COVID-19 | Support measures for companies and employees Combating COVID-19 with resilience - Deloitte
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- Updated version as of 18th June - COVID-19 | Support measures for companies and employees Combating COVID-19 with resilience June 2020
Index
Index
Editorial
Respond
Respond
Recover
Thrive
Recover
Thrive
Interactive
Document
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 2Editorial
Index
Given the international public health emergency declared by Following a gradual removal of the confinement measures and Editorial
the World Health Organization on January 30th, 2020 and the a mandatory definition of contingency plans, we are now
classification of the novel Coronavirus disease (COVID-19) witnessing a progressive transition towards the Recover stage
outbreak as a pandemic on March 11th, 2020, measures were of the Economy. Respond
adopted to mitigate the global spread of the virus and its
underlying impacts at different levels. The new measures have been focusing on revitalizing the
economic fabric in order to promote a gradual return to Recover
Firstly, the Portuguese Government has foremost adopted a normality.
set of measures designed mainly to Respond to COVID-19,
aiming to mitigate the effects of the State of emergency at In terms of VAT, for example, some measures were approved Thrive
several levels, namely, protect the labor situation of employees to purchase protection material at a reduced rate.
who are faced with the temporary impossibility to work due to
the danger of infection, support to Families and safeguarding In addition, it is already possible to envision some financial
the companies' treasury operations. incentives geared towards the Recover stage.
In that stage, such measures were primarily designed to In this new edition of the Newsletter, we present the tax and
support the maintenance of employment contracts and to economic measures that enabled, in a first stage, to respond to
avoid business crisis situations. the devastating effects of the pandemic and, in the subsequent
stage, to accelerate the recovery and revitalization of the
In the economic domain, support credit lines were made Economy.
available to micro, small and medium-sized companies and
various incentive systems for companies were implemented Luís Belo
and changed. At the tax level, several measures were adopted,
such as postponement of payments and compliance deadlines Tax Leader
for tax and other reporting obligations.
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 3Respond © 2020. For information, contact Deloitte & Associados, SROC, S.A.
Respond
Tax and declarative obligations
Tax measures Customs measures Economic activity funding Other measures and support Index
CIT return of tax year 2019 Compliance with declarative obligations Editorial
The deadline for the filling of the CIT return with reference to A situation of infection or prophylactic isolation determined by
tax year 2019 is postponed from May 31st to July 31st, 2020. health authorities, by certified taxpayers or accountants, in Respond
compliance with accounting and tax obligations is considered to
CIT Special payments on account be a fair impediment.
Recover
The first installment of the special payment on account of tax They should be used preferentially, to avoid visits to the
year 2020 (to be made by March 31st under the applicable financial services, electronic services and telephone assistance
legislation) may be made by June 30th, 2020. on the Portal das Finanças. A prior scheduling mechanism was Thrive
created for situations that require face-to-face dislocation.
CIT payments on account and additional payments on
account Deadline for holding general meetings
The first installment of the payment on account and additional The general meetings of companies, associations or
payment on account of tax year 2020 (to be made by July 31st cooperatives that must be held by legal or statutory
under the applicable legislation) can be made by August 31st imposition, can be until June 30th, 2020.
2020.
Deadline for submission of the Relatório Único
The delivery of the Relatório Único, by reference to the 2019
financial year is postponed to June 30th 2020.
LEGISLATION AND OTHER SOURCES
Submission of IES/DA
Order No. 104/2020-XXII, of March 9th
Decree-Law No. 10-A/2020, of March 13rd The submission of IES/DA for 2019 can be completed until
August 7th of 2020.
Order No. 153/2020-XXII of April 24th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 5Respond
Stamp Duty
Tax measures Customs measures Economic activity funding Other measures and support Index
Stamp duty Editorial
The Order No. 121/2020-XXII stablished that the Stamp Duty’s
declaration (“Declaração Mensal de Imposto de Selo – DMIS”) Respond
is suspended throughout 2020 and it will only be applicable to
the transactions or other events subject to Stamp Duty from
the 1st January 2021 onwards. Recover
The payment of Stamp Duty regarding the months of January,
February and March of 2020 were postponed for April 20th Thrive
2020.
In the remaining months of the year, the corresponding
payments have to be made until the 20th of the next month to
which the tax obligation was incurred, through filing the Guia
Multi-Imposto.
The payment of Stamp Duty regarding the months of April and
May of 2020 (which are normally paid until 20th of the next LEGISLATION AND OTHER SOURCES
month) were postponed to May 25th and June 25th 2020,
respectively. Order No. 121/2020-XXII of March 24th
During 2020, it will be possible to compensate the excessive Order No. 137/2020-XXII of April 3rd
Stamp Tax paid or settled, whenever the transaction is Order No. 157/2020-XXII of May 4th
cancelled or the taxable value is reduced, until January 20th
2021. Order No. 153/2020-XXII of April 24th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 6Respond
VAT
Tax measures Customs measures Economic activity funding Other measures and support Index
Filing of VAT returns for the periods of February, March The submission of this amendments will not originate any Editorial
and 1st quarter of 2020 penalties as long as their submission and respective
payment/settlement occurs during:
This measure applies to taxpayers that have: Respond
• July 2020, regarding the period of February 2020;
• turnover for 2019 up to EUR 10 million; or
• August 2020, regarding the period of March 2020 and the 1st Recover
• have started their activity on or after 1st January 2020; or quarter of 2020.
• restarted their activity on or after 1st January 2020 and did Extension of the deadlines for the submission and the
Thrive
not get turnover in 2019. payment of the VAT returns relating to the periods of
February, March, April and the 1st quarter of 2020
It was granted the possibility that the periodic VAT declarations
referring to the periods of February and March 2020 (monthly VAT returns for the periods of February, March and April
regime) and to the 1st quarter of 2020 (quarterly regime), (monthly regime) should have been submitted until April 17th,
could be delivered based only on the data contained in E- May 18th and June 18th (instead of the 10th of those months).
