The debt-free certificates issued by the Tax and Customs Authority (AT) now have a new validity period of four months.
This regulation was implemented starting July 1, following the enactment of the tax simplification measures package announced in January and published in the Official Gazette in March.
One of the laws amended by Decree-Law No. 49/2025, dated March 27, is the Code of Tax Procedure and Proceedings, which extends the validity of certificates proving a regularized tax situation from three to four months.
With this change, the validity aligns with the declarations of contributory status issued by Social Security.
For other certificates issued by the tax administration, the period remains one year, except in cases where another timeframe is specified “in special law,” as set out in Article 24 of the Code of Tax Procedure and Proceedings.
The same package of fiscal rule adjustments includes other measures to simplify deadlines and procedures regarding various taxes, including IRS, IRC, and VAT.
For instance, from now on, when the AT conducts a tax inspection of an individual taxpayer or a company, holding a regularization meeting is no longer mandatory. Instead, this step becomes optional for the taxpayer.
VAT-registered taxpayers are no longer required to submit an activity start declaration if only one taxable transaction exists. This change may be significant for some employees who occasionally issue a green receipt as independent workers.
In the IRS realm, taxpayers may now submit the Model 10 declaration by the end of February each year to declare income paid in the previous year to a specific worker, with amounts not subject to withholding tax (a common occurrence for wages paid to domestic workers).
Previously, employers had to submit the declaration by February 10. With this change, the deadline has been extended to the month’s last day (28 or 29, depending on the year).
In 2025, even before this package was published in the Official Gazette, the Government decided to extend the period for submitting Model 10, aligning the deadline with the new timeframe, anticipating the legislative solution.
Additionally, within the IRS, the new measures guarantee that taxpayers are not subject to withholding tax if they receive amounts less than 25 euros in relation to three types of income: business and professional income (such as services rendered with green receipts), real estate income (rents), and capital income (for instance, bank deposit interest and stock dividends).
