Update of Per Diem and Compensation for the Use of Own Vehicle (Kilometers)

The State Budget for 2024 updates the daily rates for Per Diem, as well as the amounts paid per kilometer for the use of a personal vehicle, according to the table below:

Expense Allowance Daily Per Diem Limit Daily Per Diem Limit

Domestic Daily Per Diem Limit
2023 2024
Public Sector Workers 50,20 € 62,75 €
Administrators, Managers, Government Officials, and Senior Executives 69,19 € 69,19 €

Public Sector Workers 89,35 € 148,91 €
Administrators, Managers, Government Officials, and Senior Executives 100,24 € 167,07 €


Kms Rate per Kilometer Rate per Kilometer
  2023 2024
Reimbursement for Transportation by Own Car 0,36 € 0,40 €
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E-Clic is the new Digital Counter to contact Social Security

The e-Clic is the new digital counter of Social Security where it is possible to clarify doubts, request information, and file complaints with Social Security. The new counter aims to facilitate citizens’ interaction with Social Security and is available 24 hours a day, seven days a week. The digital counter can be accessed from a computer, tablet, or smartphone. To use the e-Clic, one simply needs access to Social Security Direct (SSD). This new channel reinforces the rights of citizens and businesses, ensuring a simpler, faster, dematerialized, and more proximate communication.

For more information, please visit the following website:

Social Security – Contracting Entities

Contracting entities are considered to be legal entities and individuals engaged in business activities, regardless of their nature and pursued objectives, who, in the same calendar year, pay more than 50% of the total value of the services provided by an independent worker.

The contributory obligation on the part of contracting entities arises when Social Security officially determines and communicates the value of the services provided to them. The deadline for payment of contributions by contracting entities to Social Security is by the 20th day of the month following the notification, and failure to meet this deadline may result in the imposition of fines, as well as late payment interest, in accordance with legal provisions.

AT – Obligation to Report Inventories to the Tax Authority (AT) by January 31, 2024.

All taxpayers, whether individuals or entities, with headquarters, a permanent establishment, or tax residence in Portugal, who maintain organized accounting and are required to prepare an inventory, are obligated to report inventories. Entities subject to the simplified tax regime for IRS or IRC in the year to which the inventory refers (2023) are exempt from this obligation. It’s important to note that Non-Profit Sector Entities (ESNL) are also required to report inventory if they meet the aforementioned requirements.

State budget for 2024

Proposta de lei aprovada. Propõe as seguintes alterações:

  • The reporting of inventories to the Tax Authority (AT) for the tax period beginning on or after January 1, 2023, will continue to be made without a monetary value;
  • The submission of the SAF-T (PT) file related to accounting, as defined by Ordinance No. 31/2019 of January 24 (IES), will only apply to periods in 2025 and beyond, to be submitted in 2026 or subsequent periods;
  • The deadline for accepting PDF invoices as electronic invoices for all purposes provided by tax law is extended until December 31, 2024.

Value of the Guaranteed Minimum Monthly Wage

On November 17th, Decree-Law No. 107/2023 was published, which updates the value of the guaranteed minimum monthly wage to €820.00, applicable to the mainland territory from January 1, 2024. This amount represents an increase of 7.9% compared to the value in force in 2023 – the largest increase ever. It’s an additional €60 compared to the current value.

CENTRAL REGISTER OF BENEFICIAL OWNERSHIP (RCBE) – Annual confirmation until December 31, 2023

Declaring the Ultimate Beneficial Owner is a legal obligation. Entities must make their initial declaration of the beneficial owner within 30 days after:

  • The registration of the establishment of the entity subject to commercial registration; or
  • The first registration in the Central Registry of Legal Entities for entities not subject to commercial registration; or
  • The assignment of the Tax Identification Number (NIF) by the Tax and Customs Authority, in the case of an entity that is not required to be registered in the Central Registry of Legal Entities.

After the initial declaration, all entities are required to update all the information provided in that declaration whenever there are changes to any of the declared data, within 30 days from the occurrence of the relevant event.

If there are no changes, annual confirmation must be completed by December 31 of each year.

For more information, please refer to the following website:


Law No. 56/2023, of October 6 – Approves measures in the scope of housing, making various legislative amendments.

In today’s Official Gazette, October 6, Law No. 56/2023 was published, approving measures in the field of housing and making various legislative amendments.

With the aim of providing a brief overview of the main measures and their fiscal impact, we have prepared this note.

Among the measures included in the legislation comprising the “More Housing” package, those applicable to SHORT-TERM ACCOMMODATION stand out.

The registration of properties for short-term accommodation activities will now have a duration of 5 years, renewable for equal periods. Registrations for short-term accommodation already issued at the time of the entry into force of this legislation remain active and will be subject to reassessment during the year 2030.

Within two months from the effective date of this legislation, owners of short-term accommodation property registrations are required to provide evidence of the continuation of their activity, under the penalty of registration expiration.

