Last year, Portugal stepped up its transfer pricing requirements, aligning with the OECD’s transfer pricing guidelines. Instead of requiring only the country-by-country report, as was the requirement since 2016,

Portugal added completing master and local files to its legislation

Portugal added completing master and local files to its legislation for tax periods after January 1, 2021, and documentation is due on July 15—except not this year.

On July 6, the government announced it would extend that July transfer pricing deadline, without accruals or penalties, until September 15. So, you can spend the month of August putting the finishes touches on documenting those related-party transactions.