With the entry into force of the new Special VAT Exemption Scheme (REI), amended by Decree-Law no. 35/2025, taxpayers under this regime must closely monitor their turnover. If they exceed €15,000 in the previous calendar year, they will be mandatorily subject to the normal VAT regime from 1 January of the following year..
In Portugal, VAT-registered businesses are required to comply with strict invoicing rules, including the mandatory use of invoicing software certified by the Portuguese Tax and Customs Authority (AT). This article outlines the legal framework, purpose of the requirement, and consequences of non-compliance.
When shareholders need to strengthen a company’s financial position, they typically consider shareholder loans or supplementary contributions. This article explains the key differences between these two methods and highlights the advantages of supplementary contributions under Portuguese law.
Plug-in hybrid vehicles (PHEVs) benefit from substantial tax advantages in Portugal. This article outlines the eligibility criteria and applicable tax benefits under the current Portuguese tax legislation.
The dissolution of a company in Portugal involves fulfilling various accounting and tax obligations to legally cease business activities. This article outlines the essential accounting and tax steps, deadlines, and legal requirements to ensure a compliant closure process.
The tax regime of incentive to capitalization of companies (ICE) was created by article 251 of the State Budget Law for 2023 (Law no 24-D/2022, of 30 December), through the addition to the Statute of Tax Benefits (EBF) of article 43-D.
Subsequently, this rule was amended by Article 5 of Law 20/2023 of 17 May.
Both Law 24-D/2022 of 30 December and, subsequently, Law 20/2023 of 17 May established transitional regimes for the ECI in Articles 252 and 12 respectively.
This tax benefit replaced two other schemes, the Conventional Capital Remuneration (RCCS) and the Deduction for Retained and Reinvested Profits (DLRR), since it compensates companies that promote the reinforcement of equity capital, and which had positive results in the previous year and did not distribute them.
Modelo 22 is one of the key tax obligations for companies in Portugal and includes the assessment of Corporate Income Tax (IRC) and its related surcharges. Among these, the municipal surtax (derrama) is particularly relevant for companies with operations in multiple municipalities. This article clearly explains how to calculate this surtax, based on legal principles and the proper completion of the tax return.
Income tax withholding rates applicable to employees in Portugal depend on a range of legal and personal factors that must be carefully considered by employers. This article outlines the key elements that influence these rates.
The IRS (Personal Income Tax) adjustment is an annual process that reconciles tax withheld at source during the year with the amount dueThe IRS (Personal Income Tax) adjustment is an annual process that reconciles tax withheld at source during the year with the amount due.
In the context of developing a business/commercial activity, it is common for companies to go through periods of reduced cash liquidity. In cash flow management, if there are difficulties in paying VAT, the Complementary VAT Deferral Scheme can be used, allowing the payment to be split into up to 3 instalments without penalties.
The incapacity of a Certified Accountant, whether due to death, illness, or another reason, can pose a significant challenge for companies and individuals who rely on their services.
Decree-Law No. 35/2025, of March 24, introduced significant modifications to the VAT exemption regime applicable to small businesses in Portugal.
Decree-Law No. 33/2025 introduced significant changes to the localization of service provision for VAT purposes, affecting both in-person and virtual services in sectors such as culture, art, sports, education, and entertainment.
The Portuguese Government has recently approved eight new tax simplification measures, adding them to the thirty already included in the Tax Simplification Agenda. These initiatives aim to reduce bureaucracy, facilitate tax compliance, and increase the transparency of the tax system.
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