IRC Payment-on-Account Calculator
How much does your company pay in IRC payments on account? This calculator estimates the three instalments a company pays in advance during the year (July, September and by 15 December), from the prior year’s tax, withholdings and turnover.
Enter the prior year’s IRC (coleta) and withholdings at source, and that year’s turnover. 80 % applies to the base if turnover was up to €500,000, and 95 % above that. Below a €200 base there are no payments on account. Mainland rules.
How it is calculated
| Base (coleta − withholdings) | €1,000.00 |
| Percentage applied | 80% |
| Each instalment (× 3) | €267 |
| = Total for the year (3 instalments) | €801 |
The three instalments are paid in July, September and by 15 December.
Educational estimate, not tax advice. It computes only the payments on account (the IRC itself is the IRC calculator). It does not model limiting the third instalment, the special payment on account or the autonomous regions. It uses the mainland rules.
What payments on account are
Payments on account (pagamentos por conta) are advance payments of the current year’s IRC, paid in three instalments (in July, September and by 15 December). Because the year’s profit is not yet known, the law works them out from the previous year’s figures. The following year, on the Modelo 22 return, these advances are deducted from the final tax: if you paid too much, you are refunded.
How they are calculated
Start with the base: the prior year’s IRC (coleta) minus that year’s withholdings at source. To that base you apply 80 % if the prior year’s turnover was €500,000 or less, or 95 % if it was higher. The result is split into three equal instalments, each rounded up to the whole euro, so the total paid can be a few cents above the exact figure.
When there are no payments on account
If the base (the prior year’s coleta minus withholdings) is below €200, the company is exempt from paying on account (common for start-ups or companies with low profit). The first two instalments are mandatory; the third can be reduced or skipped if the company estimates the payments already cover the year’s tax (an option this calculator does not model).
Worked example
A company with €1,000 of prior-year IRC, no withholdings and €200,000 of turnover: the base is €1,000 (coleta − withholdings); turnover is below €500,000, so 80 % applies; the total payments on account are €1,000 × 80 % = €800, split into three equal instalments rounded up: €267 each (in July, September and by 15 December), i.e. €801 in total. A larger company, with €50,000 of IRC and €2 million of turnover, applies 95 %: €50,000 × 95 % = €47,500, about €15,834 per instalment.
Frequently asked questions
What are IRC payments on account?
How is each payment on account calculated?
When do I apply 80 % and when 95 %?
When is a company exempt from payments on account?
Are payments on account an extra tax?
Does this calculator compute the company’s IRC?
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Sources
- Código do IRC (CIRC): art. 105.º (cálculo dos pagamentos por conta) — Diário da República
- Código do IRC (CIRC): art. 104.º (regras e prazos de pagamento; dispensa) — Diário da República
Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-06-13