On the other hand, the issuance of new registrations for short-term accommodation in the categories of apartments and lodging establishments is suspended nationwide, with the exception of the interior and the autonomous regions.

An Extraordinary Contribution, the CEAL (Contribuição Extraordinária – CEAL), is established at a rate of 15%, applicable to apartments and lodging establishments integrated into autonomous building units dedicated to short-term accommodation as of December 31 of each calendar year.

The CEAL is payable by the holders of the short-term accommodation operating registration, with property owners who are not the holders of the AL registration being subsidiarily responsible for payment.

The CEAL is not applicable to properties located in the interior, nor to properties situated in parishes that meet specific requirements as communicated by municipalities to the Tax Authorities.

The payment of the CEAL is to be made by June 25 of the following year. Therefore, the Extraordinary Contribution for the year 2023 is to be paid by June 25, 2024.

With implications for IRS (Income Tax), the following measures stand out:

Rental income from properties that have been transferred from Short-Term Accommodation is exempt from taxation. The same exemption applies to Corporate Income Tax (IRC) when the landlord is a legal entity.

Reduction in the autonomous taxation rate for residential property rentals. The rate, which was 28%, is now reduced to 25%. The 28% rate remains applicable to non-residential property rentals.

Increase in the reduction of the autonomous taxation rate for residential property rentals intended for permanent residence, applicable to contracts with a duration exceeding 5 years.

Change in the coefficients applicable to determine the taxable income subject to taxation concerning residential rents received in 2023, as part of an extraordinary support for leasing.

Exclusion from taxation of capital gains realized on the sale of land for construction or residential properties that are not the taxpayer’s own permanent residence when the proceeds, minus any outstanding loans, are used to repay a loan taken for the acquisition of the taxpayer’s own permanent residence or that of their descendants.

This exclusion applies to transactions carried out between January 1, 2022, and December 31, 2024.

Definition of a minimum period of 24 months for the use of the property as the taxpayer’s own permanent residence, so that the capital gain realized upon its sale can benefit from the reinvestment regime.

The reinvestment period is suspended during the years 2020 and 2021.

The reinvestment regime is not applicable to those who have benefited from it in the year of the property’s sale or in any of the three preceding years.

The entry into force of this decree takes place on the day following its publication, namely, on October 7.

These and other measures will be subject to a detailed analysis in the training session scheduled for the end of November.

Mr. Rui Gonçalves, Tax Consultant at APECA.

Setting the limit values for the compensation of expenses in the telework regime

Article 168 of the Labor Code mandates the employer’s obligation to compensate the worker in a telework regime for all expenses that they, verifiably, incur in relation to the use of equipment and computer systems necessary for telework, including the additional costs of energy and the internet network installed at the workplace and the maintenance of said equipment and systems.

This compensation is considered a cost for the employer and is not considered income for the worker up to the limit to be set by Ordinance, according to the new wording of number 6 of the cited Article 168, dictated by Law No. 13/2023. It happens that, although this law came into force on 01/05/2023, the infamous Ordinance has only now been published! Thus, according to Ordinance No. 292-A/2023, of September 29, the exemption limit values for tax and social security purposes are as follows:

  • Electricity – €0.10 per day
  • Internet Network – €0.40 per day
  • Computer Equipment – €0.50 per day

    Total (€0.10 + €0.40 + €0.50) = €1.00 x 22 days = €22 per month.

The Ordinance also provides that these values may be increased by 50% if stipulated in a collective labor agreement entered into by the employer!

It is important to note that these values, pertaining to each type of expense, only apply if the goods or services have not been provided by the employer, either directly or indirectly, so that the worker does not bear the respective costs.

For example, if the employer provided the computer equipment for telework, the €0.50 per day does not apply. It is also clarified that the indicated values refer to full days of work, considering that a day is complete when it has a minimum duration of 1/6 of the weekly working hours.

Thus, and by agreement, up to the above-mentioned values and under the indicated terms, there is no incidence of income tax or contributions to Social Security. Any amount exceeding these values is subject to income tax and Social Security contributions.

In the absence of an agreement on a fixed value, only the amounts resulting from the comparison of the worker’s expenses in each month with the equivalent expenses of the last month of in-person work are exempt.

Dr. Albano Santos,

Tax Consultant of APECA

Fiscal regime for promoting the capitalization of companies


The Law No. 24-D/2022, of December 30, which approved the State Budget for 2023, established a fiscal benefit called the Fiscal Regime for Incentivizing the Capitalization of Companies.

This new benefit aims to address the repeal of the DLRR (Deduction for Additional Remuneration of Reserves) and the Conventional Remuneration of Share Capital, the effects of which are retroactive to January 1, 2023.

Subsequently, Law No. 20/2023, dated May 17, introduced some changes and clarifications regarding the operation of the benefit.

Therefore, it is important to provide an update or status report.

