Deadline for IMI Payment Extended to 30th June

Due to technical problems accessing the Tax Authority portal, caused by the power outage that affected Portugal and Spain, the Government decided to extend the deadline for the payment of the Municipal Property Tax (IMI). The new deadline for the payment of the first instalment or, if applicable, the single payment of IMI will be 30th June 2024.

Municipal Property Tax (IMI) is an annual tax collected by municipalities, based on the property’s taxable value, and is one of the main local taxes in Portugal. This tax must be paid by all property owners, whether individuals or companies, and the amount to be paid depends on the type of property, its location, and the taxable property value assigned by the Tax Authority.

Normally, the IMI payment deadline is 31st May. However, due to technical difficulties accessing the Tax Authority portal, caused by a widespread power failure that affected the Iberian Peninsula at the end of April, the Government decided to extend the deadline to 30th June. This measure applies to all taxpayers, ensuring they have additional time to settle their IMI-related tax obligations.

The Tax Authority informed that the system failure prevented the timely sending of IMI payment notices to a considerable number of taxpayers. As a result, the deadline extension was implemented to mitigate the impact on taxpayers and ensure everyone has enough time to make the payment.

The power outage on 28th April severely affected the Tax Authority’s IT systems, interrupting the electricity supply for around 10 to 11 hours, which hindered the normal operation of tax portals and made it difficult to meet various tax obligations. In addition to IMI, other tax obligations, such as VAT and Corporate Tax (IRC) returns, were also affected, leading to the need for deadline extensions to ensure compliance.

Additionally, the Government decided to extend the deadline for submitting the IRS Model 22 tax return (for IRC) to 16th June, a decision that followed complaints from the Order of Certified Accountants (OCC), which reported persistent issues with the Tax Authority portal.

To pay IMI, taxpayers must access the Tax Authority portal, where they can consult the payment notices and make the payment, either by bank transfer, ATM, or other authorised methods. It is important to verify that all data is correct before making the payment to avoid errors that could lead to penalties or interest.

If taxpayers encounter difficulties accessing the Tax Authority portal or have not received the payment notice, they are advised to contact the Tax Authority to resolve the situation as soon as possible, avoiding delays in payment.

If taxpayers are unable to pay the IMI within the specified deadline, there are options such as requesting a payment plan in instalments or using other methods to regularise the debt. However, it is crucial that the payment is made within the deadline to avoid interest on arrears or other penalties.

In addition to extending the IMI payment deadline, the Government also took measures to alleviate the impact of the power outage on businesses and accountants. The deadline for submitting VAT returns, both for monthly and quarterly taxpayers, was extended to 26th May, allowing VAT payments to be made by 30th May without additional charges or penalties.

These measures aim to ensure that the technical difficulties caused by the power outage do not hinder tax compliance and that businesses, in particular, can meet their obligations within a reasonable time frame, given the impact on IT systems.

The extension of the IMI payment deadline to 30th June provides relief for taxpayers who were affected by the issues with the Tax Authority portal due to the power outage. Although the original deadline was 31st May, the deadline extension ensures that all taxpayers can fulfil their tax obligations without any setbacks, ensuring the smooth continuation of the IMI payment process. Taxpayers are encouraged to take advantage of this additional time to settle their tax obligations and avoid any potential complications.

Source: SUPERCASA