August, typically a holiday month, is also when multiple tax deadlines fall.
Missing notifications from the Tax Authority or payment dates can create stress at a time meant for rest, especially when postponed obligations accumulate.
Key tax payments falling in August 2020 included:
- 2019 Personal Income Tax (IRS): due by 31 August 2020.
- 2nd instalment of Property Tax (IMI): due by 31 August 2020 (for annual amounts over €500).
- 1st instalment of IRS and Corporate Income Tax (IRC) payments on account: due by 31 August 2020 (postponed due to the pandemic).
- 1st instalment of the additional payment on account relating to the State surcharge: due by 31 August 2020 (also postponed).
Regular tax obligations in the same period:
- VAT: June 2020 (monthly regime) or Q2 2020 (quarterly regime), payable by 25 August 2020.
- Withholding taxes (IRS/IRC): July 2020, payable by 20 August 2020.
- Stamp Duty: assessed in July 2020, payable by 20 August 2020.
- Vehicle Tax (IUC): vehicles with an anniversary in August 2020, payable by 31 August 2020.
Direct debit: an efficient solution
Direct debit is an effective way to ensure that tax obligations are paid on time, even when taxpayers are travelling or have limited access to traditional payment channels.
How to set up direct debit for taxes
In “débito directo: gerir autorizações”, confirm that your requests have been validated.
Log in to your personal area on the Portal das Finanças.
Select “débito directo: pedido de adesão” (direct debit: application).
The mandate is linked to the bank account registered with the Tax Authority (IBAN can be checked under “alterar IBAN”).
Each authorization is valid for a specific tax, period and maximum amount, all defined by the taxpayer.
Rita Duarte | [email protected]