While
Portugal has never been in the tax-friendly group of countries this might
change drastically thanks to the reform of its corporate tax legislation which
was recently passed. Portugal now seeks to become a hub for international
companies, specially those with strong ties with Portuguese-speaking countries
on the rise such as Brazil, Angola or Mozambique. In this next series of posts
we’ll take a brief look on what all the good news is about.
1.- Corporate tax rate: the
general rate now stands at 25% but it has been lowered to 23% in 2014, and is
expected to be cut even further: an extra 2% in 2015 and another 2% to 4% in
2016. So at the end of the line the rate could be 17%.
2.-
Intermediate rate for smes: from this year small and medium enterprises will benefit from a
special intermediate rate of 17% for the first taxable € 15,000.
3.- Tax loss carryforwards: tax losses can be set-off for a 12-year period. However, compensation
for each period can only go as far as 70% of taxable profits.