Fatura, and they must be rectified (if applicable) by submitting
VAT return amendments. The VAT to be paid was postponed up to April 20th, May 25th
and June 25th (instead of the 15th of those months),
respectively.
On the other hand, VAT return for the 1st quarter of 2020
(quarterly regime) should have been submitted until May 22nd
(instead of the 15th) and paid until May 25th (instead of 20th).
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 7Respond
VAT
Tax measures Customs measures Economic activity funding Other measures and support Index
Pdf format invoices Postponement of “Business to Government” e-invoicing Editorial
deadlines
Possibility to circulate invoices in simple pdf format in April,
May and June, which are treated as electronic invoices for tax Companies not qualified as micro, small or medium-sized may Respond
purposes. use billing mechanisms different from e-invoicing until
December 31st, 2020 (rather than April 17th, 2020), when
invoicing public entities. Recover
For small and medium-sized companies the deadline was
extended to June 30th 2021 and for micro companies to Thrive
December 31st 2021 (instead of December 31st, 2020 for both
situations).
LEGISLATION AND OTHER SOURCES
Order No. 129/2020-XXII of March 27th
Order No. 141/2020-XXII of April 6th
Order No. 153/2020-XXII de April 24th
Decree-Law no. 14-A/2020 of April 7th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 8Respond
Donations
Tax measures Customs measures Economic activity funding Other measures and support Index
Donations Editorial
Donations granted to hospital entities, Public Business Entities
of the Regional Health Services [Entidades Públicas Respond
Empresariais (EPE) dos Serviços Regionais de Saúde] and
Shared Services of the Ministry of Health (SPMS – Serviços
Partilhados do Ministério da Saúde), during the emergency Recover
period in Portugal, are considered costs in an amount
corresponding to 140%, when allocated exclusively to social
purposes. Thrive
LEGISLATION AND OTHER SOURCES
Order no. 137/2020-XXII, of April 3rd
Order No. 122/2020-XXII, of March 24th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 9Respond
Suspension of Deadlines and procedural diligences
Tax measures Customs measures Economic activity funding Other measures and support Index
Deadlines and procedural diligences The Law No. 16/2020 becomes effective 5 days after the day of Editorial
its publication, which occurred in May 29th.
The procedural acts deadlines, namely ongoing administrative
and tax deadlines in favor of the taxpayers (such as judicial The prescription and expiration deadlines, regarding all Respond
claims, administrative appeals, hierarchical appeals and processes and proceedings, are no longer suspended but are
similar) that were temporarily suspended and whose original extended by the period of time in which the suspension was in
term would occur: place. Recover
• During the established suspension: are now considered
overdue on the 20th business day after the implementation Thrive
of the law No. 16/2020;
• After the implementation of the Law No. 16/2020:
Are considered overdue on the 20th business day after the
implementation of the law, in case they would end until
that date;
In the original date that it would normally be considered
overdue, in case it would end after the 20th business day
LEGISLATION AND OTHER SOURCES
after the implementation of the law.
Law No. 1-A/2020 of March 19th
Rectification Statement No. 13/2020 of March
28th
Law No. 16/2020, of May 29th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 10Respond
Suspension of Deadlines and procedural diligences
Tax measures Customs measures Economic activity funding Other measures and support Index
Installment plans and process suspension Editorial
Tax enforcement proceedings and installment plans in progress
for debts to Social Security outside the scope of executive Respond
proceedings must remain suspended until June 30th 2020,
subject to their continued compliance with the rules.
Recover
Thrive
LEGISLATION AND OTHER SOURCES
Decree-Law No. 10-F/2020 of March 26th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 11Respond
Excise duties
Tax measures Customs measures Economic activity funding Other measures and support Index
Production, storage and marketing of alcohol Denaturation process Editorial
• The production and storage of alcohol, under a tax Exceptionally, it is foreseen that the denaturation procedure
suspension regime, as well as denaturation operations, may may be, by complying with certain conditions, carried out by Respond
take place outside a tax warehouse, provided that this is means of procedures other than those provided for by national
previously authorised by the competent customs office; law, as long as it is previously authorised by the competent
customs office. Recover
• exceptionally, authorised depositaries, registered recipients
and operators with the status of exempt users may produce, Alcohol will not need to undergo a denaturation process when
transform, detain, receive or dispatch other products subject previously authorised by the competent customs office and in Thrive
to excise duties other than alcohol, provided that this is order to avoid market disruption (or in its eminence).
previously authorised by the competent customs office.
Use of alcohols
Packaging, marketing and labelling of alcohol
With the exception of ethyl alcohol for therapeutic or sanitary
Without prejudice to ensuring adequate labelling, depending on ends, the use of alcohols becomes subject to the prior opinion
the risks of the product, the rules on the packaging, labelling of the Directorate-General for Health or the Directorate-
and marketing of alcohol can be adjusted, depending on the General for Food and Veterinary, depending on the type of
needs. product or the purpose for which it is intended.
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 12Respond
Treasury needs support
Tax measures Customs measures Economic activity funding Other measures and support Index
Payment of taxes in installments The remaining companies or independent workers may request Editorial
this measure, on the Finance Portal when they show a
Flexibility in the payment of taxes for companies and self- reduction in the invoicing communicated through the E-Fatura
employed workers, which allows the payment obligation to be of at least 20% on average of the three months preceding the Respond
fulfilled in one of the following ways: month to which the obligation relates, in view of the same
period of the previous year.
• Immediate payment in the usual terms; or Recover
This demonstration must be certified by the Statutory External
• Payment in installments in three or six monthly installments Auditor or the Chartered Accountant.
without interest.
