The onset of July marked the implementation of a new tax simplification package, initially announced in January by the previous government and published in the Official Gazette in March.
This newly enacted legislation aims at three central objectives: reducing contextual costs, enhancing transparency and understanding of tax obligations, and improving the quality of services provided by the Tax and Customs Authority (AT), according to Pluxee Portugal, a company specializing in employee benefits.
In a statement to Notícias ao Minuto, Pluxee highlighted the “most relevant points of the decree, with an emphasis on clarification and support for corporate financial literacy.”
The main changes by tax, as outlined by the company, are as follows:
VAT – Value Added Tax
- Automatic submission of the VAT Periodic Declaration for individuals without taxable transactions
- Change in deadline for requesting VAT installment payments
- Digitization of VAT Records
- Removal of the requirement to remain in the monthly VAT regime for a period of 3 years
- Harmonization of deadlines for compliance with declarative obligations
CIT – Corporate Income Tax
- Simplification of the procedure for recognizing impairments on non-current assets
- Option to choose the regime under Article 54-A of the CIT for a permanent establishment constituted after the end of the third month of the tax period within 30 subsequent days
- Elimination of the individual taxpayer process
- Option to obtain a certificate proving the normal and habitual exercise of real estate purchase for resale activity through the Finance Portal
PIT – Personal Income Tax
- Exemption from withholding tax for amounts under €25 from certain categories of income
- Extension of the deadline for submitting Model 10 declaration
- Exemption from declaring the start of activity when there is only one taxable operation, regardless of its value
Other measures:
- Waiver of the regularization meeting within the context of a tax inspection
- Harmonization of the validity periods of debt-free certificates from the AT and Social Security
- Setting a minimum amount of €10 for Stamp Duty refunds
- Simplification of Stamp Duty payment on free transfers
- Exemption from the presentation of architectural plans in physical form for the assessment of urban buildings
- Exemption from the Export Customs Declaration
“This set of tax changes addresses longstanding concerns of the business community, by simplifying procedures, extending deadlines, and standardizing certain declarative obligations. By promoting greater predictability and reducing administrative burdens, these measures contribute to more efficient tax management,” stated Gonçalo Julião, Sales & Merchants Manager in Portugal, as quoted in the same statement.
The rule took effect on July 1, following the implementation of the tax simplification measures package announced in January by the previous government and published in the Official Gazette in March.
Lusa | 13:19 – 11/07/2025
