The 2020 State Budget update allows independent workers on green receipts who fail to make their first two payments on account of the year in July and September due to breaks in their business activity. If they reactivate their regular business invoicing by the end of the year, they may settle in December the total amount owed without fines or charges.
Diverse and sometimes contradictory recommendations are currently under discussion to modify underlying rules governing Local Lodging. In last year’s budget, numerous changes came into effect regarding the taxation of Local Lodging income. In IRC, “AL” income under the Corporate Simplified Regime lost its reduced 0.04 coefficient, rising to 0.35. In IRS, the changes moved in the same direction: under the Simplified Regime for Independent workers, the 0.35 coefficient also applies. Apartments and villas let under in Local Lodging registrations were excluded from the 0.15 coefficient still available to room lets, hostels and holiday offerings registered under the “Tourist Development” classification.
Among a group of eight Simplex+2018 measures, the Government proposes to introduce changes in the way proper receipts are issued. The authorities have committed to regulating the elimination of printed statements, given that detailed digitalised records of transactions are already available in a taxpayer’s personal area on the “AT” portal.
To promote the languishing traditional letting, the Government is studying fiscal incentives for landlords who choose to enter into up to 10 year lease contracts with their tenants. One of measure under consideration is to reduce the 28% rate currently applied, as revealed in the “Jornal de Negócios”.