Tax and Social Security Obligations and Debts

Tax and Social Security Obligations and Debts

Decree-Law 24/2021 was published on March 26, establishing an exceptional and temporary regime for tax obligations and debts and Social Security contributions.

This Decree-Law introduced the following measures:

A. Payment of VAT under the monthly regime and withholdings of CIT and PIT

The possibility of paying VAT on a monthly basis and withholding IRC and IRS in installments (as defined in Decree-Law no. 10-F/2020, of March 26) is applicable to taxpayers who:

  • Have obtained a turnover up to the maximum limit of the as micro (€2,000,000.00), small (€10,000,000.00) and medium enterprise (€50,000,000.00); or,
  • Their main activity falls under the economic activity classification of accommodation, restaurants and similar, or culture; or
  • Have started or restarted activity as of January 1, 2020.


B. Special regime of deferral of corporate income tax obligations

It is determined that the obligation to pay the tax assessed under the IRC for the tax period beginning on or after 1 January 2020, by taxpayers who have obtained in this period a turnover up to the maximum limit of the classification as a micro (€2,000,000.00), small (€10,000,000.00) and medium-sized (€50,000,000.00) company may be fulfilled:

  • – Under the terms and dates provided for in the general rules;
  • – In installments, of a value equal to or greater than €25 and without interest, broken down as follows:
    • A first installment of at least 25 % of the amount resulting from the difference that exists between the total tax calculated in the periodic income declaration and the amounts delivered on account, falling due on the due date for payment;
    • The remaining amount must be paid in three equal monthly installments, due on the same date of the following months;
    • Adherence to the installment payment must be exercised by the date defined in the general rule.


This regime is also applicable to the first and second payments on account for the tax period beginning on or after January 1, 2021, with the necessary adaptations.

C. Exceptional regime of payment in installments for tax debts and social security contributions in tax foreclosure

A regime applicable to tax debts relating to taxable events occurring between January 1st and March 31st 2021 and to tax debts and debts of monthly social security contributions due during the same period is established.