IRC Payments on Account Calculator 2026

IRC payments on account are advance payments of the current year tax, paid in three instalments (July, September and by 15 December). They are computed on the prior year assessment less withholding tax: 80% if turnover was up to EUR 500,000, or 95% if higher.

How they are calculated

  • Base — prior year IRC assessment minus that year withholding tax.
  • Rate — 80% (turnover ≤ EUR 500,000) or 95% (> EUR 500,000).
  • Instalments — the total is split into three equal instalments, rounded up to euros.

Deadlines

1st instalment by 31 July, 2nd by 30 September and 3rd by 15 December (calendar-year tax periods). The 3rd instalment can be limited or suspended when the tax due for the year is expected to be equal to or lower than what was already paid — HVR reviews this case by case.

Need help with IRC and payments on account? See HVR accounting and tax.

Legal basis

Payments on account are set out in Articles 104 to 107 of the Corporate Tax Code (CIRC). Companies whose main activity is commercial, industrial or agricultural, and non-resident companies with a permanent establishment in Portugal, pay them in July, September and by 15 December of the tax year itself (Article 104(1)(a)). The base is the prior year's assessed tax net of withholding tax (Article 105(1)): 80% of it if prior-year turnover was €500,000 or less, 95% above that, split into three equal instalments rounded up to the euro (Article 105(2) and (3)).

Worked example

A company's 2025 corporate tax assessment was €12,000, with €1,000 of tax withheld at source, and its 2025 turnover was €400,000. The base is €11,000 and the rate 80%, so the 2026 payments on account total €8,800: three instalments of €2,934 (€8,800 ÷ 3 = €2,933.33, rounded up) due in July, September and by 15 December 2026.

When you do not pay, or can pay less

  • Small amounts: no payments on account are due when the reference year's tax is below €199.52 (Article 104(4)).
  • Third instalment: if what has already been paid covers the tax expected for the year, the third payment can be skipped, or limited to the difference. If the Modelo 22 later shows that more than 20% of what would normally have been paid was left unpaid, compensatory interest is due (Article 107).
  • Late payment: compensatory interest starts running immediately on instalments not paid on time (Article 104(5)).

What was paid on account is deducted in the Modelo 22; if it exceeds the tax due, the difference is refunded (Article 104(2)).