Update of the Portuguese Classification of Economic Activities (CAE Rev. 4)
Commercial and Corporate LawEA Brief
13 November, 2024The CAE code identifies a company’s sector of activity and is essential for various administrative and tax purposes, including taxation and eligibility for government support. As of January 1, 2025, the new version of the Portuguese Classification of Economic Activities (CAE Rev.4) will come into effect, in accordance with Delegated Regulation (EU) 2023/137 of the Commission, dated October 10, 2022. The aim is to adjust the classification of economic activities in Portugal to the transformations in the markets and technological innovations, ensuring alignment with European and international standards.
The new version, CAE Rev.4 will replace CAE Rev.3, introducing new codes for emerging activities and modifying the classifications of existing activities, in order to provide a more precise and detailed categorization. The update will enable businesses to adapt to new market demands and legal and statistical norms of the European Union. The new version of the CAE includes the creation of new codes for sectors such as renewable energy, digital technology, and new services, as well as changes to the codes for existing activities. The major innovation is the introduction of a subclass (a 5-digit code), specific to each country, which will allow for a greater level of detail in the classification.
Based on the above text, if there is no direct correspondence between the CAE Rev. 3 and CAE Rev. 4 codes, companies will, in principle, be notified. Companies operating in Portugal that have been notified must confirm or change their CAEs by November 30, 2024. Failure to meet this deadline could result in fines, as provided for in the legislation in force. On the other hand, if they have not been notified, it is still suggested that they confirm and/or updated the new codes in CAE Rev. 4.
For confirmation and updating, companies must complete an online survey (Survey for Reclassification of Economic Activities) provided by the National Institute of Statistics at ircae.ine.pt, using their credentials from the Finance Portal. By accessing the survey, companies can view the CAE code(s) currently assigned to them. These codes are based on CAE Rev.3, and they will need to be updated to the new classification. It is important that the company carefully reviews the assigned codes, as they may not accurately reflect the company’s current activities. The company should then select the code(s) that best describe its activities based on the new version, CAE Rev.4. Finally, the survey should be submitted. Afterward, the company will be able to obtain a summary/proof in PDF format.
