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1. Scope

1.1. Effective Scope

1.1.1. Personal Income Tax (IRS) is levied on the yearly amount of incomes in the categories enumerated below, after the appropriate deductions and allowances.

Category A - Earned income from dependent employment

The IRS Code (CIRS) adopts a considerably broad notion for employment income. Thus, there shall be liable to tax any remuneration paid or made available to the employee derived from an employment on somebody else's account under an individual labour agreement or a similar one, from services rendered under a contract for purchasing of services or of a similar nature under the authority or direction of another person, from the performance of a public job, service or duty, or from a remuneration received by reason of pre-retirement or reserve with or without the rendering of services, including, in particular, wages, salaries, fees, commissions and subsidies, either periodical or non periodical, fixed or variable, of a contracting nature or not. Any advantages or benefits resulting from, or by reason of, a service rendered (as, for instance, benefits in kind) are also subject to tax.

Category B - Income from self-employment

This category covers income derived on one's own account from the exercise of a scientific, artistic or technical activity, within the scope of the professional activities shown in a list annexed to the Code as well as income from intellectual (copy-rights and related rights) or industrial property or from information concerning an industrial, commercial or scientific experience if derived by their original holder.
This category also covers income from the exercise on one's own account of an activity consisting exclusively of services not comprised in other categories, whenever the taxable person has no employee or collaborator at his service, as well as any amount payable as an indemnity in connection with the activity performed or the change of the place where it is performed, the amounts derived from the exercise of a fortuitous act of a scientific, artistic or technical nature or from the performance of services not comprised in other categories, under the conditions already referred to, and any subsidies or allowances designed for exploitation within the scope of eligible activities in the same terms as for the recipient of income in category C.
There shall be deemed to constitute income derived by the members of professionals companies (subject to the fiscal transparency regime) to be included in this category income resulting from the allocation made according to provisions and under the conditions of Corporate Income Tax Code (CIRC).

Category C - Business income

Included in this category are profits attributable to the exercise of any commercial or industrial activity as, for instance, profits from fishing, transport, hotel and touristic activities, profits from agricultural or cattle-breeding activities not connected with the exploitation of land or where such exploitation is of a mere ancillary nature, profits from such activities if embodied in others of a commercial or industrial nature, as well as profits arising from any fortuitous act of a commercial or industrial nature not comprised in other categories. IRS - 2

There shall be deemed to constitute income of members of companies subject to the fiscal transparency regime, other than professional companies to be integrated in this category or in category D, as the case may be, income resulting from the allocation made according to the provisions and under the conditions of Corporate Income Tax Code (CIRC).

Category D - Agricultural income

The tax is also levied on income from agriculture, being considered as such profits derived from agricultural, forestry or cattle-breeding activities.

Category E - Investment income

Income from capital investment is equally subject to IRS. This category comprises, namely, interest from loan contracts and opening of credit, interest and other income from bank deposits, interest and other income from securities including government bills, profits from entities liable to corporate income tax placed at the disposal of respective members or owners, and income from contracts having as their object the alienation or temporary use of rights on intellectual or industrial property or information concerning an industrial, commercial or scientific experience, when not derived by the respective author or beneficial owner, as well as profits from technical assistance and from the use or the right to use an agricultural, industrial, commercial or scientific equipment, that are not income from real estate.

Category F - Income from real estate

For IRS purposes, income from real estate consists of the rents from rural, urban and mixed property paid or placed at the disposal of the respective owners.
The Code provides for a concept of both rent and real estate for this purpose.

