Taxation

ECONOMIC MEASURES PUT IN PLACE BY THE GOVERNMENT IN RESPONSE TO COVID-19

&amp;NewLine;<h2 class&equals;"wp-block-heading">Update <&sol;h2>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p><strong>17&amp;sol;03&amp;sol;2020<&sol;strong>&amp;colon; <strong><span style&equals;"text-decoration&colon; underline&semi;">Social security&amp;colon;<&sol;span><&sol;strong> temporary exemption from payment of contributions by the employer; this measure also applies to self-employed workers&amp;period;<&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<hr class&equals;"wp-block-separator has-text-color has-background" style&equals;"background-color&colon;&num;0e3347&semi;color&colon;&num;0e3347"&sol;>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>We're going through a period&amp;comma; that's going to put a strain on all businesses in Portugal but also in the rest of Europe&amp;period; Every government is deploying their economic measures to keep their businesses afloat&amp;comma; with the obvious aim of avoiding an economic crisis linked to covid-19&amp;period; <&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>Portugal is no exception to this rule&amp;comma; Antonio Costa's Socialist government has just introduced 3 economic measures, which we describe below&amp;period; <&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<h2 class&equals;"wp-block-heading">Economic measures against forced downsizing <&sol;h2>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<h3 class&equals;"wp-block-heading">Employees with children under the age of 12 <&sol;h3>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>Since Monday&amp;comma; all schools in the country &amp;lpar;private and public&amp;rpar; have been closed for a minimum of 15 days&amp;period; As company directors&amp;comma; you must allow your employees to stay at home if they have children aged 12 or under&amp;period; To offset the economic loss for both employer and employee, the state will pay 66% of the basic salary through the social security system, and you, the employer, will pay the remaining 34%. This measure is valid for the time being. <strong>14 days<&sol;strong>Of course, this measure will evolve according to the situation&amp;period; <&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>Be careful, however&amp;comma; if your employee's spouse already benefits from this measure&amp;comma; or if he or she is unemployed&amp;comma; it is not possible for your employee to benefit from this measure&amp;period; <&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<h3 class&equals;"wp-block-heading">Putting your employees on holiday <&sol;h3>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>Given the emergency situation&amp;comma; you have the option of forcing your employees to take time off during this period of crisis&amp;period; <&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<h3 class&equals;"wp-block-heading">Self-employed contractor <&sol;h3>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>If you are <a href&equals;"https&colon;&sol;&sol;vivreauportugalconsulting&period;com&sol;produit&sol;guide-entrepreneur-freelance-au-portugal&sol;" class&equals;"rank-math-link">auto-entrepreneur<&sol;a> and your situation prevents you from working and, by definition, you cannot generate any sales&amp;comma; social security&amp;comma; will pay you 30&amp;nbsp&amp;semi;&amp;percnt; of your sales&amp;period; The calculation is based on your last 3 months of activity&amp;period; <&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<h2 class&equals;"wp-block-heading">Next phase<&sol;h2>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>It's true that we're not there yet, but you still need to think about it and plan ahead before you put your business at risk&amp;period; <&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p><strong>4 measures are being studied&amp;comma; for the moment, nothing has been decided&amp;period; <&sol;strong><&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<ol class&equals;"wp-block-list"><li>The possibility of unpaid leave <&sol;li><li>Possibility of terminating the contract in agreement with your employee <&sol;li><li>You send your employees on a training course promoted by IEFP, which will pay 50 percent of the basic salary.<&sol;li><li>Simplified redundancy procedure <br><&sol;li><&sol;ol>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>Regarding the last point&amp;comma; the government is working on the creation of an extraordinary simplified "&amp;nbsp&amp;semi;layoff&amp;nbsp&amp;semi;" procedure&amp;comma; which would allow the temporary suspension of employment contracts under which companies whose activity is affected by the covid-19&amp;period pandemic; <&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<hr class&equals;"wp-block-separator has-text-color has-background" style&equals;"background-color&colon;&num;0e3347&semi;color&colon;&num;0e3347"&sol;>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p class&equals;"has-text-color has-background has-very-dark-gray-color has-very-light-gray-background-color">We'll be putting <a href&equals;"https&colon;&sol;&sol;portobeautiful&period;com" target&equals;"&lowbar;blank" aria-label&equals;"jour &lpar;opens in a new tab&rpar;" rel&equals;"noreferrer noopener" class&equals;"rank-math-link">day<&sol;a> this article as soon as possible concerning this last point&amp;period; <&sol;p>&amp;NewLine;

Share

Recent articles

2025: Price rises in Portugal

The year 2025 begins with increases in several key sectors in Portugal, marking... Read more

since 6 months

Raising Portugal's minimum wage

The Portuguese government recently announced an increase in the national minimum wage (SMN) to 870... Read more

since 6 months

IRC reduction in Portugal's 2025 state budget

Find out how the Portuguese tax system affects companies, with details on taxation,... Read more

since 9 months

The advantages of setting up a business in the UK

The United Kingdom has long been recognized for its economic dynamism, political stability and... Read more

since 9 months

UK e-commerce tax rules

If you want to run an e-commerce business in the UK, it's crucial to know how to... Read more

since 9 months

Automatic tax benefits

On September 20, 2024, the Portuguese Tax and Customs Authority unveiled its business plan for... Read more

since 9 months

Our site uses cookies.

Read more