This Monday, June 30, marks an important day in Portugal for taxpayers as several deadlines conclude. It’s the last chance to submit personal income tax returns (IRS), pay the first installment of the municipal property tax (IMI), and file the annual corporate tax return (Model 22).
Meeting this deadline is critical to avoid non-compliance with the tax authorities and potentially hefty fines.
IRS: Last Day to Submit Declaration
The deadline for taxpayers to submit their IRS declaration for 2024 income is today. Statistics from the Finance Portal indicate that, as of Friday, nearly six million declarations (5,905,651) had been submitted.
The deadline for IRS submission is June 30, pertinent for those not covered by automatic IRS, requiring them to complete and submit their declaration via the Finance Portal.
Individuals benefiting from automatic IRS will have their situation regularized even if they do not validate their declaration on the portal, as it is considered submitted on the last day.
Under current legislation, the tax authorities have until July 31 to process the submitted declarations, with reimbursements to be made by August 31.
Last year, those using automatic IRS received their reimbursements approximately 13 days after submission.
For those completing and submitting through the ‘normal’ method, the reimbursement wait exceeded 20 days last year.
This year, due to taxpayers seeing their IRS withholding reduced or nullified in September and October, any potential reimbursement will be smaller, as much of the over-withheld tax was refunded during those months.
For those with tax payable due to insufficient withholdings or income not subject to withholding, the deadline for payment is also August 31.
IMI: Last Day to Pay the First Installment or Single Payment
The deadline for property owners to pay IMI either in one installment for amounts under 100 euros or the first installment if the amount exceeds this figure also ends today.
The deadline, typically the end of May, was extended due to technical constraints linked to an outage.
By law, IMI is paid in one installment during May when under 100 euros, split into two installments in May and November when between 100 and 500 euros, and divided into three equal installments payable in May, August, and November if exceeding 500 euros.
For several years now, property owners have been able to fully settle the tax with the May payment if they choose.
Official data show that 556,011 taxpayers opted for early IMI payment in 2023.
IRC: Last Day to Submit Annual Declaration
The deadline for filing the annual corporate tax return (Model 22) also concludes today, following an extension due to the power outage at the end of April.
A Ministry of Finance note on June 9 announced the extension, considering the outage’s impact on fulfilling tax obligations.
“As announced on April 29, following the widespread power supply interruption affecting the entire Iberian Peninsula, the Government has been assessing the impact on tax compliance, adjusting the fiscal calendar as warranted,” the note stated.
Despite more than 380,000 Model 22 declarations being submitted by June 4, only about 60% of declarations filed last year were received, according to the communication.
Given this data, the Government extended the filing deadline for the IRC annual declaration to June 30, which had already been initially extended to June 16.
The Simplified Business Information (IES) submission deadline is also extended to July 25, providing companies with an additional 10 days to fulfill this declarative obligation, as stated in the note from the Ministry led by Joaquim Miranda Sarmento.
