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Update: Portugal New Stamp Duty Reporting Requirements

This article is to advise the Lloyd’s market of the deferral of the new mandatory changes to stamp duty reporting in Portugal to 1 January 2021.

This announcement is made following the issue of Market Bulletin Y5279 ‘New Portuguese Stamp Duty Reporting Requirements’ on 13 February 2020 and the tax news article which can be found here.

On 24 March 2020, the Portuguese tax authority published Order No 121/2020-XXII, which provides an update on the implementation of the new system of reporting Stamp Duty in Portugal.  As a result of the impact of Covid-19 on both taxpayers and the tax authorities, in addition to the fact that the new system required to report the stamp duty in the new format not being finalised by the tax authorities, the implementation of reporting under the new system has been postponed until 1 January 2021.

As such, for the period 1 January 2020 to 31 December 2020, the authorities will revert to the ‘old system’ of stamp duty declaration. In regard to the obligation to settle and pay Stamp Duty for the months of January, February and March 2020, the declarations will be due by 20 April 2020, without any additions or penalties.

As a result of this deferral, Lloyd’s Tax Department will no longer require the new reporting information to be backfilled from 1 January 2020 to 30 April 2020 as outlined in Market Bulletin Y5279. Further, we will delay the implementation of the requirement for Xchanging to capture this information on all open market placements covering Portuguese risk submitted to Xchanging until 1 September 2020.

Please note that the new reporting information can still be provided to Xchanging from 1 May 2020 but will not become mandatory or queried by Xchanging until 1 September 2020. After 1 September 2020, failure to provide the required information will result in Xchanging querying the work package, leading to potential delays to the business and premium being processed.

Binding Authority/Bulked business will be required to report the new stamp duty information to DA SATS for all Portuguese risks submitted on or after 1 September 2020.

For further guidance on the application of Portuguese Stamp Duty Reporting please consult Lloyd’s Crystal or contact Lloyd’s Tax Department by visiting lloyds.com/resources-and-services/tax-information/tax-contacts.