Flash News NA 2025/03/12
When Am I Required to Have Organized Accounting in Portugal?
Organized accounting is a tax regime that applies to certain entities and professionals in Portugal. This article explores the conditions that require the adoption of this regime, its advantages and disadvantages, and the implications for entrepreneurs and companies.
Introduction
Organized accounting is a financial management system that allows for strict control of a company's or professional's income and expenses. In Portugal, this regime is mandatory for certain entities and can be optional for others, depending on the business volume and the legal structure of the entity.
Who is Required to Have Organized Accounting in Portugal?
There are several situations in which organized accounting is mandatory:
1. Companies: All companies, including public limited companies, private limited companies, and single-member private limited companies, are required to adopt organized accounting.
2. Sole Proprietors and Liberal Professionals: These must adopt organized accounting if their annual net income exceeds 200,000 euros. Otherwise, they can opt for the simplified regime.
Advantages of Organized Accounting
Organized accounting offers several advantages:
• Expense Deduction: It allows for the deduction of a wide range of expenses related to professional activity, including vehicle costs, fuel, and other services.
• Fiscal Rigor: It provides more precise control over profit and loss, essential for more complex activities.
• Security and Compliance: Having a certified accountant ensures that all tax obligations are met correctly and on time.
Conclusion
Organized accounting is a mandatory tax regime for several entities in Portugal, especially for companies and entrepreneurs with higher incomes.
The choice between organized accounting and the simplified regime should be made based on the specific needs and structure of the entity.
At Nominaurea, we can support you with this decision or during the transition from the simplified regime to organized accounting.
We are looking forward for your contact!
