The corporation tax rate is 21%, plus a municipal surtax of between 0% and 1.5%, and a State surtax of 3% on taxable profits exceeding €1.5 million, 5% on taxable profits exceeding €7.5 million and 9% on taxable profits exceeding € 35 million. Table II.4. Companies will be granted a 20% Corporate Income Tax Rebate capped at $10,000. The standard rate of corporate income tax is 25%. Companies will be granted a 50% Corporate Income Tax Rebate capped at $25,000. Tax incentives apply to certain types of businesses Published: 10/12/2020 The goal is to bring into the formal economy the many unregistered and untaxed purchases. Countries with similar tax brackets include Austria with a maximum tax bracket of 50.00% , Belgium with a maximum tax bracket of 50.00% and United Kingdom with a maximum tax bracket of 50.00% . Portugal has a participation-exemption regime and allows for a credit for foreign tax. Tax revenue in Portugal stood at 34.9% of GDP in 2018. Employee social security contribution rates. 2013 and subsequent YAs. Liberal, technical and assimilated professions: Biologists and specialists in life sciences; Consultancy and computer programming and activities related to information technology and computer science; Management and operation of computer equipment; Information service activities; Data processing, hosting and related activities; Web portals; and Other information service activities; Scientific research and development activities; Research and development on natural sciences and engineering; Research and development in biotechnology; Investors, directors and managers of companies promoting productive investment, provided that they are assigned to eligible projects and have concession contracts for tax benefits under the Investment Tax Code, approved by Decree-Law 249/2009 of 23 September; Senior managers of companies. Since 2018, small and medium-sized businesses are subject to a reduced rate of 20 percent on the first €100,000 (US $118,000) in taxable profits.   The Tax Policy Center looked into the matter in 2018 and found that U.S. taxes represent about 24.3% of the country’s gross domestic product (GDP). The rate has gradually come down in the last decade, leaving it slightly below the EU average of 21.51%. Portugal and Germany follow, at 31.5 percent and 29.9 percent, respectively. Last year’s new 25% corporation tax on property owned by non-resident companies still applies. Table III.1. Municipal surtax (“derrama municipal”) up to 1.5% levied on taxable profits (depending on the municipality of the activities) [11][12][13][14], Companies incorporated and headquartered in Madeira can apply for an International Business Centre (MIBC) license and, granted that they comply with substance requirements, benefit from a corporate tax rate of 5% on the taxable profit derived from economic activities engaged with non-resident entities or entities duly licensed within the MIBC. [5], A person, regardless of their nationality, may apply for registration as a non-habitual resident if the following conditions are fulfilled:[4][5][6], Under Ministerial Order issued by the Ministry of Finance, the follow jobs are subject to flat personal income tax of 20%:[6][9][10], The corporate tax rate applicable to companies in Portugal may vary, depending on which part of the Portuguese territory said companies are incorporated and domiciled. List of Countries by Corporate Tax Rate - provides a table with the latest tax rate figures for several countries including … Details of Tax Revenue - Portugal. On average, European OECD countries currently levy a corporate income tax rate of 21.9 percent. For nonresident corporations, the general corporation rates in the table apply to business income attributable to a permanent establishment in Canada. A rate of tax of 10% on foreign pension applying to new NHRs with no minimum tax; NHRs acquiring the status before the law comes into force would fall under the existing rules. The tax rate on every bracket is the statutory tax rate. Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 14.5% to 48% for 2020. Tax exemption/ rebate. it is exempt or not subject to tax on income similar to Portuguese corporate income tax; the tax rate applicable is less than 60% of the tax rate that would be applicable if the entity was resident in Portugal. Prior to tax reforms in 2017, it was as high as 35%. YA 2017. There are several tax incentives to investment available to Portuguese businesses and they may be used to bring the corporation tax liability to a more favourable effective rate. Corporate Tax Rates 2020. Portugal has double tax treaties with both the United States and Canada, meaning any taxes you do end up paying in Portugal can in certain circumstances be used to offset tax obligations in one’s home country. Comparative information on a range of tax rates and statistics in the OECD member countries, and corporate tax statistics and effective tax rates for inclusive framework countries, covering personal income tax rates and social security contributions applying to labour income; corporate tax rates and statistics, effective tax rates; tax rates on consumption; and environmental taxes. This means UK expats already benefiting from the status will keep in full their current benefits until the end of the 10-year period; Tax Residence and Liability to Income Tax Portugal, Corporate Tax Rates in Continental Portugal, Corporation Tax Payment and Payments on Account, Social security contributions are payable by the employer on employees' salaries and directors' fees, as described elsewhere in the. Partial tax exemption and tax … KPMG’s corporate tax table provides a view of corporate tax rates around the world. Corporate Tax Rates and Tax Rates for Individuals for 2020 in the Cantons Zug, Lucerne, Zurich, and Schwyz In Switzerland, taxes are levied at federal, cantonal and municipal level. [22], Benefits available to former and first time tax residents, Voluntary Social Security Insurance Scheme, European Union Common Consolidated Corporate Tax Base, Institute on Taxation and Economic Policy, Madeira's International Shipping Registry, "Carga fiscal foi revista em baixa, mas 2018 continua a ser recorde", http://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/portugal/index_en.htm, "IRS - Regime Fiscal para o Residente Não Habitual", "Non-Habitual Resident (NHR) Regime - MCS", "Código Do Imposto Sobre O Rendimento Das Pessoas Singulares", "Incorporate a Company in Portugal - MCS", "Conheça as taxas de IRC que se aplicam aos rendimentos empresariais", "Madeira International Business Center - MCS", https://en.wikipedia.org/w/index.php?title=Taxation_in_Portugal&oldid=1007473105, Articles with unsourced statements from July 2019, Creative Commons Attribution-ShareAlike License, High-Added Value Job performed in Portugal, Pension income obtained by non habitual residents abroad, which is, for the same portion which was considered taxable, not considered tax deductible in Portugal, is taxed at a, Self employment, obtained through high added value activities of a scientific, artistic or technical nature (see below), or from intellectual or industrial property, as well as, from providing information regarding an experiment carried out in the commercial, industrial or scientific areas, Resident entities and permanent establishments of non-resident entities, Resident entities characterized as a small or medium enterprises, on the first € 25 000 of taxable profit, Members Statutory Governing Bodies who exercise managing functions, Worker suspended (by agreement) for pre-retirement purposes, Workers who are 65 years old and have been working for 40 years, Workers of Private Social Security Institutions, Domestic Workers without unemployment coverage, Domestic Workers with unemployment coverage, Deficient Workers with a working capacity below 80%, Religious Workers (with protection in sickness, parenthood, professional related diseases, invalidity, old age and death), Religious Workers (with protection in invalidity, and death), Teachers hired until 31 December 2005 not covered by Civil Servants Pension Fund, Teachers hired until 31 December 2005 working for private schools, Foreign Teachers hired until 31 December 2005 who opted not to enroll with Civil Servants Pension Fund, Teachers hired until 31 December 2005 working for public schools, Non-specialized works of the Autonomous Region of Azores in the sectors of agriculture, forestry or cattle farming, Worker suspended (by agreement) for pre-retirement purposes with more than 37 years of contributions, Worker suspended (by agreement) for pre-retirement purposes with less than 37 years of contributions, Specialized farmers of the Autonomous Region of Madeira, Non-specialized farmers of the Autonomous Region of Madeira, Banking workers formally covered by the Family Allowance Fund of the Baking Workers from profit entities, Banking workers formally covered by the Family Allowance Fund of the Baking Workers from non-profit entities, Beneficiaries of the Social Security Special Fund for the Workers of the Whool Industry, Beneficiaries of the Special Fund for Insurance Brokers. 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