COVID-19 | Support Measures for Companies and Employees Combating COVID-19 with Resilience June 2020 Index

- Updated version as of 18th June -

COVID-19 | Support measures for companies and employees Combating COVID-19 with resilience June 2020 Index

Index

Editorial Respond Respond

Recover

Thrive Recover

Thrive

Interactive Document

Index

Given the international public health emergency declared by Following a gradual removal of the confinement measures and Editorial the World Health Organization on January 30th, 2020 and the a mandatory definition of contingency plans, we are now classification of the novel Coronavirus disease (COVID-19) witnessing a progressive transition towards the Recover stage outbreak as a pandemic on March 11th, 2020, measures were of the Economy. Respond adopted to mitigate the global spread of the virus and its underlying impacts at different levels. The new measures have been focusing on revitalizing the economic fabric in order to promote a gradual return to Recover Firstly, the Portuguese Government has foremost adopted a normality. set of measures designed mainly to Respond to COVID-19, aiming to mitigate the effects of the State of emergency at In terms of VAT, for example, some measures were approved Thrive several levels, namely, protect the labor situation of employees to purchase protection material at a reduced rate. who are faced with the temporary impossibility to work due to the danger of infection, support to Families and safeguarding In addition, it is already possible to envision some financial the companies' treasury operations. incentives geared towards the Recover stage.

In that stage, such measures were primarily designed to In this new edition of the Newsletter, we present the tax and support the maintenance of employment contracts and to economic measures that enabled, in a first stage, to respond to avoid business crisis situations. the devastating effects of the pandemic and, in the subsequent stage, to accelerate the recovery and revitalization of the In the economic domain, support credit lines were made Economy. available to micro, small and medium-sized companies and various incentive systems for companies were implemented Luís Belo and changed. At the tax level, several measures were adopted, such as postponement of payments and compliance deadlines Tax Leader for tax and other reporting obligations.

Tax measures Customs measures Economic activity funding Other measures and support Index

CIT return of tax year 2019 Compliance with declarative obligations Editorial

The deadline for the filling of the CIT return with reference to A situation of infection or prophylactic isolation determined by st st tax year 2019 is postponed from May 31 to July 31 , 2020. health authorities, by certified taxpayers or accountants, in Respond compliance with accounting and tax obligations is considered to CIT Special payments on account be a fair impediment. Recover The first installment of the special payment on account of tax They should be used preferentially, to avoid visits to the year 2020 (to be made by March 31st under the applicable financial services, electronic services and telephone assistance legislation) may be made by June 30th, 2020. on the Portal das Finanças. A prior scheduling mechanism was Thrive created for situations that require face-to-face dislocation. CIT payments on account and additional payments on account Deadline for holding general meetings

The first installment of the payment on account and additional The general meetings of companies, associations or payment on account of tax year 2020 (to be made by July 31st cooperatives that must be held by legal or statutory under the applicable legislation) can be made by August 31st imposition, can be until June 30th, 2020. 2020. Deadline for submission of the Relatório Único

The delivery of the Relatório Único, by reference to the 2019 financial year is postponed to June 30th 2020. LEGISLATION AND OTHER SOURCES Submission of IES/DA  Order No. 104/2020-XXII, of March 9th  Decree-Law No. 10-A/2020, of March 13rd The submission of IES/DA for 2019 can be completed until August 7th of 2020.  Order No. 153/2020-XXII of April 24th

Tax measures Customs measures Economic activity funding Other measures and support Index

Stamp duty Editorial

The Order No. 121/2020-XXII stablished that the Stamp Duty’s declaration (“Declaração Mensal de Imposto de Selo – DMIS”) Respond is suspended throughout 2020 and it will only be applicable to the transactions or other events subject to Stamp Duty from the 1st January 2021 onwards. Recover

The payment of Stamp Duty regarding the months of January, th February and March of 2020 were postponed for April 20 Thrive 2020.

In the remaining months of the year, the corresponding payments have to be made until the 20th of the next month to which the tax obligation was incurred, through filing the Guia Multi-Imposto.

The payment of Stamp Duty regarding the months of April and th May of 2020 (which are normally paid until 20 of the next LEGISLATION AND OTHER SOURCES month) were postponed to May 25th and June 25th 2020, respectively.  Order No. 121/2020-XXII of March 24th During 2020, it will be possible to compensate the excessive  Order No. 137/2020-XXII of April 3rd Stamp Tax paid or settled, whenever the transaction is  Order No. 157/2020-XXII of May 4th cancelled or the taxable value is reduced, until January 20th th 2021.  Order No. 153/2020-XXII of April 24

Tax measures Customs measures Economic activity funding Other measures and support Index

Filing of VAT returns for the periods of February, March The submission of this amendments will not originate any Editorial and 1st quarter of 2020 penalties as long as their submission and respective payment/settlement occurs during: This measure applies to taxpayers that have: Respond • July 2020, regarding the period of February 2020; • turnover for 2019 up to EUR 10 million; or st • August 2020, regarding the period of March 2020 and the 1 Recover • have started their activity on or after 1st January 2020; or quarter of 2020.

• restarted their activity on or after 1st January 2020 and did Extension of the deadlines for the submission and the Thrive not get turnover in 2019. payment of the VAT returns relating to the periods of February, March, April and the 1st quarter of 2020 It was granted the possibility that the periodic VAT declarations referring to the periods of February and March 2020 (monthly VAT returns for the periods of February, March and April regime) and to the 1st quarter of 2020 (quarterly regime), (monthly regime) should have been submitted until April 17th, could be delivered based only on the data contained in E- May 18th and June 18th (instead of the 10th of those months). Fatura, and they must be rectified (if applicable) by submitting VAT return amendments. The VAT to be paid was postponed up to April 20th, May 25th and June 25th (instead of the 15th of those months), respectively.

On the other hand, VAT return for the 1st quarter of 2020 (quarterly regime) should have been submitted until May 22nd (instead of the 15th) and paid until May 25th (instead of 20th).

Tax measures Customs measures Economic activity funding Other measures and support Index

Pdf format invoices Postponement of “Business to Government” e-invoicing Editorial deadlines Possibility to circulate invoices in simple pdf format in April, May and June, which are treated as electronic invoices for tax Companies not qualified as micro, small or medium-sized may Respond purposes. use billing mechanisms different from e-invoicing until December 31st, 2020 (rather than April 17th, 2020), when invoicing public entities. Recover

For small and medium-sized companies the deadline was th extended to June 30 2021 and for micro companies to Thrive December 31st 2021 (instead of December 31st, 2020 for both situations).

LEGISLATION AND OTHER SOURCES

 Order No. 129/2020-XXII of March 27th

 Order No. 141/2020-XXII of April 6th

 Order No. 153/2020-XXII de April 24th

 Decree-Law no. 14-A/2020 of April 7th

Tax measures Customs measures Economic activity funding Other measures and support Index

Donations Editorial

Donations granted to hospital entities, Public Business Entities of the Regional Health Services [Entidades Públicas Respond Empresariais (EPE) dos Serviços Regionais de Saúde] and Shared Services of the Ministry of Health (SPMS – Serviços Partilhados do Ministério da Saúde), during the emergency Recover period in Portugal, are considered costs in an amount corresponding to 140%, when allocated exclusively to social purposes. Thrive

LEGISLATION AND OTHER SOURCES

 Order no. 137/2020-XXII, of April 3rd  Order No. 122/2020-XXII, of March 24th

Tax measures Customs measures Economic activity funding Other measures and support Index

Deadlines and procedural diligences The Law No. 16/2020 becomes effective 5 days after the day of Editorial its publication, which occurred in May 29th. The procedural acts deadlines, namely ongoing administrative and tax deadlines in favor of the taxpayers (such as judicial The prescription and expiration deadlines, regarding all Respond claims, administrative appeals, hierarchical appeals and processes and proceedings, are no longer suspended but are similar) that were temporarily suspended and whose original extended by the period of time in which the suspension was in term would occur: place. Recover

• During the established suspension: are now considered th overdue on the 20 business day after the implementation Thrive of the law No. 16/2020;

• After the implementation of the Law No. 16/2020:

 Are considered overdue on the 20th business day after the implementation of the law, in case they would end until that date;

 In the original date that it would normally be considered overdue, in case it would end after the 20th business day LEGISLATION AND OTHER SOURCES after the implementation of the law.

 Law No. 1-A/2020 of March 19th  Rectification Statement No. 13/2020 of March 28th  Law No. 16/2020, of May 29th

Tax measures Customs measures Economic activity funding Other measures and support Index

Installment plans and process suspension Editorial

Tax enforcement proceedings and installment plans in progress for debts to Social Security outside the scope of executive Respond proceedings must remain suspended until June 30th 2020, subject to their continued compliance with the rules. Recover

Thrive

LEGISLATION AND OTHER SOURCES

 Decree-Law No. 10-F/2020 of March 26th

Tax measures Customs measures Economic activity funding Other measures and support Index

Production, storage and marketing of alcohol Denaturation process Editorial

• The production and storage of alcohol, under a tax Exceptionally, it is foreseen that the denaturation procedure suspension regime, as well as denaturation operations, may may be, by complying with certain conditions, carried out by Respond take place outside a tax warehouse, provided that this is means of procedures other than those provided for by national previously authorised by the competent customs office; law, as long as it is previously authorised by the competent customs office. Recover • exceptionally, authorised depositaries, registered recipients and operators with the status of exempt users may produce, Alcohol will not need to undergo a denaturation process when transform, detain, receive or dispatch other products subject previously authorised by the competent customs office and in Thrive to excise duties other than alcohol, provided that this is order to avoid market disruption (or in its eminence). previously authorised by the competent customs office. Use of alcohols Packaging, marketing and labelling of alcohol With the exception of ethyl alcohol for therapeutic or sanitary Without prejudice to ensuring adequate labelling, depending on ends, the use of alcohols becomes subject to the prior opinion the risks of the product, the rules on the packaging, labelling of the Directorate-General for Health or the Directorate- and marketing of alcohol can be adjusted, depending on the General for Food and Veterinary, depending on the type of needs. product or the purpose for which it is intended.

