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Tax debts in Portugal? You have 47 days to break open the piggybank and strike a deal with the ATA (Portuguese Tax Authority).

The Special Program for Reduction of Debts to the State (PERES) was published today in the Portuguese Official Journal.

It allows for tax payers who have unpaid tax or social security levies (until the 31 May 2016 for tax debts and 31 December 2015 for social security debts) to pay with a pardon of interests and judicial costs and reduction of fines.

The program provides various alternatives:

– Full payment will grant the debtor full dispense of interests judicial costs and reduction of 10% in applicable fines.

– Payment in also possible up to 150 monthly installments; up to 36 installments a reduction of 80% in interests and judicial costs; from 37 to 72 installments the reduction will be 50%; from 73 to 150, the reduction is limited to 10%.

It should be noted that the phased settlement option requires to an up-front payment of 8% of the amount due.

One significant aspect is that the debtor doesn’t need to provide a guarantee to adhere to the PERES.

The adhesion to the Program is possible until December 20th of 2016 for tax debts and December 30th 2016 for social security debts. Those interested should demonstrate their intention to join the PERES via online to the Tax Authority for the tax debts or, the Institute of Social Security, for the contributory debts.

If you have any questions regarding this matter don’t hesitate to contact us.