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Exceptional and temporary tax measures - taxes and contributions - due to the COVID-19 pandemic

In order to mitigate the economic impact of COVID-19 and reduce the effects that any contingency measures may have, the Government approved measures to make the payment of taxes and Social Security contributions more flexible by companies and independent workers, as well as the extension of obligations tax declarations.


A. Deferred payment of VAT and RS and IRC Tax Withholding due between April and June 2020:


On the obligation's maturity date (between April 1 and June 30, 2020), the payment of taxes related to VAT (monthly or quarterly) and IRS and IRC tax withholding can be done in one of the following ways:

              a) In the usual terms, in a single installment;

              b) In three monthly payments, in installments, without interest, with no need to submit a guarantee; or

              c) In six monthly payments, in installments, without interest, with no need to submit a guarantee.


It should be noted that in the case of taxpayers wishing to activate the flexible VAT payment system and/or tax withholding under the terms of paragraphs b) or c) (whose voluntary payment deadline occurs in the 2nd quarter of 2020, that is, from 1 April to 30 June), will have to apply to the Tax Authority.


The regime described above applies to all taxable persons - Companies and Independent Workers:

  • With a turnover of up to 10 million Euros, with reference to the 2018 tax period;

  • Whose activity falls within the sectors closed under the terms of article 7 of Decree No. 2-A/2020;

  • Who started/restarted activity in 2019;

  • To the others, as long as the break exceeds 20% of the billing (mirrored in the E-invoice) compared to the average of the 3 months prior to the month of the obligation in relation to the previous homologous tax period, provided that it is certified by a Certified Accountant or Official Revisor of Accounts.



B. Extension of the deadline for compliance with tax obligations: PEC, Payment on Account and delivery of Model 22 and respective payment:


Also, in the tax filed, measures were taken related to the extension of the deadlines for compliance with tax and declaratory obligations for all taxpayers subject to these obligations:

  • The extension of the special payment on account from March 31 to June 30, 2020;

  • The extension of the delivery of the Model 22 declaration of 2019 and the payment of the IRC due, from May 31 to July 31, 2020;

  • The extension of the first payment on account and the first additional payment on account from 31 July to 31 August 2020;



C. Deferral of payment of Social Security Contributions due between March and May 2020:

Employers are entitled to pay only 1/3 of the employer's responsibility contributions on due dates, with the remaining two-thirds paid in 3 or 6 equal and successive installments:


              a) If choose 3 installments: in July, August and September 2020; or


              b) If choose 6 installments: from July to December 2020.

Companies that have already paid all of their contributions due on 20 March may still defer payment of contributions due on 20/April, 20/May and 20/June.

In order to benefit from this scheme, it is not necessary to proceed to the respective registration with the Direct Social Security Portal, but the companies must previously inform the Social Security which payment method employers intend to benefit from.

The regime described above applies to:

  • All companies up to 50 workers;

  • All companies with 50-249 workers, in case of a drop of more than 20% of the average turnover in the months of March, April and May 2020 compared to the average of the same period;

  • All companies with a total of 250 or more workers, provided that it is a private institution of social solidarity or equivalent, or that the activity of these employers falls within the sectors closed under the terms of article 7 of Decree no. 2-A/2020, of March 20, or in the sectors of aviation and tourism, and provided that they present a drop of at least 20% of the billing communicated through the e-invoice in the months of March, April and May 2020, compared to the same period of the previous year or, for those who started the activity less than 12 months ago, the average of the period of activity elapsed.


Independent Workers: Independent workers are deferred from contributions due in April, May and June 2020, which can be paid under the terms already described for employers.



D. Suspension of tax enforcement and enforcement of Social Security contributions:

Suspension, until June 30, 2020, of tax enforcement and contribution enforcement processes that are already in progress, or that may be instituted.


E. Suspension of Payment for Installment Plans in progress:

Payment deadlines for installment plans in progress with the Tax Authority and Social Security are suspended until 30 June 2020, without prejudice to taxpayers being able, willingly, to continue to voluntarily meet that same payment during this period of suspension.

Author: Ricardo Sequeira

Date: 30-03-2020

Contacts: and

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