Tax measures Customs measures Economic activity funding Other measures and support Index

Payment of taxes in installments The remaining companies or independent workers may request Editorial this measure, on the Finance Portal when they show a Flexibility in the payment of taxes for companies and self- reduction in the invoicing communicated through the E-Fatura employed workers, which allows the payment obligation to be of at least 20% on average of the three months preceding the Respond fulfilled in one of the following ways: month to which the obligation relates, in view of the same period of the previous year. • Immediate payment in the usual terms; or Recover This demonstration must be certified by the Statutory External • Payment in installments in three or six monthly installments Auditor or the Chartered Accountant. without interest. Thrive This measure covers the payments of VAT in the monthly (due up to April 15th, May 15th and June 15th) or quarterly (due up to May 20th) periods and delivery of withholding taxes due by April 20th, 20th/ May and 20th/ June.

The payment flexibility is applicable upon request on the Finance Portal (automatic validation) to:

• Self-employed workers;

• Companies with a turnover of less than EUR 10 million in the LEGISLATION AND OTHER SOURCES 2018 financial year or whose start (or restart) of activity occurred after January 1st, 2019, or whose activity falls th within the sectors closed under the terms of Article 7 of  Decree-Law No. 10-F/2020 of March 26 Decree No. 2-A/2020, of 20th March.  Rectification Statement No. 13/2020 of March 28th

Tax measures Customs measures Economic activity funding Other measures and support Index

Postponing of payment of Social Security contributions This regime also applies to employers who fulfill the following Editorial requirements: Reduction of Social Security contributions through membership in Direct Social Security in the following terms: • Total workers between 50 and 249, provided that they have Respond a drop of at least 20% in turnover compared to the same • Payment of 1/3 of the contributions of the employer's period of the previous year or, if they started the activity responsibility, due up to 20/March, 20/April and 20/May, and less than 12 months ago, compared to the average of the Recover those of independent workers, due up to 20/April, 20/May period of activity elapsed. and 20/June on the dates this obligation is due; • Have 250 workers or more and show a drop of at least 20% Thrive • Automatic activation of an installment plan (of 3 or 6 in turnover compared to the same period of the previous months) in relation to the remaining amount (remaining year or, if they started the activity less than 12 months ago 2/3), deferred for to the 2nd semester (from July inclusive). compared to the average of the period of activity elapsed, and if it falls into one of the following situations: (i) private The option for this regime is optional, meaning that immediate institution of social or similar solidarity; (ii) its activity falls payment can be made under the usual terms. within the sectors closed under the terms of Decree No. 2 A / 2020 of March 20th, or in the aviation and tourism sectors This measure is applicable to self-employed workers and to in relation to the establishment or company effectively employers in the private and social sectors up to 50 jobs, this closed; or (iii) its activity has been suspended by legislative number being measured by reference to February 2020 or administrative determination under the terms provided remuneration statement. for in Decree-Law no. 10-A / 2020 of March 13rd, in its current wording in the Basic Law for Civil Protection, approved by Law no. 27/2006 of July 3rd, in its current wording, or in the Basic Law of Health, approved by Law no. 95/2019 of September 4th, regarding the establishment or 1 Companies that have already paid all of their March contributions may still defer company effectively closed. payment of contributions due on 20/April, 20/May and 20/June.

Tax measures Customs measures Economic activity funding Other measures and support Index

Postponing of payment of Social Security contributions Contributions to the Pension Fund of Lawyers and Editorial (cont.) Solicitors

Entities that unduly benefit from the deferral of contributions Contributions to the Pension Fund of Lawyers and Solicitors Respond will have to settle all the missing installments, plus interest. may, by decision of the Board and with the favorable opinion of the General Council, defer the payment deadline for contributions, temporarily suspend their payment or Recover temporarily reduce the contribution levels to beneficiaries who have proven to have suffered a drop in income that prevents them from meeting contributory obligations due to Thrive illness or abnormal activity reduction following COVID-19. The information contradicted the disclosure of the Ministry of Labor, Solidarity and Social Security, These measures have taken effect on March 12nd 2020. which provided for the suspension and postponement of the totality (instead of only 2/3) of the payment of contributions due on March 20th, related to the month of February.

However, is maintained the possibility to activate the installment plan of the payment deadline Social Security contributions to the companies that even had not paid 1/3 of the due LEGISLATION AND OTHER SOURCES contributions in the first month of application (March or April, as applicable) have already  Decree-Law No. 10-F/2020 of March 26th regularized this situation, added with the  Rectification Statement No. 13/2020 of March 28th corresponding interests  Decree-Law No. 20-C/2020, of May 7th

Tax measures Customs measures Economic activity funding Other measures and support Index

Impact of COVID-19 outbreak in assessment of Goals in • Projects in investment phase Editorial Portugal 2020 projects • Investment settings of the initial investment project Negative impacts of the COVID-19 outbreak, resulting in a (e.g., substitution of equipment and reconfiguration of Respond non-achievement of the actions or goals set, may be deemed the investment); as force majeure reasons not attributable to the beneficiaries in the assessment of the contractual goals. Amendments may • Time plan of the investment (assuming the setting of a Recover be accepted within the following categories: timetable compatible with new expectations for the completion of the project, without any penalty); • Projects physically and financially completed Thrive • Extension of the project time plan may that exceed the • Values of the approved goals (related to job creation, approved time limits identified in the call or in specific turnover and gross value-added); regulations (e.g. beginning or interruption of projects, clarifications or allegations); • Results assessment (admitting an extension of the steady growth • Possibility of derogation of the cost that exceed the year for another year). limits or maximum supports foreseen in regulations or in the call application resulting from the financial reprogram of the project; LEGISLATION AND OTHER SOURCES • Results set in contract (indicators of implementation,  Council of Ministers release of March 20th results and value of the goals set related to job  Council of Ministers Resolution No. 11- creation, national and international turnover and gross A/2020 added value.  Technical Guidance No. 01/2020 For more information, please visit COMPETE 2020 and the do IAPMEI websites.

Tax measures Customs measures Economic activity funding Other measures and support Index

More expedite payment of financial incentives Reimbursement of expenses incurred with cancelled Editorial events The payment of the financial incentives shall be executed in the shortest period of time possible and, if needed, through Eligibility for the reimbursement of expenses incurred by Respond advance payments (up to 95% of the total incentive beneficiaries concerning events or actions cancelled or approved), which would be subsequently offset by the postponed due to COVID-19 outbreak, namely in the areas of assessment of the effective incentive to be granted without any internationalization and professional training. Recover formality for the beneficiaries (up to 60 days). Deadlines to present Portugal 2020 projects Extension of the repayment term of repayable subsidies Thrive The deadlines to present projects in the context of Portugal Extension of the repayment terms up to a 12-month period of 2020 were/will be postponed. For more information, please outstanding instalments by September 30th 2020 of repayable visit IAPMEI website. subsidies granted within the scope of the National Strategic Reference Framework (“QREN”) or Portugal 2020, without interest or other penalties.

The scope of the extension of the repayment term is widened to installments related to regularization plans agreed and the repayment plans established at the time of closure of QCAIII LEGISLATION AND OTHER SOURCES and SI QREN projects.  Council of Ministers release of March 20th  Council of Ministers Resolution No. 11-A/2020  Technical Guidance No. 01/2020  Decree-Law No. 10 L/2020 of March 26th

Tax measures Customs measures Economic activity funding Other measures and support Index

Support measures in the context of PDR 2020 Credit guarantee line of PDR 2020 Editorial

Projects ending between March 1st and June 15th 2020 will be Creation of a credit guarantee line within the scope of the automatically extended for three months. PDR 2020 Program with an allocation of EUR 300 million to Respond support of the following type of investments: The interim payments submission now allows the phasing in of the submission of expenses and the respective reimbursement. • Investments in agricultural holdings/farming – young Recover farmers; The deadlines for the calls for proposal issued by the PDR Manager are extended by 30 (thirty) days. • Investments in agricultural holdings/farming – others; Thrive Impact of COVID-19 outbreak in assessment of Goals in • Investments in agribusiness. PDR 2020 projects For more information, please visit PDR 2020 website. PDR 2020 investment projects can be concluded, regardless of the degree of execution, whether it is recognized a situation of “force majeure” as a result of the COVID-19 pandemic.

For this purpose, beneficiaries must submit the request for a “case of force majeure” to the Agriculture and Fisheries LEGISLATION AND OTHER SOURCES Financing Institute, I. P. (IFAP) and, whether applicable, formalize the last payment request until May 31st 2020.  Decree No. 81/2020 of March 26th  Council of Ministers Resolution No. 10-A/2020 For more information, please visit PDR 2020 website.  Order of the Office of the Minister of Agriculture  Decree-Law No. 10-L/2020, of March 26th  Decree No. 105-C/2020, of April 30th

Tax measures Customs measures Economic activity funding Other measures and support Index

Support measures under Mar 2020 In order to streamline the payments, the following Editorial extraordinary measures were adopted: Due to the negative impacts of COVID-19: • Whenever it is not possible to validate the payment Respond • Projects that do not achieve the approved budget and the requests in a 20-workday period back from the filing of the forecasted actions or targets will not be penalized; request, the request shall be executed as an advance payment, up to a maximum cap of 70% of the underlying Recover • Expenses incurred by beneficiaries concerning events or public subsidy; actions cancelled or postponed are eligible for reimbursement; • The beneficiaries may file payment requests based on Thrive already incurred but not paid expenses, considering that • A larger number of payment requested is allowed (up to ten the sum of advances already performed and not justified in each project); do not exceed 50% of the underlying public subsidy.

