Taxpayers may request the offsetting of their tax debts against tax credits they have against the Portuguese Tax and Customs Authority

On 04 January 2022, Law No. 3/2022 was published, which set out the regime for the extinction of tax debts through offsetting against tax credits at the taxpayer’s request in relation to the following taxes:

  1. Personal Income Tax;
  2. Corporate Income Tax;
  3. Value Added Tax;
  4. Excise Duty;
  5. Municipal Property Tax;
  6. Additional to the Municipal Property Tax;
  7. Municipal Property Transfer Tax;
  8. Stamp Duty;
  9. Single Road Tax; and
  10. Motor Vehicle Tax.

Pursuant to this regime, the taxpayer may request the payment of its tax debts by offsetting them against tax credits from the moment the tax is assessed up to the end of the tax enforcement procedure.

To this end, the taxpayer must submit a request to the head of the Portuguese Tax and Customs Authority (Autoridade Tributária e Aduaneira) through the Portal das Finanças, specifying the credits and debts that are subject to offsetting.

Once the request for offsetting is submitted, the Portuguese Tax and Customs Authority must issue a decision within 10 days.

Should there be no decision within the deadline, the request will be tacitly granted.

This regime will come into force on 01 July 2022.

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