia, we highlight the maintenance of the mandatory telework regime.COVID-19: New tax deadlines extensions approved in Portugal
The Portuguese Government approved, through Dispatch no. 133/2021-XXII, of 22 April, new deadlines extensions for the fulfillment of several tax obligations, without the application of any penalties.COVID-19: Termination of the general suspension of procedural periods and procedures in Portugal
As a result of the improving epidemiological situation in Portugal, and in the implementation of a government strategy for gradually lifting lockdown measures adopted within the scope of the fight against the COVID-19 pandemic, the regime for the general suspension of procedural periods and procedures established previously is now revoked.COVID-19: Extension of the exceptional and transitory work reorganization regime in Portugal
As previously announced by the Government and notwithstanding the current "deconfinement" plan being executed, Decree-Law n.º 25-A/2021, March 30th, was published in the Portuguese Official Gazette (Diário da República), under which the exceptional and transitory work reorganization regime, governed by Decree-Law n.º 79-A/2020, October 1st, was extended.COVID-19: New deferral in Portugal on the payment of VAT and IRS and IRC withholding taxes
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.COVID-19: Strengthening of the support measures for employees and employers in Portugal
Without prejudice to the “deconfinement” plan being carried out, taking into account the fragile economic and financial situation in which both employees and companies find themselves, Decree-Law n.º. 23-A/2021, March 24th was approved and published in Portuguese Official Gazette (“Diário da República”), which provides for the strengthening of the support measures, among which the following stand out:COVID-19: New deadline extension and exceptional measures affecting portuguese companies
In the context of the measures that have been adopted by the Portuguese Government to fight the COVID-19 pandemic, the Decree-Law no. 22-A/2021 was published on 17 March 2021.COVID-19: Portuguese invoices issued in PDF format used until June and February Monthly Remunerations Statement delivered by March 15
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.COVID-19: Flexibility on the payment of portuguese VAT due in December 2020 or in the last quarter of 2020 for SMEs, cultural activities, catering and accommodation services
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.Teleworkers can now benefit from the exceptional aid for families due to the suspension of in person curricular and non-curricular activities
It was published in the official gazette the Decree-Law no. 14-B/2021, of 22 February, which expanded the exceptional financial aid for families due to the suspension of in person curricular and non-curricular activities to teleworkers and increased the amount to be paid to the beneficiaries and bear by Social Security.COVID-19: new tax deadlines prorogations in Portugal
The Portuguese Government approved, through Order of SEAF no. 43/2021-XXII, of 15 February and Circular Letter no. 30232, of 17 February 2021, new deadlines extensions for the fulfillment of several tax obligations, without the application of any penalties.COVID-19: Portuguese inventory communication postponed to 28 February 2021
The obligation to communicate inventories to the Portuguese Tax Authority was postponed from 31 January to 28 February 2021 by Dispatch no. 25/2021-XXII, of 28 January.COVID-19: Return of the regime for the suspension of procedural periods and proceedings in Portugal
As a result of the exceptional worsening of the COVID-19 pandemic currently in Portugal, the Portuguese Parliament, at the proposal of the Government, approved Law No 4-B/2021, dated February 1, determining a set of exceptional, temporary and urgent measures within the scope of the development of judicial and administrative activities, basically returning to and developing measures already applied previously in the first half of 2020 when combatting the first wave of the pandemic.COVID-19: Changes to the rules on Portuguese advertising commercial practices with price reductions during the State of Emergency