Category G - Capital gains

IRS is levied on the following capital gains to the extent they are not considered to be commercial, industrial, agricultural or capital income:
Gains from the disposal for consideration of rights in rem on immovable property, the appropriation of immovable property belonging to private assets to a commercial, industrial, agricultural, forestry or cattle-breeding activity exercised on his own name by the owner thereof, as well as from the appropriation of rural property connected with the exercise of an agricultural, forestry or cattle-breeding activity to a business activity performed by the same person; Gains from the disposal for consideration of corporate rights, including the remission and depreciation thereof through capital decrease, and other marketable securities; Gains from the transfer for consideration of intellectual or industrial property or of a commercial, industrial or scientific experience, where the transferor is not the beneficial owner thereof; Gains from the transfer for consideration of lease or other rights or assets allocated in a permanent way to the exercise of an independent professional activity, including the permanent allocation thereof to any other purpose not connected with such activity.
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There shall not be liable to tax capital gains as derived from the transfer of:
Bonds and debentures; Shares owned by the respective owner for more than 12 months.

Excluded from tax are gains from the transfer for consideration of buildings designed to the dwelling house of the taxpayer or of his household, provided that the result from such disposal is reinvested within 24 months counting from the realisation date in the acquisition of another building, building land or in the construction, enlargement or improvement of another building exclusively for the same purpose.

Category H - Pensions

Retirement, old-age, disability pensions or survivor's annuity as well as any similar pension and respective supplements, alimony, temporary or life annuity and any other pension or subsidy not expressly mentioned are liable to tax provided they are paid or made available to the beneficiary thereof.

Category I - Other income

Finally, IRS is levied on winnings from lotteries, raffles, betting, lotto and bingo paid or placed at disposal as well as on sums or prizes won in draws or competitions.

1.1.2. Income in cash or in kind is liable to tax regardless of the place of its realisation, the currency and the way how it is obtained.

1.2. Personal Scope

1.2.1. Liable to IRS is any individual who is a resident of the Portuguese territory and a non resident individual who derives income therefrom.

1.2.2. In the case of a resident and his household, if any, the tax is payable on the whole amount of incomes derived by the persons who are part thereof, being considered as taxable persons those in charge of its direction.

The family unit is composed of:
Both spouses not judicially separated from bed and board and their dependants; Each spouse or ex-spouse, respectively, in case of a judicial separation from bed and board or of decree of nullity, annulment or dissolution of a marriage, and any dependant in charge; Unmarried father or mother and dependants in charge; Unmarried adopting father or mother and dependants in charge.

For such purpose, the following are considered as dependants:
Adopted children and stepchildren, minor of age and not emancipated;

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Adopted children and stepchildren, major of age, who are not more than 25 years old, not deriving an yearly income higher than the domestic minimum Wage and having attended in the year to which the tax relates the 11th or 12th year of schooling in a middle or higher educational establishment or concluded their obligatory military service or civil service; Adopted children or stepchildren, major of age, who are unable to work and to provided for their own maintenance, provided that they do not derive income higher than the maximum domestic minimum wage; Minors in wardship provided that they are not deriving any income.

Dependants may however be taxed separately unless, as in the case of minor and not emancipated adopted children or stepchildren, the administration of incomes derived by them is not fully carried out by them.
In the case of a resident within the Portuguese territory IRS is levied on the overall income, including income from outside that territory.

1.2.3. On the other hand, in the case of a non-resident, IRS shall be levied only on income derived within the Portuguese territory, in the hands of the beneficiary thereof according to the rules applying to an unmarried, widowed, divorced or legally separated taxable person, regardless of his personal or family situation and without prejudice to the legal provisions concerning deductions and allowances.

1.2.4. In accordance with the provisions of the IRS Code, considered as resident in the Portuguese territory are persons who, in the year to which the income relates:
Spend in the whole more than 183 days there; Having stayed there for less than 183 days, have at their own disposal on 31 December of that year a dwelling place in such conditions that it may be inferred that there is the intention to keep and occupy it as an habitual abode; Are, on 31 December, crew members of a ship or aircraft if such crew members are in the service of an entity having its domicile, head-office or effective management in such territory; Are exercising abroad a public function or commission in the service of the Portuguese Government.

