The deadline for submitting the Personal Income Tax (IRS) has passed at the end of June. What happens to those who missed the date?
“Submitting the declaration late is a tax violation and may result in fines imposed by the Tax Authority (AT). The penalty varies depending on the delay duration and the taxpayer’s fiscal situation,” states the Saldo Positivo website of Caixa Geral de Depósitos (CGD).
Fines for Late IRS Submission
According to current legislation, “late submission of the IRS declaration may result in a fine ranging between €25 and €3,750, plus procedural costs,” which are as follows:
- Up to 30 days late, the minimum fine can be reduced to €25 if the declaration is submitted voluntarily before any AT notification;
- 30 days after the AT notification, the minimum payable increases to €37.50;
- If the Tax Authority initiates an inspection, the amount rises to €112.50;
- If the delay exceeds these deadlines and the State is harmed, the fine can range between €150 and €3,750, plus charges.
According to the same portal, “fines must be paid in full within the deadline indicated in the collection notice.”
The Personal Income Tax (IRS) must be paid by August 31 of the year in which the IRS declaration was submitted. Payment can be made in installments provided the necessary requirements and conditions are met.
“The payment can be made at any Tax Authority service point, through home banking, or at an ATM. Failure to pay within the specified deadline may lead the Tax Authority to initiate coercive collection. This could potentially mean having your name on the Tax Authority’s blacklist,” the portal explains.
In addition to fines, as Saldo Positivo highlights, there are other consequences of submitting the IRS declaration late:
- “Married or common-law taxpayers who submit the IRS declaration after June 30 lose the option for joint taxation, resulting in the obligation to declare incomes separately;
- Loss of permanent exemption from the Municipal Property Tax (IMI);
- Exclusion from social supports that require the IRS settlement note, such as the Rent Support Program or other ongoing official aids for acquiring own housing;
- Reduction of IRS reimbursement and delay in its payment. While late submission does not eliminate the right to reimbursement, the amount may be reduced or even nullified due to the fine payment.”
So, until when can you pay the IRS?
“The tax must be paid by August 31 of the year in which the IRS declaration was submitted, in case the amount payable or receivable, i.e., the settlement, was made by July 31. Or by December 31, when the settlement is made by November 30,” states the Government’s website.
The Government further explains that “various methods are available for paying taxes, whether you are in Portugal or abroad.”
