Self-employed workers with organized accounts – In November they can opt for the Quarterly Declaration
Until November 30, 2024, self-employed workers can opt for the quarterly calculation of relevant income, and will be subject to quarterly declarations and contributions from January 2025 onwards.
The same applies to the self-employed person’s spouse/domestic partner, who can choose a contribution base corresponding to the relevant income:
- Lower than 20% of that applied to him/her; or
- Higher, as long as it does not exceed the limit set for the self-employed person
If the self-employed person does not opt for the quarterly declaration system, they will remain under the organized accounting system, as will their spouse/domestic partner.
Compliance with the quarterly declaration obligation can only be carried out through Segurança Social Direta.
Reclassification of Economic Activities
As of January there are new CAE codes. The structural, scientific and technological developments of recent decades have given rise to new economic activities and changed the economic and social reality.
Carried out to reflect this new reality, the revision of the European classification of economic activities (NACE Rev. 2.1.) comes into effect on January 1, 2025. As a result, a new version of the Portuguese Classification of Economic Activities (CAE Rev. 4) will also be introduced, replacing the current version (CAE Rev.3).
Companies operating in Portugal must confirm or change their economic activity in the new table by November 30. For this purpose, the online survey, developed by INE, is available at ircae.ine.pt. The answer is confidential and compulsory.
Retirement age rises
According to provisional figures released by the INE, the retirement age will rise by another 2 months, and bringing it forward next year will mean a cut of 16.93%. Those who leave the job market early will face a 16.93% cut in their pension next year. The legal retirement age will be 66 years and 9 months in 2026, two months more than in 2025.
Framework for tax transparency
The tax transparency regime, which is provided for in article 6 of the IRC Code (CIRC) and is mandatory, is characterized by the fact that the income earned by an entity is not taxed in its individual sphere, but in the sphere of its partners.
Inclusion in the tax transparency regime is carried out in each tax period (31/12/xxxx), by complying with the conditions set out in the article. It is not a regime that is indicated in the register at the time of submitting the declaration of commencement/changes of activity, but is merely indicated by submitting the model 22 income declaration.
It should be noted that in order to be excluded from the scheme, it is enough not to meet any of the criteria for inclusion in the scheme by the end of the year.
Taxpayers covered by the tax transparency regime follow the provisions of the CIRC for entities that carry out a commercial, industrial or agricultural activity as their main activity. Thus, to determine the taxable amount, the accounting result for the period, obtained by the difference between income and gains and expenses and losses, will be added and subtracted, respectively, the positive and negative asset variations not reflected in that result, and other corrections resulting from the Code, thus determining the taxable result (taxable profit or tax loss).
Tax losses under the conditions set out in article 52 of the CIRC and any tax benefits deducted from the taxable income will be deducted from the taxable income, thus obtaining the tax base.
The taxable income will be allocated to the shareholders in accordance with the provisions of the entity’s memorandum of association or, in the absence of elements, in equal shares. It does not matter whether or not profits have been distributed. In other words, the taxable income is imputed to the shareholders regardless of whether any amount has been paid or made available to them.
