Payment facilities for VAT

By Mauro Mascareño, BKM

On 06/05/20, Decree No. 3583/20 was published, extending the tax measures taken by the Tax Administration (SET) within the health emergency declared due to the COVID-19 pandemic.

The decree establishes a transitional regime of payment facilities for Value Added Tax (VAT), which may be financed at the taxpayer’s request with an upfront payment of 20% and four equal monthly installments with a 0% interest rate.

This regime applies both to VAT on commercial operations carried out in the domestic market and to VAT paid at Customs when importing goods, regardless of the number of payment facilities that the taxpayer is entitled to in general.

On the other hand, 2019’s Corporate and Agricultural Income Taxes (IRACIS and IRAGRO) tax returns are due in June 2020, instead of April.

Other special payment facility regimes are in force until May 31, 2020, for the following obligations:

IRACIS and IRAGRO:
20% upfront payment and five monthly installments at 0% annual interest rate.
Finally, following the general provisions of Law No. 125/91, each taxpayer may present its particular situation to the Tax Administration and, propose a regime of extension and payment facilities under its particular case of force majeure or state of need, as provided for in Articles 161 and 185 of Law No. 125/91.

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