Flash News NA 2025/02/20
Portugal – The New Classification of Economic Activities (CAE) from 2025: What You Need to Know
Since January 1, 2025, the new version of the Portuguese Classification of Economic Activities, known as CAE Rev.4, has come into effect. This update replaces the previous version, CAE Rev.3, and it is essential for all companies to be aware of the changes and ensure they are correctly classified.
Why is the Update Necessary?
The revision of the CAE is justified for several reasons:
• Globalization and Digitalization: Since 2008, many economic activities have evolved significantly due to globalization and digitalization.
• New Activities: Some activities have gained or lost importance in the global economy, requiring an update to reflect these changes.
• Information Technologies: Rapid changes in information technologies also necessitate an updated classification.
• Environmental Protection: New activities specialized in protecting the environment have been created and need to be reflected in the classification.
The Reclassification Process
The Tax Authority notified companies about the availability of the IRCAE – Survey for the Reclassification of Economic Activities. This survey should have been completed online by the end of November 2024. Companies must consult their current activity codes in CAE Rev.3 and carefully choose the new CAE Rev.4 codes that best suit the activity they perform.
Importance of Being in the Correct CAE
Being in the correct CAE is crucial for several reasons:
• Legal Compliance: Ensures that the company follows legal and tax regulations.
• Tax Benefits: Some activities may have specific tax benefits that are only applicable if the company is correctly classified.
• Access to Incentives: Government support programs and incentives may depend on the correct classification of the economic activity.
• Transparency and Credibility: Correct classification increases the transparency and credibility of the company with customers, suppliers, and regulatory entities.
Steps to Follow
1. Consult Current Codes: Check your company's current CAE codes.
2. Complete the IRCAE Survey: Access the INE or WEBINQ portal and complete the online survey with authentication through the NIF/NIPC and the access password to the Finance Portal.
3. Choose New Codes: Select the CAE Rev.4 codes that best describe your company's activity.
4. Automatic Update: In January 2025, the new codes were automatically updated in the official records.
Conclusion
The transition to CAE Rev.4 is an opportunity for companies to review and update their classification of economic activities. Ensure that your company is correctly classified to avoid legal issues and take advantage of all available benefits. If you have any questions, consult Nominaurea for more information.