There shall be considered always as resident in the Portuguese territory those persons who are members of the family unit, provided that any of the persons to whom the direction belongs is a resident therein.
Under the IRS Code, the following are also deemed to be obtained within the Portuguese territory:
Earned income derived from an activity therein exercised, as well as from any fortuitous act of a scientific, artistic or technical nature therein performed, or from services comprised in category B; Income from services rendered aboard a ship or aircraft, provided that the beneficiaries thereof are in the service of an entity with its domicile, head-office or effective management in such territory;


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Income in relation to intellectual or industrial property or information concerning a commercial, industrial or scientific experience, from the use or the right to use an agricultural, commercial or scientific equipment, provided they are not income from real estate, income from technical assistance payable by an entity with its domicile, head-office, effective management or permanent establishment therein to which the payment must be attributed, as well as when there has been any registration or corresponding formality there or if the assets have been used or the right from which they derive has been exercised there; Commercial, industrial or agricultural income attributable to a permanent establishment situated therein, as well as income from an agency commission for concluding contracts or income of a commercial, industrial or agricultural nature as derived from other services performed or used within the Portuguese territory other than those concerning transports, communications and financing activities provided they are payable by an entity having its domicile, head-office, effective management or a permanent establishment therein to which the payment may be imputed; Income from capital payable by an entity having its domicile, head-office, effective management or permanent establishment therein to which the payment must be imputed; Income from real estate situated therein, including capital gains from the transfer thereof; Capital gains from the transfer for consideration of capital participation and other marketable securities issued by a company having its head-office or effective management in this territory; Capital gains from the alienation of intellectual or industrial property or a commercial, industrial or scientific experience, whenever the transferor is not its beneficiary owner, and where the registration or any similar requirement has been performed therein; Capital gains from the transfer for consideration of rights and assets in connection, in a permanent way, with the exercise of an independent professional activity, where the assets to which they relate are situated therein; Pensions and winnings from lotteries, betting or other games, payable by an entity having its domicile, head-office, effective management or permanent establishment therein to which the payment must be imputed.

A permanent establishment is deemed to be any fixed place of business or permanent representation through which a commercial, industrial or agricultural activity is performed.
There shall not be deemed to be obtained within the Portuguese territory income from intellectual or industrial property, from information concerning an industrial, commercial or scientific experience, income from the use or the right to use an agricultural, industrial, commercial or scientific equipment, income from other capital investment, remuneration received as a member of the statutory bodies of a corporate person and other entities, winnings from lotteries, betting or other games, and the amounts or prizes attributed in draws or contests, provided they are attributable as a charge to a permanent establishment situated outside the Portuguese territory in respect of the activity exercised through it.




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A permanent establishment is deemed to include an agricultural, forestry or cattle-breeding activity as well as a mine, an oil or gas well, a quarry or any other place of exploration or exploitation of natural resources, situated in the Portuguese territory.
A permanent establishment is also deemed to exist whenever an activity is exercised within the Portuguese territory through employees or any other personnel engaged for that purpose, for a period or periods of at least 120 days in any twelve month period of time.
For the purposes of applying the fiscal transparency regime to which reference is made in the Corporate Income Tax Code, the partners or members of an entity subject thereto who are not resident in the Portuguese territory are deemed to obtain such income through a permanent establishment situated therein.

2. Determination of taxable income

2.1. The taxable income under IRS is income resulting from the aggregation of incomes of different categories derived each year, after deductions applying to each income category and allowances also provided for under the Code.

2.2. Due regard being had to the fact that the IRS is levied on real incomes, in relation to incomes belonging to categories B, C or D the Tax Administration shall not make use of indicatory methods unless there is evidence of absence, anomaly or inaccuracy in the accounts or accounting books and where the taxpayer does not comply with his duties.

