Covid-19: Tax measures and social contributions in Portugal


published on March 2020 | reading time approx. 2 minutes




The Government has approved a flexibilization in the payment of taxes and social contributions, as follows:

  • Postponement of the first Special Payment on Account of the Corporate Income Tax (CIT) from 31 March to 30 June 2020.
  • Extension of the deadline for submission of the Model 22 declaration, and payment of the CIT due, from 31 May to 31 July 2020.
  • Extension of 1st Payment on Account and of the Additional payment on Account (State Surcharge) from 31 July to 31 August 2020.
  • The situations of infection or prophylactic isolation (quarantine) declared or determined by a health authority are considered sufficient conditions for the application of the figure of fair impediment in the fulfilment of tax reporting obligations, in relation to taxpayers or certified accountants.
  • General meetings of commercial companies, associations or cooperatives that must take place by legal or statutory imposition may be held until June 30, 2020.

Regarding VAT and withholding taxes for the second quarter of 2020, the government has decided to make tax payments more flexible for companies and the self-employed.

Thus, payment obligations can be fulfilled in one of three ways:

  • immediate payment in the usual terms;
  • payment in three monthly instalments without interest, or in six monthly instalments, with interest for late payment applicable to the last three.

In addition, for payments in instalments it will not be necessary to provide any guarantee.

These measures are intended for VAT payments under the monthly and quarterly regimes, and for 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 request the same flexibility in the payment of tax obligations in the second quarter, when there has been a decrease in turnover of at least 20 per cent in the average of the three months prior to the month in which this obligation exists, compared to the same period of the previous year.


Social contributions

Regarding the social contributions due between March and May 2020, and to preserve employment, the Government has decided to reduce them to 1/3 in the months of March, April and May. The remaining amount for the months of May, June and July is settled as from the third quarter of 2020, in terms similar to the fractioned payment adopted for taxes payable in the second quarter. However, companies, if they so wish, may make immediate payment on the usual terms.


This measure applies, immediately, to companies with up to 50 jobs. Companies with up to 250 jobs can access this mechanism of reduction and fractionation of contributions in the 2nd quarter of 2020, if they have recorded a drop in turnover of 20 per cent or more.

The Government has also decided to suspend for 3 months the foreclosure procedures related with the non-payment of taxes or social security contributions.

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