This year, before you submit your IRS for the year 2018, you need to perform some tasks as per the new habits acquired in the previous years: validating invoices, registering them, and appending information are examples of procedures that have become part of the routine of any taxpayer. Your role is important in determining your IRS deductions, therefore check the tax calendar, to make sure you don’t lose any deduction or pay any fines.
- February 25th
Each taxpayer has until the 15th 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 accepted. These procedures need to be performed for each household expenditure holder, including dependants.
- March 31st
Between the 1st and 31st 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.
- From April 1 to June 30th
This year you can submit your IRS tax declaration for 2018, from the 1st of April, until the end of June. This means that all declarations can be submitted during these three months, irrespective of your income category (employment income, pension income, self-employment income, rentals, etc.) Please note that Non-Habitual Residents, even if they’re income is only pensions, and tax exempt, still need to submit the yearly tax return in Portugal.
- July 31st
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.
- August, 31st
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. If the tax return was submitted after the deadline, payment may be made until 31st of December (fines and interest will apply).
Last but not least, please remember that if you do not deliver your IRS on time, or if you fail to meet some of the deadlines above you may lose some or all your tax deductions. Late delivery of your IRS may also cancel your IMI (Council Tax) exemption.
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.
And please remember that irrespective of your tax residency, if you have earned income from Portuguese source you need to submit the IRS tax return. This includes the sale or rental of Portuguese property.
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.