31 July 2026 Portugal approves the Top-up Tax return - Modelo 64 - for Pillar Two purposes
The Secretary of State for Tax Affairs issued Order no. 318/2026/1 on 30 July 2026, approving the official format of Modelo 64 — the Top-up Tax (TuT) return. The return gives effect to the reporting obligation set out in article 45(1)(c) and article 45(3) of the Global Minimum Tax Regime, or Regime do Imposto Mínimo Global (RIMG), approved by Law no. 41/2024 of 8 November 2024. Modelo 64 is used to assess the TuT that a constituent entity of a multinational enterprise group, or of a large domestic group, must pay in Portugal for a given fiscal year. This return should only be prepared and submitted if a Portuguese constituent entity is liable for TuT. Portuguese constituent entities liable for paying TuT under the Income Inclusion Rule (IIR), the Undertaxed Profits Rule (UTPR) or the Qualified Domestic Minimum Top-up Tax (QDMTT) must file a TuT assessment return and pay the associated tax. The return must be submitted electronically through the reserved area of the Portuguese Tax Authorities' portal and is deemed filed on the date of submission. Modelo 64 must be filed by each constituent entity located in Portugal that falls within the scope of the RIMG, unless a local designated entity has been previously appointed and confirmed in the registration/Global Anti-Base Erosion (GloBE) Information Return (GIR) notification form. If a local designated entity has been appointed, that entity is responsible for submitting the return. If none of the Portuguese constituent entities owes TuT in Portugal, Modelo 64 is not required to be filed. If a local designated entity submits the return and only part of the TuT due in Portugal is paid, the payment is allocated proportionally to each entity included in the return, based on the amount of TuT legally attributed to each entity. The return is generally due within 15 months after the end of each fiscal year. For the first fiscal year in which the relevant group falls within the scope of the RIMG, the deadline is extended to 18 months after the end of that fiscal year. These deadlines apply irrespective of whether the deadline falls on a business day. As a reminder, note that for fiscal years ended between 31 December 2024 and 31 March 2025, the deadline was extended to 30 September 2026. (See EY Global Tax Alert, Portugal extends deadline for filing Pillar Two GloBE Information Return and Top-up Tax assessment return for FY2024, dated 12 June 2026. If a constituent entity is part of more than one group within the scope of the RIMG during a fiscal year, a separate Modelo 64 must be submitted for each group. If amounts are denominated in a currency other than Euros, the relevant exchange rate rules under the RIMG apply automatically when the return is submitted electronically. In addition, the Portuguese Tax Authorities are expected to publish the applicable exchange rates on the Portuguese Tax Authorities' portal at least 30 days before the relevant filing deadline; the exchange rate used must be rounded to five decimal places. Modelo 64 includes sections covering (1) the fiscal year, (2) the identification of the filing entity, (3) the characteristics of the taxpayer and the return, (4) the group, ultimate parent entity information and GIR reference number, (5) allocation of TuT to each Portuguese entity, as well as allocation of TuT between QDMTT, IIR and UTPR, and (6) the identification of the legal representative and certified accountant. Multinational enterprise groups with Portuguese constituent entities should assess whether TuT is due in Portugal under the QDMTT, IIR or UTPR and determine whether Modelo 64 must be filed by each Portuguese constituent entity or by a local designated entity. Affected entities should consult with their tax advisors for help with navigating these new updates and supporting Pillar Two compliance.
Document ID: 2026-1653 | ||||||