Thrive
This measure covers the payments of VAT in the monthly (due
up to April 15th, May 15th and June 15th) or quarterly (due up
to May 20th) periods and delivery of withholding taxes due by
April 20th, 20th/ May and 20th/ June.
The payment flexibility is applicable upon request on the
Finance Portal (automatic validation) to:
• Self-employed workers;
• Companies with a turnover of less than EUR 10 million in the LEGISLATION AND OTHER SOURCES
2018 financial year or whose start (or restart) of activity
occurred after January 1st, 2019, or whose activity falls
within the sectors closed under the terms of Article 7 of Decree-Law No. 10-F/2020 of March 26th
Decree No. 2-A/2020, of 20th March. Rectification Statement No. 13/2020 of March
28th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 13Respond
Treasury needs support
Tax measures Customs measures Economic activity funding Other measures and support Index
Postponing of payment of Social Security contributions This regime also applies to employers who fulfill the following Editorial
requirements:
Reduction of Social Security contributions through membership
in Direct Social Security in the following terms: • Total workers between 50 and 249, provided that they have Respond
a drop of at least 20% in turnover compared to the same
• Payment of 1/3 of the contributions of the employer's period of the previous year or, if they started the activity
responsibility, due up to 20/March, 20/April and 20/May, and less than 12 months ago, compared to the average of the Recover
those of independent workers, due up to 20/April, 20/May period of activity elapsed.
and 20/June on the dates this obligation is due;
• Have 250 workers or more and show a drop of at least 20% Thrive
• Automatic activation of an installment plan (of 3 or 6 in turnover compared to the same period of the previous
months) in relation to the remaining amount (remaining year or, if they started the activity less than 12 months ago
2/3), deferred for to the 2nd semester (from July inclusive). compared to the average of the period of activity elapsed,
and if it falls into one of the following situations: (i) private
The option for this regime is optional, meaning that immediate institution of social or similar solidarity; (ii) its activity falls
payment can be made under the usual terms. within the sectors closed under the terms of Decree No. 2 A
/ 2020 of March 20th, or in the aviation and tourism sectors
This measure is applicable to self-employed workers and to in relation to the establishment or company effectively
employers in the private and social sectors up to 50 jobs, this closed; or (iii) its activity has been suspended by legislative
number being measured by reference to February 2020 or administrative determination under the terms provided
remuneration statement. for in Decree-Law no. 10-A / 2020 of March 13rd, in its
current wording in the Basic Law for Civil Protection,
approved by Law no. 27/2006 of July 3rd, in its current
wording, or in the Basic Law of Health, approved by Law no.
95/2019 of September 4th, regarding the establishment or
1 Companies that have already paid all of their March contributions may still defer company effectively closed.
payment of contributions due on 20/April, 20/May and 20/June.
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 14Respond
Treasury needs support
Tax measures Customs measures Economic activity funding Other measures and support Index
Postponing of payment of Social Security contributions Contributions to the Pension Fund of Lawyers and Editorial
(cont.) Solicitors
Entities that unduly benefit from the deferral of contributions Contributions to the Pension Fund of Lawyers and Solicitors Respond
will have to settle all the missing installments, plus interest. may, by decision of the Board and with the favorable opinion
of the General Council, defer the payment deadline for
contributions, temporarily suspend their payment or Recover
temporarily reduce the contribution levels to beneficiaries
who have proven to have suffered a drop in income that
prevents them from meeting contributory obligations due to Thrive
illness or abnormal activity reduction following COVID-19.
The information contradicted the disclosure of the
Ministry of Labor, Solidarity and Social Security, These measures have taken effect on March 12nd 2020.
which provided for the suspension and
postponement of the totality (instead of only 2/3)
of the payment of contributions due on March
20th, related to the month of February.
However, is maintained the possibility to activate
the installment plan of the payment deadline
Social Security contributions to the companies
that even had not paid 1/3 of the due LEGISLATION AND OTHER SOURCES
contributions in the first month of application
(March or April, as applicable) have already Decree-Law No. 10-F/2020 of March 26th
regularized this situation, added with the
Rectification Statement No. 13/2020 of March 28th
corresponding interests
Decree-Law No. 20-C/2020, of May 7th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 15Respond
Portugal 2020
Tax measures Customs measures Economic activity funding Other measures and support Index
Impact of COVID-19 outbreak in assessment of Goals in • Projects in investment phase Editorial
Portugal 2020 projects
• Investment settings of the initial investment project
Negative impacts of the COVID-19 outbreak, resulting in a (e.g., substitution of equipment and reconfiguration of Respond
non-achievement of the actions or goals set, may be deemed the investment);
as force majeure reasons not attributable to the beneficiaries
in the assessment of the contractual goals. Amendments may • Time plan of the investment (assuming the setting of a Recover
be accepted within the following categories: timetable compatible with new expectations for the
completion of the project, without any penalty);
• Projects physically and financially completed Thrive
• Extension of the project time plan may that exceed the
• Values of the approved goals (related to job creation, approved time limits identified in the call or in specific
turnover and gross value-added); regulations (e.g. beginning or interruption of projects,
clarifications or allegations);
• Results assessment (admitting an extension of the steady
growth • Possibility of derogation of the cost that exceed the
year for another year). limits or maximum supports foreseen in regulations or
in the call application resulting from the financial
reprogram of the project;
LEGISLATION AND OTHER SOURCES
• Results set in contract (indicators of implementation,
Council of Ministers release of March 20th
results and value of the goals set related to job
Council of Ministers Resolution No. 11- creation, national and international turnover and gross
A/2020 added value.
Technical Guidance No. 01/2020
For more information, please visit COMPETE 2020 and the
do IAPMEI websites.
