As previously reported, the draft law for Portugal's 2022 Budget was submitted in parliament on 11 October 2020. Further to the measures reported, important tax administration measures include:

• The repeal of the special payment-on-account regime (pagamento especial por conta), which is currently calculated as 1% of the previous year's turnover (minimum EUR 850 and maximum EUR 70,000);
• The introduction of restrictions on the deduction of expenses incurred with entities that have not submitted a declaration of commencement of activity;
• An exemption from the 10% increase in the autonomous tax rates on certain expenses for qualifying enterprises that incur a loss in 2022, including micro, small, and medium-sized enterprises (MSMEs) that have generated profit in at least one of the previous three tax years and have timely filed their returns for the previous two tax years; and
• The revision of the rules for an estimated assessment when a corporate income tax return is not filed, including that the taxable amount will be calculated based on information available to the tax authority using the simplified regime with the application of a coefficient of 0.35 or, failing that, the higher of the following values:
  • the total taxable amount for the closest tax period that has been determined; or
  • the annual amount of the minimum monthly salary.

Note, the current assessment provisions for non-filing is based on the higher of the values determined using the simplified regime with the application of a 0.75 coefficient, the total taxable amount of the closest tax period, or the annual amount of minimum monthly salary.