By Hugo Ribeiro, Certified Accountant · Member of the Order of Certified Accountants · HVR Business Consulting
Introduction to Year-End Closing and IRC The year-end closing and the subsequent calculation of Corporate Income Tax (IRC) represent the most critical moment of the tax calendar for companies in Portugal. This process is not limited to simply filling out the Periodic Income Tax Return (Modelo 22), but involves an exhaustive analysis of accounting, the application of accounting standards (SNC), and their subsequent reconciliation with current tax rules. As of March 10, 2026, companies are in the middle of preparing for the 2025 closing, requiring high technical rigor to avoid fines and optimize…
Key Takeaways
Correctly calculate taxable profit following Article 17 of the CIRC.
Take advantage of the reduced 17% rate for SMEs on the first €50,000.
Submit the Modelo 22 Return mandatorily by May 31st.
Monitor autonomous taxations to avoid surprise tax costs.
FAQ
What is the deadline for submitting Modelo 22 in 2026?
The Modelo 22 return must be submitted by May 31, 2026, via electronic data transmission.
What is autonomous taxation in IRC closing?
These are additional rates applied to certain expenses (vehicles, representation) that the company pays even if it has a tax loss.
How does the IRC rate work for SMEs?
SMEs benefit from a reduced rate of 17% on the first €50,000 of taxable income and 21% on the surplus.
When can tax losses be deducted?
Losses can be deducted without a time limit, but only up to 65% of the taxable profit of the year in which the deduction is intended.