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Decree-Law 49/2025 of 27 March was published, introducing more than 20 measures to simplify the Portuguese tax system. This piece of legislation, which is essentially the result of the Agenda for Tax Simplification, aims to increase the competitiveness of the economy by reducing contextual costs, simplifying tax obligations, strengthening tax stability and improving tax justice. Find out about the main new features and their impact!
Highlights:
🟠 Annual Statement of Accounting and Tax Information (IES): Schedules O (VAT - Recapitulative Client Statement) and Q (Stamp Duty - Accounting and Tax Details) are eliminated;
🟠 Automatic Periodic VAT Return: In periods without taxable transactions, the return will be submitted automatically by the Tax and Customs Authority (‘AT’) system after the submission deadline;
🟠 One-off transactions: Taxpayers who have only carried out one taxable transaction are now exempt from submitting a declaration of commencement of activity;
🟠 Remittance Exports (< €1,000): They are now exempt from a customs export declaration, with the possibility of obtaining a simplified export certificate issued by the AT or a declaration from the purchaser confirming the destination of the goods to support the VAT exemption;
🟠 Frequency of the VAT framework: Opting for the monthly VAT framework no longer requires you to remain in that framework for three years;
🟠 Digital Archive: Obligation to file and keep for 10 calendar years all records and their supporting documents, including those relating to the analysis, programming and execution of processing when the accounts are kept by computerised means;
🟠 New PIT Deadlines: From 2026, the deadline for submitting Template 10 (payments not reported in the DMR), for reporting the household and for validating invoices for general family expenses (e-fatura) and professional expenses for self-employed workers is extended to the last day of February, standardising deadlines;
🟠 Exemption from withholding tax: Income from categories B, E and F is now exempt from withholding tax when the amount withheld is less than €25;
🟠 Regularisation Meeting: It is no longer compulsory to schedule a regularisation meeting, and taxpayers can accept the regularisation document submitted by the inspection officer directly on the Finance Portal.
The law comes into force (broadly) on 1 July 2025 and is a step forward in simplifying tax red tape and making the minor adjustments needed to avoid duplicate reporting.