Ordinance No. 318/2021, of 24 December 2021, was published (rectified by Declaration of Rectification No. 3/2022, of 11 January), defining a new selection criterion for taxpayers whose tax situation must be monitored by the Tax Administration Large Taxpayers Unit (UGC). The rules for maintenance within the UGC registry are also amended. Ordinance No. 130/2016, of 16 May 2016, is revoked.

1. Under the terms of the new Ordinance, the following entities are monitored by the UGC:

• All the entities under the supervision of Portugal Central Bank and under the supervision of the Insurance and Pension Funds Supervisory Authority, except those which activity is insurance distribution, regardless of their turnover;
• Collective investment undertakings under the supervision of the Securities and Exchange Commission;
•  Non-residents without a permanent establishment in Portugal carrying on an economic activity in Portugal under the supervision of Portugal Central Bank;
• Entities with a turnover or total income, in the case of holding companies, greater than 200 million euros or 100 million euros, in the case of entities that are part of a multinational group that is required to file a Country-by-Country Reporting by country or tax jurisdiction;
• The reference value of turnover or total income, in the case of holding companies, for purposes of including other entities to be monitored by the UGC (other than those referred to above) increases from 200 to 1,200 million euros, thus reducing the number of taxpayers potentially covered;
• Entities with a turnover greater than 2100 million euros, that are part of a multinational group that is required to file a Country-by-Country Reporting by country or tax jurisdiction;
• Entities with an overall value of taxes paid over 20 million euros (already previously subject to monitoring by the UGC);
• Entities which have a prior transfer pricing agreement in force;
• Companies other than those referred to above that are considered relevant, namely in view of their corporate relationship with said companies above;
• Companies which are part of a group covered by the special taxation regime for group companies, in cases where any of the companies which are part of the group, dominant or dominated, are covered by the conditions defined in any of the previous sub-paragraphs.

2. The selection criteria for individual taxpayers monitored by the UGC remains unchanged, and other individual taxpayers (other than those already covered), and companies or entities, that are considered relevant will also continue to be monitored by the UGC, considering their legal and economic relationship with the individual taxpayers monitored by the UGC.

3. The Ordinance continues to provide that individual taxpayers subject to monitoring by the UGC will be notified for this purpose and that such monitoring will continue for a period of four years from the notification, with a new provision establishing that monitoring will continue for successive periods of four years, even if same no longer meet the selection criteria applied to them, unless they are notified otherwise by dispatch from the General Director of the Tax Administration.