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 16Respond
Portugal 2020
Tax measures Customs measures Economic activity funding Other measures and support Index
More expedite payment of financial incentives Reimbursement of expenses incurred with cancelled Editorial
events
The payment of the financial incentives shall be executed in
the shortest period of time possible and, if needed, through Eligibility for the reimbursement of expenses incurred by Respond
advance payments (up to 95% of the total incentive beneficiaries concerning events or actions cancelled or
approved), which would be subsequently offset by the postponed due to COVID-19 outbreak, namely in the areas of
assessment of the effective incentive to be granted without any internationalization and professional training. Recover
formality for the beneficiaries (up to 60 days).
Deadlines to present Portugal 2020 projects
Extension of the repayment term of repayable subsidies Thrive
The deadlines to present projects in the context of Portugal
Extension of the repayment terms up to a 12-month period of 2020 were/will be postponed. For more information, please
outstanding instalments by September 30th 2020 of repayable visit IAPMEI website.
subsidies granted within the scope of the National Strategic
Reference Framework (“QREN”) or Portugal 2020, without
interest or other penalties.
The scope of the extension of the repayment term is widened
to installments related to regularization plans agreed and the
repayment plans established at the time of closure of QCAIII LEGISLATION AND OTHER SOURCES
and SI QREN projects.
Council of Ministers release of March 20th
Council of Ministers Resolution No. 11-A/2020
Technical Guidance No. 01/2020
Decree-Law No. 10 L/2020 of March 26th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 17Respond
PDR 2020
Tax measures Customs measures Economic activity funding Other measures and support Index
Support measures in the context of PDR 2020 Credit guarantee line of PDR 2020 Editorial
Projects ending between March 1st and June 15th 2020 will be Creation of a credit guarantee line within the scope of the
automatically extended for three months. PDR 2020 Program with an allocation of EUR 300 million to Respond
support of the following type of investments:
The interim payments submission now allows the phasing in of
the submission of expenses and the respective reimbursement. • Investments in agricultural holdings/farming – young Recover
farmers;
The deadlines for the calls for proposal issued by the PDR
Manager are extended by 30 (thirty) days. • Investments in agricultural holdings/farming – others;
Thrive
Impact of COVID-19 outbreak in assessment of Goals in • Investments in agribusiness.
PDR 2020 projects
For more information, please visit PDR 2020 website.
PDR 2020 investment projects can be concluded, regardless of
the degree of execution, whether it is recognized a situation of
“force majeure” as a result of the COVID-19 pandemic.
For this purpose, beneficiaries must submit the request for a
“case of force majeure” to the Agriculture and Fisheries LEGISLATION AND OTHER SOURCES
Financing Institute, I. P. (IFAP) and, whether applicable,
formalize the last payment request until May 31st 2020. Decree No. 81/2020 of March 26th
Council of Ministers Resolution No. 10-A/2020
For more information, please visit PDR 2020 website.
Order of the Office of the Minister of Agriculture
Decree-Law No. 10-L/2020, of March 26th
Decree No. 105-C/2020, of April 30th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 18Respond
Mar 2020
Tax measures Customs measures Economic activity funding Other measures and support Index
Support measures under Mar 2020 In order to streamline the payments, the following Editorial
extraordinary measures were adopted:
Due to the negative impacts of COVID-19:
• Whenever it is not possible to validate the payment Respond
• Projects that do not achieve the approved budget and the requests in a 20-workday period back from the filing of the
forecasted actions or targets will not be penalized; request, the request shall be executed as an advance
payment, up to a maximum cap of 70% of the underlying Recover
• Expenses incurred by beneficiaries concerning events or public subsidy;
actions cancelled or postponed are eligible for
reimbursement; • The beneficiaries may file payment requests based on Thrive
already incurred but not paid expenses, considering that
• A larger number of payment requested is allowed (up to ten the sum of advances already performed and not justified
in each project); do not exceed 50% of the underlying public subsidy.
• The deadline for project conclusion is extended to 2021
given the time frame for the completion of its physical-
financial execution;
• Extension of the deadlines for the submission of applications
in several open calls in the scope of Local Development
Strategies. LEGISLATION AND OTHER SOURCES
Council of Ministers Resolution no. 10-A/2020
Order of the Office of the Minister of the Sea
Order No. 3651/2020, March 24th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 19Respond
Simplified Lay-off
Who / under what
Requirement / Index
Measures Benefits Declarative and other Observations
circumstances
obligations
Editorial
• Maintenance of the rights, duties and • The employer must have the
guarantees of the employer and the contributory and tax situations
Extraordinary support for the worker; regularized towards the Social
maintenance of an employment • The worker is entitled to 2/3 of his Security and the Tax Authority.
contract through the reduction or normal gross remuneration, with a • The inclusion of new workers
Respond
Business crisis situation Form RC 3056 - DGSS
suspension of normal working minimum of a minimum guaranteed (during the period of granting
and annex with workers’
periods or suspension of an monthly remuneration (EUR 635) and a the aforementioned support) is
• The total or partial stoppage of identification.
employment contract under the maximum of three times (EUR 1,905) done through the delivery of a
the company's activity terms defined in the lay-off that amount; new attached file, with the
Recover
resulting from the interruption regime. • SS financial support in the amount of payment of support being
of global supply chains, or 70% of the employee's guaranteed granted for the remaining
suspension or cancellation of remuneration. period.
orders; Thrive
• The abrupt and sharp drop of • Support supported by IEFP;
at least 40% of the billing in Extraordinary training plan (part- • Amount depending on the training
The duration of the training plan
the 30 days prior to the time), not cumulative with hours attended, up to a limit of 50% of
must not exceed 50% of the
request to the Social Security, extraordinary support for the the gross remuneration with a
normal working period while it
with reference to the monthly maintenance of the employment maximum limit of a guaranteed
takes place.
average of the two months contract, lasting one month. minimum monthly remuneration (EUR
prior to that period, or 635).
compared to the same period
of the previous year, or for The Decree-Law No.20/2020, of
Dependent on the
those who started the activity May 1st predicts that the
Support granted by IEFP paid once and submission of an
less than 12 months ago at the procedures, conditions and terms
Financial incentive to support the with the value of a guaranteed minimum application to IEFP for the
average of that period; of access to this support are
normalization of activity. monthly remuneration (EUR 635) per purpose of presenting the
subsequently regulated by order of
• The closure of the worker. documents that attest the
the member of the Government
establishment by decision of business crisis situation.
responsible for the work field.
the health Authority or due to
the state of emergency.