• The deadline for project conclusion is extended to 2021 given the time frame for the completion of its physical- financial execution;

• Extension of the deadlines for the submission of applications in several open calls in the scope of Local Development Strategies. LEGISLATION AND OTHER SOURCES

 Council of Ministers Resolution no. 10-A/2020  Order of the Office of the Minister of the Sea  Order No. 3651/2020, March 24th

Requirement / Who / under what Index Measures Benefits Declarative and other Observations circumstances obligations Editorial • Maintenance of the rights, duties and • The employer must have the guarantees of the employer and the contributory and tax situations Extraordinary support for the worker; regularized towards the Social maintenance of an employment • The worker is entitled to 2/3 of his Security and the Tax Authority. Respond contract through the reduction or normal gross remuneration, with a • The inclusion of new workers Form RC 3056 - DGSS Business crisis situation suspension of normal working minimum of a minimum guaranteed (during the period of granting and annex with workers’ periods or suspension of an monthly remuneration (EUR 635) and a the aforementioned support) is identification. • The total or partial stoppage of employment contract under the maximum of three times (EUR 1,905) done through the delivery of a the company's activity terms defined in the lay-off that amount; new attached file, with the Recover resulting from the interruption regime. • SS financial support in the amount of payment of support being of global supply chains, or 70% of the employee's guaranteed granted for the remaining suspension or cancellation of remuneration. period. orders; Thrive • The abrupt and sharp drop of • Support supported by IEFP; Extraordinary training plan (part- • Amount depending on the training at least 40% of the billing in The duration of the training plan time), not cumulative with hours attended, up to a limit of 50% of the 30 days prior to the must not exceed 50% of the extraordinary support for the the gross remuneration with a request to the Social Security, normal working period while it maintenance of the employment maximum limit of a guaranteed with reference to the monthly takes place. average of the two months contract, lasting one month. minimum monthly remuneration (EUR prior to that period, or 635). compared to the same period The Decree-Law No.20/2020, of of the previous year, or for Dependent on the May 1st predicts that the those who started the activity Support granted by IEFP paid once and submission of an procedures, conditions and terms less than 12 months ago at the Financial incentive to support the with the value of a guaranteed minimum application to IEFP for the of access to this support are average of that period; normalization of activity. monthly remuneration (EUR 635) per purpose of presenting the subsequently regulated by order of worker. documents that attest the • The closure of the the member of the Government business crisis situation. establishment by decision of responsible for the work field. the health Authority or due to the state of emergency. • Exemption officially Exemption applicable during the business Exemption from Social Security recognized. crisis period regarding contributions due by contributions payments (payable • Report on autonomous the employer on the remuneration of the by the employer) and workers' remuneration workers covered and members of the contributions continue to be due. statements. statutory bodies. • Payment of workers' contributions.

Tax measures Customs measures Economic activity funding Other measures and support Index

Ban on dismissal Non-compliance and restitution of support Editorial

During the period of application of the measures provided for The situations listed below imply the immediate cessation of th in Decree-Law 10-G/2020 of March 26 , rectified by the support, as well as the refund or payment, total or Respond Statement of Rectification No. 14/2020 of March 28th, as well proportional, of the amounts already received or exempted: as in the following 60 days, the employer cannot terminate employment contracts under the terms of collective dismissal (i) Dismissal, except for reasons attributable to the Recover or dismissal for extinction of the job. This measure applies to employee; (ii) non-compliance with the obligation to pay all workers and not only to those who are covered by the remuneration, (iii) non-compliance with legal, tax and social support measures. security obligations, (iv) distribution of profits, (v) non- Thrive compliance with the established terms of assumed obligations, (vi) false statements; and, (vii) providing work to the employing entity itself (if the lay-off is under contract suspension) or exceeding the established schedule (in the case of a temporary reduction in working hours).

LEGISLATION AND OTHER SOURCES

 Decree – Law No. 10-G/2020 of March 26th  Rectification Statement No. 14/2020 of March 28th  Decree – Law No. 12-A of April 6th

Requirement / Declarative and other Index Who / under what circumstances Benefits obligations

Editorial Self-employed workers Who are not pensioners and subject to contribution Extraordinary financial support (multiplied by the respective break in the billing, in percentage terms) with duration of one month, obligation by at least 3 consecutive months or 6 In the event of activity stoppage, the Respond renewable on a monthly basis up to a maximum of six months, months interpolated, for at least 12 months; and: circumstances must be proven by a declaration which the amount can reach: of the employee on oath or by a certified accountant, in the case of workers in an • Are in a proven situation of total stoppage of their • The remuneration registered as a contributory base, with a organized accounting scheme. Recover activity (or of the sector); or maximum of one IAS (EUR 438.81), when the contributory base is less than 1.5 IAS (EUR 658.21); or • Upon declaration of the certified accountant and During the period of payment of this support, themselves, are in a situation of decrease of at the employee maintains the obligation to • 2/3 of the remuneration registered as a contributory base, with least 40% of the billing in the 30 days prior to the submit the quarterly declaration. Thrive request, with reference to the monthly average of a limit of EUR 635, when the contributory base is equal to or greater than 1.5 IAS (EUR 658.21). the two months prior to that period, or compared The breakdown of invoicing may be subject to to the same period of the previous year. verification by Social Security, within one year, This support has a minimum limit of 50% of the IAS (EUR 219.41) based on information requested from the Tax Authorities, giving rise to the eventual refund The remuneration considered corresponds to: Managing partners of companies without of amounts unduly received. • Self-employed workers: the average of the contributory tax employees and others base referring to the months in which there was a record of Self-employed workers covered by the financial remuneration, in the 12 months prior to the date of filing the Managing partners of companies and members of support referred in the previous article are application; or, statutory bodies of foundations, associations or entitled to defer the payment of contributions cooperatives with functions equivalent to those, due in the months in which extraordinary • Managing partners: base remuneration declared in March 2020 without employees, who are only covered by the financial support is being paid. Social Security scheme in that nature and who, in the regarding February 2020. If there is no remuneration declared previous year, had a billing communicated to the E- in February 2020, IAS will be used as reference (i.e. EUR Fatura of less than EUR 60,000. 438.81). LEGISLATION AND OTHER SOURCES

 Decree – Law No. 12-A of April 6th  Decree – Law No. 14-F/2020 of Abril 13th  Ministerial Order No. 94-A/2020 of April 16th  Decree – Law No. 20-C/2020, of May 7th © 2020. For information, contact Deloitte & Associados, SROC, S.A. 22 Respond Extraordinary Measures to workers and family

Who/ in what Conditions to Procedure to request Exceptions/ Social Security Social Security Index Situation circumstances it is Benefits access allowance the allowance Notes contributions Website applied Editorial The employee should send

to the employer a (1)

risk to to risk declaration issued by the National Health Authority This allowance does Respond stating the prophylactic not depend on any http://www.seg- isolation. Then, the If the employee waiting period, social.pt/document Isolation allowance: employer should complete a continues his activity professional index s/10152/16819997 100% of the specific form in the Social through remote and temporary /GIT_70.docx/e69 Recover remuneration of Security website work/work from medical discharge or 40795-8bd0-4fad- reference (“Segurança Social home, cannot benefit any other Social b850- public public health Directa”), identifying all the from this allowance

and workersselfand employed Security warranty ce9e05d80283 workers in prophylactic period. isolation and enclosing al Thrive

day period due to serious period due to day the declarations from the Prophylactic Isolation Prophylactic - National Health Authority,

14 within a 5-day deadline.

Employees Workers in prophylactic isolation in isolation during a prophylactic Workers

Disease allowance: 19

- - 55% for the period until 30 days; If the worker during the prophylactic - 60% for the period isolation contracts Must have a medical between 31 days and the COVID-19 discharge proving the 90 days; No waiting period disease before the temporary incapacity to 14–day period, starts work Disease - 70% for the period receiving only 55%

and workersselfand employed between 91 days and of the remuneration 365 days; of reference

Disease caused by COVID caused Disease - 75% for the period

above 365 days. Employees

(1) http://www.seg-social.pt/documents/10152/16819997/GIT_70.docx/e6940795-8bd0-4fad-b850-ce9e05d80283

Who/ in what Conditions to Procedure to Social Security Social Security Index Situation circumstances it is Benefits access request the Exceptions/ Notes contributions Website applied allowance allowance Editorial

- Work absence 19

- considered justified; - Not applicable if remote - Extraordinary allowance work is possible; of 2/3 of the base

- If the Respond COVID

(2) remuneration, paid spouse/husband/partner is 50% by the employer working remotely, the and 50% by the social other cannot benefit from security (min. limit of this allowance; EUR 635 and max. This allowance is Recover - This allowance does not Limit of If the child is subject to social - Specific declaration depend on the number of EUR 1,905); under 12 years security completed and children and can only be - For the calculation, it is of age, with contributions as http://www.seg- presented by the receive once; considered the base any deficiency follow: 11% social.pt/document Thrive workers whose - Whether the worker has remuneration declared or chronic supported by the s/10152/21730/GF children´s schools more than one employer, in March 2020 disease, the employee + _88.doc/da6eadda were close; it is established that the regarding February allowance does 11,86% by the -adf0-4a05-86d7- - Specific application maximum support limit

employed workers employed 2020. If no base not depend on employer (50% b3ba2dc46c95 s schools were closed due due closedto s wereschools form presented by (i.e. EUR 1,905) is applied ´ remuneration was any waiting of the general the employer to the total base

Only declared in March 2020, period employer rate – remuneration paid to the the support will be 23,75%) worker by the various calculated based on the employers. The support is Minimum Guaranteed distributed proportionally, Monthly Salary (i.e. according to the weight of

whose children whose EUR 635); Exceptional Exceptional assistance to familythe the base remuneration - Public employees: the declared by each allowance is 100% paid employer. by the public entity/

Workers employer.

(2) http://www.seg-social.pt/documents/10152/21730/GF_88.doc/da6eadda-adf0-4a05-86d7-b3ba2dc46c95

-This allowance is Editorial subject to social security contributions;

19 - The amount of the - Deferral of the Respond

- - Not applicable if allowance corresponds payment of the Subject to the social remote work is

s s wereschools to 1/3 of the social contributions due in

´ security contribution possible;

(2) security incidence base the months that the COVID obligation during at - This support with reference to the Application filed by the allowance is paid, least 3 consecutive cannot be Recover first quarter of 2020 self-employed worker starting the second months during the combined with

employed workers employed (min. limit of 1 IAS – month after the end family - last 12-month the other EUR 438,81 – and max. of the allowance. period provided self limit of 2.5 IAS – EUR The payment of the supports. Thrive

whose children whose 1,907.03) contributions can closed due due to closed

Only be made during a 12-month deadline

Exceptional Exceptional assistance to the (in monthly and

Workers equal instalments)

day - Assistance to child or grand child allowance: If the child is under - 65% of the 12 years old, with remuneration of any deficiency or reference; chronic disease, the

health allowance does not

- 100%, if child depend on any employed workers employed to child or grand child child grandto child in or assistance, after the waiting period 2020 State Budget

Only comes into force

Assistance

Child/Grand assistancechild Child/Grand

period, due to a serious risk to public public to riskserious due to a period, prophylactic isolation, during isolation, 14 a prophylactic

(2) http://www.seg-social.pt/documents/10152/21730/GF_88.doc/da6eadda-adf0-4a05-86d7-b3ba2dc46c95

Tax measures Customs measures Economic activity funding Other measures and support Index

Extraordinary extension of social benefits Workers residents in Portugal subject to the Social Editorial Security legislation of another member state of the Unemployment benefits and all benefits of Social Security that European Union, the European Economic Area or guarantee subsistence minimums (e.g., solidarity supplement Switzerland Respond for the elderly and social insertion income) whose concession period or renewal term ends before June 30th, 2020, as well as Regarding workers residents in Portugal who are tied to a reassessments of the conditions for maintaining the benefits of Social Security system in another Member State of the Recover Social Security are automatically and extraordinarily extended. European Union, the European Economic Area or Switzerland, the period of teleworking provided in Portuguese nd This measure has taken effect on March 12 , 2020. territory during the exceptional and temporary measures is Thrive not taken into account. The extension is also applicable to benefits whose concession or renewal period ended in March or ends in April, May and Thus, Social Security system to which they are currently tied June 2020, inclusive. will not be changed.

