The monetary devaluation indexes were approved by Ordinance no. 220/2020, of 21 September, which updates the annual monetary devaluation indexes applicable to the goods and rights disposed during 2020, whose value should be updated in accordance to articles 47 of the CIT Code and 50 of the PIT Code, for the purpose of determining the tax base of the referred taxes, in particular regarding capital gains.
The COVID-19 outbreak at the beginning of 2020 has caused an unprecedented worldwide crisis, first in healthcare, later in the economy. On the subject of the economy, although there has been much discussion about the various ways and times that the impatiently awaited recovery will occur, there are no signs of it happening in the short term, and the pandemic’s effects on the economy are likely to be felt for a long time. That also has an impact on transfer pricing, and will have (and is actually already having) important consequences on how controlled transactions are carried out within multinational groups, on how prices are determined in those transactions, and on how these issues must be addressed with the tax authorities.
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.
The new model forms 21-RFI, 22-RFI, 23-RFI and 24-RFI, which are required for the application of international double taxation conventions, were approved by Dispatch No 8363/2020 of 31 August 2020.
The Government approved some legislative changes regarding SAF-T (PT) accounting file and reporting obligation on the establishments where invoices are issued through Decree-Law no. 48/2020, of 28 August. We highlight below the principal measures.
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 enterprises
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.
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.
We recall that this obligation has been implemented by the SIMPLEX+ Programme in article 34 of Decree-Law no. 28/2019, of 15 February. Initially this obligation had to be fulfilled until 30/06/2019, later extended to 30/06/2020 by Order no. 4/2019-XXII-SEAF, of October 30.
It is thought that the measures adopted to tackle the global crisis caused by the appearance of COVID-19 will be a catalyst for foreign investors filing claims against states. While we are likely to see an increase in investment arbitration in the next few years, it is unknown what stance states will adopt in response.