• Exemption officially
Exemption applicable during the business
Exemption from Social Security recognized.
crisis period regarding contributions due by
contributions payments (payable • Report on autonomous
the employer on the remuneration of the
by the employer) and workers' remuneration
workers covered and members of the
contributions continue to be due. statements.
statutory bodies.
• Payment of workers'
contributions.
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 20Respond
Simplified lay-off and other supports
Tax measures Customs measures Economic activity funding Other measures and support Index
Ban on dismissal Non-compliance and restitution of support Editorial
During the period of application of the measures provided for The situations listed below imply the immediate cessation of
in Decree-Law 10-G/2020 of March 26th, rectified by the support, as well as the refund or payment, total or Respond
Statement of Rectification No. 14/2020 of March 28th, as well proportional, of the amounts already received or exempted:
as in the following 60 days, the employer cannot terminate
employment contracts under the terms of collective dismissal (i) Dismissal, except for reasons attributable to the Recover
or dismissal for extinction of the job. This measure applies to employee; (ii) non-compliance with the obligation to pay
all workers and not only to those who are covered by the remuneration, (iii) non-compliance with legal, tax and social
support measures. security obligations, (iv) distribution of profits, (v) non- Thrive
compliance with the established terms of assumed
obligations, (vi) false statements; and, (vii) providing work
to the employing entity itself (if the lay-off is under contract
suspension) or exceeding the established schedule (in the
case of a temporary reduction in working hours).
LEGISLATION AND OTHER SOURCES
Decree – Law No. 10-G/2020 of March 26th
Rectification Statement No. 14/2020 of March 28th
Decree – Law No. 12-A of April 6th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 21Respond
Support to self-employed workers and others
Requirement / Declarative and other Index
Who / under what circumstances Benefits
obligations
Editorial
Self-employed workers
Who are not pensioners and subject to contribution Extraordinary financial support (multiplied by the respective break
obligation by at least 3 consecutive months or 6 in the billing, in percentage terms) with duration of one month, Respond
In the event of activity stoppage, the
months interpolated, for at least 12 months; and: renewable on a monthly basis up to a maximum of six months,
circumstances must be proven by a declaration
which the amount can reach:
of the employee on oath or by a certified
• Are in a proven situation of total stoppage of their accountant, in the case of workers in an
• The remuneration registered as a contributory base, with a Recover
activity (or of the sector); or organized accounting scheme.
maximum of one IAS (EUR 438.81), when the contributory base
• Upon declaration of the certified accountant and is less than 1.5 IAS (EUR 658.21); or
During the period of payment of this support,
themselves, are in a situation of decrease of at the employee maintains the obligation to
least 40% of the billing in the 30 days prior to the • 2/3 of the remuneration registered as a contributory base, with
submit the quarterly declaration. Thrive
request, with reference to the monthly average of a limit of EUR 635, when the contributory base is equal to or
the two months prior to that period, or compared greater than 1.5 IAS (EUR 658.21).
The breakdown of invoicing may be subject to
to the same period of the previous year. verification by Social Security, within one year,
This support has a minimum limit of 50% of the IAS (EUR 219.41)
based on information requested from the Tax
Authorities, giving rise to the eventual refund
The remuneration considered corresponds to:
Managing partners of companies without of amounts unduly received.
• Self-employed workers: the average of the contributory tax
employees and others
base referring to the months in which there was a record of
Self-employed workers covered by the financial
Managing partners of companies and members of remuneration, in the 12 months prior to the date of filing the
support referred in the previous article are
statutory bodies of foundations, associations or application; or,
entitled to defer the payment of contributions
cooperatives with functions equivalent to those, due in the months in which extraordinary
without employees, who are only covered by the • Managing partners: base remuneration declared in March 2020
financial support is being paid.
Social Security scheme in that nature and who, in the regarding February 2020. If there is no remuneration declared
previous year, had a billing communicated to the E- in February 2020, IAS will be used as reference (i.e. EUR
Fatura of less than EUR 60,000. 438.81).
LEGISLATION AND OTHER SOURCES
Decree – Law No. 12-A of April 6th
Decree – Law No. 14-F/2020 of Abril 13th
Ministerial Order No. 94-A/2020 of April 16th
© 2020. For information, contact Deloitte & Associados, SROC, S.A.
Decree – Law No. 20-C/2020, of May 7th 22Respond
Extraordinary Measures to workers and family
Who/ in what
Conditions to Procedure to request Exceptions/ Social Security Social Security
Index
Situation circumstances it is Benefits
access allowance the allowance Notes contributions Website
applied
Editorial
Workers in prophylactic isolation during a
Employees and self employed workers
The employee should send
14- day period due to serious risk to
to the employer a
(1)
declaration issued by the
Respond
Prophylactic Isolation
National Health Authority
This allowance does
stating the prophylactic
not depend on any http://www.seg-
isolation. Then, the If the employee
public health
waiting period, social.pt/document
Isolation allowance: employer should complete a continues his activity
professional index s/10152/16819997
100% of the specific form in the Social through remote Recover
and temporary /GIT_70.docx/e69
remuneration of Security website work/work from
medical discharge or 40795-8bd0-4fad-
reference (“Segurança Social home, cannot benefit
any other Social b850-
Directa”), identifying all the from this allowance
Security warranty ce9e05d80283
workers in prophylactic
period.
isolation and enclosing al
Thrive
the declarations from the
National Health Authority,
within a 5-day deadline.