Following Decree No. 3-A/2021 of 14 January which regulates the state of emergency decreed by the Portuguese President and in order to respond to the movement of people that was observed during the first days of the new confinement, the Government decided to proceed with the first amendments to the aforementioned Decree imposing more restrictive measures to face the accelerated growth of the pandemic in Portugal.New measures within the State of Emergency and amendments to the support granted to companies in Portugal
As advanced by the Portuguese Government and in order to face the new demands of a general confinement, several legal diplomas were approved and published which resulted in (i) changes to supports already in force, and (ii) the introduction of new support.COVID-19: New VAT instalment payment scheme for the first half of 2021 in Portugal
The Portuguese Government approved, through Decree-Law 103-A/2020, of 15 December, a new regime for the payment of VAT, in three or six instalments, to be implemented during the first half of 2021.COVID-19: New extraordinary and temporary measures adopted in Portugal within the area of the recovery of companies suffering financial hardship or insolvency
Law nº 75/2020, published in the Official Gazette in November 27, 2020, and in force from November 28, 2020 to December 31, 2021, has established the following:COVID-19: Payment deferment of VAT and social contributions in Portugal
New extraordinary measures to mitigate the effects of the COVID-19 pandemic were approved by Decree Law 99/2020, of 22 November, including the deferment of the VAT payment for the third quarter of 2020 and the social contributions for November and December 2020.Extraordinary VAT exemption applicable in Portugal on the purchase of goods to combat COVID-19 extended until 30 April 2021
The Portuguese Government, through SEAF Order no. 450/2020.XXI, has again extended the VAT exemption applicable to domestic supplies and intra-Community acquisitions of goods necessary to combat COVID-19 established in Article 2 of Law no. 13/2020, of 7 May, amended by Law no. 43/2020, of 18 August, now from 31 October 2020 to 30 April 2021.COVID-19: Temperature checks and diagnostic tests – new guidelines from the portuguese supervisory authority (CNPD)
On November 13, the Portuguese Data Protection Authority (Comissão Nacional de Proteção de Dados or CNPD) issued guidelines on the processing of health data regulated under Decree no. 8/2020, dated November 8, in particular, on the processing of health data carried out within the scope of (i) body temperature measurements in controlling access to workplaces, services or public institutions, education and commercial establishments, cultural or sports spaces, means of transport, residential buildings, healthcare establishments, prison establishments or centers of education and (ii) the performance of SARS-CoV-2 diagnostic tests to the data subjects listed in the aforementioned decree.COVID-19: new tax deadlines extensions in Portugal
The Portuguese Government approved, through Order of SEAF no. 437/2020.XXII and Circular letter no. 30227/2020, of 10 November, new deadlines extensions for the fulfillment of several tax obligations that we summarize in the table below and that can be complied without the application of any penalties.COVID-19: Implementation of the state of emergency in Portugal
Following the declaration of state of emergency, decreed on November 6, 2020, the Decree No. 8/2020, of November 8, was published in the Official Gazette, regulating the implementation of the state of emergency declared by the President:NPLs: Portfolio deals will increase due to COVID-19
In the wave of the COVID-19 pandemic, there has been a significant increase in debt held by both consumers and companies. Over the coming years, we expect to see a large number of debt and distressed asset deals. In this viewpoint, Garrigues provides in this documentan analysis of the debt market situation and trends in Latin America, Spain and Portugal, where there is a clear move toward greater sophistication in these deals.ATCUD postponed to 2022 but QR code still implemented in 2021
The obligation to mention the single document code (ATCUD) on all invoices and other tax relevant documents was postponed from 1 January 2021 to 1 January 2022, set forth in article 7 (3) of Decree-Law no. 28/2019 of 15 February, through Order no. 412/2020-XXII of the Secretary of State for Tax Affairs, taking into consideration the efforts that taxpayers have to make in adapting the necessary means for processing those documents to these new rules, especially in the existing pandemic context.Financing of startups in times of COVID-19: what public aid are they eligible for in Portugal?
