The Portuguese government is set to approve a new extraordinary supplement for pensions and a progressive reduction in the Corporate Income Tax (IRC), marking a significant shift in fiscal policy. The measures, announced by Prime Minister Luís Montenegro during the State of the Nation debate, aim to support retirees and stimulate business investment.
Pension Supplement Details
- 200 euros for pensions up to 522.50 euros
- 150 euros for pensions between 522.50 euros and 1,045 euros
- 100 euros for pensions ranging from 1,045 to 1,567.50 euros
The supplement, to be paid in September, is seen as a gesture of justice towards retirees, though critics argue it should be a structural increase rather than a one-time payment.
IRC Reduction Plan
- 19% in 2025
- 18% in 2026
- 17% in 2028
For SMEs, the IRC will drop to 15% on the first 50,000 euros of profit by 2026. The Prime Minister expressed confidence that this cut would not lead to a loss in tax revenue, citing a similar experience in 2014 that resulted in increased revenue.
Business Community Reaction
The President of the Portuguese Business Confederation (CIP) welcomed the IRC reduction but deemed it "too late", advocating for immediate implementation. Meanwhile, the APRe! association praised the pension supplement but emphasized the need for permanent increases rather than pre-election gestures.
Telejornal | 17 de julho de 2025
The Parliament had already approved a reduction of the IRC from 21% to 20% in the 2024 State Budget. The Prime Minister defended the new cuts as essential for attracting investment and enhancing business competitiveness.
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