Government creates exceptional payment regimes for 2022 and amends the regime of payment in instalments of taxes in pre-enforcement and enforcement phases

Exceptional instalment payment regimes for 2022

The diploma creates two exceptional instalment payment regimes effective from 01/01/2022, aimed at mitigating the adverse effects of the pandemic context.

On the one hand, the number of instalments in which tax debts under tax enforcement may be paid is extended from 36 to 60, regardless of their value, for all natural and legal persons with notorious financial difficulties.

This applies both to tax enforcement proceedings to begin on 01/01/2022 and to tax enforcement proceedings that have been initiated previously and have ongoing instalment plans, provided that, in the latter case, the taxpayers request the corresponding restructuring by 31/01/2022.

In addition, the diploma also provides for the payment in 3 or 6 monthly instalments of a value equal to or greater than EUR 25,00, without interest or penalties, of VAT and IRS and IRC withholdings for the first half of 2022.

Both natural and legal persons may access this scheme provided that they have:

i. Obtained in 2020 a turnover up to the ceiling of the qualification as micro, small and medium-sized enterprise (EUR 2M, EUR 10M and EUR 50M, respectively) and are cumulatively reporting and demonstrating a decrease in turnover reported through the E-Fatura of at least 10% of the monthly average of the full calendar year 2021 compared to the monthly average of the previous year; or

ii. Their main activity registered under the economic activity classification of accommodation, restaurants and similar, or culture; or

iii. Started or restarted the activity on or after 1 January 2021.

Regime of payment in instalments of taxes in pre-enforcement phase

This regime creates a pre-executive phase, that is, a moment between the end of the period in which the taxpayer may voluntarily comply with the obligation and the start of the tax enforcement procedure, in which the taxpayer has the possibility of paying the debt in instalments.

The request must be presented within 15 days after the deadline for voluntary payment, and the payment of the debt may be requested up to 36 monthly instalments.

The approval of payment by instalments will be subject to the provision of a suitable guarantee, which is waived in the case of i) debts of less than EUR 5.000 or EUR 10.000, depending on whether the taxpayer is a natural or legal person, respectively or ii) requests for payment in 12 or less instalments.

This regime will come into force on 01/07/2022.

Automatic payment plans for low-value debts

The diploma also sets out automatic payment plans created by the Portuguese Tax and Customs Authority, up to a limit of 36 monthly instalments, in the case of debts equal to or less than EUR 5.000 and EUR 1.000, in the case of natural and legal persons, respectively.

This regime will come into force on 01/07/2022 but will be applicable to debts overdue at an earlier date.

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