On Mar. 27, POR GVT issued decree implementing simplification agenda.
POR GVT issued Decree Law 49/2025 on tax simplification measures, amending, in particular, Tax Benefits Statute, Tax Procedure Code, VAT Code and other legal acts.
On the same day, POR Tax announced its issuance and provided text on its website.
Context and Scope
Promoting Portuguese economy competitiveness by reducing costs to comply with tax obligations, via significant tax simplification, strengthening tax stability, reformulating tax justice, is important objective enshrined in Programme of XXIV Constitutional GVT.
Council of Ministers of Jan. 16, 2025 approved Agenda for Tax Simplification which is ongoing process and also announced 30 measures from a broader agenda.
To better serve taxpayers, individuals/companies, reduce costs, increase transparency and understanding of tax obligations, improve quality of services provided by POR Tax.
DL approves changes essential for rapid implementation of several agenda measures.
Key Aspects
In particular, among measures to reduce costs, highlights elimination of declarative redundancies, namely those contained in Simplified Business Information (IES) form.
Also immediate elimination of annexes Q and O, relating, respectively, to Annual Stamp Duty Declaration and Customer Summary Report (VAT).
The reporting obligations of resident taxable persons in relation to savings income in form of interest paid in another EU State or in certain third countries and associated or dependent territories of a Member State are also eliminated.
With same goal expects that, in case of taxable persons without taxable transactions, periodic VAT declaration will be submitted automatically, also proceeding with the dematerialization of VAT records for taxable persons not having organized accounting.
To increase exports, simplify customs, tax formalities for postal and express shipments of goods worth less €1,000, waived submission of export customs declaration to get respective exit certification, with VAT exemption and right to deduct the tax paid.
For that purpose, a simplified export certificate issued by the POR Tax is provided for.
Excessive or disproportionate obligations also eliminated e.g. withholding tax when results in reduced amount, its waiver is foreseen when amounts below €25 involved.
Several measures seek to ensure greater transparency, understanding of tax duties.
Firstly, harmonization of various deadlines to fulfill reporting obligations, particularly in terms of IRS (income tax), which will be moved to end of Feb.
Validity periods of certificates of regularized tax and contribution status - commonly known as certificates of no debt to social security and POR Tax - also harmonized.
To improve quality of services provided, requirement for a regularization meeting at tax inspection eliminated, without prejudice to being held at taxpayer's option/request.
DL introduces +20 measures, 12 of which correspond to measures announced in Tax Simplification Agenda, with remaining also included in agenda to simplify procedures.
Latter e.g. recognizing impairments in non-current assets, changing quarterly/monthly periods in VAT or simplifying reporting obligations e.g. extending exemption from declaration of commencement of activity when only one taxable transaction.
Or extending deadline of Model 10 or exempting submission of plans in physical form.
In drafting the measures and work within scope of Agenda for Tax Simplification, 18 entities (social partners, relevant organizations in taxation sector) participated.
All legal acts affected by the new measures are listed in its article 1 (13 in total).
Effectiveness
The DL enters into force on Jul.1, 2025; provisions of arts 29-A, 46, 50, 65, 67 of VAT Code, as amended, apply to passive and active transactions carried out from Jul. 1.
Several measures have been repealed, are listed in article 17 of the new decree law.
In Apr. 2025, POR Tax issued circular letter 25066/2025 on VAT measures, #251205.
Regulators
POR GVT; POR Tax
Entity Types
Auditor; CNSM; Corp
Reference
OG 61/2025, DL 49/2025, PR, 3/27/2025; Citation: Decree Law 49/2025;
