Pay IRC in Installments? It’s possible, find out how!

In times of economic instability, managing a company’s treasury can be a constant challenge. Complying with tax obligations, namely the payment of Corporate Income Tax (IRC), can represent a significant pressure for many companies. But, did you know that it is possible to request the payment of IRC in installments?

This article aims to clarify the conditions, procedures and benefits associated with this regime, allowing companies to manage their tax situation in a more balanced and sustainable way.

How to Request Payment in Installments:

The request for payment in instalments must be formally submitted to the AT within a maximum period of 15 days after the end of the voluntary tax payment period. You can do this through the Finance Portal (https://www.portaldasfinancas.gov.pt), which simplifies the process and allows you to monitor your application online. Alternatively, you can submit the application in person at the tax office. The application must contain all the necessary information, including the identification of the company, the nature of the debt, the total amount due and the number of instalments sought. It may be necessary to attach all documentation that proves the company’s financial situation and justifies the need for phased payment.

The Number of Installments and Their Value:

Although the legislation allows a significant number of installments, this number and the value of each installment must be realistic and compatible with the company’s ability to pay. Thus, it is currently legislated that the payment of IRC can be made up to 36 monthly installments, ensuring greater financial flexibility for companies. It is important to note that each installment cannot be less than a defined minimum amount. In 2025, the value corresponding to a quarter of the Unit of Account (CU) will be in force, which is set at 120 euros. In addition, it is important to consider the default interest applicable to the amount owed. The AT will carefully analyze the request, considering the company’s financial situation and the feasibility of the proposed payment plan.

AT Decision and Payment Plan:

After analyzing the application and the documentation submitted, the AT will issue a decision. If the application is approved, a detailed payment plan will be drawn up, indicating the number of instalments, the amount of each instalment and the due dates. This plan will be made available to the company, usually through the Finance Portal. Strict compliance with this plan is essential to avoid penalties and maintain a good relationship with the AT.

Benefits of Payment in Installments:

The instalment payment scheme offers a number of advantages for companies in financial difficulty. It allows greater financial flexibility, facilitating treasury management and avoiding the interruption of activity due to lack of liquidity. In addition, it avoids the application of penalties and interest on arrears, which can significantly aggravate the company’s financial situation. Finally, it demonstrates the company’s good faith towards the AT, contributing to maintaining a positive and constructive relationship.

Final Thoughts:

Paying corporate income tax in installments is a valuable tool for businesses facing temporary financial difficulties. However, it is crucial to prepare a solid application, with all the necessary documentation, and follow the procedures correctly. Transparency and the demonstration of commitment to the payment of the debt are determining factors for the approval of the request. We always recommend consulting the Finance Portal or obtaining advice from a qualified professional, such as a financial advisor or a lawyer, to obtain personalized advice and ensure the success of the process.

With efficient management and the use of available options, it is possible to face tax challenges strategically and sustainably.

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