Portugal – Updates to Classification of Economic Activities (CAE) Codes

Portugal has introduced significant changes to its Classification of Economic Activities (CAE) codes through Decree-Law no. 9/2025. This update affects all businesses operating in Portugal and requires immediate attention to ensure compliance.

Key Changes

The Portuguese Tax and Customs Authority (Autoridade Tributária e Aduaneira or ‘AT’) have automatically updated CAE codes (CAE – Rev.4) using three distinct reclassification methods:

1. Direct Conversion

• Automatic reclassification requiring no taxpayer action

2. Survey-Based Conversion

• Based on responses to the Survey for the Reclassification of Economic Activities (IRCAE)
• Utilizes data provided by companies before the 30th of November 2024

3. Probabilistic Conversion

• Applied to businesses that did not respond to the survey
• Uses statistical methods for reclassification

Applicability and Timeline

These requirements affect all entities operating in Portugal, with the changes taking effect from the 12th of February 2025.

The reclassification process has been conducted automatically by the AT, but businesses must verify their new classifications.

Required Actions

Businesses must take the following steps to ensure compliance:

1. Verify current tax registration on the Tax Authority’s website.

2. Review CAE codes in the updated Company Excerpt using valid access codes.

3. Submit a declaration of changes in activity if any inaccuracies are identified.

Risks of Non-Compliance

Accurate CAE codes are essential for:

• Tax reporting and compliance
• Business licensing
• Statistical reporting
• Access to certain government programs and incentives

Incorrect classification may lead to:

• Administrative complications
• Reporting inaccuracies
• Potential regulatory issues
• Difficulties in business operations

How Mercator® by Citco (Mercator) Can Help

Mercator offers comprehensive support for businesses navigating these new requirements:

• Verification of CAE codes
• Review of current classifications
• Assistance with documentation submission
• Ongoing compliance support

Contact mercator@citco.com for assistance with CAE code verification and compliance requirements.