2.3. In relation to deductions, there are some specific rules applying to each income category:

Category A

From gross income derived from dependent personal services there shall be deducted for each income earner 70% of its amount up to a limit of Esc. 498,000 or, if higher, 71% of twelve times the maximum domestic minimum wage.
If, however, any compulsory social security contributions are in excess of this threshold, the whole amount of such contributions shall be allowed as a deduction.
The general limit shall be increased by 50% in the case of a taxable person whose degree of permanent disability is equal or higher than 60%.

Category B

Within the scope of income from independent personal services (self-employment), expenses incurred in generating income shall be deducted. The deduction of any such expenses is limited as for instance travelling, entertainment and professional improvement expenses. On the other hand, depreciation of motor vehicles and connected insurance shall not be allowed over 50%. To be noted that there is also a general deductible limit for most expenses, which shall not exceed 32.5% of gross income or services rendered by a taxable person without a proper accounting.
Depreciations, excepting the limits established, are subject to the provisions of the Corporate Income Tax Code.



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Categories C and D

In the determination of the taxable profit derived from an industrial or agricultural activity, the rules laid down by the IRC Code shall be applied, subject to certain adjustments.
The CIRS (as the CIRC) establishes a number of conditions giving rise to a tax neutrality regime where business assets are employed for the realisation of capital of a new company, that is to say, where no taxable amount is assessed by reason of a equity capital realisation as a result of the transfer of the whole assets affected to the exercise of a commercial, industrial or agricultural activity.

Category E

No deduction allowed from income from capital.

Category F

According to the Code, there shall be allowed as a deduction from gross income from real estate maintenance and conservation expenses incumbent upon, and incurred by, the taxable person provided they are duly substantiated.

Category G

The amount of incomes in this category corresponds to the balance found between capital gains and losses realised in the same year, as determined according to the Code. However, excepting gains from the transfer for consideration of any corporate rights, the above mentioned balance, both positive and negative, shall be taken only by 50% of its amount.
In determining capital gains or losses, consideration shall be given to the realisation value and the acquisition value, the later being adjusted in certain circumstances, in particular, according to the monetary devaluation coefficient.

Category H

In relation to incomes in this category, those incomes whose yearly amount is equal or lower than Esc. 1 415 000 for each beneficiary shall be fully deducted. However, if the annual income for each beneficiary exceeds that amount, the deduction shall be equal to the above mentioned amount. This limit shall be increased by 30% where the beneficiary thereof has a degree of permanent disability equal or higher than 60% if duly certified by the competent entity.

Category I

No deduction is granted to winnings from gambling.

2.4. In accordance with the provisions and terms of the IRS Code, losses incurred in the different income categories are allowed as deductions. 2.5. In determining the taxable income of a taxable person who is a resident in the Portuguese territory, there shall be granted as a deduction from the overall net income the following allowances if duly substantiated:

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a) Amounts paid and unreimbursed in relation to health expenses incurred by the taxpayer and his household, as well as interest on loans for payment thereof;
b) Amounts paid and unreimbursed concerning health expenses of the taxpayer's ascendants and collaterals to the third degree, where disabled and receiving income no higher than the minimum national wage, provided they live in common economy with the taxable person;
c) Education expenses of the taxpayer and his dependants;
d) Costs incurred with nursing homes or other institutions for old-age care in respect of the taxpayer's ascendants or collaterals to the third degree, receiving income no higher than the minimum national wage;
e) Debt interest and redemption incurred in connection with the acquisition, construction or improvement of a permanent owner-occupied dwelling-house or with the lease of a permanent home of the tenant if duly substantiated, other than redemption related to the discounting of a housing-savings account balance; payments due on contracts entered into with housing co-operative companies or within the scope of a group acquisition regime, for the purpose of acquiring a permanent owner-occupied dwelling-house or for the lease of a permanent home of the tenant, if duly substantiated, for that part in respect of interest on, and redemption of, the corresponding liabilities; the amounts net of any official grant or subsidy paid as rents by the lessee of a building or part thereof for his own and permanent home, if relating to lease contracts concluded under the Urban Rental System, as approved by Decree Law nr. 321-B/90 of 15 October, or as rents under a leasing agreement in respect of a permanent owner-occupied dwelling house subject to this regime, for that part which does not represent a capital depreciation, provided that such immovable property is situated within the Portuguese territory;
f) Life insurance premiums covering exclusively death, disability or old-age retirement risks, provided that in the last-mentioned case the beneficiary thereof is covered after 55 years of age and for a period of five years, as well as health or personal accident insurance, any contributions for pension funds or any other complementary social security scheme under the terms laid down in the Code in respect of the taxable person or his dependants, paid by him or by third persons, provided that in such case they have been subject to tax as income in accordance to the provisions of the Code (these allowances shall not be granted unless the entity that is the beneficiary of such premiums or contributions has its head-office, the effective management or a permanent establishment through which its activity is exercised in the Portuguese territory);
g) Compulsory alimony payments made by the taxpayer under a court decision or legal obligation;
h) Any indemnity payable under a court order or legal obligation, by the employee to his employer on the unilateral cancellation of a personal labour contract without previous notice or, in all other cases, any indemnity the amount of which does not exceed the basic remuneration corresponding to the prior notice;
i) Contributions to professional unions for that part not representing a counterpart to health, education, third age support, housing, insurance or social security benefits.



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Allowances referred to under subparagraphs c), d) and b) for that part concerning health expenditure relating to non-disabled ascendants, shall not exceed Esc. 166,000 in the case of unmarried or legally separated taxable persons, or Esc. 332,000, in the case of married or not legally separated taxable persons, without prejudice to the following provisions:

a) The limits referred to under nr. 2 shall be raised to Esc. 385,000 regardless of the taxable person civil status if relating to education expenses incurred by the taxpayer himself or by his dependants, provided that they are not the beneficiary of a pension intended to cover such purposes;
b) With regard to any household with three or more dependants in charge, the limit referred to under subparagraph a) shall be raised by Esc. 35,000 for each dependant, if any, concerning education expenses.

Allowances referred to under subparagraph e) may not exceed Esc. 308,000.
The amounts paid by a taxable person in respect of insurance premiums comprised in subparagraph f) are deductible under the conditions and subject to the limits of Esc. 36,000 in the case of unmarried or judicially separated persons, or Esc. 72,000 in the case of married or not judicially separated persons, provided that payments of lifetime capital is not guaranteed nor does it occur, namely by way of redemption or advance other than in the above-mentioned terms.
Allowances granted under subparagraph i) shall be taken into consideration for that part not exceeding 1% of gross income of categories A or H of the taxable person, increased by 50%.
Donations made to the central, regional or local administration, as well as to a foundation in which the State, the Autonomous Regions or local authorities hold at least 50% of its initial funding or, if the participation is lower, subject to authorisation and within certain limits, the donations made, in particular, to churches, religious institutions or non-profit making legal entities belonging to, or instituted by, religious creeds, as well as to a museum, library, school, cultural, research, social welfare or charity institution shall be deducted from income thus assessed up to 15% of net income. Such donations shall be allowed as a deduction for an amount equal to 130% of its total amount..

2.6. Unlike resident persons, insofar as non-residents are concerned, there is no aggregation of incomes, being subject as a general rule to final withholding tax rates (see paragraph 3.3.).

2.7. The assessment of taxable income is based on a yearly tax return that in the case of a family unit or household must be only one. In the case of a de facto separation two separate tax returns are admitted.
With regard to non-residents, if required to produce a tax return (income not exclusively liable to final withholding tax rates), separate returns shall be lodged with by both spouses.

3. Rates

3.1. The IRS general rates are as shown in the following table:




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The amount of taxable income if higher than Esc. 1080,000 is divided into two parts: one equal to the limit of the highest bracket comprised therein, to which the rate of column B corresponding to such bracket applies; the other equal to the exceeding fraction to which the rate of column A corresponding to the next highest bracket applies.
In relation to taxable persons who are married and not legally separated from bed and board, the applicable rates are those corresponding to the taxable income divided by 2. The tax rates shall apply to the quotient of taxable income, and the obtained result is multiplied by 2 to determine the IRS taxable amount.

3.2. A taxpayer who is a resident in the Portuguese territory may credit against his final tax liability under IRS, the following amounts inter alia:

a) Esc. 35,200 for each taxable person, unmarried or legally separated from bed and board (this limit may be raised by 50% in the case of a disabled taxpayer);
b) Esc. 26,800 for each taxable person, married and not legally separated from bed and board (this limit may be raised by 50% in the case of a disabled taxpayer);
c) Esc. 19,400 for each dependant who is not liable for IRS; this amount is increased in respect of each dependant in the same conditions by Esc. 220, 00, 440,00 or 560,00, respectively, depending on the household being formed by two, three or more dependants (this limit may be raised by 50% in the case of a disabled taxpayer);
d) Esc. 19,400 for each ascendant living under a regime of joint economy with the taxable person and not deriving income higher than the minimal social pension of the general scheme; each ascendant shall not be included in more than one household;
e) An amount equal to 60% of the corporate income tax levied on profits placed at disposal of the beneficiaries thereof, as well as on income from a division resulting from the liquidation of such entity which may be qualified as income from capital where, in both cases, an aggregation occurs (such deduction shall only take place where the entity distributing the profits or object of liquidation has its head-office or effective management in Portugal and the beneficiaries thereof are resident therein).

The recipient of income from independent personal services, or commercial, industrial and agricultural income derived from abroad shall be entitled to a tax credit for international double taxation to be allowed as a deduction up to that part of the IRS taxable amount proportional to such net incomes which is equal to the lesser of the following amounts:


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a) Income tax pais abroad;
b) That part of the IRS taxable amount as calculated before the deduction is given that corresponds to those incomes which may be taxed in the country concerned.

Any advance payment and amount withheld at source for taxation purposes relating to the same fiscal period shall also be deductible.

3.3. The IRS Code also provides for the application of final withholding tax rates on certain incomes.
There shall be subject to a 25% rate, other than incomes comprised in sub-paragraph b) which are taxed at a 35% tax rate, the following:

a) Income from registered or unregistered shares;
b) Winnings from raffles, totoloto and lotto, as well as draws or competitions;
c) Income from dependent and independent professional services other than income from intellectual property if derived by a non-resident in Portugal;
d) Profits (including payments on account of profits) payable by an entity subject to corporate income tax, placed at the disposal of its members or beneficiaries, where derived by a non-resident in Portugal;
e) Pensions received by a non-resident in Portugal;
f) Winnings from lotteries, betting and bingo.

Subject to a 20% rate are:

a) Interest on demand and fixed-term deposits;
b) Income from registered or unregistered securities, as well as income from carry-over transactions, disposal of credit, securities accounts with price guarantee or other similar or identical operations;
c) Income corresponding to the difference between the amounts paid as a redemption, advance payment or maturity of a life insurance policy and the premiums already paid (and all other income comprised in paragraph 2 of Article 6 of the Code) ;
d) Any income from capital not expressly taxed at a different rate derived by a non-resident in Portugal.

Subject to a 15% tax rate are:

a) Income in connection with a contract the object of which is the disposal or the temporary use of rights on intellectual or industrial property or information concerning an industrial, commercial or scientific experience, if not received by the original owner thereof, as well as income from technical assistance and income from the use or the right to use an agricultural, industrial, commercial or scientific equipment, other than income from real estate, if derived by a non-resident in Portugal;
b) Agency fees in relation to contracts concluded, as well as income derived from other services rendered or used within the Portuguese territory other than those concerning transports, communications and financing activities paid or made available to a non-resident in Portugal;

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c) Income from intellectual or industrial property or in respect of information concerning industrial, commercial or scientific experiencein if derived by its original owner who is a non resident of Portugal.