In the current situation, obtaining finance can be key for many startups, both to cover cash needs and to be able to implement new growth projects. Therefore, it is essential to identify the public or private aid which is available to entrepreneurs. In this case, we analyze the public aid that can be found in Portugal.The exceptional readaptation of working conditions in Portuguese Companies
It has been published the Decree-Law n.º 79-A/2020, 1st October, under which the exceptional and transitory regime of work reorganization and minimization of risks of transmission of COVID-19 disease infection within labor relations is foreseen.Contingency situation entries into force: these are the labor measures already disclosed
The Portuguese Official Gazette (Diário da República) has published the Resolution of the Council of Ministers nº 70-A/2020 declaring the contingency situation throughout national mainland territory and ordering the adoption and, in some cases, renewal of exceptional measures for combatting COVID-19. These measures include changes in the remote work regime and how work is organized, which will be in force as from September 15, 2020.COVID-19: Tax measures to support micro enterprises and SMEs were approved
In order to mitigate the effects of the Covid-19 pandemic, the Portuguese Government approved, by Law no. 29/2020 of 31 July, three more fiscal measures to support micro, small and medium-sized enterprisesCovid 19: IRC periodic return can be submit and corresponding tax can be paid until August 3
IRC periodic return (Model 22) can be submitted and corresponding tax can be paid until today, without any penalty, as decided by the Portuguese Government, by Order 296/2020XXII, given the constraints presented by companies and accountants in the context of the pandemic Covid-19.COVID 19: Exceptional measures regarding payments on account
We outline below the exceptional measures that have successively been adopted to mitigate the effects of the Covid-19 pandemic in Portugal on payments on account and additional payments on account.COVID-19: The deadline of the first payment on account was postponed to independent professionals in Portugal
In the context of the extraordinary measures adopted to minimize the impact of new coronavirus (COVID-19) on the Portuguese economy, the Secretary of State for Tax Affairs, through Order no. 258/2020-XXII, of 16 June, decided to extend the deadline of the first payment on account due by taxpayers who obtain professional and business income (category B) from July 20 to August 31, without the application of any penalties.COVID-19: The deadline for the delivery of the IES of 2019 was postponed to 15 September
The deadline for the delivery of the IES/DA of 2019 was again postponed, now from 7 August to 15 September of 2020, as disclosed by Order 259/2020.XXII, of 16 July, of the SEAF, being applicable, without any charges or penalties, to taxpayers:COVID-19: The regulation on the Extraordinary Incentive for Business Regularization has been approved in Portugal
Ordinance no. 170-A/2020 of July 13th has been approved and regulates the attribution of financial support to companies during the returning phase of its employees to normal work provision and normalization of business activity.COVID-19: New postponement in the fulfillment of VAT obligations in Portugal
The Portuguese Government has approved new extensions of the tax deadlines to comply with VAT obligations, by Order no. 229/2020-XXII, of 24 June, that can may be fulfilled without the application of any penalties:COVID-19: New measures in Portugal related to simplified lay-offs and the extraordinary training plan
Two of the most important measures approved during the state of emergency were the simplified lay-offs and the extraordinary training plan. Changes have now been made to the simplified lay-off regime and other employment protection measures have been approved. It is these measures that need to be detailed and analysed.Tax Measures of Supplementary Budget Bill for 2020 in Portugal
The Portuguese Government presented a Supplementary Budget Bill for 2020 that includes several tax measures. The Supplementary Budget Bill will now enter a phase of parliamentary discussion to arrive to a final text by 3 of July.COVID-19: Exceptional measures in the area of Justice introduced by the PEES in Portugal
On June 4, 2020, through Resolution nº 41/2020, the Council of Ministers approved the Program for Economic and Social Stabilization (Programa de Estabilização Económica e Social) (“PEES”), with a time horizon up to the end of 2020.COVID-19: Exceptional measures on employment and Social Security matters are introduced by the new SESP in Portugal
It was published in the official gazette the Ministers Council Resolution no. 41/2020, of 6 de June, approving the Social and Economic Stabilization Plan (SESP) that introduces a package of exceptional measures on economic and social matters. Regarding Labor and Social Security Law, the following measures are to be highlighted:COVID-19: New de-confinement phase in Portugal introduces changes on work organization
It was published on the official gazette the Ministers Council Order no. 40-A/2020, of 29 May, extending the Calamity State under the COVID-19 pandemic and rules the new de-confinement phase in Portugal. Among other measures, it should be highlighted the amendments introduced on telework and work organization in the companies, in force from June 1st, 2020, onwards.COVID-19: Return to a situation of (new) normality in the Portuguese Courts