Characterization of the incentive

The benefit consists of a deduction from the taxable profit of Corporate Income Tax (IRC) for commercial or civil companies, cooperatives, public enterprises, and other legal entities, whether public or private, with registered office or effective management in Portuguese territory. The deduction is equivalent to applying a rate of 4.5% to the amount of net increases in eligible equity capital.

This rate is increased by 0.5 percentage points if the taxpayer qualifies as a micro, small, or medium-sized enterprise or a small and medium-sized capitalization company (Small Mid Cap), according to the criteria set out in the annex to Decree-Law No. 372/2007, dated November 6.

The mentioned deduction cannot exceed, in each tax period, the higher of the following limits:

  • € 2.000.000; or
  • 30% of the result before depreciation, amortization, net financing costs, and taxes, in accordance with Article 67 of the Corporate Income Tax (IRC) Code.

The portion of the deduction that exceeds the second limit mentioned above is deductible in the determination of taxable profit for one or more of the five subsequent tax periods, following the deduction for that same period, with the same limits.

Access conditions

The incentive applies exclusively to taxpayers who, in the relevant tax year, primarily engage in commercial, industrial, or agricultural activities and simultaneously meet the following conditions:

  • They are not entities subject to the supervision of the Bank of Portugal or the Insurance and Pension Funds Supervisory Authority, nor are they branches in Portugal of credit institutions, other financial institutions, or insurance companies;
  • They have regularly organized accounting in accordance with accounting standards and other legal provisions applicable to their respective industry;
  • Their taxable profit is not determined by indirect methods; and
  • They have their tax and contributory situation regularized.

Form of calculation

For the calculation of the deduction, the amount of eligible net increases in equity capital must be determined with reference to the sum of the values determined in the current fiscal year and each of the nine previous tax periods. The amount of net increases in eligible equity capital is considered zero in situations where the sum results in a negative difference.

However, it should be noted that only the eligible net increases in equity capital observed in tax periods commencing on or after January 1, 2023, are considered. In other words, for the 2023 period, only the eligible net increases in equity capital occurring in 2022 will be taken into account.

Regarding this matter, it is necessary to take into account the transitional regime outlined in Article 12 of Law No. 20/2023, dated May 17, which establishes that for the purposes of subparagraph IV) of paragraph a) of number

For the purposes of subparagraph IV) of paragraph a) of number 6 of Article 43.º-D of the Tax Benefits Statute, the first accounting profit covered is considered to be the profit for the 2022 period, whose resolution and corresponding application, either in carried-over results or directly in reserves or in capital increase, occurs in the tax period commencing on or after January 1, 2023.

In this calculation, increases in capital made using profits generated in the tax period starting in 2022 that have benefited from the conventional remuneration of share capital regime provided for in the former Article 41.º-A of the same Statute are not considered.

Another important aspect to consider in the calculation are the concepts that we are about to highlight.

Eligible increases in equity capital are considered:

  • Cash contributions made in the context of the establishment of companies or the increase of the share capital of the beneficiary company;
  • Contributions in kind made in the context of an increase in share capital that correspond to the conversion of credits into capital;
  • Premiums on the issuance of corporate shares;
  • The application of accounting profits available for distribution, in accordance with commercial legislation, to carried-over results, directly to reserves, or to the increase of capital.

Net increases in eligible equity capital are considered the positive or negative difference between:

  • The increases in eligible equity capital; and,
  • The outflows, in cash or in kind, in favor of the capital holders, as a reduction thereof or for the distribution of assets, and the distributions of reserves or carried-over results.

Conversely, for the purposes of this regime, increases in eligible equity capital resulting from:

  • Cash contributions made in the context of the establishment of companies or the increase of the share capital of the beneficiary company, which are financed by increases in eligible equity capital in the sphere of another entity, are not considered for the purposes of this regime.
  • Contributions made in cash, in the context of the establishment of companies or the increase of the share capital of the beneficiary company by an entity with which the taxpayer is in a special relationship, which are financed through loans granted by the taxpayer himself or by another entity with which that entity and the taxpayer are in a special relationship, are not considered for the purposes of this regime.
  • Contributions made in cash, in the context of the establishment of companies or the increase of the share capital of the beneficiary company, by an entity that is not a tax resident in another Member State of the European Union or in the European Economic Area, or in another state or jurisdiction with which there is an in-force convention to avoid double taxation, bilateral or multilateral agreement that provides for the exchange of information for tax purposes, are not considered for the purposes of this regime.

Practical application example

A given taxpayer characterized as an SME, framed within the general Corporate Income Tax (IRC) regime, reported a net accounting result of €34,500.00 for the year 2022.

The General Meeting for the approval of accounts, held on March 31, 2023, resolved on the following distribution of this result:

    Calculation of the net increase in eligible equity capital.

  •  34.500  12.500  10.000 = 12.000
  • Benefit to be considered in the tax period of 2023 = 12.000 x 5% = 600 euros
  • Amount to be deducted in box 774 of Frame 07 of the Corporate Income Tax (IRC) model 22 declaration.

Dr. Abílio Sousa

Consultor fiscal