Conflict in Ukraine: Support measures for companies – Deferral of tax obligations

In view of the economic impact caused by the current conflict between Russia and Ukraine, particularly the instability in raw material supply chains and rising fuel prices, a new support measure was approved to allow all companies to defer their tax obligations falling due in the second half of 2022.

Under this complementary regime, approved by Decree-Law 42/2022 of June 29, companies may make monthly installments to comply with the following obligations:

> Value-added tax;

> Surrendering of personal income tax deducted at source (i.e., withholdings made directly on income such as salaries and pensions);

> Surrendering of corporate income tax deducted at source.

The monthly installments (of €25 or over) should be calculated without interest or penalties on the number of months remaining until the end of 2022, and a guarantee does not have to be presented.

Applications for payment in monthly installments should be submitted electronically by the end of the voluntary payment period, and the taxpayers in question must have their tax and social security affairs in order.

A tax obligation deferral regime had been approved for the first six months of 2022 through Decree-Law 30-D/2022 of April 18. However, as explained in a previous article, its scope of application was limited to companies in sectors particularly affected by the Russia-Ukraine conflict, according to the list of activities established in Ministerial Order 141/2022 of May 3.

In contrast, Decree-Law 42/2022 of June 29 not only extends the complementary tax deferral regime for the second half of 2022, but it also extends its subjective scope of application to all companies operating in Portugal.