Employees and self employed workers
Disease allowance:
Disease caused by COVID-19
- 55% for the period
until 30 days; If the worker during
the prophylactic
- 60% for the period isolation contracts
Disease
Must have a medical
between 31 days and the COVID-19
discharge proving the
90 days; No waiting period disease before the
temporary incapacity to
14–day period, starts
work
- 70% for the period receiving only 55%
between 91 days and of the remuneration
365 days; of reference
- 75% for the period
above 365 days.
(1) http://www.seg-social.pt/documents/10152/16819997/GIT_70.docx/e6940795-8bd0-4fad-b850-ce9e05d80283
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 23Respond
Extraordinary Measures to workers and family
Who/ in what Conditions to Procedure to
Social Security Social Security
Index
Situation circumstances it is Benefits access request the Exceptions/ Notes
contributions Website
applied allowance allowance
Editorial
- Work absence
Workers whose children´s schools were closed due to COVID-19
considered justified;
- Not applicable if remote
- Extraordinary allowance
work is possible;
of 2/3 of the base
- If the Respond
Exceptional assistance to the family(2)
remuneration, paid
spouse/husband/partner is
50% by the employer
working remotely, the
and 50% by the social
other cannot benefit from
security (min. limit of
EUR 635 and max.
this allowance;
This allowance is Recover
- This allowance does not
Limit of If the child is subject to social
Only employed workers
- Specific declaration depend on the number of
EUR 1,905); under 12 years security
completed and children and can only be
- For the calculation, it is of age, with contributions as http://www.seg-
considered the base any deficiency
presented by the receive once;
follow: 11% social.pt/document Thrive
workers whose - Whether the worker has
remuneration declared or chronic supported by the s/10152/21730/GF
children´s schools more than one employer,
in March 2020 disease, the employee + _88.doc/da6eadda
were close; it is established that the
regarding February allowance does 11,86% by the -adf0-4a05-86d7-
- Specific application maximum support limit
2020. If no base not depend on employer (50% b3ba2dc46c95
form presented by (i.e. EUR 1,905) is applied
remuneration was any waiting of the general
the employer to the total base
declared in March 2020, period employer rate –
remuneration paid to the
the support will be 23,75%)
worker by the various
calculated based on the
employers. The support is
Minimum Guaranteed
distributed proportionally,
Monthly Salary (i.e.
according to the weight of
EUR 635);
the base remuneration
- Public employees: the
declared by each
allowance is 100% paid
employer.
by the public entity/
employer.
(2) http://www.seg-social.pt/documents/10152/21730/GF_88.doc/da6eadda-adf0-4a05-86d7-b3ba2dc46c95
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 24Respond
Extraordinary Measures to workers and family
Who/ in what
Conditions to Procedure to request Exceptions/ Social Security Social Security Index
Situation circumstances it is Benefits
access allowance the allowance Notes contributions Website
applied
-This allowance is Editorial
Workers whose children´s schools were subject to social
Exceptional assistance to the
security
contributions;
Only self-employed workers
Respond
closed due to COVID-19
- The amount of the - Deferral of the
- Not applicable if
allowance corresponds payment of the
Subject to the social remote work is
to 1/3 of the social contributions due in
security contribution possible;
family(2)
security incidence base the months that the
obligation during at - This support
with reference to the
least 3 consecutive
Application filed by the
cannot be
allowance is paid, Recover
first quarter of 2020 self-employed worker starting the second
months during the combined with
(min. limit of 1 IAS – month after the end
last 12-month the other
EUR 438,81 – and max. of the allowance.
period provided
limit of 2.5 IAS – EUR
supports.
The payment of the Thrive
1,907.03) contributions can
be made during a
12-month deadline
(in monthly and
equal instalments)
prophylactic isolation, during a 14- day
period, due to a serious risk to public
Child/Grand child assistance
Assistance to child or grand child in
Assistance to child or
Only employed workers
grand child allowance:
If the child is under
- 65% of the 12 years old, with
remuneration of any deficiency or
health
reference; chronic disease, the
allowance does not
- 100%, if child depend on any
assistance, after the waiting period
2020 State Budget
comes into force
(2) http://www.seg-social.pt/documents/10152/21730/GF_88.doc/da6eadda-adf0-4a05-86d7-b3ba2dc46c95
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 25Respond
Extraordinary Measures to workers and family
Tax measures Customs measures Economic activity funding Other measures and support Index
Extraordinary extension of social benefits Workers residents in Portugal subject to the Social Editorial
Security legislation of another member state of the
Unemployment benefits and all benefits of Social Security that European Union, the European Economic Area or
guarantee subsistence minimums (e.g., solidarity supplement Switzerland Respond
for the elderly and social insertion income) whose concession
period or renewal term ends before June 30th, 2020, as well as Regarding workers residents in Portugal who are tied to a
reassessments of the conditions for maintaining the benefits of Social Security system in another Member State of the Recover
Social Security are automatically and extraordinarily extended. European Union, the European Economic Area or
Switzerland, the period of teleworking provided in Portuguese
This measure has taken effect on March 12nd, 2020. territory during the exceptional and temporary measures is Thrive
not taken into account.
The extension is also applicable to benefits whose concession
or renewal period ended in March or ends in April, May and Thus, Social Security system to which they are currently tied
June 2020, inclusive. will not be changed.
Supervision of entities benefiting from supports
The beneficiary entities from the extraordinary supports must
keep in their records the relevant information during three
years, in order to prove the respective fulfillment of
applications conditions, as well as the extensions (whether
applicable).
