Portugal
Pillar Two Implementation Summary
Law/Regulations/Guidance.
§ Law No. 41/2024 of 8 November (2024).
Revenue Threshold. MNE groups (or large domestic groups) with consolidated annual revenues equal to or exceeding €750 million for at least two of the four fiscal years preceding the relevant fiscal year.
OECD Guidelines/EU Directive. Generally, in line with the OECD model rules and the EU Directive.
Safe Harbours.
§ Transitional CbCR Safe Harbour: Adopted (Law No. 41/2024).
§ Transitional UTPR Safe Harbour: Adopted (Law No. 41/2024).
§ QDMTT Safe Harbour: Adopted (Law No. 41/2024).
§ Simplified Calculations Safe Harbour (for non-material constituent entities): Adopted (Law No. 41/2024).
Registration. Each constituent entity located in Portugal and subject to the Global Minimum Tax Regime must register its status as a reporting constituent entity or, if applicable, the constituent entity of the group corresponding to the designated local entity. The ultimate parent entity or the designated reporting entity (as well as the jurisdiction in which the entity is located) must also be registered, if relevant.[1] Subsequent changes
must be notified.
§ Form/Filing Instruction: Filed electronically via an official form to be approved by ministerial order.
§ Deadline for Filing: Within 9 months from the end of the relevant fiscal year; however, for the first year, the deadline is extended to 12 months from the end of the relevant fiscal year.
GloBE Information Return (GIR). Each constituent entity located in Portugal is required to file the Complementary Tax Information Declaration (GloBE Information Return or GIR). If a group has multiple Portuguese constituent entities, a designated local entity can be assigned to file the return on behalf of the other constituent entities.
A Portuguese constituent entity is not required to file a GIR if the return is filed by the ultimate parent entity or designated filing entity located in a jurisdiction in which a qualified competent authority agreement entered into by the Portuguese competent authority is in force for the relevant fiscal year.
§ Form/Filing Instructions: Filed electronically via an official form to be approved by ministerial order.
§ Deadline for Filing: Within 15 months from the end of the relevant fiscal year; however, for the first year, the deadline is extended to 18 months from the end of the relevant fiscal year.
Notification of Filing Entity. If the GIR is filed by the ultimate parent entity or designated filing entity located in a jurisdiction with a qualified competent authority agreement with Portugal, the ultimate parent entity or the designated reporting entity (as well as the jurisdiction in which the entity is located) must be registered with the Portugal tax authorities.
§ Form/Filing Instructions: Filed electronically via an official form to be approved by ministerial order.
§ Deadline for Filing: Within 9 months from the end of the relevant fiscal year; however, for the first year, the deadline is extended to 12 months from the end of the relevant fiscal year.
However, for the transitional period (i.e., fiscal years beginning on or before December 31, 2026 and ending prior to July 1, 2028), administrative penalties may not apply if it is demonstrated that “the entity acted in good faith, supported by a plausible interpretation of this regime and having taken the appropriate measures for the correct fulfillment of its obligations, or that the infraction does not result in a reduction in the amount of the complementary tax due in that or in subsequent fiscal years” (Art. 51, para. 3 of Law No. 41/2024).
Effective Date. Fiscal years beginning on or after January 1, 2024.
Top-up Tax Return and Payment of Tax. Each constituent entity located in Portugal is required to file a tax assessment declaration if it determines the complementary tax must be paid for the year.
§ Form/Filing Instructions: Filed electronically via an official form to be approved by ministerial order.
§ Deadline for Filing and Payment of Tax: Within 15 months from the end of the relevant fiscal year; however, for the first year, the deadline is extended to 18 months from the end of the relevant fiscal year.
Penalties. In general, administrative penalties of €5,000 to €100,000 (plus 5% for each day of delay) may apply for the failure to timely file the tax assessment declaration. Omissions or inaccuracies that do not constitute a tax offence or administrative offence (under the General Regime of Tax Offences) are punishable by a fine of €500
to €23,500.