On May 14, 2020, the Portuguese Parliament passed Law no. 16/2020, dated May 29, making the fourth amendment to Law no. 1-A/2020, dated March 19, determining various exceptional and temporary measures in response to the epidemic caused by the SARS CoV-2 coronavirus and the COVID-19 infectious disease, affecting the area of Justice and the Courts, significantly including the suspension of procedural time limits (albeit with certain limitations and exceptions). Consult our April 7 Alert.COVID-19: Economic Support Facility – Questions and Answers
In late March and early April, the European Commission ("EC") approved two state aid packages for Portugal, within the framework of Article 107 (3) (b) of the Treaty on the Functioning of the European Union (TFEU), namely decisions SA.56755 and SA.56873, respectively. The EC considers them necessary, appropriate and proportionate measures to remedy a serious disturbance in the economy of this Member State.COVID-19: Portuguese government temporarily subjects masks and disinfectant gel to the reduced VAT rate
As announced by the Portuguese Government, Law no. 13/2020, of 7 May, was finally published, which came into force on the day after its publication and provides for the temporary application of the following VAT measures:COVID-19: From emergency to calamity – Legal and tax amendments adopted in Portugal
Throughout the three declarations of State of Emergency, Garrigues has been tracking the legislative output from the Parliament and the Government aimed at minimizing the impact of the COVID-19 pandemic on social and economic sectors.COVID-19: The steps to follow for the return to work in Portugal
The pandemic associated to the COVID-19 brought deep and substantial changes in the most diverse areas and sectors, having, in particular, provoked significant modification in the labor universe.COVID-19: Portuguese Government approved new postponement in the fulfillment of tax obligations
As we have been following, the Portuguese Government has approved several successive exceptional measures to mitigate the effects of the COVID-19 pandemic in Portugal.COVID-19: The Portuguese Data Protection Authority issued guidelines on the collection of employees' health data
The Portuguese Data Protection Authority issued guidelines (available solely in Portuguese) on the collection of employees' health data by the employer in the context of the infection prevention by the new coronavirus SARS-CoV-2, in which it clarified that:COVID-19: New exceptional and temporary measures were approved for the Portuguese Justice and Courts regarding the procedure for the service of documents
Law No 10/2020 of 18 April 2020 enacted an exceptional and temporary legal framework concerning (i) the procedure for the service of judicial documents by post provided for in the procedural laws and (ii) the parcel services, in view of the epidemiological situation caused by the SARS-CoV-2 coronavirus and the COVID-19 disease.COVID-19: Main legislative or regulatory initiatives that have been taken in Portugal
Pandemic has entered the world’s daily vocabulary in the most dramatic and unexpected way. As the severity of the situation worsens, a growing number of legislative initiatives attempt to address the needs of citizens and society in the face of the outbreak. This note is aimed at reporting on the main legislative or regulatory initiatives that have been taken in Portugal with a view, mainly, to protecting society against the spread of the new coronavirus and the effects that the pandemic causes on social and economic life.COVID-19: Competition Law’s response to the pandemic of the century
In order to prevent the spread of COVID-19, the guidelines for the entire European Union (“EU”) involve social distancing. This measure, while necessary from a public health perspective, is leaving various sectors of the economy, companies and employees on the brink of collapse. The inability to foresee how long these measures will last means that the true economic impact of this virus will only become known sometime in the future. Within this context, various legislative changes have been seen in both Portugal and the rest of the world. Competition Law has already undergone temporary but truly disruptive changes. Some of these are briefly described in this newsletter.COVID-19: Exceptional measures for the Portuguese Courts and Justice Authorities
On April 2, 2020, the Portuguese Assembly of the Republic approved Law No. 4-A/2020, dated April 6, which made the first amendment to Law No. 1-A/2020, dated March 19. The latter established various temporary and exceptional measures in response to the pandemic caused by the SARS-CoV-2 coronavirus and COVID-19 infection, affecting the area of the Portuguese Courts and Justice Authorities. From the outset, in terms of deadlines, court proceedings and entry into force, various shortcomings, inaccuracies and doubts over interpretation associated with the application of such a relevant instrument became apparent.COVID-19: European Commission extends and adds flexibility to temporary framework for authorization of state aid
On April 3, 2020 the European Commission announced the adoption of an amendment extending and adding flexibility to the Temporary Framework adopted on March 19, 2020 to enable Member States to give State aid for research, testing and production of coronavirus related products, and also to grant greater volumes of aid in under the categories already allowed in under the original Temporary Framework.COVID-19: What precautions should companies take when processing personal data within an employment context?
