1. The results of construction contracts are determined using the percentage-of-completion method.
1 - A determinação dos resultados de contratos de construção é efetuada segundo o critério da percentagem de acabamento.
2. For the purposes of the preceding paragraph, the percentage of completion at the end of each tax period corresponds to the ratio between the expenses incurred up to that date and the sum of those expenses and the expenses estimated for completing the contract.
2 - Para efeitos do disposto no número anterior, a percentagem de acabamento no final de cada período de tributação corresponde à proporção entre os gastos suportados até essa data e a soma desses gastos com os estimados para a conclusão do contrato.
3. Where, in accordance with the accounting standards, the outcome of a construction contract cannot be estimated reliably, the contract revenue is deemed to correspond to the total contract expenses.
3 - Quando, de acordo com a normalização contabilística, o desfecho de um contrato de construção não possa ser estimado de forma fiável, considera-se que o rédito do contrato corresponde aos gastos totais do contrato.
4. Expected losses on construction contracts corresponding to expenses not yet incurred are not deductible.
4 - Não são dedutíveis as perdas esperadas relativas a contratos de construção correspondentes a gastos ainda não suportados.
The percentage-of-completion method, the cost-based completion ratio, the fallback where the outcome cannot be estimated reliably, the non-deductibility of expected losses for expenses not yet incurred and the repeal of paragraphs 5 and 6 are retained.
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Unofficial English translation prepared by BCA Portugal for reference. Only the Portuguese text published in the Diário da República has legal force. Editorial notes are ours and are not part of the statute.