This year, when you are delivering the IRS for the year 2015, it will be much different than in the previous years. With the new IRS laws, the way the Portuguese tax authorities’ deal with this tax changed and even the delivery dates of the income statement are now different from previous years.
So many changes in one year may cause some confusion. In order to keep you organized, we tried to resume some key dates that you need to be careful to avoid losing any tax deduction or pay any fines.
Each taxpayer has until the 1th of February to query, report and verify invoices. To do this you should access the E-Factura portal and access to your personal page, where you should verify if all your invoices have been properly communicated. If you find any failure, or any invoice is not recorded, you can add these invoices to your file. It’s also important to check in which category your invoices are recorder. Please note that it’s necessary to move your invoices into the appropriate section (ie health, education, etc) otherwise the deduction will not be accepeted. These procedures need to be performed for each household expenditure holder, including dependants.
1 to March 15
Between the 1st and 15th of March, you need to check your page and if you feel the information is not correct, you can contest the calculations made by the Tax Authorities. In other words, your tax deductions will be summarized here, under family general expenses, healthcare expenses, training and education expenses, charges with property for permanent residence, invoices VAT and costs with foster homes; if your total invoices is not consistent with the one totals shown in the portal, you have this two weeks window to contest it. Please note that it’s necessary to check this for each holder.
March 15 to April 15
Contrary to what happened in previous years, when there were different deadlines for taxpayers to hand over the tax return via online or on paper, from 2016 there are only two deadlines to deliver the income tax. Between March 15 and April 15, all those who had employment income, or receiving pensions should deliver the tax return, regardless of the form they use to do it.
April 16 to May 15
Those who receive income from self-employment (sole traders), even those who have made just a single sale, have to deliver the respective tax return from the 16th of April to the 15th of May. This also applies to those that received rental income, or those that are resident and received income from foreign source.
If you have tax to receive, the settlement must be made by 31st of July. This is the deadline for the Tax Authorities to refund you.
If however you have to pay tax, you should make the payment no later than the last day of August, providing you have delivered the tax return within the time limits.
Last but not least, please remember that if you do not deliver your IRS on time, you may lose all tax deductions allowed. In the past this would only apply to those having tax debts by the last day of the previous year, but the new IRS laws, includes the loss of all tax deductions, in case of late delivery. This may also apply to your IMI – Council Tax exemption, which may be affected, in case you fail with the date for delivery of the IRS:
There are many other alterations that may affect your IRS and it may come as a surprise that filing a correct tax return in Portugal can save you money. Submitting a tax declaration does not necessarily mean that you pay tax, but may avoid you paying fines for non-compliance and offer you peace of mind.
If you have any other questions, please feel free to contact us; tax planning is critical and you and your company, cannot afford surprises. Pass by our office to discuss your personal situation and avoid any late submission fines.