On December 16, 2021, the Council of Ministers approved the Decree-Law that changes the regime for payment in installments of taxes debts, approving exceptional payment regimes for the year 2022.

The aim of the change is to make installment payments more flexible in the voluntary payment/pre-executive phase and in the coercive payment/executive phase.

In the voluntary payment phase, provision is made for payment in installments for debts arising from taxes such as VAT, withholdings at source, IMT, IUC, IRS and IRC.

The Tax Authority will now automatically create installment payment plans for debts in enforcement proceedings, provided that the maximum value of the debt is €5,000.00 in the case of individuals or €10,000.00 in the case of companies, without the need for a guarantee.

The minimum amount for each installment was set at an Account Unit, which in the year 2021 is set at € 102.00.

The non-payment of a single installment will imply the immediate maturity of the remaining installments and the continuation of the executive process.

The approved measures are extremely important as they may avoid the filing of several tax enforcement proceedings, allowing taxpayers to pay taxes voluntarily, in installment plans, avoiding the allocation of their assets for payment to the Tax Authority.

Castilho International Law Firm will return to this subject when these measures are implemented.