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

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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 © 2020. For information, contact Deloitte & Associados, SROC, S.A. 2 Editorial 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. © 2020. For information, contact Deloitte & Associados, SROC, S.A. 3 Respond © 2020. For information, contact Deloitte & Associados, SROC, S.A. Respond Tax and declarative 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 © 2020. For information, contact Deloitte & Associados, SROC, S.A. 5 Respond Stamp Duty 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 © 2020. For information, contact Deloitte & Associados, SROC, S.A. 6 Respond VAT 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). © 2020. For information, contact Deloitte & Associados, SROC, S.A. 7 Respond VAT 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 © 2020. For information, contact Deloitte & Associados, SROC, S.A. 8 Respond Donations 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 © 2020. For information, contact Deloitte & Associados, SROC, S.A. 9 Respond Suspension of Deadlines and procedural diligences 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.
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