Topic 3 Key players in the taxation system

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The basis and main guiding principles of the Portuguese tax system are embodied in the Constitution of the Portuguese Republic, namely, the principle of tax legality, the prohibition of retroactivity of the tax law and the principle of tax equality. 

The main purpose of tax collection is to raise revenue for the State.

There are other legal diplomas that stand out: the Social Security Contributions Code; the Personal Income Tax Code; the Corporate Income Tax Code; and the Value Added Tax Code.

  • Social Security;
  • Tax Authority;
  • Employee;
  • Self-employed worker;
  • Partners of commercial companies;

Workers with an Employment Contract – the income of the workers is taxed at an overall rate of 34.75%, and the employer delivers this amount to the state every month, divided in the proportion of 23.75% borne by the employer and 11% borne by the worker.

Self-employed workers – the income generated is taxed at a rate of 29.6% of the services rendered annually. It is up to the independent professional to deliver them monthly to the State.

These benefits paid to Social Security allow employees and self-employed workers to benefit from social protection benefits in the event of illness, unemployment, and parenthood, among others.

The contributions made by the workers constitute the basis for calculating the old age or disability pension.

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The partners of commercial companies do not pay social security contributions, except when they are not only partners but also members of the corporate bodies, managers or directors of the respective companies.

In this case, they pay a monthly amount of 34.75 on the earned income.

The responsibility for the delivery is of the company they are part of.

In general, the Tax and Customs Authority is responsible for ensuring the assessment and collection of taxes, as well as preventing and fighting tax fraud and evasion.

Information regarding the Autoridade Tributária e Aduaneira is available at

The tax services are available at