Portugal has adopted the OECD’s BEPS Action 13 framework, including Country-by-Country Reporting (CbCR) requirements. These obligations aim to improve tax transparency by requiring multinational enterprise (MNE) groups to disclose detailed information about their global allocation of income, taxes, and economic activity.

This guide outlines Portugal’s CbCR requirements, including compliance thresholds, filing procedures, deadlines, and applicable penalties.

Regulatory Framework

• Authority: Autoridade Tributária e Aduaneira (Portuguese Tax and Customs Authority)
• Legislation:
  • Article 121-A of the Corporate Income Tax Code
  • Ministerial Order No. 367/2017
  • Ordinance No. 51/2019 (technical specifications)
• International Engagement:
  • Member of the OECD Inclusive Framework on BEPS
  • Signatory to the Multilateral Competent Authority Agreement (MCAA) on CbCR

CbCR Filing Requirements

• Who Must File:
  • Ultimate parent entities (UPEs) resident in Portugal with annual consolidated revenue of EUR 750 million or more in the previous fiscal year
  • Constituent entities in Portugal of foreign MNEs may need to file locally if:
    • The UPE is not required to file a CbC report in its jurisdiction
    • There is no qualifying exchange agreement in place
• CbCR Notification:
  • All Portuguese constituent entities must notify the Portuguese Tax Authority
  • Deadline: within five months after the fiscal year-end
• CbCR Submission:
  • Deadline: within 12 months following the end of the reporting fiscal year
  • Submission through the Portuguese tax portal in XML format using the OECD standard schema

Penalties for Non-Compliance

• Administrative fines ranging from EUR 500 to EUR 20,000, depending on the severity of non-compliance
• Additional daily fines may apply in cases of continued default

Important Considerations

• CbCR in Portugal is part of a three-tiered documentation requirement (Master File, Local File, and CbC Report)
• Portuguese authorities use CbCR data for high-level transfer pricing and BEPS risk assessments
• Accurate and consistent information across jurisdictions is essential

Useful Resources

• Portuguese Tax Authority: https://www.portaldasfinancas.gov.pt
• OECD CbCR Guidance: https://www.oecd.org/tax/beps/country-by-country-reporting.htm