# How to complete Income Tax Online



## madeira (Jun 12, 2018)

After using a Portugal based accountant to complete my Portuguese wife and my Income Tax return, I would like to try and post our 2020 declaration myself. However, the portal seems somewhat complicated, and I wonder if anyone else declares themselves or just uses an accountant. Those of you who claim themselves can you give me some step by step guide on how to complete and file online (for dummies.)
Income is the UK, Pensions for both of us, and savings in IOM & Guernsey.
I have until next year to learn how to do this. Any help would be appreciated as it is a matter of saving costs.


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## proud.to.be.EUROPEAN (Feb 14, 2020)

You need to start by first learning about PT tax rates/scales. Do you have NHR?
If your annual income is less then euro8500, you dont have to submit tax return.
If your wife income is below this limit, but yours is above, you need to consider separate tax returns.

For you, you need to complete:
Rosto........covering page
Anexo J......foreign income form
Anexo L......NHR form, if applicable

Below is from someone else post on another forum. Use this for starting point and reserach each sections in detail. Online portal has help section (?).

For these documents, it appears your NIF goes in the part for "Sujeito Passivo A", but also in Anexo J and Anexo L Table 3A, "Identificao do titular do rendimento".
In certain sections, a code for the UK is required - this is 826.

The main work seems to be in filling out Anexo J.
In this form, pensions go in Table 5. For Table 5A, fill in the first three columns, pension code, country code, and gross amount.
The pension codes are H01 for company pensions (and State Pension?), code H02 being for "Public pensions"; I assume this means those government pensions always taxed in the UK (eg. teachers and civil service pensions).
In Table 5C, for further details of your entries in Table 5A, company pensions go under "Decorrentes de emprego anterior", and State Pension under "Seguranca social".

For income from renting out your UK home, use Table 7A. The columns are income code (F01), country code, net profit without tax, and tax paid abroad.
In Table 7B, and elsewhere, there is a choice with a question starting "Opta pelo englobamento ...". This refers to option to include sum in scaled tax rate income or Nao for flat tax rate of 28%.


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## madeira (Jun 12, 2018)

Thanks proud.to.be.EUROPEAN this is what I needed to know, You have given me a starting point and now I can practice. 
Is the portal robust enough if I make a mistake can I go back and correct?
Thanks again for your very useful reply.
MADEIRA


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## proud.to.be.EUROPEAN (Feb 14, 2020)

No problem, you're welcome.

Yes, you can jump back and forward between Annexo and different sections.
It will let you change/remove data until you finally choose to summit whole thing.
You can have a look around sections and then not submit it by signing out.

Even after summing return, you can go back and submit new one to correct 1st one, if you made mistake. There is a tick boxes asking if this is you 1st submission form.


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## madeira (Jun 12, 2018)

Thank you, now I have a year to practice before the 2020 declarations need to be submitted. Your information and help are invaluable.
Once again
Thank you
MADEIRA


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## dancebert (Jun 4, 2015)

This might help, though it's dated 2016. It's instructions for doing your taxes online.

https://www.nvalores.pt/como-preencher-o-anexo-j-do-irs/

Site is in Portuguese. Chrome browser translates using Brazilian Portuguese. To use European Portuguese, go to Bing Microsoft Translator. Paste the URL into the left hand box. Clicking on the URL in the right hand box opens the translated site in a new tab.


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## dancebert (Jun 4, 2015)

Oops. Forgot I had this. It's a 36 page PDF from Finanças about both the new for 2019 tax forms and their instructions. Because I paid to have my taxes done this year, I haven't translated any of it to see how useful it would be to the non-financially knowledgeable. 

On this page, the link to download the PDF is right above the word 'SUMMARY', or 'SUMÁRIO' . It's in Portuguese, so copying and pasting into Bing Translator will be tedious. Why Bing? It gives you the choice of European or Brazilian Portuguese. Google Translate is Brazilian.

https://dre.pt/web/guest/pesquisa/-...rch_WAR_drefrontofficeportlet_dreId=118562577


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## madeira (Jun 12, 2018)

Thank you very much. This is very useful with information from Proud to be European and this I can at least give it a try. Once again a big thank you.


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## madeira (Jun 12, 2018)

Hi proud.to.be.EUROPEAN I hope you don't mind but I have one question. I have income in different currencies and I expect the IRS wants it recorded in Euro. How do I find the currency exchange rates used by the IRS on the portal? I have looked but can't find them. I do have XE app which goes back 5 years but I suspect the Portuguese will demand their own rates.


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## proud.to.be.EUROPEAN (Feb 14, 2020)

Ola Madeira.
Correct, all income have to be converted in euros. 
Exchange rate is used as it was on 31st Dec of tax year.
So if filing tax return for tax year 2019, exchange rate on 31st Dec 2019 is used in calculations.


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## madeira (Jun 12, 2018)

Thank you. I use XE that has historical rates so it should work well. Thanks.
Madeira


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## OrangesYeah (Apr 22, 2014)

We submitted our return yesterday and wanted to select englobamento on the various items we had declared but whatever we tried we kept getting errors saying we couldn't select englobamento on any of the items even though we have in the past. Normally we just complete Annex J with our pension info, dividends and UK rental income. This time we have Capital Gains Tax to pay on the sale of our Lisbon apartment, please does anyone know if this could have affected our ability to select englobamento?

One other issue that is annoying is that if you have foreign income (Annex J) you can't do a simulation to find out what tax you will have to pay.


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## proud.to.be.EUROPEAN (Feb 14, 2020)

If you get errors, there is clear info on bottom of screen which sections are incorrect or missing info.

There are so many double taxation treaties and complex situation with foreign income, I'm not surprised simulator doesnt cover it.


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## OrangesYeah (Apr 22, 2014)

Thanks for replying, yes we saw the errors at the bottom , they all just said we couldn't do englobamento. If, when we get our tax bill it seems over the top then I'll contact finanças to see if englobamento would reduce it and ask if/how it can be done. One thing I like about the Portuguese system is that you get more than one chance to submit.

I appreciate why they can't simulate the foreign stuff but it still annoys me that they couldn't give some, non-binding indication if the return is fairly basic.


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## madeira (Jun 12, 2018)

proud.to.be.EUROPEAN said:


> No problem, you're welcome.
> 
> Yes, you can jump back and forward between Annexo and different sections.
> It will let you change/remove data until you finally choose to summit whole thing.
> ...


My partner who is Portuguese has received her overdue PT Pension with the back payment. Where on the IRS form would I put this income. I would appreciate any help. Thank you.


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