However, for the transitional period (i.e., fiscal years beginning on or before December 31, 2026 and ending prior to July 1, 2028), administrative penalties may not apply if it is demonstrated that “the entity acted in good faith, supported by a plausible interpretation of this regime and having taken the appropriate measures for the correct fulfillment of its obligations, or that the infraction does not result in a reduction in the amount of the complementary tax due in that or in subsequent fiscal years” (Art. 51, para. 3 of Law No. 41/2024).
Effective Date. In general, fiscal years beginning on or after January 1, 2025.
For constituent entities located in the Portugal and belonging to a group with an ultimate parent entity located in Estonia, Latvia, Lithuania, Malta, or Slovakia (i.e., a jurisdiction that has delayed implementation of the IIR and UTPR under Article 50 of the EU Minimum Tax directive), the UTPR is effective for fiscal years beginning on or after January 1, 2024.
Top-up Tax Return and Payment of Tax. Each constituent entity located in Portugal is required to file a tax assessment declaration if it determines the complementary tax must be paid for the year.
§ Form/Filing Instructions: Filed electronically via an official form to be approved by ministerial order.
§ Deadline for Filing and Payment of Tax: Within 15 months from the end of the relevant fiscal year; however, for the first year, the deadline is extended to 18 months from the end of the relevant fiscal year.
Penalties. In general, administrative penalties of €5,000 to €100,000 (plus 5% for each day of delay) may apply for the failure to timely file the tax assessment declaration. Omissions or inaccuracies that do not constitute a tax offence or administrative offence (under the General Regime of Tax Offences) are punishable by a fine of €500
to €23,500.
However, for the transitional period (i.e., fiscal years beginning on or before December 31, 2026, and ending prior to July 1, 2028), administrative penalties may not apply if it is demonstrated that “the entity acted in good faith, supported by a plausible interpretation of this regime and having taken the appropriate measures for the correct fulfillment of its obligations, or that the infraction does not result in a reduction in the amount of the complementary tax due in that or in subsequent fiscal years” (Art. 51, para. 3 of Law No. 41/2024).
Effective Date. Fiscal years beginning on or after January 1, 2024.
Qualified Status of Legislation. Legislation intended to meet qualified status for purposes of applying the
rule order.
Eligibility for the QDMTT Safe Harbour. Legislation intended to qualify for the QDMTT safe harbour.
Financial Data. Data based on the financial accounting standard used in preparing the consolidated financial statements of the ultimate parent entity, unless not reasonably practicable.
DMTT Return and Payment of Tax. Each constituent entity located in Portugal is required to file a tax assessment declaration if it determines the complementary tax must be paid for the year.
§ Form/Filing Instructions: Filed electronically via an official form to be approved by ministerial order.
§ Deadline for Filing and Payment of Tax: Within 15 months from the end of the relevant fiscal year; however, for the first year, the deadline is extended to 18 months from the end of the relevant fiscal year.
Penalties.
In general, administrative penalties of €5,000 to €100,000 (plus 5% for each
day of delay) may apply for the failure to timely file the tax assessment declaration.
Omissions or inaccuracies that do not constitute a tax offence or
administrative offence (under the General Regime of Tax Offences) are
punishable by a fine of €500
to €23,500.
However, for the transitional period (i.e., fiscal years beginning on or before December 31, 2026, and ending prior to July 1, 2028), administrative penalties may not apply if it is demonstrated that “the entity acted in good faith, supported by a plausible interpretation of this regime and having taken the appropriate measures for the correct fulfillment of its obligations, or that the infraction does not result in a reduction in the amount of the complementary tax due in that or in subsequent fiscal years” (Art. 51, para. 3 of Law No. 41/2024).
§ Bloomberg Tax, Country Guides – Portugal, (Section 9.4 - Miscellaneous Taxes).
[1] The group must also register the beginning of the initial phase of international activity of the group, in cases where the group is applying this exclusion from the IIR and UTPR.