Supervision of entities benefiting from supports

The beneficiary entities from the extraordinary supports must keep in their records the relevant information during three years, in order to prove the respective fulfillment of applications conditions, as well as the extensions (whether applicable). LEGISLATION AND OTHER SOURCES Domestic service workers must preserve the declaration of each employer that attests the non-performance of the work th and the non-payment of the total remuneration, during three  Decree-Law No. 10-F/2020 of March 26 years.  Rectification Statement No. 13/2020 of March 28th  Ministerial Order No. 94-A/2020 of April 16th

Tax measures Customs measures Economic activity funding Other measures and support Index

Social unprotected situations Temporary measures to strengthen unemployment Editorial protection Creation of a new financial support for people who are not necessarily covered by a Social Security regime, national or It is possible to benefit from the initial unemployment social Respond foreign, and who declare the beginning or restart of allowance, in 90 and 60 days, respectively, for workers who: independent activity to the Portuguese Tax Authority. (i) Have 90 days as dependent workers on behalf of others Recover Its attribution depends on the effects of the inclusion in the in a period of 12 months immediately before the date of Social Security regime of self-employed workers and implies unemployment; the maintenance of the activity for a minimum period of 24 Thrive months after the end of the payment of the benefit - the (ii) Have 60 days as dependent workers on behalf of others benefits paid should be refunded if the self-employed worker in a period of 12 months immediately before the date of declares the activity’ cessation before the end of this period. unemployment, whenever it has occurred due to the expiration of the fixed-term employment contract or The support is in the amount of EUR 219.41 (half of the value termination of the employment contract on the initiative of the IAS) and due from the date of submission of the of the employer during the experimental period. application, which is granted for a maximum period of two months. As such, the beneficiary must submit the application by June 30th 2020. This benefit cannot be combined with other social This support can be claimed until June 30th 2020 and cannot be benefits. combined with other social benefits.

LEGISLATION AND OTHER SOURCES

 Decree – Law No. 20-C/2020, of May 7th

Tax measures Customs measures Economic activity funding Other measures and support Index

Support measures of lease contracts Housing lease contracts Editorial

During the period of the preventive measures, it is determined These measures apply when there is a drop greater than that the expiry of the housing and non-housing lease contracts 20% of the income of: Respond is suspended, unless the renter does not object to the termination, as well as the production effects of the revocation • Renter's household of permanent residence, when the rent of the renewal of lease agreements. is greater than 35% of the total monthly income of the Recover household; As a reinforcement, a Law has been approved with effects st • Student with a lease for housing located at a distance of since April 1 that establishes an exceptional regime for Thrive situations of late rent payment under housing and non-housing more than 50 km from the permanent residence of his lease contracts. household, for frequency of educational establishment, when the rent is greater than 35% of the total monthly Thus, renters who meet these requirements can request for an income of the household. interest-free loan, before the IHRU, allowing them to bear the difference between the monthly rent due and the income corresponding to a 35% effort rate.

The landlord may also be entitled to be granted an interest- free loan before the IHRU, in order to offset the unpaid rents. LEGISLATION AND OTHER SOURCES The landlord also has the right to rescind the contract when the renter does not pay the rent due during the state of emergency period and the subsequent month within 12 months  Law No. 4-A/2020 of April 6th after the end of this period.  Ministerial order n.º 91/2020 of April 14th

Tax measures Customs measures Economic activity funding Other measures and support Index

• Guarantor of housing tenant who is a student and does not Non-housing lease contracts Editorial earn income from work, when the monthly income represents more than 35% of the monthly income of the Retail and service provision activities establishments and members of his household; catering and similar establishments which are closed (even if Respond they maintain activity through electronic commerce, • Landlord of housing lease contracts, when the income falls provision of services at distance or electronic platform or below the value of the social support index (IAS) in result home delivery) have the possibility of deferring the payment Recover from the non-payment of rents by his tenants. of rents during the state of emergency period, including the subsequent month, for the next 12 months. The statement of income loss is shown: Thrive Until September 1st, the tenant may also defer the payments • In the case of tenants, students and guarantors, by of past rents, for the months in which, under the legal comparing the income of the members of the household in provision or administrative measure approved related with the month in which the change in income occurs with the the COVID-19 disease pandemic, it was stablished the income earned in the previous month. closure of facilities or suspension of activities, or in the first subsequent month as long as it falls within that period. • In the case of landlords, by comparing the income of the members of the respective household in the month in which The period of debt settlement cannot go beyond June 2021. there is a non-payment of rents due by their tenants with the income earned in the previous month.

• In the case of self-employed workers, when the billing for LEGISLATION AND OTHER SOURCES the month prior to the drop in earnings is not representative, they may choose to demonstrate the  Law No. 4-A/2020 of April 6th decrease in earnings with reference to earnings for the same th period last year.  Law No. 4-C/2020 of April 6  Ministerial order n.º 91/2020 of April 14th  Law No. 17-C/2020, of May 19th

Tax measures Customs measures Economic activity funding Other measures and support Index

Rescue of Retirement Savings Plan To the amount reimbursed it does not apply the envisaged Editorial penalties normally applicable to the rescue of these saving The value of the Retirement Savings Plan (Planos Poupança plans given that it was subscribed until March 31th of 2020. th Reforma – PPR) may be reimbursed until September 30 2020, Respond up to the monthly limit of the social support index, provided that one of the members of the household is in one of the following situations: Recover

• Prophylactic isolation or illness as established in Decree-Law th no. 10-A/2020 of March 13 ; Thrive • Provides assistance to children or grandchildren, as established in Decree-Law no. 10-A/ 2020 of March 13th;

• In reduction of the normal period of work or in suspension of the employment contract due to business crisis;

• In a situation of unemployment registered in IEFP; or

• Eligible for the extraordinary support to the reduction economic activity of self-employed person, e.g., workers of entities whose establishment or activity has been the subject LEGISLATION AND OTHER SOURCES of a determined closure during the period of state of emergency or calamity by legal or administrative imposition.  Law No. 7/2020 of April 10th The value of the reimbursement must correspond to the value  Law No. 18/2020 of May 29th of the unit at the date of the request for reimbursement.

Tax measures Customs measures Economic activity funding Other measures and support Index

Moratorium over debt service Access terms Editorial

A moratorium over all debt service is currently in place, • Individuals – Individuals in prophylactic isolation, ill, providing assistance to children or grandchildren, in layoff applicable to mortgage and education credit, in the case of Respond individuals, as well as corporate loans (including factoring and regime or unemployed. It is also accessible to employees leasing), for sole proprietorships, solidarity institutions (IPSS) whose activity has been shut down legal or administratively or whose family income has declined by and non financial companies. Recover more than 20%. The previous moratorium in place until September 30th of 2020 • Non financial companies, sole proprietorships and st has been extended until March 31 of 2021, with the solidarity institutions (IPSS) that fulfil the following Thrive contractually defined maturities extended by that amount of conditions: (i) headquarters and activity in Portugal; (ii) time. Adherents to the moratorium are automatically covered compliance with the Banks (arrears < 90 days and not in by the extension, while the remaining individuals and entities insolvency, with suspended payments or under execution); can apply until June 30th of 2020. (iii) compliance with the Tax Authority and Social Security.

Interest and the remaining financial charges are capitalized during the period of the moratorium. The update on the 16th of June extends the moratorium by 6 additional months (until March 31st of 2021), broadens Individual negotiations with the financial institutions regarding access to citizens not residing in Portugal, encompasses partial interest and/or principal moratoriums are allowed. education and all mortgage credit and enables access to individuals whose family income has declined by over Exceptions 20%.

Loans for purposes of the acquisition of financial instruments, loans to beneficiaries of special headquarters or residency LEGISLATION AND OTHER SOURCES fixation regimes in Portugal and corporate loans for individual credit card use by the company’s bodies are excluded from the  Decree-Law No. 10-J/2020 of March 26th scope of the moratorium.  Decree-Law No. 26/2020 of June 16th

Tax measures Customs measures Economic activity funding Other measures and support Index

Exceptional regime for the payment of the insurance Exceptional regime in case of reduced activity Editorial premium The exceptional regime envisages the possibility of The exceptional insurance premium payment regime aims to renegotiating the value of premiums for the insured whose Respond guarantee that in this period of public calamity, the non- activity has been suspended or substantially reduced payment of insurance premiums will not necessarily imply (as (minimum 40% drop in billing) as a result of the measures it used to be) the non-coverage or coverage’s renewal of the adopted in response to the pandemic. Recover risk in question. When the premium has been fully paid in advance, the The insurer and the policyholder can agree on a more favorable premium reduction amount is deducted from the subsequent Thrive regime for the policyholder, namely through the payment of premium amount or returned within 10 days prior to the the premium at a date after the beginning of the coverage of termination of the insurance contract, whenever the contract the risks, by the removal of the automatic resolution or the is not extended. non-extension in case of payment absence, by fractioning the premium, among others. Scope and exceptions

In the absence of an agreement between the insured and the In case of a reduction in the activity, the exceptional regime insurer and in case of payment absence of the premium or covers insurance which subscription is related to the conduct fraction, the contract is automatically extended for 60 days, of the affected activity, namely professional indemnity maintaining the insurance coverage during that period and the insurance, general indemnity insurance, occupational insured’s obligation to pay the remaining amounts due accident insurance or assistance insurance, among others afterwards. that may cover activities.

