This Wednesday, the Council of Ministers approved a law that establishes a minimum 15% corporate tax (IRC) on the profits of multinational companies operating in Portugal.
The government has approved a new law that will require large multinational companies to pay a minimum 15% tax on their profits in Portugal. The decision was made this Wednesday by the Council of Ministers, following a public consultation. This measure aims to ensure greater “social fairness” and results from the transposition of a European directive.
The new rule will apply to companies with an annual turnover of more than 750 million euros and will force large corporations to pay taxes that they were previously not paying in Portugal.
Additionally, the government plans to gradually reduce the corporate tax rate (IRC) for all companies by 2027. The current rate of 21% will be reduced to 15%, with a two-percentage-point cut per year. For small and medium-sized enterprises (SMEs), the reduction will be even greater on the initial portion of taxable profits.
Tax Department
Sofia Quental | Inês Grácio | Catarina Amaral
