Residents of the United Kingdom have one more year to be appointed a tax representative

The deadline for UK resident taxpayers to appoint a tax representative in Portugal has been postponed for one year, until 30 June 2022. The government plans to implement an electronic notification system.

In an order dated April 30, Assistant Secretary of State for Tax Affairs, Antonio Mendonca Mendes, rescinded another order he had signed himself just four months earlier, which imposed the deadline until June 30, 2021.

The appointment of the financial representative is Mandatory for all TIN holders residing in countries outside the European Union (European Union), which has been the case in the United Kingdom since January, after the post-Brexit transition period.

Plus estimated 400 thousand Portuguese citizens other than the United Kingdom, Including the palace, the Portuguese Chamber of Commerce in the United Kingdom appreciates this 15,000 British owners of second home in Portugal May be affected.

However, even subject to Fine up to 7,500 eurosThe foreign minister himself admits, “There are still a large number of taxpayers who have failed to comply with the aforementioned legal obligation.”

In this new decision, Mendes decides that the appointment of a financial representative can take place “without any penalty” until June 30, 2022 and that those who have not yet done so can retain their current address until the new period.

he is The tolerance does not apply to new registrations or the start of the activity In Portugal, residents abroad, who still have to appoint a tax representative, are the point of contact between the tax administration and the taxpayer.

Electronic notifications

The order published last week also states that the tax and customs service (AT) digitization project, known as the Electronic Notification System, is expected to be completed “during the year 2022”.

At the time, he says, “the system, which operates only electronically, will allow taxpayers with a Portuguese TIN residing abroad to be exempt from the obligation to appoint a financial representative.”

This system will work in conjunction with Morada Única Digital, which has been happening since 2019 for the remaining Portuguese taxpayers residing in the national territory.

This measure addresses the concerns of the Portuguese community in the UK and the calls of both PS and PSD, which have alerted the government to the problem, which is the fact that the deadline is short and there is a lack of information.

However, it may have arrived too late for many people who meanwhile turned to attorneys and other professionals to issue the necessary powers of attorney and hire a tax representation service, the annual cost of which can reach 750 euros.