Under the new system, updates made in GEMI for key business entities—such as public limited companies (S.A.), limited liability companies (EPE), and private capital companies (IKE)—will now be automatically transmitted to the tax authorities. This move is designed to spare businesses from the burden of submitting the same information twice, once to GEMI and again to the tax office.
However, the reform is not without concerns. The automatic flow of data from GEMI to the tax registry is based on the assumption that GEMI’s records are accurate—a premise that many, including professionals familiar with the system, find troubling. GEMI has yet to establish a reputation for dependable and up-to-date recordkeeping. Mistakes are not uncommon, and delays in updating vital company information—such as changes in legal name, shareholders, capital structure, or legal status—can occur. With the new system, any such error will now be directly mirrored in the tax profile of the business, without an intermediate step for verification or correction.
The AADE does provide some safeguards: companies are notified via the myAADE digital portal and email whenever a change is recorded. This allows for a basic level of oversight. Yet, once erroneous data has been transmitted, fixing it can become a time-consuming process involving manual intervention and direct contact with local tax offices—exactly the kind of red tape the reform was supposed to eliminate. Currently, there is no automated feedback mechanism to correct mistakes already entered into the tax registry, raising concerns about the efficiency and accuracy of the new approach.
An exception to the automation applies to business closures. Even if GEMI transmits a company’s deregistration automatically, the business is still required to submit a separate declaration to the tax authorities in order to formally cease operations. While this may appear to contradict the reform’s purpose, in this particular case, maintaining a manual check may actually prevent serious administrative complications.