This exceptional regime does not apply to high risk LEGISLATION AND OTHER SOURCES insurance.  Decree-Law No. 20-F/2020 of May 12th

Tax measures Customs measures Economic activity funding Other measures and support Index

Acquisition of goods necessary to fight the COVID-19 • They are intended to one of the following uses: Editorial outbreak - Distribution free of charge by the mentioned entities to Local supplies and acquisition of goods (for consideration or people affected by the COVID-19 outbreak or exposed Respond free of charge) mentioned in the annex of the Law no. 13/2020 to this risk, as well as those involved in the fight of May 7th are VAT exempt provided that: against COVID-19; Recover • They are acquired by the following entities: - Treatment of persons affected by COVID-19 outbreak or for the purposes of its prevention, provided the - State, Autonomous Regions or Local Authorities, as well goods remain in the property of the entities previously Thrive as any of their services, establishments and bodies, even mentioned. if personalized, including the public institutes; The invoices issued on the sale of those goods should - Establishments and health care units that are part of the disclose the reference to Law No. 13/2020, as a reason for National Health Care System (“NHCS”), including those the VAT exemption. that take the legal form of public entities business enterprises; This VAT exemption entitles the taxpayer the recovery of the input VAT incurred, on the goods or services acquired or - Other establishments and health care facilities of the imported in order to supply the goods exempt by the Law private or social sector, as long as they are included in the No. 13/2020. strategic plan of NHCS to fight the Covid-19 outbreak, having for this purpose contracted with the Ministry of The VAT exemption applies for the period from January 30th Health that obligation; 2020 to July 31st 2020.

- Charitable and philanthropic entities previously approved for this purposes. LEGISLATION AND OTHER SOURCES

 Law no. 13/2020, of May 7th

Tax measures Customs measures Economic activity funding Other measures and support Index

Acquisition of goods necessary to fight the COVID-19 Editorial outbreak (cont.)

In this context, the Circular Letter no. 30222 of 25 May Respond clarifies the VAT adjustment procedures to be adopted in situations where tax was assessed/self-assessed VAT on transfers of goods/intra-Community purchases of goods Recover (respectively), on the ground that at the time they were made they did not benefit from a VAT exemption. Thrive VAT reduced rate

Introduction of the VAT reduced rate to the supplies, imports and intracommunity acquisitions of the following goods:

• mouth protection masks;

• hand sanitizer with specificities contained in the Order no. LEGISLATION AND OTHER SOURCES 5335-A/2020.

The VAT reduced rate applies from May 8th to December 31st  Law no. 13/2020, of May 7th 2020.  Order no. 5335-A/2020 of May 7th  Circular Letter no. 30222 of May 25th

Tax measures Customs measures Economic activity funding Other measures and support Index

Changes to the rules and payment methods for The turnover drop and type of activity must be certified by the Editorial payments on account due in 2020 for PIT and CIT certified accountant. purposes These measures are also applicable, with the necessary Respond Flexibility of payments on account due in 2020 in the following adjustments, to companies under the Special Group Tax terms: Regime (RETGS). Recover • Payment limitation up to 50% for companies with a turnover Additionally, if taxpayers for PIT purposes are not in condition drop of more than 20% in the first half of 2020 (according to to pay the 1st and 2st installments regarding payments on E-Fatura), vis-à-vis the same period of the previous year. account for PIT purposes due in 2020, may regularize this Thrive situation, without any penalties, proceeding with the referred • Payment limitation up to 100% for companies with a payment by the deadline for the 3rd installment. turnover drop of more than 40% in the first half of 2020, compared to the average turnover in the same period of the previous year, or companies whose activity focuses on the accommodation, catering or similar sectors (>50% of the turnover is related to those activities).

LEGISLATION AND OTHER SOURCES

 Council of Ministers Resolution No. 41/2020  Draft Law no. 33/XIV of June 9th

Tax measures Customs measures Economic activity funding Other measures and support Index

Autonomous taxation This measure is only foreseen Council of Ministers Resolution Mergers and acquisitions of shares Editorial

The increase of the autonomous taxation rates by 10 p.p. for Support to small and medium Companies regarding mergers companies that compute tax losses in fiscal year 2020 will not and acquisitions through the: Respond be applicable to companies that have computed taxable profits in the previous years. • Disregard of the limit to the deduction of tax losses transmitted to the acquiring company – subject to non- Recover Report of tax losses distribution of dividends for three years; Flexibility for tax losses to be carried forward under the • Exemption from state surcharge for the first three years; Thrive following terms: and • Suspension of the reporting period count for tax losses • Possibility of acquiring of tax losses in the context of brought forward in FY’20 and FY’21 (applicable to tax losses acquisition of small and medium companies’ shares that, in computed by December 31st, 2019); the FY’20, have been considered as “companies in difficulties”, as long as: • Extension of the reporting period from five to ten years for tax losses computed in the years 2020 and 2021 (for small  The acquiring company does not distribute dividends for and medium companies the reporting period remains twelve three years; and years);  There is not a collective dismissal or dismissal as a result • Regarding tax losses computed in the fiscal years 2020 and of job dissolution for a period of three years. 2021, the increase in the limit to deduct tax losses in each fiscal year is from 70% to 80% of the companies’ taxable profit. LEGISLATION AND OTHER SOURCES

 Council of Ministers Resolution No. 41/2020  Draft Law no. 33/XIV of June 9th © 2020. For information, contact Deloitte & Associados, SROC, S.A. 37 - Non-regulated - Updated on th Recover Expected in July 3rd June 18 Other measures

Tax measures Customs measures Economic activity funding Other measures and support Index

Extraordinary Investment Tax Credit II (“Crédito Fiscal Other conditions (cumulative): Editorial Extraordinário ao Investimento II – CFEI II”) • Companies have regularly organized accounting, in th The Draft Law no 33/XIV of June 9 foresees a second accordance with accounting standards and other legal Respond version of the Extraordinary Investment Tax Credit. This tax provisions in force for the respective sector of activity; credit will allow CIT taxpayers to benefit from a tax credit of 20% of the eligible investment amounts regarding expenses • Their taxable profit is not determined by indirect methods Recover carried out between July, 1st, 2020 and June 30th, 2021, with and their tax situation is up to date; and a cap of EUR 5M. • Do not end employment contracts for three years, counted Thrive For this purpose, eligible investment expenses includes new from the date on which this benefit takes effect, under the tangible fixed assets and non consumable biologic assets, terms of collective dismissal or dissolution of the job post. acquired as new, that are put into service or use until the year-end of the tax year beginning on or after January, 1st, 2021. The acquisition of intangible assets such as development projects and industrial property expenses (with some exceptions) may also be considered as eligible.

On the other hand, assets such as cars, boats and airplanes, furniture and comfort or decoration items and construction, acquisition, repair and expansion of any buildings, except if used in productive or administrative activities, are not eligible for the investment tax credit.

The referred tax credit is deductible up to 70% of the annual LEGISLATION AND OTHER SOURCES corporate tax liability of 2020 and 2021. The amounts not used may be carried forward during the next 5 years.  Draft Law no. 33/XIV of June 9th

Tax measures Customs measures Economic activity funding Other measures and support Index

Additional solidarity contribution Editorial

Creation of an additional solidarity contribution on the banking sector, assigned to the Social Security Financial Stabilization Respond Fund, to respond to the costs of the current crisis.

Recover

Thrive

LEGISLATION AND OTHER SOURCES

 Council of Ministers Resolution No. 41/2020  Draft Law no. 33/XIV of June 9th

Tax measures Customs measures Economic activity funding Other measures and support Index

Installment plans Extraordinary business viability process Editorial Support for companies in a bankruptcy situation, Special Creation of a new extraordinary business viability process Revitalization Process (“Processo Especial de Revitalização – (“Processo Extraordinário de Viabilização das Empresas – PER”) or Extrajudicial Regime for Business Recovery (“Regime PEVE”), which can be used by companies that, following the Respond Extrajudicial Recuperação de Empresas - RERE”), with an economic crisis caused by the COVID-19 pandemic, are in a: approved plan and complying with that plan: • Difficult economic situation; or Recover • Inclusion of tax and social security debts, when the taxable th event occurred or will occur between March 9 and June • Imminent or current bankruptcy situation. 30th, 2020, in the ongoing company recovery plans, subject Thrive to the same conditions applicable to the existing recovery In order to use the new exceptional and temporary process, plans, without requirement for additional guarantees and the company: with the possibility of payment up to the maximum limit of installments missing from the approved plan; • Must not have a pending special revitalization process; and

• Allow that, in the same situations, if the ongoing installment • Has to demonstrate that it is still economically viable. plans end before December 31st, the number of installments applicable to new debts be extended until that date. This process takes priority over the proceeding and judgment of similar processes, aiming at a judicial homologation of an Insolvency proceedings agreement between companies and their creditors, achieved in an extrajudicial context. Mandatory carry out partial assessments in all pending insolvency proceedings in which there is a settlement product equal to or higher than EUR 10,000 and whose ownership is LEGISLATION AND OTHER SOURCES not controversial. This measure intends to accelerate the injection of liquidity into the economy, through the  Council of Ministers Resolution No. 41/2020 distributions of funds to the creditors in the context of insolvency proceeding.  Draft Law no. 33/XIV of June 9th

Tax measures Customs measures Economic activity funding Other measures and support Index

Export restriction Export of Personal Protective Equipment Editorial

Regarding the export of Personal Protective Equipment (PPE), It was released a Joint Order of the Ministries of Foreign whether or not originating in the European Union, such as: Affairs, Finance and Health, in order to regulate the Respond applicable procedures when obtaining an export • protective spectacles and visors (e.g., masks); authorization for certain types of PPE, listed in Annex I of the Regulation (EU) 2020/568 of 23 April. Recover • mouth-nose-protection equipment; The Portuguese Tax Authorities is in charge of the issuance • protective garments (e.g. gown, suits); of this type of authorizations through assistance and Thrive exchange of information with “INFARMED - National shall be necessary an export authorization issued by the Authority of Medicine and Health Products, I.P.” and the Portuguese Tax Authorities, upon a request of the exporter, as Directorate General for Foreign Policy of the Ministry of foreseen in the Commission Implementing Regulation (EU) no. Foreign Affairs (DGPE/MNE). 2020/568, dated April 23th 2020. Such measures are in force since April 26th and will be applicable for thirty days.

However, exports to, inter alia, Albania, Andorra, Iceland, Kosovo, Liechtenstein, Montenegro, Serbia, Switzerland, the Vatican, Ceuta or Melilla shall not be subject to this measure.

