During the month of February’15 the Portuguese Tax Authorities (PTA) addressed an email to the companies reminding the importance of keeping up to date the record of the personal and familiar situation of the employees for the purpose of the correct application of the income tax rate to the employment income.

In this sense, the companies should request to the employees to fill the declaration of the 99º article of the Personal Income Tax (PIT) Code and having knowledge of the changes proceed with the review of the discounts with retroactive effects, if needed, in order to guarantee that the withholding is considering the correct personal and familiar circumstances.

The differences in the withholding taxes will be considered as tax offense before the PTA, having fines associated. The situations where the non-compliance persists will be subject of further inspection of the PTA.