Independent Workers (ENIs)
What are the tax obligations of a self-employed worker in Portugal?
It is necessary to issue invoices or receipts, pay Social Security contributions, submit the periodic VAT declaration (if you are covered by the normal regime) and submit the annual IRS declaration.
Is it mandatory to open an activity with the Tax Office?
Yes. To legally engage in self-employment, you must register on the Tax Portal or in person, indicating your CAE and tax classification.
What is the simplified regime and how does it work?
Under this regime, taxable income is calculated based on a fixed percentage of turnover. It doesn't require organized accounting, but it does have legal limitations and assumptions.
Is a self-employed person always subject to VAT?
No. If your annual turnover does not exceed €13,500, you can benefit from the exemption provided for in Article 53 of the VAT Code. Otherwise, you must charge and remit VAT.
Is it necessary to pay Social Security even with reduced income?
As a general rule, yes. There are exemptions for the first 12 months of activity and in specific situations, but the obligation applies to most active cases.
Is it possible to deduct expenses from Income Tax?
It depends on the tax regime. Under the simplified regime, the deduction is made automatically based on coefficients. Under organized accounting, actual expenses with valid documentation are considered.
Companies (Societies and Collective Businesses)
What are the main taxes owed by a company?
Companies are subject to paying IRPJ, VAT, withholding taxes and Social Security contributions for their employees, among other applicable taxes.
Should a company hire a certified public accountant?
Yes. Organized accounting is mandatory for legal entities and must be performed by a professional certified by the Order of Certified Accountants (OCC).
How does VAT management work in companies?
The company charges VAT on sales and deducts VAT on eligible purchases and expenses. The difference is calculated and declared monthly or quarterly, depending on the applicable VAT regime.
What are the main tax deadlines to meet?
Periodic VAT declaration: by the 20th or 25th
Social Security Contributions: until the 20th
Form 22 (IRC): until May 31st
IES/DA: until July 15th
Are all company expenses deductible?
Only necessary expenses, duly documented and related to the company's activity are tax deductible.
How can a company optimize its tax burden?
Through appropriate tax planning and ongoing monitoring by an experienced accountant, LimisCaelis provides this type of support with solutions tailored to the specific needs of each business.
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