Tax measures Customs measures Economic activity funding Other measures and support Index

Certificates for Preferential Origin Importation Editorial

As per Circular Letter no. 15763 of April 23, the Customs Provided certain conditions are met, the Commission Authorities issued easing measures regarding the issuance and Decision (EU) 2020/491 of 3 April establishes an import Respond acceptance of certificates for preferential origin purposes when duties and VAT exemption on the importation of goods exporting and importing goods. needed to fight the effects of the outbreak of COVID-19. Recover This measures include the use of an approved exporter status The Customs Tax Authorities published Circular Letter no. and the acceptance of certificates of origin issued after the 15762 of April 22th in which laid down the guidelines goods have been exported, as well as the acceptance of copies determining which entities may benefit from the import Thrive of certificates of origin. duties and VAT exemptions:

Such measures only apply to certificates issued after the • State, which includes (i) The State, the Autonomous beginning of the COVID-19 crisis (i.e., 1 March 2020). Regions, Local Authorities and Public Institutes; (ii) establishments and health care units included in National Health Care System (“NHCS”) including public enterprise entities (“PEE”), (iii) other establishments and health care facilities (public or private), as long as included in the NHCS’ Strategic Plan to Fight the Covid-19 outbreak, having contracted with the Ministry of Health for this purpose;

• Charitable and philanthropic entities previously approved by the Customs Authorities.

In order to Charitable and philanthropic entities may benefit from this exemption, a previous request should be addressed to the General Director of the Tax and Customs Authority. © 2020. For information, contact Deloitte & Associados, SROC, S.A. 42 Recover Custom measures

Tax measures Customs measures Economic activity funding Other measures and support Index

Such measures are applicable to imports carried out between Control/Inspection Editorial January 30th 2020 and July 31st 2020. Without neglecting the speed clearance of the personal As per Order no. 122/2020.XXII issued by the Portuguese protective equipment (e.g. masks) and, in order to verify if Respond State of Tax Affairs, the Portuguese state agencies or other they comply with the minimum requirements for protection philanthropic organizations may import protective equipment of health and safety of users, the Customs Authorities should and relevant medical equipment on this COVID-19 pandemic carry on a previous control/inspection of those products to Recover situation with the exemption of payment of customs duties ensure they comply with the requirements foreseen in (without the payment of import duties, if applicable) according Regulation of the European Parliament and of the Council no. to Articles 74 to 80 of Council Regulation (EC) no. 1186/2009 2016/425 of 9th March 2016. Thrive of November 16th 2009, once it is considered that these are materials that are intended to be distributed free of charge to victims of disasters.

An exemption of VAT payment on those products is also applicable.

Tax measures Customs measures Economic activity funding Other measures and support Index

Within the scope of the Economic and Social Stabilization COVID Innovation / COVID R&D Editorial Program, the following measures are foreseen for the incentives area: New Productive Innovation and R&D Notices, with an allocation of EUR 220 million. Credit lines Respond Digital Commerce Increase in the volume of credit lines, guaranteed by the State Support for the SME business model digital transition (EUR until the end of the year by EUR 6,8 million, intended for Recover company financing. 40 million). Strengthening of the local production capacity of Mobilization of the Trade Modernization Fund innovative and strategic equipments Allocation of EUR 47 million to encourage and boost local Thrive Support for business, technological centers and R&D projects trade. related with the insertion of the national productive sector in Promotion of the Blue Economy value chains (allocation of EUR 80 million). Blue Employment Voucher, Blue Innovation Voucher and «PMECrescer +»: SME acceleration program Campaign to promote national fish and short marketing Allocation of EUR 20 million to provide companies with the channels (total of EUR 3,95 million). necessary skills to boost their brand to foreign markets. Support for investment in the agricultural sector ADAPTAR 2.0: Adaptation and modernization of Allocation of EUR 5.5 million for young farmers, agricultural commercial establishments business, producer groups and organizations. Version 2.0 of this program with a total allocation of EUR 100 million.

© 2020. For information, contact Deloitte & Associados, SROC, S.A. 44 In red the lines - New lines will be launched with an additional that are already amount of EUR 6.8 billion - Recover closed Credit Lines

Tax measures Customs measures Economic activity funding Other measures and support Index

New Credit Lines COVID-19 Editorial

These new credit lines represent EUR 6,2 billion of additional funding to the economy, guaranteed by the Portuguese State. For more information, please visit IAPMEI website. Respond Eligible Max. per Credit Line Amount Requirements Conditions companies company Recover • Positive net worth [A] Support for Economic Activity EUR 4.500 million (a definir o montante • Micro companies (previously only for Industry, now destinado a Micro e (less than 10 • Not being in Thrive applicable to several sectors/CAE) Pequenas Empresas) workers) difficulty at 31.12.2019 • EUR 2 • Guarantee: Up • SME (less than million to 90% of the [B] Turism EUR 900 million 250 workers) • Tax and Social (of which EUR 300 outstanding Security (Resorts and Tourist million for Micro and principal Accommodation) Small Enterprises) • Small Mid Cap contributions must (non-SME with be regularized • Counter less than 500 guarantee: workers) • Maintenance of [C] Travel Agencies, Touristic EUR 200 million 100% permanent job Animation and Event (of which EUR 75 million for Micro and Small • Mid Cap (non- until 31.12.2020 • EUR • Term of Organizations and similar Enterprises) SME with less 1,5 operations: 6 than 3.000 • Should not have million Years workers) any unsettled EUR 600 million incident with the [D] Restaurants and similar (of which EUR 270 (located in banking and the million for Micro and Portugal) mutual guarantee Small Enterprises) system

Tax measures Customs measures Economic activity funding Other measures and support Index

New Credit Lines COVID-19 (cont.) Individual entrepreneurs and companies established for less Editorial than 24 months are also eligible regardless of their net The new credit lines have the following financing conditions: worth. Respond • Maturity up to 6 years with a grace period of up to 18 For loans with maturity beyond 31st of December of 2020, months; the maximum amount may not exceed: Recover • Term of use up to 12 months; • Double of the company annual wages in 2019 or in the last available year; • Fixed or variable interest rate plus a spread between 1 to Thrive 1.5% and bank commission up to 0.5%; • 25% of the total turnover in 2019; or

• Mutual Guarantee and Counter-guarantee: • In exceptional cases, the loan amount may be increased • Micro and Small Companies - up to 90%; in the subsequent 18 months in case of SMEs and for the subsequent 12 months in case of Small Mid Cap and Mid • Medium Enterprises, Small Mid Cap and Mid Cap - up to Cap. 80%;

• Maximum Financing Amount: LEGISLATION AND OTHER SOURCES • Microenterprises - EUR 50,000;  Office of the Minister of State for Economic Affairs • Small-sized companies - EUR 500,000; and Dgital Transition release of March 20th • Medium-sized companies, Small Mid Cap and Mid Cap -  European Commission release of March 22th EUR 1,500,000.  State Aid SA.56755 (20\20/N) – Portugal In the case of Credit Lines [A] - Economic Activity and Guarantee schemes related to COVID-19 [B] - Tourism, the maximum financing support for Small  Office of the Minister of State for Economic Affairs Mid Cap and Mid Cap is EUR 2,000,000. and Digital Transition of April 10th

Tax measures Customs measures Economic activity funding Other measures and support Index

Credit Line Capitalizar with new specific endowment - Credit operations to be celebrated within the scope of this Editorial COVID-19 line benefit from an autonomous guarantee at the first request made by SMGs to guarantee up to 80% of the Creation of “Covid-19” Capitalizar credit line with a term up to capital in debt at any time. Respond 31st of May of 2020 and an allocation of EUR 400 million. In addition companies must: The new credit line comprises two support lines: Recover • Present a positive net worth in the last approved balance • Working Capital, with an allocation of EUR 320 million; sheet or present a regularized interim balance sheet at the date of the operation; Thrive • Treasury Plafond, with an allocation of EUR 80 million. • Present the negative impacts in the economic activities The maximum funding per company per support line is EUR 1.5 due to the outbreak of COVID-19 at the date of the million. Thus, each company can obtain a maximum funding contract by means of a declaration. overall of EUR 3 million. The support is given according to “first come first serves” logic. The decision is granted in 7 working days for operations up to EUR 200,000 and in 12 working days for larger amounts. The support is intend for companies regardless of their size. Large-sized companies should be at least in a situation For more information, please visit IAPMEI website and the comparable to a B-situation in credit assessment. last update of Capitalizar 2018 Credit Line disclosure document. The maximum applicable mutual guarantee fee is 0.5%.

LEGISLATION AND OTHER SOURCES

 Council of Ministers Resolution No. 10-A/2020  Ministerial Order No. 71-A/2020 of March 15th  Ministerial Order No. 76-B/2020 of March 18th

Tax measures Customs measures Economic activity funding Other measures and support Index

Credit line for micro entities in the tourism sector Reinforcement of the credit insurances guaranteed by Editorial the Portuguese State on export operations Creation of a credit line, with an allocation of EUR 60 million, to support the treasury needs of micro companies in the tourism Support customer diversification, in particular for markets Respond sector, with the following support: outside the European Union, reinforcing of the following mechanisms: • A monthly amount of EUR 750 per worker (at the date of Recover 29th of February of 2020) multiplied by a three month • Credit insurance line with state guarantee for the period. The refund occurs in a three year period with a grace metallurgical, metalworking and molding sectors: EUR 200 period of twelve months. million; Thrive

• Maximum limit of EUR 20,000. • Guarantee line with state guarantee for abroad construction projects and other export supplies: EUR 200 Flexibility of tourism financing lines million;

Suspension of reimbursements for a period of 12 months for • Credit insurance line for short-term exports: EUR 300 projects under JESSICA Program, Valorizar Program and the million. “Offer Qualification” Support Line. For more information, please visit Turismo de Portugal.

LEGISLATION AND OTHER SOURCES

 Council of Ministers Resolution No. 10-A/2020  Ministerial Order No. 71-A/2020 of March 15th  Ministerial Order No. 76-B/2020 of March 18th  Order No. 4/2020 of March 25th

Tax measures Customs measures Economic activity funding Other measures and support Index

Credit line for the fishing and aquiculture sectors Applicable requirements for companies: Editorial

Creation of a specific credit line for debt reduction purposes of • Be in an effective and licensed activity to carry out fishing, EUR 20 million under “the minimis” regime. It aims to support aquaculture or the processing and marketing of fishery Respond the fishing sector operators in the acquisition of production products; means and for settlement and debt renegotiation with suppliers or credit institutions. • Being SME with headquarters in national territory; Recover

With a validity term until December 31st 2020 the credit line • Present regularized contributory situation towards the PTA has the following characteristics: and Social Security; Thrive • Maximum amount of credit: EUR 20 million, limited to 20% • Do not qualify as a company in difficulty, as of December the beneficiary total annual sales in 2019; 31st of 2019.

