The parliament failed to suspend the first payment on account of 2021 proposed by the PSD, having approved a proposal by the PCP that allows the waiver of this tax obligation during the year 2021.
The PSD's proposal was rejected with the votes against the PS, abstentions from BE, PCP and PAN and favorable votes from the other parties (PSD, CDS-PP, Chega and IL).
The PCP proposal, aimed at micro, small and medium-sized companies and cooperatives, was approved without votes against, with the PSD abstaining and favorable votes from the other parties.
The communists' text establishes that these societies "can be exempted from Payments on Account (PPC)", and those that intend to make the payment "can make this payment, under the terms and within the deadlines defined by Law".
Today, the PSD changed its proposal regarding payment on behalf of the IRC, foreseeing the suspension of the first of these payments in 2021 by cooperatives, micro, small and medium-sized enterprises (SMEs) with a break in revenue.
“During the year 2021, the first Payment on Account (PPC) provided for in paragraphs 2 and 3 of article 105 of the IRC Code is suspended”, reads the text of the new PSD proposal, which specifies that this suspension applies “ exclusively to cooperatives, and to micro, small and medium-sized companies ”that present“ a drop of 25% or more in turnover during the first quarter of 2021 when compared to the same period last year ”.
This morning during the debate on the specialty of the State Budget for 2021 (OE2021), PSD deputy Afonso Oliveira announced his party's intention to change the initial proposal that had a more global reach, by forecasting the suspension of the PPC “during the period in which the restrictive measures to the operation of economic activities are in force, the actual calculated IRC payment will be applied according to the result of the year ”.
At the time, Afonso Oliveira justified the change, stressing the need to “understand” that “the Government, the country, the State Budget, public accounts” have “cash needs”.
The evolution was welcomed by the Secretary of State for Tax Affairs, António Mendonça Mendes.
In a report released today, the Technical Budget Support Unit (UTAO) had warned that the original PSD proposal was not “conditional on the breakdown of activity caused by the pandemic”, applying “to the entire universe of cooperatives and micro, small and medium-sized companies ”.
According to UTAO, the PSD's initial proposal to suspend payment on account would have an impact on revenue of 1.511 million euros in 2021 if approved.
The payment on account is one of the ways that companies advance the IRC that they have to pay, but whose final value is only determined in the following year, with the delivery of the annual declaration Form 22.
Under the current regime, companies make three payments on account - in July, September and December - the amount being calculated based on the tax paid in relation to the year prior to the payment.
The formula for calculating payments on account is sensitive to the annual invoicing of companies (being lighter for those invoicing up to 500 thousand euros per year), and there is also the possibility for companies to suspend the third installment, should they find that the amount they have already advance exceed the tax they have to pay.
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The parliament failed to suspend the first payment on account of 2021 proposed by the PSD, having approved a proposal by the PCP that allows the waiver of this tax obligation during the year 2021.
The PSD's proposal was rejected with the votes against the PS, abstentions from BE, PCP and PAN and favorable votes from the other parties (PSD, CDS-PP, Chega and IL).
The PCP proposal, aimed at micro, small and medium-sized companies and cooperatives, was approved without votes against, with the PSD abstaining and favorable votes from the other parties.
The communists' text establishes that these societies "can be exempted from Payments on Account (PPC)", and those that intend to make the payment "can make this payment, under the terms and within the deadlines defined by Law".
Today, the PSD changed its proposal regarding payment on behalf of the IRC, foreseeing the suspension of the first of these payments in 2021 by cooperatives, micro, small and medium-sized enterprises (SMEs) with a break in revenue.
“During the year 2021, the first Payment on Account (PPC) provided for in paragraphs 2 and 3 of article 105 of the IRC Code is suspended”, reads the text of the new PSD proposal, which specifies that this suspension applies “ exclusively to cooperatives, and to micro, small and medium-sized companies ”that present“ a drop of 25% or more in turnover during the first quarter of 2021 when compared to the same period last year ”.
This morning during the debate on the specialty of the State Budget for 2021 (OE2021), PSD deputy Afonso Oliveira announced his party's intention to change the initial proposal that had a more global reach, by forecasting the suspension of the PPC “during the period in which the restrictive measures to the operation of economic activities are in force, the actual calculated IRC payment will be applied according to the result of the year ”.
At the time, Afonso Oliveira justified the change, stressing the need to “understand” that “the Government, the country, the State Budget, public accounts” have “cash needs”.
The evolution was welcomed by the Secretary of State for Tax Affairs, António Mendonça Mendes.
In a report released today, the Technical Budget Support Unit (UTAO) had warned that the original PSD proposal was not “conditional on the breakdown of activity caused by the pandemic”, applying “to the entire universe of cooperatives and micro, small and medium-sized companies ”.
According to UTAO, the PSD's initial proposal to suspend payment on account would have an impact on revenue of 1.511 million euros in 2021 if approved.
The payment on account is one of the ways that companies advance the IRC that they have to pay, but whose final value is only determined in the following year, with the delivery of the annual declaration Form 22.
Under the current regime, companies make three payments on account - in July, September and December - the amount being calculated based on the tax paid in relation to the year prior to the payment.
The formula for calculating payments on account is sensitive to the annual invoicing of companies (being lighter for those invoicing up to 500 thousand euros per year), and there is also the possibility for companies to suspend the third installment, should they find that the amount they have already advance exceed the tax they have to pay.