April 16, 2020
The Portuguese government has announced a series of measures to support businesses during and after the COVID-19 crisis. These measures include:
Economic support measures
- Credit holidays: For SMEs the scheme covers credit and other credit operations essential to the activity of companies, including leasing. The moratorium will run for 6 months, until 30 September 2020. During this period, credit agreements are suspended and the contracted credit term will be extended for another 6 months. During this period, beneficiaries will have to pay neither capital installments nor interest. To access this measure companies must contact their lender and submit a form. This form must be accompanied by tax regularization proofs. Upon receipt of this communication, the lender has a period of five working days to apply the credit holiday. If the borrower does not fulfill the requirements, the lender has three working days to communicate a negative decision.
- Liquidity support for SMEs through the ‘Capitalizar’ credit line: SMEs that have previously submitted a positive balance sheet can receive a maximum of 1.5 million euros at fixed or variable interest rate should they require liquidity support. To access this measure, companies must contact one of the registered banks, request the necessary documentation and information and submit the request for financing / application to the Credit Line. Financing requests are analyzed and decided by the Bank taking into account its credit risk policy. The Bank's decision - approval or refusal - must be communicated within 5 working days from the date of request. In case of refusal, the Bank will only need to inform the client of its decision, which may submit a new request with other banks. More information can be accessed here. [in Portuguese]
- Taxes: VAT, corporate income tax (IRC) and personal income tax (IRS) may be paid in up to six installments by companies and independent workers. The Government has decided to make the payment of taxes more flexible for companies with a turnover of up to ten million euros in 2018 or with activity starting on January 1, 2019, as well as for the self-employed. No guarantee is required to access these installment plans. The remaining companies and self-employed can have access to this measure, in the second quarter, if they have registered a decrease in turnover of at least 20% in the average of the three months preceding the month in which this obligation exists compared to the same period of the previous year. To access this measure companies must follow the instructions that can be found on Portal das Finanças. [in Portuguese]
- Social security contributions: Deferall of 2/3 of the payment of social contributions due in March, April and May 2020 for the 2nd semester of 2020, paid through a 3 or 6-month installment plan. The remaining amount for the months of April, May and June is postponed to the third quarter of 2020. This measures applies automatically to companies with up to 50 employees, and is also available to companies with up to 250 employees, if they have recorded a reduction in turnover of at least 20%. To access this measure companies must follow the instructions that can be found on the portal of Segurança Social Direta. [in Portuguese]
- Suspension of tax enforcement proceedings: The Government has decided to suspend tax investigations for three months, which are in progress or which may be initiated in this period.
Additional information on the measures, eligibility, procedures and scheduling can be found here. [in Portuguese]
The eBay Government Relations team will continue to monitor these COVID-19 response measures in Portugal and share them via eBay Main Street.