Nuno de Oliveira Garcia reflects on the termination of the simplified corporate income tax regime | VidaEconómica

Nuno de Oliveira Garcia, partner and head of the Tax, comments on the recent ruling by the Supreme Administrative Court on the termination of the simplified corporate income tax regime, which grants retroactive effects to the beginning of the tax year and not just from the following year.

With this decision, the judges of the Supreme Administrative Court are trying to prevent the ‘abusive use’ of the simplified tax regime.

Nuno de Oliveira Garcia affirms that “you may not like the final opinion of the courts on the subject, but taxpayers will have fewer excuses after this decision for not knowing the interpretation of the regime in force, and thus fewer excuses for being caught by surprise.” The lawyer recommends that “In a year in which this overrun can be foreseen, taxpayers should act as if they were already in organised accounting (e.g. requesting the physical issue of invoices, keeping bank statements, etc.) so as not to be surprised at the end of the year by the termination of the simplified regime and the lack of documentation to support the costs they have incurred professionally.”

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