IRC - Payments on Account

IRC Corporate Income Tax 

Entities that run a main activity of commercial, industrial or agricultural nature and the non-residents with a branch in Portuguese territory will have to make IRC payments on account.

The three payments on account will have to be made before 31/July, 30/September and 15/December and shall be calculated in the following way:

a) If the turnover of the previous financial year was equal or below € 498 797,90, 70% (* up to 31/12/2008 was 75%) of the total amount of IRC, apportioned by three equal sums, rounded up to euros.

b) If the turnover was above € 498 797,90, 90% (* up to 31/12/2008 was 85%) of the total amount of IRC, also apportioned in three equal sums, rounded up to euros.

If the taxpayer verifies, through the elements in his possession, that the amount of the payment on account already made is equal or above the tax that shall be due based on the taxable amount of the financial year, he can stop making a new payment on account.

(Article 97th IRC and Article 99th IRC)

Taxpayers, whose tax to be paid is below € 24,94 and also when the IRC of the previous year was below € 199,52, are exempt from payments on account.

If payments on account are not made in the dates set down, administrative fines shall be applied and counted in the following way: until the date of payment, in case of a mere delay; until the time limit for the submission of the aforesaid form (model 22 of IRC); until the date of the payment of the self-settlement.

(Article 96th IRC and Article 97th IRC)

Please also read our information concerning special payment on account, to be made in March and October.

Calculation of the 'Payment on Account' and the 'Special Payment on Account'

Corporate Income Tax Code

.

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