LEGISLATION AND OTHER SOURCES
Domestic service workers must preserve the declaration of
each employer that attests the non-performance of the work
and the non-payment of the total remuneration, during three Decree-Law No. 10-F/2020 of March 26th
years. Rectification Statement No. 13/2020 of March 28th
Ministerial Order No. 94-A/2020 of April 16th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 26Respond
Extraordinary Measures to workers and family
Tax measures Customs measures Economic activity funding Other measures and support Index
Social unprotected situations Temporary measures to strengthen unemployment Editorial
protection
Creation of a new financial support for people who are not
necessarily covered by a Social Security regime, national or It is possible to benefit from the initial unemployment social Respond
foreign, and who declare the beginning or restart of allowance, in 90 and 60 days, respectively, for workers who:
independent activity to the Portuguese Tax Authority.
(i) Have 90 days as dependent workers on behalf of others Recover
Its attribution depends on the effects of the inclusion in the in a period of 12 months immediately before the date of
Social Security regime of self-employed workers and implies unemployment;
the maintenance of the activity for a minimum period of 24 Thrive
months after the end of the payment of the benefit - the (ii) Have 60 days as dependent workers on behalf of others
benefits paid should be refunded if the self-employed worker in a period of 12 months immediately before the date of
declares the activity’ cessation before the end of this period. unemployment, whenever it has occurred due to the
expiration of the fixed-term employment contract or
The support is in the amount of EUR 219.41 (half of the value termination of the employment contract on the initiative
of the IAS) and due from the date of submission of the of the employer during the experimental period.
application, which is granted for a maximum period of two
months. As such, the beneficiary must submit the application by June
30th 2020. This benefit cannot be combined with other social
This support can be claimed until June 30th 2020 and cannot be benefits.
combined with other social benefits.
LEGISLATION AND OTHER SOURCES
Decree – Law No. 20-C/2020, of May 7th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 27Respond
Support measures of lease contracts
Tax measures Customs measures Economic activity funding Other measures and support Index
Support measures of lease contracts Housing lease contracts Editorial
During the period of the preventive measures, it is determined These measures apply when there is a drop greater than
that the expiry of the housing and non-housing lease contracts 20% of the income of: Respond
is suspended, unless the renter does not object to the
termination, as well as the production effects of the revocation • Renter's household of permanent residence, when the rent
of the renewal of lease agreements. is greater than 35% of the total monthly income of the Recover
household;
As a reinforcement, a Law has been approved with effects
since April 1st that establishes an exceptional regime for • Student with a lease for housing located at a distance of
Thrive
situations of late rent payment under housing and non-housing more than 50 km from the permanent residence of his
lease contracts. household, for frequency of educational establishment,
when the rent is greater than 35% of the total monthly
Thus, renters who meet these requirements can request for an income of the household.
interest-free loan, before the IHRU, allowing them to bear the
difference between the monthly rent due and the income
corresponding to a 35% effort rate.
The landlord may also be entitled to be granted an interest-
free loan before the IHRU, in order to offset the unpaid rents.
LEGISLATION AND OTHER SOURCES
The landlord also has the right to rescind the contract when
the renter does not pay the rent due during the state of
emergency period and the subsequent month within 12 months Law No. 4-A/2020 of April 6th
after the end of this period. Ministerial order n.º 91/2020 of April 14th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 28Respond
Support measures of lease contracts
Tax measures Customs measures Economic activity funding Other measures and support Index
• Guarantor of housing tenant who is a student and does not Non-housing lease contracts Editorial
earn income from work, when the monthly income
represents more than 35% of the monthly income of the Retail and service provision activities establishments and
members of his household; catering and similar establishments which are closed (even if Respond
they maintain activity through electronic commerce,
• Landlord of housing lease contracts, when the income falls provision of services at distance or electronic platform or
below the value of the social support index (IAS) in result home delivery) have the possibility of deferring the payment Recover
from the non-payment of rents by his tenants. of rents during the state of emergency period, including the
subsequent month, for the next 12 months.
The statement of income loss is shown: Thrive
Until September 1st, the tenant may also defer the payments
• In the case of tenants, students and guarantors, by of past rents, for the months in which, under the legal
comparing the income of the members of the household in provision or administrative measure approved related with
the month in which the change in income occurs with the the COVID-19 disease pandemic, it was stablished the
income earned in the previous month. closure of facilities or suspension of activities, or in the first
subsequent month as long as it falls within that period.
• In the case of landlords, by comparing the income of the
members of the respective household in the month in which The period of debt settlement cannot go beyond June 2021.
there is a non-payment of rents due by their tenants with
the income earned in the previous month.
• In the case of self-employed workers, when the billing for LEGISLATION AND OTHER SOURCES
the month prior to the drop in earnings is not
representative, they may choose to demonstrate the Law No. 4-A/2020 of April 6th
decrease in earnings with reference to earnings for the same
period last year. Law No. 4-C/2020 of April 6th
Ministerial order n.º 91/2020 of April 14th
Law No. 17-C/2020, of May 19th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 29Respond
Retirement Savings Plan
Tax measures Customs measures Economic activity funding Other measures and support Index
Rescue of Retirement Savings Plan To the amount reimbursed it does not apply the envisaged Editorial
penalties normally applicable to the rescue of these saving
The value of the Retirement Savings Plan (Planos Poupança plans given that it was subscribed until March 31th of 2020.
Reforma – PPR) may be reimbursed until September 30th 2020, Respond
up to the monthly limit of the social support index, provided
that one of the members of the household is in one of the
following situations: Recover
• Prophylactic isolation or illness as established in Decree-Law
no. 10-A/2020 of March 13th; Thrive
• Provides assistance to children or grandchildren, as
established in Decree-Law no. 10-A/ 2020 of March 13th;
• In reduction of the normal period of work or in suspension of
the employment contract due to business crisis;
• In a situation of unemployment registered in IEFP; or
• Eligible for the extraordinary support to the reduction
economic activity of self-employed person, e.g., workers of
entities whose establishment or activity has been the subject LEGISLATION AND OTHER SOURCES
of a determined closure during the period of state of
emergency or calamity by legal or administrative imposition.
