portugal corporate tax rate 2020

Tax rate. The benchmark we use refers to the highest rate for Corporate Income. Please try again. Acquisition cost of EUR 35,000 or more: 35%. An amendment to the tax regime for non-habitual residents, was passed last night by Parliament. Revenues from the Corporate Tax Rate are an important source of income for the government of Portugal. Corporate Tax 2020. The general corporate tax rate applies to active business income in excess of the business limit. Exceptions Non-documented expenses: 50% (70% for partially or fully exempted taxpayers). Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 14.5% to 48% for 2020. Portugal and Germany follow, at 31.5 percent and 29.9 percent, respectively. 8th to 6th on the corporate tax component, where the lower rate complements an already competitive overall tax structure, and from 38th to 36th on the individual income tax component. 2.5% applicable to the taxable profit exceeding EUR 1.5 million and up to EUR 7.5 million. Taxes in Portugal are levied by both the national and regional governments of Portugal.Tax revenue in Portugal stood at 34.9% of GDP in 2018. 9% applicable to the taxable profit exceeding EUR 35 million. The Corporate Tax Rate in Uruguay stands at 25 percent. Tax exemption/ rebate. A tax rate of 2.5% is applicable to the taxable profit ranging between € 1,500,000 and € 7,500,000; a tax rate of 4.5% is applicable to the taxable profit ranging between € 7,500,000 and € 35,000,000; and a tax rate of 8.5% is applicable to the taxable profit exceeding € 35,000,000. Special WHT rates apply to income generated in Portugal that is attributable to non-residents without a PE in Portugal (see the Withholding taxes section for more information). Company car expenses (including depreciation, rentals, leasing, insurance, maintenance, repairs, fuel, and taxes), except fully electric cars, vehicles allocated to public transport, or vehicles that are taxed as income in kind for PIT purposes, depending on the acquisition cost and regardless of the year of acquisition: Acquisition cost lower than EUR 27,500: 10%. Hungary (9 percent), Ireland (12.5 percent), and Lithuania (15 percent) have the lowest corporate income tax rates. The regime is not applicable to the profit allocated to the foreign PE up to the amount of the losses attributable to that PE that have been taken into account by the Portuguese taxpayer when computing the respective taxable income of the previous five tax years (12 tax years in case of small and medium-sized enterprises [SMEs]). The rate will then reduce to 26% in the 2020–21 income year and 25% in the 2021–22 income year. Acquisition cost between EUR 27,500 and EUR 35,000: 27.5%. The Trading Economics Application Programming Interface (API) provides direct access to our data. Law and Practice Law and Practice. Tax incentives apply to certain types of businesses. A flat CIT rate of 21% applies on the global amount of taxable income realised by companies resident for tax purposes in mainland Portugal (also applicable to Portuguese PEs of foreign entities). A reduced tax rate of 17% applies to the first EUR 15,000 of taxable profits of small and medium-sized enterprises. Companies can enjoy the partial tax exemption and tax exemption for new start-up companies, as provided in the tables below. Many states also levy taxes on corporate income. Capital Gains Tax in Portugal in 2020. Partial tax exemption for companies (from YA 2020) The corporate tax rate (including a solidarity surcharge) stands at 15.825%. Entities that do not carry out a commercial, industrial, or agricultural activity as their main activity are subject to a 21% CIT rate on the global amount of their taxable income. This measure sets the Corporation Tax main rate at 19% for the financial year beginning 1 April 2020. November 30, 2020. Certain withholding taxes apply to income generated in Portugal that is attributable to non-residents without a permanent establishment in the country. By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement. Expat pensioners moving to Portugal will no longer be exempt of income tax. Portugal Producer Deflation Eases in January, Portugal Current Account Swings to Gap in December, Portugal Inflation Rate Confirmed at 11-Month High, Portugal Consumer Confidence at 10-Month High, Portugal Business Confidence at 6-Month Low, Portugal Industrial Output Shrinks in November, Portugal Trade Deficit Nearly Halves in October, Commodity-Linked Currencies Poised to Extend Momentum, Coffee Hits 2-1/2-Year High on Low Brazil Output, FTSE 100 Rebounds at End of Volatile Session, South African Stocks End at Near 2-Week Low. Keep up-to-date on significant tax developments around the globe with EY’s Global Tax Alert library. Last Updated January 15, 2020. The VAT of 23 percent applies to less than half of the potential tax base. Capital gains – Capital gains derived by corporations are, in principle, taxed as ordinary business profits at the prevailing corporate income tax rate (24% for income earned as from tax year 2019). Social. Representation and entertainment expenses: 10%. Visit our. Buying or selling a business? Please see www.pwc.com/structure for further details. For these large taxpayers, the standard corporate income tax rate is 31% for fiscal years starting on or after 1 January 2020, while a corporate income tax rate of 28% continues to be imposed on the first €500,000 of taxable profit (already effective for fiscal years opened on … The content is current on 1 January 2020, with exceptions noted. The standard CIT rate is 20% in the Autonomous Region of Madeira and 16.8% in the Autonomous Region of the Azores, including PEs of foreign entities registered therein. Uruguay stands at 25 percent tax treaty network following the OECD average 23.3. Of EUR 35,000 or more: 35 % the lower 27.5 % to EUR 7.5 million and to! And website support allows for a credit for foreign tax company that both: rate. Rate - including latest news, historical data table, charts and more rates certain. Exempt or liable to a lower tax rate of 7.03 % ’ s tax. 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