In late March 2025, Decree-Law No. 49/2025 was published in Portugal, introducing significant measures for tax simplification. These changes aim to modernize and streamline the tax system, promoting greater efficiency and transparency for businesses. The new provisions will come into force on July 1, 2025, allowing an adaptation period for taxpayers and industry professionals. 

Changes to main taxes 

For Corporate Income Tax (CIT), the annual return (22 Model) will now benefit from pre-filling of the deduction for tax losses from previous years. Additionally, the need for prior notification to the Tax Authority regarding impairment losses on non-current assets is eliminated when their net tax value is equal to or less than €10,000. In these cases, supporting documentation is only required to be part of the tax file. 

Regarding Personal Income Tax (IRS), the obligation for withholding tax on amounts less than €25 is eliminated, with this exemption applying to income from independent work, capital, and rents (categories B, E, and F). Furthermore, the end of February is now set as the new deadline for various IRS obligations, including the communication of deductible expenses, updating the family unit, submitting Modelo 10, and communicating crypto-asset operations. 

As for Value Added Tax (VAT), the Tax Authority will automatically make a draft periodic VAT return available on the Finance Portal for taxpayers with no taxable operations during the period. If this draft is not validated or replaced, it will be considered definitive. Likewise, the obligation to submit an activity commencement declaration for taxpayers who perform only one taxable operation is eliminated, removing the previous €25,000 limit. The export process is also significantly simplified: for postal or express shipments up to €1,000, a customs declaration will not be required, with a simplified export certificate being issued that maintains VAT exemption and the right to deduct input tax. 

Reform in other filings 

Concerning Simplified Business Information (IES), Annexes Q and O, related to the Recapitulative Statement of Customers (VAT), are eliminated. 

For Stamp Duty, collection or refund will only occur if the amount is equal to or greater than €10 when the tax is to be assessed by the Tax Authority. Previously, this rule only applied to assessment, not to refunds. 

The Single Circulation Tax (IUC) payment deadline will no longer be linked to the vehicle's registration month. Instead, a single deadline in February is now established for all taxpayers. Additionally, for amounts over €100, the IUC can be paid in two installments: in February and October. 

In the case of Municipal Property Transfer Tax (IMT), preference will be given to the electronic submission of documentation for the valuation of urban property's patrimonial value. The taxpayer will be exempt from submitting it if the City Council sends it directly to the Tax Authority. Furthermore, this reform will allow taxpayers to obtain a certificate through the Tax Authority's portal for those who have habitually and regularly engaged in real estate buying and selling activities in the two preceding years, which will have implications for IMT exemption. 

General information 

A change in the tax inspection procedure is introduced, as the regularization meeting is no longer mandatory and becomes an optional action that the taxpayer must expressly request if desired. 

Regarding digital forms, those for submitting 3 Model (IRS), 22 Model (CIT), and IES must be available at least 90 days before the corresponding submission deadline, contrasting with the previously required 120 days. 

Finally, tax debt and non-debt certificates, which attest to the taxpayer's regularized tax situation, will be valid for four months, instead of the three months previously established. 

Tax simplification and tax automation are processes of continuous evolution in global tax systems. For multinationals and funds operating in Portugal, understanding these changes is fundamental to maintaining efficient and secure tax management. 

If your multinational or fund seeks to ensure simplified tax management and compliance with the new Portuguese regulations, our team of experts is at your disposal. We invite you to contact us via our form for a personalized consultation. 

At Auxadi, we offer comprehensive services in accounting, tax, payroll, and corporate legal services to multinationals and funds. With experience since 1979 and a presence in over 50 countries, including 22 proprietary subsidiaries, our advanced technological platform and proven methodology enable us to guarantee efficient management in compliance with local regulations.