MARCH 2014

Portuguese Main Legislative Changes

The Portuguese admnistration effort to adapt the country’s economy to make it more competitive and flexible has been significant. Some of the changes are:

  • Decrease of the 25% corporate tax to 23% (further reduction is forseen for 2015).
  • A tax of 17% for small companies and up to the first 15.000€ turnover.
  • Creation of a special “patent box” regime with a 50% deduction from the regular tax.
  • Application of the “participation-exception” principle and hence profits coming from subsidiaries are exempted from Portuguese taxes.
  • No withholding tax to benefits paid to shareholders located in a country with DTA and information exchange clause.