The final withholding rates apply to gross incomes, excluding pensions, which benefit from the above-mentioned deduction.
Incomes payable by an entity having its head-office, domicile, effective management or a permanent establishment in the Portuguese territory, to which such payment is attributable, may be aggregated by option of the respective holder, if he is a resident of the Portuguese territory, where not derived from a commercial, industrial or agricultural activity:
Income from registered or unregistered securities, as well as income from carry-over transactions, disposal of credit, securities accounts with price guarantee or any other similar or identical transaction; Income from registered or unregistered shares; Interest on demand and fixed term deposits, and income from a contract for the sale of currency in a demand or time deposit account with a credit institution; Income corresponding to the difference between the amounts paid as a redemption, advance payment or maturity of a life insurance policy and the premiums already paid (and all other income comprised in paragraph 2 of Article 6 of the Code).

If such an option is made, any withholding shall be deemed to represent a payment on account of the final tax due.
On the other hand, the credit balance between capital gains and losses as computed in the transfer for consideration of corporate rights and other marketable securities is taxed at a final withholding rate of 10%. This withholding rate releases the income earner from his tax liability unless he shall opt for its aggregation.

3.4. The amount payable within the scope of IRS shall not be increased by any surtax.

4. Assessment and collection

The IRS assessment is incumbent upon the Central Services of the Directorate General for Taxation and must be carried out in the year following that to which income relates, according to the time limits laid down in the Code.
The IRS assessment, even if an additional one, as well as its adjustment shall take place only during the five years immediately following that to which the income relates, and must be notified to the taxpayer in the same period of time.
The IRS must be paid within the time limit fixed by law.
Compulsory withholding at source is required in certain situations (v.g., in respect of incomes in categories A, B, E, F and H and agency commissions for concluding contracts).
As far as it concerns income subject to final withholding tax rates:

a) The income payer entity shall deduct the amounts corresponding to the fixed rates;


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b) Income from registered or unregistered securities that is paid or placed at the disposal of the beneficiary thereof, who is a resident of the Portuguese territory, by an entity on behalf of an entity that has not its domicile, head-office, effective management or a permanent establishment therein to which such payment may be attributed, shall be deducted by an amount corresponding to a 25% rate for income from shares and to a 20% rate in all other cases.

When liable to income aggregation, the earners of income from self-employment and from a commercial, industrial or agricultural activity are required to make payments on account of the final tax due in the same year to which such income relates. 5. Ancillary obligations

The IRS Code establishes different ancillary obligations: statement of beginning or termination of an activity, accounting records or books for tax purposes, issuing of receipts, notification of incomes and withheld amounts, etc.
Among the different ancillary obligations provided for under the IRS Code, reference must be made to non-residents deriving income subject to IRS, who are required, by reason thereof, to appoint both an individual or a legal person with domicile or head-office in Portugal to represent them before the Directorate General for Taxation and to guarantee that their tax obligations are to be complied with.
Such appointment is made upon the statement of beginning of activity or of registration of taxpayer code number, its acknowledgement by the authorised representative being required to be appropriately expressed.
On the other hand, any taxable person who is required to keep a duly organised accounting or books for tax purposes shall centralise such tax records at his tax domicile or in a permanent establishment or fixed base situated in the Portuguese territory.

6. Guarantees

Any taxable person liable for IRS, his representative and the person responsible for the payment of tax may lodge a claim or object against tax assessment on the grounds of, and under the conditions laid down in the Tax Proceedings Code.
This faculty is equally granted to those entities which, by reason of the duty to withheld the IRS at source, have deposited with the Treasury, as a result of a material error, an amount higher than the amount effectively due.
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