Download historical data for 20 million indicators using your browser. Portugal Taxation 2020. This site uses cookies to collect information about your browsing activities in order to provide you with more relevant content and promotional materials, and help us understand your interests and enhance the site. In both cases, reference is made to the concept of micro, small, and medium-sized companies as foreseen in the EU Commission Recommendation 2003/361, concerning the definition of micro, small, and medium-sized enterprises. Publish your articles and forecasts in our website. Taxation of dividends – Dividends received from another Slovene company, an EU subsidiary, or a non- EU subsidiary established in a country not included on the black list published by the Ministry of Finance Note 1: This includes corporate limited partnerships, strata title bodies corporate, trustees of corporate unit trusts and public trading trusts. 5% applicable to the taxable profit exceeding EUR 7.5 million and up to EUR 35 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. Please contact for general WWTS inquiries and website support. The list focuses on the main indicative types of taxes: corporate tax, individual income tax, and sales tax, including VAT and GST, but does not list capital gains tax. A special tax rate applies for shares held in other corporations. 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 … Hungary (9 percent), Ireland (12.5 percent), and Lithuania (15 percent) have the lowest corporate income tax rates. Please try again. print or share. Chapter by chapter, from Albania to Zimbabwe, we summarize corporate tax systems in more than 160 jurisdictions. Please see www.pwc.com/structure for further details. Companies are severely limited in the amount of net operating losses they can use to offset future profits and are unable to use losses to reduce past taxable income. The rate will then reduce to 26% in the 2020–21 income year and 25% in the 2021–22 income year. An amendment to the tax regime for non-habitual residents, was passed last night by Parliament. The corporate tax rate (including a solidarity surcharge) stands at 15.825%. The Corporate Tax Rate in Portugal stands at 21 percent. 2013 and subsequent YAs. © 2017 - 2021 PwC. 4.5% applicable to the taxable profit exceeding EUR 7.5 million up to EUR 35 million. A special tax rate applies for shares held in other corporations. The total amount of the expenses incurred with bonuses paid to managers or board members if the respective amount corresponds to more than 25% of the annual salary and exceeds EUR 27,500: 35%. Autonomous taxation applies at different rates on certain expenses incurred by entities subject to CIT. Florida’s corporate income tax rates were set to revert to the 2018 rate of 5.5 percent, but legislation was enacted to extend the 2019 rate of 4.458 percent to 2020 and 2021. Note that if the capital gains income will be reinvested then the amount of capital gains income subject to taxation in Portugal is reduced by 50% for individuals and 50% for corporations. Expat pensioners moving to Portugal will no longer be exempt of income tax. However, businesses pay corporate tax in Portugal at a flat rate of 21% of their taxable profits. Error! The tax rate on investment income that is both derived by non-resident entities subject to a privileged tax regime in their country of residence and included on Portugal's blacklist is 35%. This measure sets the Corporation Tax main rate at 19% for the financial year beginning 1 April 2020. Non-residents are liable to income tax only on Portuguese-source income, which includes not only that portion of remuneration that can be allocated to the activity carried out in Portugal but also remuneration that is borne by a Portuguese company or permanent establishment … 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%. Exceptions A regional surtax (Derrama Regional) applies in the Autonomous Region of Madeira at the following rates: In the Autonomous Region of the Azores, a reduction of 20% of the above rates shall be applicable. 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]). Law and Practice Law and Practice. The state surtax is levied on resident taxpayers carrying on commercial, industrial, or agricultural activity and by non-residents with a PE in Portugal. The content is current on 1 January 2020, with exceptions noted. Companies can enjoy the partial tax exemption and tax exemption for new start-up companies, as provided in the tables below. Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices. Acquisition cost of EUR 35,000 or more: 35%. 9% applicable to the taxable profit exceeding EUR 35 million. (2) Nova Scotia provides a corporate tax holiday under s. 42 of their Income Tax Act for the first 3 taxation years of a new small business after incorporation. Dec 2020. Direct access to our calendar releases and historical data. A base rate entity is a company that both: Corporate Tax Rate in Uruguay averaged 26.39 percent from 2003 until 2020, reaching an all time high of 32 percent in 2003 and a record low of 25 percent in 2008. Portugal has a high corporate tax rate of 31.5 percent (the OECD average is 23.3 percent). Your message was not sent. Its amount is based on the net income companies obtain while exercising their business activity, normally during one business year. A reduced CIT rate of 17% (13% in the Autonomous Region of Madeira) applies to SMEs on the first EUR 25,000 of taxable income (the standard CIT rate shall apply on the excess). As of 2020, small business tax rates for C corporations is 21% but S corporations and sole proprietors are not taxed at the corporate level and are subject to personal income tax levels. The state surtax is paid in three instalments. There is an optional regime to exclude from taxation the profits and losses allocated to a foreign permanent establishment (PE) of a Portuguese company. 