January 31, 2024
Monthly Remunerations Form (DMR)
Ordinance no. 33/2024 of 31 January was published, approving the latest model of the DMR - monthly remuneration statement - AT, and the respective filling instructions.
This form must be submitted to the Portuguese Tax Authority (AT) by the entities liable to pay income from dependent work subject to Personal Income Tax and must be sent by electronic data transmission.
January 23, 2024
Municipal Property Tax: Average Construction Value per Square Metre
Ordinance no. 16/2024 of 23 January was published, setting the average construction value per square metre, for the purposes of article 39 of the Municipal Property Tax Code, to be in force in 2024.
This decree enters into force on the day following its publication.
VAT - Food and Drink Services
The Tax Authority (AT) has published Circular Letter no 25019 dated 17 January 2024, which provides Circular Letter no 25018 dated 10 January 2024. Circular Letter no 25018 imposed a single VAT rate of 23% on menus that include soft drinks or alcoholic beverages, regardless of the different tax rates applicable to these products.
The new Circular Letter clarifies the following points:
1. Item 3.1 of List II, attached to the VAT Code, allows food and beverage services to include supplies subject to different tax rates. Therefore, when alcoholic beverages or soft drinks are provided along with the food and beverage services (such as a dish, dessert, juice, coffee, etc.), the alcoholic beverages will be subject to the intermediate rate and the soft drinks to the standard rate.
2. In cases where a single overall price is established for the supply of food and drink (e.g., menu, buffet, or events that include food and drink service) and alcoholic beverages and/or soft drinks are included, the following rules apply:
- If the invoice discriminates the services covered by the intermediate rate (e.g., dish, dessert, juice, coffee, etc.) and for alcoholic beverages or soft drinks, the services covered by the intermediate rate will be taxed at that rate, while the alcoholic beverages or soft drinks will be taxed at the standard rate.
- If a single price is indicated without a breakdown of the different tax rates, and the price includes items taxed at different rates, the normal tax rate (23%) will be applicable.
January 12, 2024
Corporate Income Tax Return - Model 22
Order no. 271/2024, of 12 January, approves the amendments to the Corporate Income Tax Return (Form 22 or “Declaração Modelo 22”), respective annexes and filing instructions.
January 10, 2024
Rectification - New Withholding Tax Tables 2024
The Rectification Statement no. 7-A/2024, rectifies the Order no. 13288-E/2023, of 29 December, which approves the withholding tax tables on income from dependent work and pensions earned by residents on the mainland for the year 2024.
January 09, 2024
Property Transfer Tax - New Rates
Following the amendments to the brackets for determining the IMT (Property Transfer Tax) rate introduced by the State Budget Law for 2024, Tax Circular no. 40121 of 4 January publishes the practical tables for that tax, effective from 1 January 2024.
January 03, 2024
New withholding tax tables – 2024
Order no. 13288-E/2023, of December 29, 2023, approves the withholding tax tables on income from dependent work and pensions earned by holders resident on the mainland for the year 2024.
These new tables bring several new features, such as:
- Across-the-board reduction in personal income tax (IRS);
- Update of the reference value of the Existence Minimum from 760 euros in 2023 to 820 euros in 2024, ensuring that anyone earning this salary will not deduct it from the IRS;
- Reduction of withholding tax for holders of rental contracts for permanent housing, as provided for in article 235 of Law no. 82/2023, which approves OE 2024;
- Number of withholding tax tables drops from 16 to 11;
- Calculation model for withholding tax has changed and been deepened.
This order comes into force on the day following its publication and takes effect from January 1, 2024.
Model Declarations 44, 39, 10 and 37
The following ordinances were published on January 3rd:
- Ordinance No. 2/2024, approves the model 44 declaration and the respective filling instructions, for the purposes of the annual communication of rents received;
- Ordinance No. 3/2024, approves the model 39 declaration on income and final withholding tax rates;
- Ordinance No. 4/2024, approves the model 10 declaration, income and withholding tax - residents, and respective filling instructions;
- Ordinance No. 5/2024, approves the model 37 declaration and respective filling instructions.
These ordinances enter into force on January 1st, 2024.
January 02, 2024
Adaptation of the rules for determining the tax result, in terms of corporate income tax
Law no. 82-A/2023 of 29 December was published, adapting the rules for determining the tax result in terms of corporate income tax.
Law 82-A/2023 amends the Corporate Income Tax Code and establishes a transitional regime for adapting the rules for determining taxable profit to the new accounting regulations applicable to the insurance sector.
The regime provided for in this law applies to all entities that are obliged to apply the Insurance Companies Chart of Accounts.
This law comes into force on 30 December 2023 and takes effect on 1 January 2023.
