In addition to the systematic integration of the withholding tax regime within the PIT Code, the following rules were also foreseen:

  • The rectification of incorrect withholdings can be made, totally or partially, in one or more withholding tax periods (until the end of the year), even in case of definitive withholdings. The withholding tax agent is, however, liable for the tax reimbursed if it is determined that the due amount was not withheld and delivered to the Portuguese tax authorities (except if the rectification relates to employment or pensions income);
  • The earners of employment, business and professional and pensions income may opt for withholding tax at a higher rate than the one determined by law; The earners of employment or pensions income in kind (not subject to withholding) can make payments on account of the final tax due; and When determining the rate applicable to employment and pensions’ income the family status, applicable specific deduction and itemized deductions must be taken into account.