Tax grace extends to H1 2022

 In Covid-19, News, Tax

The Portuguese Government is to allow companies in certain sectors in tax arrears because of Covid-19 to continue paying them off in instalments.

Companies in the restaurant and hospitality sectors, culture and entertainments and micro and SMEs which have suffered a 10% fall in turnover will get an extension on their grace periods to pay back IRS, IRC and VAT until the summer of 2022.
The stay on repayments, which is voluntary, was approved by the Council of Ministers on Wednesday.
Other sectors of the economy which were also affected by the pandemic are included. In practice, companies that fit the bill can pay in three or six interest-free instalments on the three taxes (IRS, IRC and VAT).
“This option is “a continuation of a number of extraordinary and urgent measures approved by the government with a view to soften the economic effects of the pandemic”, states an official source at the Ministry of Finances.