Follow Portugal property investment immigration and stay updated on Portugal's economic policies: Following repeated negotiations between the government and opposition parties, the Portugal corporate income tax reform plan was finally approved by Parliament and has been implemented since 2014.
The main contents of the plan are as follows:
1) Reduction of corporate tax rates: The tax rate for large enterprises is reduced from the current 25% to 23%, and the tax rate for small and medium-sized enterprises (SMEs) on profits exceeding 15,000 euros is 17%.
2) On top of the existing surtax rates, a new 7% rate is added for companies with annual profits exceeding 35 million euros. Other rates remain unchanged, meaning the rate for annual profits between 1.5 million and 7.5 million euros is 3%, and 5% for those over 7.5 million euros.
3) Simplification of tax filing methods for SMEs: Companies with a turnover of 200,000 euros may choose to use the simplified tax filing method.
4) The system of paying a 1,000 euro special tax remains unchanged.
5) The amortization period for corporate losses is extended from the current 5 years to 12 years.
6) If SMEs reinvest their retained earnings, they can receive a 10% reduction in corporate income tax.