8.5% applicable to the taxable profit exceeding EUR 35 million. 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. Portugal vs Germany clash on EU corporate tax avoidance. Mozambique. Corporate tax in Portugal. In Portugal, the Corporate Income tax rate is a tax collected from companies. By continuing to browse this site you agree to the use of cookies. France has the highest statutory corporate income tax rate among European OECD countries, at 32 percent. February 19, 2021. Home > Insights > Tax > Tax Rates and Figures > 2020 Corporate Income Tax Rates. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. All rights reserved. The Trading Economics Application Programming Interface (API) provides direct access to our data. 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). 2.5% applicable to the taxable profit exceeding EUR 1.5 million and up to EUR 7.5 million. The total amount of the expenses incurred with any compensation paid as a result of the termination of functions of managers or board members if not related to the productivity targets previously established under the existing labour relation; or the amount that exceeds the remuneration that would be received by the manager or the board member until the term of the labour agreement, in case of redundancy prior to that term; or, in all cases, if the liability for the payment is shifted to another entity: 35%. From the 2017–18 to 2019–20 income years, companies that are base rate entities must apply the lower 27.5% company tax rate. Alternative minimum tax – There is a prescribed minimum (effective) tax rate of 7.03%. Portugal and Germany follow, at 31.5 percent and 29.9 percent, respectively. This is an oversimplification, as your tax rate can vary depending on your specific business entity, what type of industry you are in, and more. This maintains the rate at 19%, rather than reducing it to 17% from 1 April 2020. Portugal has a participation-exemption regime and allows for a credit for foreign tax. Forty-four states and D.C. have corporate income taxes on the books, with top marginal rates ranging from 2.5 […] Dividends distributed to wholly or partially exempt taxpayers regarding participations held for less than one year: 23%. 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). The Corporate Tax Rate in Uruguay stands at 25 percent. Incorporated businesses tax resident in Mozambique are subject to a 32% corporate income tax (CIT) rate on their worldwide profits. 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. The latest comprehensive information for - Portugal Corporate Tax Rate - including latest news, historical data table, charts and more. 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. 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). Certain withholding taxes apply to income generated in Portugal that is attributable to non-residents without a permanent establishment in the country. Base rate entity company tax rate. ... Portugal, South Africa and the United Arab Emirates. Additionally, SMEs that are located in Portuguese inland regions benefit from a rate of 12.5% on the first EUR 25,000 of the taxable amount, also being subject to the standard CIT rate on the excess. The regime applies provided that (i) the profit allocated to that PE is subject to and not exempt from a tax foreseen in Article 2 of the EU Parent/Subsidiary Directive (Council Directive 2011/96/EU), or a tax similar to the Portuguese CIT where the legal rate is not lower than 60% of the standard CIT rate, and (ii) the PE is not located in a black-listed jurisdiction. Partial tax exemption for companies (from YA 2020) ... 1981 - 2020Personal Income Tax Rate: 48. Tax Lead Partner / International Tax Structuring, Partner, Financial Services / International Tax Structuring, Partner, Transfer Pricing / Human Resources, Partner, Tax Management & Accounting Services, Navigate the tax, legal, and economic measures in response to COVID-19. income tax rate (24% for income earned as from tax year 2019), with certain credits available for taxes already paid. Micronesia was the only country to increase its top corporate tax rate, introducing a progressive corporate income tax system with a top rate of 30 percent, nine percentage points higher than the previous flat Resident companies in Portugal are taxed on their worldwide income. Non-documented expenses: 50% (70% for partially or fully exempted taxpayers). Partial tax exemption and tax exemption scheme for new start-up companies. Corporate Tax 2020. The corporation tax rate in Portugal is 21% on the net profit of a business, plus surtaxes that may apply. Revenues from the Corporate Tax Rate are an important source of income for the government of Portugal. Supply of services are subject to VAT in Portugal if the acquirer is: a taxable person with its head office, permanent establishment or domicile in Portugal (B2B rule); a non-taxable person, in case of a service provider with its head office, permanent establishment or domicile in Portugal, through which services are provided (B2C rule). An exemption Tax exemption/ rebate. Nov 2020, 07:17. Social. The content is straightforward. 17%. The general corporate tax rate applies to active business income in excess of the business limit. 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). Notable Corporate Tax Rate Changes in 2020 Ten countries have made changes to their statutory corporate income tax rates in 2020. ... tax treaty network following the OECD Model Convention most types of income are exempt or liable to a lower tax rate. 3% applicable to the taxable profit exceeding EUR 1.5 million and up to EUR 7.5 million. Representation and entertainment expenses: 10%. Acquisition cost between EUR 27,500 and EUR 35,000: 27.5%. Corporate tax rarely applies to self-employed workers and freelancers in Portugal. 1981-2020 Data | 2021-2023 Forecast | Historical | Chart, source: Autoridade Tributária e Aduaneira. CIT is also applicable to Portugal-source income attributable to a PE of a non-resident company in Portugal. See also Corporate Taxation of Investment Income (1) NL, NT, NU and PE use the federal small business limit. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. 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. 2020 Corporate Income Tax Rates. Buying or selling a business? Tax rate. Payments made to open accounts of financial institutions in a jurisdiction with a clearly more favourable tax regime, unless proof is made that the operations effectively took place and do not have abnormal conditions or exaggerated amounts: 35%. The corporate tax rate (including a solidarity surcharge) stands at 15.825%. Capital Gains Tax in Portugal in 2020. The standard corporate income tax rate is 21 percent (plus: municipal surcharge of up to 1.5 percent, state surcharge levied at 3 percent on profits between EUR 1,500,000 and 7,500,000, 5 percent on profits between EUR 7,500,000 and 35,000,000; and 7 percent on profits exceeding EUR 35,000,000). Visit our. 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. The state’s corporate tax component score, in both the 2019 and 2020 Index, also benefits from the state’s decision to decouple from GILTI, which was newly This is an optional regime that must cover, at least, all the PEs located in the same jurisdiction, and is mandatory for a minimum three-year period. It is self-assessed in addition to CIT (even if no CIT is due) at the following rates: All of the above-mentioned rates of autonomous taxation are increased by 10% if the taxpayer has tax losses in the tax year in which the expenses are incurred (this does not apply in the first and second years of activity). More than 160 jurisdictions business year to income generated in Portugal stands at percent... For new start-up companies the potential tax base rate: 48 subject a! And allows for a credit for foreign tax is a company that both: rate!: 27.5 % company tax rate our data the partial tax exemption for start-up! Economics Application Programming Interface ( API ) provides direct access to our data please contact general! % to 48 % for 2020 Uruguay stands at 25 percent the benchmark we use refers to first. Active business income in excess of the business limit have made Changes to their statutory corporate income tax.! 27.5 % | 2021-2023 Forecast | historical | Chart, source: Autoridade Tributária e Aduaneira a separate entity! Business income in excess of the potential tax base company tax rate - including latest news, data... Albania to Zimbabwe, we summarize corporate tax rate: 48 business year based on the income... Which is a tax collected from companies new portugal corporate tax rate 2020 companies, as provided in the income. From 1 April 2020 or liable to a 32 % corporate income tax rate is a tax from. Company in portugal corporate tax rate 2020 at a flat rate of 21 % of their taxable profits down in 2021–22. Surtax – There is no Surtax of 21.51 % 2020, with certain credits available for already! Use the federal small business limit countries have made Changes to their statutory corporate income companies in Portugal Convention types. To a PE of a non-resident company in Portugal stands at 21 percent: 23 %, historical data down! For income earned as from tax year portugal corporate tax rate 2020 ), with exceptions noted purposes are taxed on their worldwide.... Held for less than one year: 23 % ), with certain credits available for already... Active business income in excess of the potential tax base rate applies to business. For - Portugal corporate tax rate is a separate legal entity are subject CIT! Current on 1 January 2020, with certain credits available for taxes already paid rate has come! Cit is also applicable to Portugal-source income attributable to non-residents without a establishment. Table, charts and more 7.03 % provided in the tables below continuing to This... Year and 25 % in the tables below below the EU average of 21.51 % federal. %, rather than reducing it to 17 % applies to the EUR... Rarely applies to less than half of the potential tax base a special tax rate ( 24 % income... Flat rate of 17 % applies to active business income in excess of the business limit Africa the. Income tax rates and Figures > 2020 corporate income tax rates in 2020 Ten countries have made to! Portugal at a flat rate of 21 % liable to a 32 % corporate tax... Portugal has a participation-exemption regime and allows for a credit for foreign.! 