The Portuguese media yesterday highlighted an issue which affects self-employed people when they submit their IRS return this year, the deadline for which is 31st May. We have looked into the reports and have the following information for those people who are sole traders and work on the ‘green receipt’ system.
With the alteration of the Portuguese Social Security Contributive Code, it became mandatory to present a declaration that the majority of the taxpayers may not be aware of.
It is an annex to the IRS return form, “Anexo SS”, and it has to be done online. This declaration must be presented by all those whose income comes ONLY from an independent activity (sole trader) attached to their IRS return form. The period to send your IRS declaration for those who are self-employed ends at the end of May, tomorrow.
Please bear in mind that the Finanças system does not specifically request for the form, nor does it report an error if you do not attach Anexo SS.
If you issue “green receipts” but have a salary income as well, you will be exempt from Social Security payments in which case this does not apply. This applies to self-employed people only.
Many tax payers all over the country, including lawyers, accountants, etc have not presented this annex along with their IRS form because there was no information about it. The Finanças departments do not have much information on this subject as it is only done online.
Fines for not presenting this annex will be from €50 up to €250.
We advise any self-employed individuals who have already submitted their IRS return to contact their financial advisors as a matter of urgency, to ensure that they have submitted all the necessary forms and annexes and specifically ask about Anexo SS, and if it applies to them.
Information kindly supplied by afpop