Law No. 7/2020 of April 10th
The value of the reimbursement must correspond to the value Law No. 18/2020 of May 29th
of the unit at the date of the request for reimbursement.
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 30Respond Updated on
June 18th
Moratorium over debt service
Tax measures Customs measures Economic activity funding Other measures and support Index
Moratorium over debt service Access terms Editorial
A moratorium over all debt service is currently in place, • Individuals – Individuals in prophylactic isolation, ill,
applicable to mortgage and education credit, in the case of providing assistance to children or grandchildren, in layoff
Respond
individuals, as well as corporate loans (including factoring and regime or unemployed. It is also accessible to employees
leasing), for sole proprietorships, solidarity institutions (IPSS) whose activity has been shut down legal or
and non financial companies. administratively or whose family income has declined by
Recover
more than 20%.
The previous moratorium in place until September 30th of 2020 • Non financial companies, sole proprietorships and
has been extended until March 31st of 2021, with the solidarity institutions (IPSS) that fulfil the following Thrive
contractually defined maturities extended by that amount of conditions: (i) headquarters and activity in Portugal; (ii)
time. Adherents to the moratorium are automatically covered compliance with the Banks (arrears < 90 days and not in
by the extension, while the remaining individuals and entities insolvency, with suspended payments or under execution);
can apply until June 30th of 2020. (iii) compliance with the Tax Authority and Social Security.
Interest and the remaining financial charges are capitalized
during the period of the moratorium. The update on the 16th of June extends the moratorium by
6 additional months (until March 31st of 2021), broadens
Individual negotiations with the financial institutions regarding access to citizens not residing in Portugal, encompasses
partial interest and/or principal moratoriums are allowed. education and all mortgage credit and enables access to
individuals whose family income has declined by over
Exceptions 20%.
Loans for purposes of the acquisition of financial instruments,
loans to beneficiaries of special headquarters or residency LEGISLATION AND OTHER SOURCES
fixation regimes in Portugal and corporate loans for individual
credit card use by the company’s bodies are excluded from the Decree-Law No. 10-J/2020 of March 26th
scope of the moratorium. Decree-Law No. 26/2020 of June 16th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 31Respond
Exceptional and temporary insurance regime
Tax measures Customs measures Economic activity funding Other measures and support Index
Exceptional regime for the payment of the insurance Exceptional regime in case of reduced activity Editorial
premium
The exceptional regime envisages the possibility of
The exceptional insurance premium payment regime aims to renegotiating the value of premiums for the insured whose Respond
guarantee that in this period of public calamity, the non- activity has been suspended or substantially reduced
payment of insurance premiums will not necessarily imply (as (minimum 40% drop in billing) as a result of the measures
it used to be) the non-coverage or coverage’s renewal of the adopted in response to the pandemic. Recover
risk in question.
When the premium has been fully paid in advance, the
The insurer and the policyholder can agree on a more favorable premium reduction amount is deducted from the subsequent Thrive
regime for the policyholder, namely through the payment of premium amount or returned within 10 days prior to the
the premium at a date after the beginning of the coverage of termination of the insurance contract, whenever the contract
the risks, by the removal of the automatic resolution or the is not extended.
non-extension in case of payment absence, by fractioning the
premium, among others. Scope and exceptions
In the absence of an agreement between the insured and the In case of a reduction in the activity, the exceptional regime
insurer and in case of payment absence of the premium or covers insurance which subscription is related to the conduct
fraction, the contract is automatically extended for 60 days, of the affected activity, namely professional indemnity
maintaining the insurance coverage during that period and the insurance, general indemnity insurance, occupational
insured’s obligation to pay the remaining amounts due accident insurance or assistance insurance, among others
afterwards. that may cover activities.
This exceptional regime does not apply to high risk
LEGISLATION AND OTHER SOURCES
insurance.
Decree-Law No. 20-F/2020 of May 12th
© 2020. For information, contact Deloitte & Associados, SROC, S.A. 32Recover © 2020. For information, contact Deloitte & Associados, SROC, S.A.
Recover Updated on
June 18th
VAT
Tax measures Customs measures Economic activity funding Other measures and support Index
Acquisition of goods necessary to fight the COVID-19 • They are intended to one of the following uses: Editorial
outbreak
- Distribution free of charge by the mentioned entities to
Local supplies and acquisition of goods (for consideration or people affected by the COVID-19 outbreak or exposed Respond
free of charge) mentioned in the annex of the Law no. 13/2020 to this risk, as well as those involved in the fight
of May 7th are VAT exempt provided that: against COVID-19;
Recover
• They are acquired by the following entities: - Treatment of persons affected by COVID-19 outbreak
or for the purposes of its prevention, provided the
- State, Autonomous Regions or Local Authorities, as well goods remain in the property of the entities previously Thrive
as any of their services, establishments and bodies, even mentioned.
if personalized, including the public institutes;
The invoices issued on the sale of those goods should
- Establishments and health care units that are part of the disclose the reference to Law No. 13/2020, as a reason for
National Health Care System (“NHCS”), including those the VAT exemption.
that take the legal form of public entities business
enterprises; This VAT exemption entitles the taxpayer the recovery of the
input VAT incurred, on the goods or services acquired or
- Other establishments and health care facilities of the imported in order to supply the goods exempt by the Law
private or social sector, as long as they are included in the No. 13/2020.
strategic plan of NHCS to fight the Covid-19 outbreak,
having for this purpose contracted with the Ministry of The VAT exemption applies for the period from January 30th
Health that obligation; 2020 to July 31st 2020.
- Charitable and philanthropic entities previously approved
for this purposes. LEGISLATION AND OTHER SOURCES
Law no. 13/2020, of May 7th
© 2020. For information, contact Deloitte & Associados, SROC, S.A.
Circular Letter no. 30222 of May 25th 34You can also read