• Operation deadline: maximum of 6 years; Current credit operations contracted under Decree-Law no. 116/2004 of August 5th, can also be rescheduled for another • Conditions of the operation: annual capital payments of year and the extension of the financial plan is also equal amount; accompanied by interest rate bonus, under the terms referred in the previous paragraph. • Interest rate bonus: variable according to the company's turnover (up to 100% for entities with a turnover up to EUR For more information please visit the website of IFAP. 500,000; up to 90% for entities with a higher turnover);

LEGISLATION AND OTHER SOURCES • Interest rates: gradual over the loan, equivalent to the 12- month IBOR rate, as of January 1, 2020, plus a spread of 0.25% for the first year of the loan, 0.5% for the second.  Decree-Law No.15/2020 And 3rd years and 1% for the following years.  Office of the Government of May 15th  Office of IFAP of May 15th

Tax measures Customs measures Economic activity funding Other measures and support Index

Extraordinary measures for the agricultural sector • Reinforcement of the support to all associated payments Editorial in 15%: Creation of a new package of exceptional support measures for the agricultural sector in a total of EUR 140 million aimed to - Sheep and Goat – EUR 22 per animal Respond mitigate the effects of the Covid-19 pandemic. - Suckle cow – EUR 138 per animal This measure includes a financial support instrument of EUR 85 Recover million, supported by 2% of the FEADER 2021/202 envelope - Milking cow – EUR 94 per animal which is dependent from approval by the European Commission, allowing this support to 145.000 holdings. - Tomatoes – EUR 276 per acre Thrive In this sense, the new exceptional measures package for - Rice – EUR 223 per acre support of the agricultural sector divides in the following way: • Reinforcement of measure 9 - Maintenance of • Financial support instrument of EUR 85 million that Agricultural Activity in a Disadvantaged Area (PDR2020) represents 15% of the direct payments allocated to: in EUR 25 million.

• Reinforcement of the Regime da Pequena Agricultura • Credit line for the flower sector in the amount of EUR (RPA) from EUR 600 to EUR 850; 30 million subsidized by the area of the Government of Agriculture. • Reinforcement of the redistributive payment from EUR 120 within the first 5 acres;

• Reinforcement of the support to the Regime de Pagamento Base (RPB), Greening and Pagamento Jovem LEGISLATION AND OTHER SOURCES Agricultor (PJA) in 8%.  Office of the Government of May 16th

Tax measures Customs measures Economic activity funding Other measures and support Index

Credit line INVEST RAM 2020 COVID-19 • Maximum funding amount by type of company: Editorial

Creation of a credit line, with an allocation of EUR 100 million, • Microenterprises: EUR 30,000; to support the treasury needs and as well the maintenance of Respond jobs in companies located in Madeira Region. • Small-sized companies: EUR 150,000;

st This new credit line has a term up to 31 of December of 2020 • Medium-sized companies: EUR 300,000; Recover and presents the following features: • Non-SME: EUR 600,000. • Aim: Payment of wages costs; Thrive • Limits of the financing amount: • Conditions: fully subsidized by the Regional Government (0% of interest rate), for a period of 5 years with a grace • Companies using the lay-off mechanism: 20% of the period of 18 months; monthly wages plus Social Security contributions (23.75%); • Non-refundable conversion: a part or all the credit amount may be converted on a non-refundable amount, if all the • Companies that do not use the lay-off mechanism: 40% following conditions are met: of the monthly wages plus Social Security contributions (23.75%). • Maintenance of permanent jobs for at least 18 months;

• Reduction of more than 40% in sales of companies located in Madeira island and more than 15% for LEGISLATION AND OTHER SOURCES companies based Porto Santo island (average from March to May compared to the average of the previous 90 days  INVEST RAM 2020 COVID-19 General conditions or homologous period).

Tax measures Customs measures Economic activity funding Other measures and support Index

Reinforcement of Capitalizar 2018 Credit Line Editorial

The term of the Capitalizar 2018 Credit Line was extended up to May 31st of 2020 and its overall plafond increased from EUR 2,400 million to EUR 2,800 million. Respond Maximum Amortization Credit Line Total amount Cap amount Grace period Warranty Generic conditions period Limit Recover • Micro companies: EUR Micro and Small- 50,000 EUR 450 million Up to 6 years Up to 12 months 70% sized companies • Small-sized companies: EUR 100,000 Thrive • Preferably Micro companies and SME, • SME Leader: EUR Industry 4.0 / certified by the IAPMEI Electronic 1,500,000 Digitalisation EUR 100 million Up to 7 years Up to 24 months 70% Declaration; Support • Others: EUR 1,000,000 • Location (registered office) in Portugal; • SME Leader: EUR • Development of activities included in Working capital EUR 650 million 1,500,000 Up to 4 years Up to 6 months 50% the list of classification of economic • Others: EUR 1,000,000 activities (CAE) defined in this • SME Leader: EUR measure; Treasury plafond EUR 150 million 1,500,000 1, 2 or 3 years - 50% • Have no debts to FINOVA; • Others: EUR 1,000,000 • Absence of incidents not regularized with the banking system at the time of "Projects contract; 2020" EUR 200 million 70% endowment • SME Leader: EUR • Tax and Social Security contributions 2,000,000 Up to 10 years Up to 36 months must be regularized at the date of the "General" • Others: EUR 1,500,000 contract. EUR 200 million 65%

Investment endowment For more information, please visit last • Working • Working update of the Capitalizar Credit Line Capital: Up to • SME Leader: EUR Capital: Up to disclosure document. Support for 12 months companies EUR 50 million 1,000,000 5 years 75% • Investment: exposed to Brexit • Others: EUR 1,000,000 • Investment: Up to 36 Up to 10 years months

© 2020. For information, contact Deloitte & Associados, SROC, S.A. 52 ADAPTAR Micro enterprises – Suspended in May 25th (7pm) Recover - New ADAPTAR 2.0 calls will be published in the meantime - ADAPTAR SME – Suspension of applications from May 25th (7pm) for PO Lisbon and from May 29th Portugal 2020 (7pm) for PO Norte

Tax measures Customs measures Economic activity funding Other measures and support Index

Incentives to micro and SMEs’ adaptation to COVID-19 Editorial

Creation of support for micro and SMEs in order to adapt the corresponding facilities to restart its activity in accordance with the conditions established and recommended by the competent authorities in the context of the pandemic COVID-19. Respond Rate and Cap Credit Line Beneficiary Payments Allocation Access conditions Eligible expenses amount • Regularized • Up to 50% of the incentive in Recover 80% of eligible contributory situation Micro companies the acceptance term; expenses towards the Tax • Individual equipment of from all sectors of Micro between EUR • Remaining with the declaration Up to EUR Authorities and Social protection to workers and activity of the all Companies 500 and EUR of the implementation of the 50 million Security customers; territory Thrive 5.000 (after investment subscribed by the • Micro company statute (Continent) • Hiring disinfestation services; March 18th) promotor and the certified accountant or ROC • Organized accounting • Hygiene equipment and under legislation disinfectant dispensers and • Regularized consumable; Micro and small • 40% of eligible expenditure in contributory situation • Reorganization of workplaces companies of any 85% of eligible each of the first 2 interim Micro and towards the Tax and layout of spaces and nature and in any expenses applications; Small EUR 2.5 Authorities and Social physical isolation of production legal form, as well between EUR • 20% of eligible expenditure in Companies million Security or sales spaces or provision of as cooperatives 500 and EUR the final payment request from Azores • Micro company statute services, including costs with located in the 5.000 It may be adopted the delay against • Organized accounting information signs and vertical Azores region the presentation of invoices. under legislation and horizontal orientation; • Contactless digital payment and • Regularized other and distancing devices; contributory situation • Domiciliation of apps, content SME located in • Up to 50% of the incentive in towards the Tax 50% of eligible and electronic adhesion; the NUTS II the acceptance term; Authorities and Social expenses Security and in matters • Expenses with the intervention North, Center, • Remaining with the declaration between EUR EUR 50 of restitution of FEEI; of the TOC/ROC SME Lisbon, Alentejo of the implementation of the 5.000 and EUR million More information in Decreto-Lei n.º and Algarve investment subscribed by the • SME certification; 40.000 (after 20-G/2020 - Programa ADAPTAR, (limitation of promotor and the certified • application) Do not qualify as a Aviso ADAPTAR MICRO, AVISO some CAE) accountant or ROC company in difficulty or AÇORES, Aviso ADAPTAR PME subjected to some recovery order

© 2020. For information, contact Deloitte & Associados, SROC, S.A. 53 Call for - New calls with an allocation of EUR 220 proposals Recover million will be launched in the meantime - closed Portugal 2020

Tax measures Customs measures Economic activity funding Other measures and support Index

Innovation Scheme - COVID-19 grant Whenever the maximum execution period is not met, for Editorial reasons attributable to the beneficiary, 25% of the support The new call for proposal No. 14/SI/2020 aims to grant granted on a non-reimbursable basis is reimbursed for each financial support to projects promoted by companies that month of delay. Respond intend to establish, reinforce or revert their production capacities of goods and services to face the COVID-19 The overall budget of the call is Euro 46 million of which: pandemic, including the construction and modernization of Recover testing facilities for relevant COVID-19 products. • EUR 33.5 million for SMEs;

This call supports operations with eligible expenses between • EUR 12.5 million for non-SMEs. Thrive EUR 25,000 and EUR 4 million aiming to support the production of relevant goods and services to face COVID-19, It should also be noted that out of the total budget foreseen, namely: the amount of EUR 12.4 million is earmarked for projects located in low density territories, split between : • Relevant drugs and treatments (including vaccines), medical devices and medical and hospital equipment (including • EUR 8.55 million for SMEs; ventilators, PPE and diagnostics means), disinfectants, as well as their raw materials and intermediates; • EUR 3.85 million for non-SMEs.

• Systems to collect and process data.