Within the context of the global spread of COVID-19 (Coronavirus), companies have discovered a new reality, which also raises questions within the scope of the processing of personal data, in particular the fulfillment of the General Data Protection Regulation (GDPR) and Act 46/2012, dated August 29 (Electronic Communications Privacy Act).COVID-19: Portuguese Government draft bill establishes an exceptional regime for deferral of rental payments
On March 26, 2020, the Government approved and submitted to Parliament a proposal for exceptional legislation (Draft Bill nº 21/XIV) that will allow for the deferral of the payment of rents due under lease agreements, during the emergency period of the epidemic caused by the SARSCoV-2 coronavirus and the COVID-19 infectious disease.Tax Measures in Portugal in response to COVID-19
The tax measures addressing the current COVID-19 situation are included in Decree Law 10-F/2020 of 26 March 2020 and other ad-hoc ministerial orders. We provide below an outline of those tax measures.COVID-19: Implemented regulatory solutions for the protection of the Portuguese economy
On March 26, 2020, the Portuguese Government approved Decree-Law nº 10-J/2020 (“Moratorium Regime”), putting into practice exceptional measures for protecting families, companies and welfare institutions, in relation to the weight of their debt service obligations, specifically creating a moratorium which will apply until September 30, 2020. A special regime is also created for the grant of guarantees by the Portuguese State. This Alert contains the most relevant points of the regime approved.COVID-19: European Commission adopts temporary framework to authorize State aid
On March 19, 2020, the European Commission issued a communication setting out a Temporary Framework that provides for more flexible and quicker authorization of State aid granted to support the economy in the current COVID-19 outbreak. The Temporary Framework is based on article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU), which makes it possible to authorize aid intended to remedy a serious disturbance in the economy of a Member State.COVID-19: Spanish and European Union Intellectual Property Offices announce extension of deadlines
Royal Decree No. 463/2020 declaring a state of alert in Spain to manage the COVID-19 public health crisis was published on March 14, 2020. Among other measures designed to respond to the outbreak and alleviate its consequences, all court and administrative time limits have been suspended for fifteen natural days (i.e. until March 29, 2020). This period, however, may be extended if necessary.COVID-19: Portugal approves extraordinary measures for employees and employers
Following the declaration by the Ministry of Internal Affairs and Ministry of Health of the State of Alert for the whole country, the Council of Ministers, on March 13th 2020, approved a set of measures, of extraordinary and urgent nature, in response to the epidemiological situation of the new COVID-19, having, on the same date, been published in the Official Gazette, Decree-Law n.º 10-A/2020 and Resolution of the Council of Ministers n.º 10-A/2020, as well as Ordinance n.º 71-A/2020, of March 15th 2020, being these diplomas that came to operationalize the measures announced.COVID-19: Portuguese Government postpones tax obligations and exempts employers from social security contributions
The Portuguese Government presented a set of measures in order to minimize the impact of new coronavirus (COVID-19) on the Portuguese economy at the extraordinary meeting of the Standing Committee on Social Concertation (CPCS).COVID-19: key issues to be considered for companies in Portugal
We are currently undergoing a public health crisis, caused by the new coronavirus («COVID-19»), the impact of which on the business sector could have significant legal consequences, from a contractual, dispute resolution, labor, regulatory and even criminal perspective. This broad range of potential incidents should warrant special attention and be handled from a multidisciplinary legal point of view.