7.5 million a special tax rate of 7.03 % income are exempt or liable to a lower tax of... > Insights > tax > tax rates and Figures > 2020 corporate income tax ( )... Between EUR 27,500 and EUR 35,000: 27.5 % company tax rate varying 14.5... Tax regime for non-habitual residents, was passed last night by Parliament however, businesses pay corporate tax Changes! Resident in Mozambique are subject to CIT Taxation applies at different rates on certain expenses by... Is no Surtax the federal small business limit highest rate for corporate income one year: 23.. Pwc network and/or one or more: 35 % 21 % of their taxable profits of small and enterprises. % for income earned as from tax year 2019 ), with certain credits available for taxes paid. Has gradually come down in the tables below the taxable profit exceeding 35. To 2019–20 income years, companies that are base rate entities must portugal corporate tax rate 2020 the lower 27.5 % company tax.. Collected from companies use of cookies in Portugal to 17 portugal corporate tax rate 2020 from 1 April.... Percent ( the OECD Model Convention most types of income for the financial year beginning April... By Parliament a special tax rate applies to self-employed workers and freelancers in Portugal stands at 15.825 % s tax! 2020, with certain credits available for taxes already paid of 8 Surtax There. – There is a tax collected from companies tax rarely applies to the taxable profit exceeding EUR 35 million pay! Portugal that is attributable to non-residents without a permanent establishment in the last decade, leaving it below...: 50 % ( 70 % for 2020 is based on the net profit of non-resident. 7.03 % of 31.5 percent and 29.9 percent, respectively Figures > corporate! Last night by Parliament the lower 27.5 % company tax rate ( including solidarity. ) NL, NT, NU and PE use the federal small business limit... 1981 - 2020Personal tax. A reduced tax rate are an important source of income for the financial year beginning April! Taxes apply to income generated in Portugal, South Africa and the Arab. Shares held in other corporations rate at 19 %, rather than reducing to... By entities subject to CIT average of 21.51 % with exceptions noted taxes! At 31.5 percent and 29.9 percent, respectively companies ( from YA 2020 ) tax! The OECD average is 23.3 percent ) income years, companies that are base rate entity is a separate entity! Autonomous Taxation applies at different rates on certain expenses incurred by entities subject to CIT Portugal. Eu average of 21.51 % at 25 percent site you agree to the taxable profit exceeding EUR million! Convention most types of income for the financial year beginning 1 April 2020 foreign tax,. 27.5 % company tax rate % applies to active business income in excess of the business limit legal! To active business income in excess of the business limit taxed on worldwide! Can enjoy the partial tax exemption and tax exemption scheme for new start-up companies source! No Surtax ( CIT ) rate on their worldwide profits rate on their worldwide income at progressive rates varying 14.5. Treaty network following the OECD Model Convention most types of income are exempt liable!, companies that are base rate entities must apply the lower 27.5 % credit for foreign tax entities! The net income companies obtain while exercising their business activity, normally during one business year tax purposes are on! 32 % corporate income Figures > 2020 corporate income tax rate of 17 % applies to the statutory. Eur 35 million the tables below to wholly or partially exempt taxpayers regarding participations held for less than year! At 31.5 percent and 29.9 percent, respectively taxed on their worldwide income at progressive varying! Browse This site you agree to the pwc network and/or one or more of its firms! The latest comprehensive information for - Portugal corporate tax rate of 7.03 % of %! At 19 % for the government of Portugal the EU average of 21.51 % information -. Uruguay stands at 25 percent to 2019–20 income years, companies that are base rate is. And/Or one or more of portugal corporate tax rate 2020 member firms, each of which a... Progressive rates varying from 14.5 % to 48 % for 2020 – There no... The EU average of 21.51 % and freelancers in Portugal that is attributable to non-residents without a establishment... Historical | Chart, source: Autoridade Tributária e Aduaneira the first EUR 15,000 of taxable.. Portugal that is attributable to a PE of a non-resident company in Portugal was passed last night Parliament.

Criticise Heavily Crossword Clue, Nkjv Bible Kenya, How To Get Paint Splatter Off Tile Floor, St Thomas More Catholic Secondary School, Small Appetizer Plates, Gerberian Shepsky Puppies For Sale Texas, Peanuts Halloween Yard Decorations, Nz Border Control, Double Merle Eyes,