With the beginning of a new year, it is important to remember the deadlines for tax payments, declarations and other procedures in Portugal. Taxpayers in Portugal should note that the tax system is complex and dynamic, and changes are frequent. Understanding and keeping track of the tax calendar is therefore crucial in order to avoid late payments, fines, or even loss of tax deductions. This article provides a comprehensive tax calendar for 2023 in Portugal.
The first important date for taxpayers is January 31st. If a business activity was VAT exempt under article 53 in the previous year but exceeded the VAT threshold in 2022, it is necessary to change the VAT status. Conversely, if a taxpayer was paying VAT but did not exceed the threshold in 2022 and wishes to become exempt, the same deadline applies. It is essential to note that the VAT threshold for 2022 was €12,500 and will increase in 2023 to €13,500. The VAT threshold applies to business income, regardless of the number of activities one may have.
Taxpayers with a rental contract and who are not obliged to issue monthly rental receipts have until January 31st to declare their yearly rental income for 2022. Failure to meet this deadline may lead to fines and other penalties.
In February, all taxpayers have until the 25th to query, report and verify invoices. To do this, access the e-Factura portal and verify that all invoices have been properly communicated. If there is a failure or any invoice is not recorded, the taxpayer can add it to their file. Taxpayers should also ensure that invoices are recorded under the appropriate category (e.g. health, education), otherwise, the deduction will not be accepted. These procedures must be carried out for each household expenditure holder, including dependents.
It is also important to update or register one’s household for tax purposes before February 15th. This may be important not only for tax purposes but also for other related matters such as enrolment in schools, kindergarten, and other tax benefits.
The end of March is the deadline for those who became residents of Portugal in 2022 and wish to apply for the Non-Habitual Residency scheme. Applications must be submitted via the tax portal.
During March, taxpayers must also check their e-fatura page at the tax portal. If the information is incorrect, it is possible to challenge the calculations made by the Tax Authorities. Invoices will be summarized here, including family general expenses, healthcare expenses, training and education expenses, charges with property for permanent residence, invoices VAT, and costs with foster homes. Taxpayers should verify that the total invoices are consistent with those shown in the portal. This check is required for each taxpayer.
The submission period for IRS (Personal Income Tax) declaration for 2022 begins on April 1st and runs until the end of June. All declarations can be submitted during these three months, irrespective of one’s income category (employment income, pension income, self-employment income, rentals, etc.).
It is important to note that all residents, including Non-Habitual Residents, must submit a tax return, even if they did not receive any income or do not have any tax to pay. Non-residents who have income from Portuguese sources, such as property rentals or sale of property, must also submit a tax return.
The first installment of the IMI council tax is due in May. If the council tax is lower than €100, this will be the only payment date to remember. However, if the tax is higher, it is necessary to note the other installment dates in August and November.
It’s important to stay on top of your tax obligations to avoid unnecessary penalties and fines. In Portugal, there are various tax deadlines that individuals and businesses need to be aware of.
Don’t forget to submit your IRS (Personal Income Tax) for 2022 by the end of June. Failure to do so may result in the loss of some or all of your tax deductions, as well as the cancellation of your IMI (Council Tax) exemption.
If you’re entitled to a tax refund, the Tax Authorities will pay you by the 31st of July.
If you have IRS tax to pay, make sure to pay it by the last day of August, provided that you’ve submitted your tax return within the deadlines. If you submitted your tax return after the deadline, payment may be made until the 31st of December, but fines and interest will apply.
Additionally, the second installment of the IMI council tax is due this month. This applies to those whose yearly IMI payment is higher than 500€ per taxpayer.
If you have AIMI (additional council tax) to pay, make sure to pay it by the end of September. Keep in mind that all properties owned by companies are liable for AIMI payment. Individual owners are only exempt from AIMI on the first 600 thousand Euros worth of property based on the tax value, not on the commercial value.
Pay the third and last installment of the IMI council tax by the end of November. This applies to those whose yearly IMI payment is higher than 100€ per taxpayer.
If you have a business activity, you’re required to issue invoices within five days of providing the service or receiving funds. Additionally, all monthly invoices must be reported to the tax authorities (SAFT file) by the 5th of each month, with a 3-day tolerance. Note that the deadline used to be the 12th, and from 2023, the Tax Authorities will be more strict and impose fines for late issuance of invoices or late submission of the monthly invoice file. This deadline also includes invoices related to rentals (AL).
You must issue monthly rental receipts every month if you have a rental contract registered.
Car tax must be paid by the last day of the month in which the car was registered. Fines for late payment of car tax are high.
If you have a business activity, you must submit a social security declaration every quarter to determine how much social security you’ll pay each month in the following quarter.