 | | | | | Obligations in the cessation of business activity |
The cessation of the activity occurs:
a) With regard to entities resident or with effective management in Portugal, on the date of termination of the liquidation or on the date the conditions of being subject to tax in Portugal cease to exist;
b) With regard to entities that are not resident or do not have effective management in Portugal, on the date it totally ceases to carry on business through a permanent establishment or no longer obtains income in Portugal.
Madeira companies must submit a declaration of cessation of activity within 30 days from the date of its cessation.
In the same period, a tax return must be submitted for the tax year in which it occurred, regardless of whether it is a banking day or not. The same deadline is also applicable for the tax return regarding the immediate preceding tax year when the respective deadlines have not yet passed.
The yearly tax and accounting information declaration, in the case of cessation of activity and regarding the tax year in which it occurred, must be submitted within the same period, 30 days from the date of its cessation. The same deadline is also applicable for the declaration regarding the immediate preceding tax year when the respective deadlines have not yet passed.
Madeira companies are required to maintain in good order, during the period of 10 years, a documentation file for each tax year, with several accounting and tax elements.
Furthermore, upon liquidation of the company, the shareholders have to appoint a depository for the books, documents and other items of the company’s accounting, which must be kept for 5 years.
Upon completion of the registration of liquidation or the cessation of the activity, as appropriate, a representative with residence in Portugal for tax purposes must be appointed, for mandatory reporting to the tax administration.
Newmadeira is available to provide these services to its clients, keeping the documentation file for 10 years and appointing both the depository and the representative for tax purposes. | | |  | |
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