Eternity Law International — News — Corporate tax in the Republic of Portugal

Corporate tax in the Republic of Portugal

Published:
November 20, 2020

Income tax

Profits of resident companies earned in other countries are subject to corporate income tax. Profit refers to capital gains and profits earned by Portuguese subsidiaries and other firms acting as representatives of foreign businesses in Portugal.

The income tax rate is 21%. In addition, state and municipal surcharges are also charged plus to this rate. The first progressive rate is:

Profit in EUR                                           Rate amount

The first one and a half million                    0 %

Subsequent 6 million                                      3%

Rest                                                                    5%

Due to surcharges, the final rate can increase to 31.5%, however, only in cases where the company’s profit exceeds 7.5 million euros.

Annual tax period

The annual tax period coincides with the calendar year. However, resident enterprises can make a request to the Ministry of Finance regarding other limits of the annual tax period in connection with one or another economic reason.

Income tax must be declared and paid within five months after the annual tax period has ended. Prepayment is made in 7, 9 and 12 months of this period, based on the total tax amount that was calculated for the previous year.

Calculation of the amount of tax to be paid

For a tax period that begins on or after 01/01/2013, a restriction is imposed on the ability to deduct a percentage of the amount of taxable income. Based on this limit, the financing cost can be deducted up to the following limit:

3 million euros; or

30% of earned funds before depreciation, interest and taxes (EBITDA) – but a transition period can be applied, respectively, this limit will be 70% for 2013, 60% for 2014, 50% for 2015, 40% for 2016 and 30% for 2017.

Capital increase tax

Portugal does not impose a capital increase tax. Anything assigned to capital gains must be included in taxable profits for corporate tax purposes. Half of the gains derived from transfers of tangible main and financial funds held for at least a year can be deducted from general taxation. This applies to cases where the total amount of funds that have been transferred is reinvested over a designated period.

You could be interested

Protection of information

Thanks to secure servers, trained employees, our clients can be absolutely calm for the safety of the information transferred to us. All of our employees who work with personal information of clients have signed NDA agreements and are responsible for maintaining its privacy. The company can not use your data for personal purposes and disclose it to...

Opening an online store with an account

Opening an online store with an account – most entrepreneurs are convinced that opening their online store will require large financial investments. However, this is not so. There are methods that allow you to establish your business almost for nothing. To do this, you need to properly plan your work and explore the market. This...

Amendment to Poland's Payment Services Act: Forging Ahead in the FinTech Frontier

Poland’s indomitable presence in the European FinTech arena stands as an enduring testament to its unwavering commitment to financial technology innovation. Over an impressive expanse of years, it has not merely held its ground but risen as a formidable citadel within the realm of financial services. Nestled within the vast expanse of the Central and...

Germany Authorised Crypto Companies

Germany has solidified its status as a vanguard in cryptocurrency governance, offering a steadfast and progressive framework for enterprises in the blockchain and digital asset realm. Authorised crypto companies in Germany thrive within a jurisdiction that prioritizes regulatory transparency, economic robustness, and technological progression. Over the past years, Germany has exemplified forward-thinking policies that harmonize...

Company registration on Sark

Sark is a small island from the Channel Islands located in the English Channel, owned by Guernsey. This is a small, isolated state, in which until 2008 there were only 40 enterprises. All land on the island is owned by one person who rents them out. The island itself belongs to Great Britain, it is...

Offshore gambling license in 2023

The boom of the gambling sector is likely to continue tremendously for the foreseeable future thanks to the use of cutting-edge and dynamic technology. iGaming is coming up with new ways to satisfy the requirements of clients from any country at a time when many market segments are having trouble. The number of individuals asking...

Related posts

The corporate tax system in Bulgaria

If you desire to have the ability to conduct entrepreneurship anywhere in the EU, Bulgaria is an excellent choice. Having the firm around enables you to utilize a variety of services on par with Bulgarian nationals. In this report, you can get more details on taxation in Bulgaria. So, does Bulgaria have high taxes? Is...

The corporate tax system in Poland

Poland’s prominent European position makes it an ideal investment destination for businesses looking to export their goods to both the East and the West. Many entrepreneurs choose this jurisdiction for starting commerce. Among the most significant things you need to know to establish a firm, there are levies. According to the Polish Act, LLCs are...

Corporate tax in Singapore

Singapore is a singular fusion of West and East. The social infrastructure is influenced by a blend of American, European, and Asian cultures, making it welcoming and alluring to the global business community. Being a former British colony, it has lawful and economic systems similar to those of the US and the UK. Tax Rate...

Corporate tax in Austria

Austria has an enticing tax system for businesses. There are double taxation accords with several different foreign nations to prevent double taxes. A summary of the most significant tax-related topics may be found here. Businesses taxes The tax base for enterprises The entire amount of a corporation’s (domestic and non-resident) revenue is subject to unlimited...

Corporate tax in Latvia

The system of cash flow forms the framework of the reformed business income tax system in Latvia. When dividends, conditional dividends, or payments that are equal to dividend payments are made, a Latvian corporation must pay CIT. As a result, a Latvian business is exempt from deducting CIT from its yearly earnings until any of...

Corporate tax in Romania

The state of Romania is a great country for entrepreneurship. Before launching the establishment every businessman has to be informed about all peculiarities of trade activity in the country. One of the most consequential topics is the taxation of companies. The corporation tax rate is 16% in Romania It is evaluated as the variance between...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: