State studies adjustment of IRC payments

The Minister for the Economy revealed earlier this week that the government will propose a change in the calculation of the IRC payment to adapt to the circumstances of the pandemic. The government is studying the possibility of adjusting the calculation of this year's IRC advance payment in light of the crisis. pandemicThis is due to the sharp drop in sales that companies are experiencing.

The state is studying the adjustment of the IRC for this year

At a hearing on Tuesday before the parliamentary committee for the economy, innovation, public works and housing, Pedro Siza Vieira declared:

"that it is clear to all observers that corporate taxable profit in 2020 will be significantly lower, on average, than in 2019".

Since the IRC payment, which is an advance on corporate income tax, is calculated on the basis of the previous year's profits, this year there will have to be an adjustment in the calculation.

Again according to the Minister of the Economy, for companies with a clear reduction in sales, it is necessary to adjust the value of the payment on account to this year's circumstances. The Minister of the Economy therefore guarantees that the government will propose an amendment to the Assembly of the Republic as part of the supplementary budget.

It is not yet known what will be proposed to Parliament. Last week, after the meeting with the Prime Minister, the ENP revealed that there was an overture from the government to suspend payment of the IRC. A day later, the Jornal de Negócios announced that the executive was preparing to suspend payment of the advance, which would ease companies' cash flow.

For the time being, only the period for the first IRC account payment has been extended from July 31 to August 31..