This support is conceded as a non-refundable incentive with a LEGISLATION AND OTHER SOURCES maximum incentive rate of 80%, which can be increased by 15 p.p. if the project is completed within 2 months from the  Resolution No. 10/2020 decision date.  Order No. 95/2020 The maximum period to execute the operation is 6 months.  Call No. 14/SI/2020

© 2020. For information, contact Deloitte & Associados, SROC, S.A. 54 Call for - New calls with an allocation of EUR 220 proposals Recover million will be launched in the meantime - closed Portugal 2020

Tax measures Customs measures Economic activity funding Other measures and support Index

R&D Scheme - COVID-19 grant This support is conceded as non-refundable incentive (cash Editorial grant) with a maximum incentive rate as follows: The new call for proposals No. 15/SI/2020 aims to provide public funding to stimulate research and development (R&D) • “R&D Companies”: Respond such as innovation projects and cooperation initiatives between technological interface centers, collaborative laboratories and • 100% rate: applicable to eligible costs related to fundamental research activities (up to TRL 3); companies to respond to immediately and medium-term needs Recover of the National Health Service in the context of COVID-19. • 80% rate: applicable to eligible costs related to industrial research and experimental development This call supports projects with eligible expenses up to EUR Thrive 500,000, namely the following types of project: activities (TRL 4+), which may be increased by 15 p.p. if more than one Member State supports the project or • “R&D Companies” leading to the creation of new products, if the research is carried out though a cross-border processes or systems, or the introduction of significant collaboration with research organizations or other improvements in products, processes or systems. This type companies. of project can be carried out in the form of cooperation between companies and Non-for-profit R&D Entities; • “Test and Optimization Infrastructures”: 75% rate, which may be increased by 15 p.p. if the project is completed • “Testing and Optimization Infrastructures”, namely within 2 months from the decision date. focusing the construction or modernization of testing and the optimization of those infrastructures (upscaling) necessary The call overall budget is EUR 23 million of which 30% is for the development of relevant products to face COVID-19. allocated to low density territories.

LEGISLATION AND OTHER SOURCES

Tax measures Customs measures Economic activity funding Other measures and support Index

New measures to support the entrepreneurship • COVID-19 Portugal Ventures Instrument: creation of Editorial ecosystem a Portugal Ventures Call for investments in startups, with tickets starting from EUR 50,000. Five new measures with a global budget of more than EUR 25 Respond million (with an average potential support per startup of EUR Additionally, a reinforcement was made to two existing 10,000), namely: mechanism in order to provide more effective responses to startups, namely: Recover • StartupHR COVID-19 : financial support equivalent to a minimum wage per employee (up to a maximum of 10 • 200M Fund: co-investment with private investors in employees per startup); Portuguese startups and scale-ups, involving a minimum Thrive public investment of EUR 500,000 and a maximum of EUR • Startup Voucher extension: extension for 3 months of the 5 million; previously awarded scholarship benefit (EUR 2,075 per entrepreneur job); • Co-investment fund for social innovation: Co-investment with private investors in companies with • Incubation Voucher – COVID-19: support for hiring innovative and social impacting projects, involving a incubation services for startups with a lifetime under five minimum public investment of EUR 50,000 and a years, based on a non-refundable incentive equal to EUR maximum of EUR 2.5 million. 1,500;

• Mezzanine funding for Startups: convertible loan into share capital, after a period of 12 months. The average LEGISLATION AND OTHER SOURCES investment tickets vary between EUR 50,000 and EUR 100,000 per startup. A discount rate will be used to avoid st the promoters dilution;  Government Statement of April 21 , 2020  Document “Medidas de Apoio a Startups” of Ministry of Economics and Digital Transition

Tax measures Customs measures Economic activity funding Other measures and support Index

Extraordinary measure of incentive to professional The maximum limit of this support is EUR 219.41 (half the Editorial activity value of the IAS) and the minimum limit is the lowest base value of the minimum contributory due. Creation of an extraordinary measure to encourage Respond professional activity addressed to workers that in March 2020, In the month following the termination of this support, it is were exclusively covered by the self-employed regime and (i) verified the effects’ production regarding the inclusion in the have begun the activity for more than 12 months and are not self-employed regime or the exemption cease. Recover in a situation of total stoppage of activity or of total stoppage of activity in the respective sector as a result of the outbreak We emphasize that the value of the average billing that of COVID-19, or a breakdown of at least 40% of the billing, or determines the calculation of support is transmitted by the Thrive (ii) have begun the activity in less than 12 months; or (iii) are Tax and Customs Authority to Social Security. exempt from the contributions’ payments given the value of the income or the contributions determined is less than EUR The self-employed person must apply for support until June 20. 30th, 2020, which cannot be combined with other social benefits. This financial support lasts for one month, extendable monthly up to a maximum of three months, corresponding to the value of the relevant income for the purposes of determining the contributory basis, based on the average billing reported for tax purposes between March 1st, 2019 and February 29th, 2020, and given the multiplication by the respective break in billing, expressed in percentage terms. LEGISLATION AND OTHER SOURCES

 Decree-Law No. 20-C/2020 of May 7th

Tax measures Customs measures Economic activity funding Other measures and support Index

Extraordinary financial incentive to support the Editorial normalization of the company's activity

Creation of an extraordinary financial incentive to support the Respond restart of the company's activity when covered by support measures in a business crisis situation. Recover This support will be supported by IEFP, I.P., paid once and with the value of a guaranteed minimum wage (EUR 635) per worker. Thrive It is dependent on the submission of a request to the IEFP for this purpose, presenting the documents that attest the situation of a business crisis.

The Decree-Law No. 20/2020 of May 1st envisages that the procedures, conditions and terms of access for this support are subsequently regulated by order of the Government member responsible LEGISLATION AND OTHER SOURCES for the work field.

 Decree – Law No. 10-G/2020 of March 26th  Rectification Statement No. 14/2020 of March 28th  Decree-Law No. 20/2020 of May 1st

Tax measures Customs measures Economic activity funding Other measures and support Index

Income protection Protection of self-employed and informal workers Editorial

Support measures for workers and families: • An extraordinary measure equivalent to IAS (EUR 438.81), between July and December 2020, with integration into the Respond • Complement to stabilization: extraordinary support for social security system and a binding period of 36 months to workers with loss of income during lay-off period (workers the public social protection regime. with a salary basis higher than the Minimum Guaranteed Recover Monthly Remuneration (EUR 635) and less than or equal to 2 • During the period of granting the aforementioned support, times that amount (EUR 1,270), corresponding to the loss of the worker contributes 1/3 of the amount of the contribution income resulting from on month in lay-off, to be paid in July, corresponding to a self-employed worker and the remainder Thrive in a single payment. The minimum limit of this support is is paid within 12 months after the support is granted. EUR 100 and the maximum is EUR 351; • Requirements: binding period of 30 months in the social • Supplementary family allowance: one-time payment, in protection system after the end of the support (December, September, of an additional installment of the family 2020). allowance for all children of 1st, 2nd and 3rd levels; • After the support is granted, the contribution corresponding • Automatic extension of unemployment benefits until to a self-employed worker must be paid based on the the end of 2020; incidence value of the support during 30 months.

• Change of the reference period regarding the social insertion income and the family allowance, the computation of the allowances considers now the current remuneration of families, ensuring protection in cases of abrupt breach of income as a consequence of the pandemic. LEGISLATION AND OTHER SOURCES Social insertion income may also be cumulated with a educational grant.  Council of Ministers Resolution No. 41/2020

Tax measures Customs measures Economic activity funding Other measures and support Index

Employment support in the return In the b), there will be a 50% reduction in the Social Security Editorial contributions in the first 3 months. If, in the 3 months The simplified lay-off regime will be extended until the end of following the end of the support, a net job creation occurs July, 2020. compared to the previous 3 months vis a vis the same period in the previous year, an exemption from Social Security Respond contributions for a period of two months in proportion to the Three alternatives will be created from August, 2020 onwards: job creation apply, as long as this increase is maintained for a period of six months. Recover • Companies that remain closed as determined by the Government will may continue to benefit from the simplified For the above, some conditions should be fulfilled, namely the lay-off regime; employer cannot terminate employment contracts under the Thrive terms of collective dismissal or dismissal for extinction of the • Companies with a drop of more than 40% in turnover can job post and the net job creation must me ensured during the benefit, between August and until the end of 2020, of a period of application of the measure and the subsequent 60 support mechanism for a gradual return (see next slide); days.

• Companies that have benefited from the simplified lay-off Support for gradual return regime or from the extraordinary support for professional The main assumptions of the new support mechanism, which training are now able to benefit from an extraordinary replaces the simplified lay-off regime, are the following: financial incentive to support the normalization of the company's activity, choosing one of two modalities: • The gradual convergence of workers' income to 100% of their wages; the payment by the company of all hours a) Receive an amount equivalent to one Minimum worked; the progressive reduction of the exemption of Social Guaranteed Monthly Remuneration (EUR 635) per worker Security contributions. who has been on lay-off, one off; or In addition to the ban of collective dismissal, other conditions b) Receive an amount equivalent to 2 times the Guaranteed must be also taken into account, namely the ban of dividend Minimum Monthly Remuneration per worker, through six distribution during the application of the measure. months, in two or three payments. LEGISLATION AND OTHER SOURCES

Tax measures Customs measures Economic activity funding Other measures and support Index

Support for gradual return Editorial

July August/September October/ December Respond

Closed and > 40% in > = 60% drop in Eligibility > = 40% drop in turnover > = 60% drop in turnover > = 40% drop in turnover turnover turnover Recover Suspension or reduction Reduction of working hours Reduction of working hours Reduction of working Reduction of working Measure of normal working up to 50% up to 70% hours up to 40% hours up to 60% period Thrive Large-sized companies - 50% reduction No reduction Social Security Total exemption Contributions Total exemption for micro, small and medium-sized 50% reduction companies

Hours worked paid at 100% Hours worked or not Salary worked paid at 66% Hours not worked paid at 66% Hours not worked paid at 80%

Hours not worked: 0% 70% of worked and not Social Security worked hours Hours not worked: 70%

Employee 66% At least 83% At least 77% At least 92% At least 88% remuneration

LEGISLATION AND OTHER SOURCES

Tax measures Customs measures Economic activity funding Other measures and support Index

Tourism - VAT of congresses Editorial

Return to the organizers of congresses, fairs, exhibitions, seminars, conferences and similar, of the amount equivalent to Respond the VAT deducted before the Portuguese Tax Authorities related with expenses incurred for the direct needs of the participants. This support measure will cost up to EUR 6 million Recover and its funding will be borne by Turismo de Portugal, I. P.

Thrive

LEGISLATION AND OTHER SOURCES

Index

We are still leaving the Respond stage and entering the Editorial Recover moment from the devastating effects caused by the pandemic, so there are not yet defined measures to stimulate Thrive. Respond

Recover

Thrive

© 2020. For information, contact Deloitte & Associados, SROC, S.A. 64 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.

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