IT - Bank Accounts

The new article 63rd-C was appended to the General Tax Code (Lei Geral Tributária) its contents being as follow:

Article 63rd-C - Bank accounts exclusively connected to the business activity

1 – Taxable persons of IRC and IRS that have, or should have, an organized accounting scheme are compelled to possess at least a bank account through which payments and receipts related to the conduction of the activity must be exclusively made.

2 – Supplementary contributions, other ways of loans and advances to partners, as well as other turnover to or in favour of the taxable persons, must also be made through the account or accounts referred in nr. 1.

3 – Payments related to invoices or equivalent documents amounting 20 times (or above that) the minimum monthly wages must be made through a payment that allows the identification of the addressee, namely bank transfer, not negotiable cheque or direct debit.

National Budget for 2005 - Law nr. 55-B/2004, of 30th December

As per Order 53/2005, of 15th December, to obtain the reimburse of VAT is also necessary that the tax payer has a bank account and register the IBAN Code on the DGCI Website.

This note is only for information and does not hold its divulgers responsible. For thorough information you must consult the Law.