In a bold move to stimulate the economy, the Portuguese government has announced a reduction in the Corporate Income Tax (IRC) rate to 17%, with Small and Medium-sized Enterprises (SMEs) potentially benefiting from a rate as low as 15%, contingent on their profit margins. This initiative is part of the XXV Constitutional Government Program, unveiled last Saturday, aiming to foster a highly competitive institutional framework and enhance international connectivity to attract both domestic and foreign investment.
Key Highlights:
- Economic Growth: Portugal's GDP grew by 2.7% in late 2024, surpassing the EU average of 0.8%.
- Strategic Focus: The government's strategy emphasizes creating a conducive environment for business expansion and investment.
- SME Support: Lower tax rates for SMEs are designed to alleviate financial pressures and encourage growth.
This tax reform underscores the government's commitment to economic resilience and competitive business practices, positioning Portugal as an attractive destination for investors.
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