portugal corporate tax rate 2020

France has the highest statutory corporate income tax rate among European OECD countries, at 32 percent. The Trading Economics Application Programming Interface (API) provides direct access to our data. Representation and entertainment expenses: 10%. The VAT of 23 percent applies to less than half of the potential tax base. The rate has gradually come down in the last decade, leaving it slightly below the EU average of 21.51%. This measure sets the Corporation Tax main rate at 19% for the financial year beginning 1 April 2020. Law and Practice Law and Practice. The corporate tax rate (including a solidarity surcharge) stands at 15.825%. Company car expenses (including depreciation, rentals, leasing, insurance, maintenance, repairs, fuel, and taxes), except fully electric cars, vehicles allocated to public transport, or vehicles that are taxed as income in kind for PIT purposes, depending on the acquisition cost and regardless of the year of acquisition: Acquisition cost lower than EUR 27,500: 10%. Click the image to download. The standard CIT rate is 20% in the Autonomous Region of Madeira and 16.8% in the Autonomous Region of the Azores, including PEs of foreign entities registered therein. An amendment to the tax regime for non-habitual residents, was passed last night by Parliament. Many states also levy taxes on corporate income. For these large taxpayers, the standard corporate income tax rate is 31% for fiscal years starting on or after 1 January 2020, while a corporate income tax rate of 28% continues to be imposed on the first €500,000 of taxable profit (already effective for fiscal years opened on … income tax rate (24% for income earned as from tax year 2019), with certain credits available for taxes already paid. Non-documented expenses: 50% (70% for partially or fully exempted taxpayers). In both cases, reference is made to the concept of micro, small, and medium-sized companies as foreseen in the EU Commission Recommendation 2003/361, concerning the definition of micro, small, and medium-sized enterprises. The regime applies provided that (i) the profit allocated to that PE is subject to and not exempt from a tax foreseen in Article 2 of the EU Parent/Subsidiary Directive (Council Directive 2011/96/EU), or a tax similar to the Portuguese CIT where the legal rate is not lower than 60% of the standard CIT rate, and (ii) the PE is not located in a black-listed jurisdiction. Corporate Tax Rate in Uruguay averaged 26.39 percent from 2003 until 2020, reaching an all time high of 32 percent in 2003 and a record low of 25 percent in 2008. From the 2017–18 to 2019–20 income years, companies that are base rate entities must apply the lower 27.5% company tax rate. A special tax rate applies for shares held in other corporations. Tax incentives apply to certain types of businesses. 8th to 6th on the corporate tax component, where the lower rate complements an already competitive overall tax structure, and from 38th to 36th on the individual income tax component. Certain withholding taxes apply to income generated in Portugal that is attributable to non-residents without a permanent establishment in the country. Supply of services are subject to VAT in Portugal if the acquirer is: a taxable person with its head office, permanent establishment or domicile in Portugal (B2B rule); a non-taxable person, in case of a service provider with its head office, permanent establishment or domicile in Portugal, through which services are provided (B2C rule). The list focuses on the main indicative types of taxes: corporate tax, individual income tax, and sales tax, including VAT and GST, but does not list capital gains tax. Corporate tax rarely applies to self-employed workers and freelancers in Portugal. Keep up-to-date on significant tax developments around the globe with EY’s Global Tax Alert library. The content is straightforward. The Corporate Tax Rate in Uruguay stands at 25 percent. Buying or selling a business? The standard CIT rate is 20% in the Autonomous Region of Madeira and 16.8% in the Autonomous Region of the Azores, including PEs of foreign entities registered therein. The most important revenue sources include the income tax, social security contributions, corporate tax and the value added tax, which are all applied at the national level. Please try again. The general corporate tax rate applies to active business income in excess of the business limit. A base rate entity is a company that both: Publish your articles and forecasts in our website. 2.5% applicable to the taxable profit exceeding EUR 1.5 million and up to EUR 7.5 million. Autonomous taxation applies at different rates on certain expenses incurred by entities subject to CIT. All rights reserved. This site uses cookies to collect information about your browsing activities in order to provide you with more relevant content and promotional materials, and help us understand your interests and enhance the site. Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices. Exceptions Entities that do not carry out a commercial, industrial, or agricultural activity as their main activity are subject to a 21% CIT rate on the global amount of their taxable income. 2013 and subsequent YAs. Portugal has a participation-exemption regime and allows for a credit for foreign tax. Capital Gains Tax in Portugal in 2020. Florida’s corporate income tax rates were set to revert to the 2018 rate of 5.5 percent, but legislation was enacted to extend the 2019 rate of 4.458 percent to 2020 and 2021. Your message was not sent. Error! Portugal Taxation 2020. print or share. Dec 2020. Taxes in Portugal are levied by both the national and regional governments of Portugal.Tax revenue in Portugal stood at 34.9% of GDP in 2018. CIT is also applicable to Portugal-source income attributable to a PE of a non-resident company in Portugal. Note that if the capital gains income will be reinvested then the amount of capital gains income subject to taxation in Portugal is reduced by 50% for individuals and 50% for corporations. 9% applicable to the taxable profit exceeding EUR 35 million. The corporate tax rate (including a solidarity surcharge) stands at 15.825%. Please see www.pwc.com/structure for further details. The state surtax is paid in three instalments. Micronesia was the only country to increase its top corporate tax rate, introducing a progressive corporate income tax system with a top rate of 30 percent, nine percentage points higher than the previous flat Companies can enjoy the partial tax exemption and tax exemption for new start-up companies, as provided in the tables below. The tax rate on investment income that is both derived by non-resident entities subject to a privileged tax regime in their country of residence and included on Portugal's blacklist is 35%. Slovenia Highlights 2020 Page 2 of 8 Surtax – There is no surtax. A reduced CIT rate of 17% (13% in the Autonomous Region of Madeira) applies to SMEs on the first EUR 25,000 of taxable income (the standard CIT rate shall apply on the excess). ... tax treaty network following the OECD Model Convention most types of income are exempt or liable to a lower tax rate. Hungary (9 percent), Ireland (12.5 percent), and Lithuania (15 percent) have the lowest corporate income tax rates. 8.5% applicable to the taxable profit exceeding EUR 35 million. 17%. Nov 2020, 07:17. Tax Lead Partner / International Tax Structuring, Partner, Financial Services / International Tax Structuring, Partner, Transfer Pricing / Human Resources, Partner, Tax Management & Accounting Services, Navigate the tax, legal, and economic measures in response to COVID-19. Portugal and Germany follow, at 31.5 percent and 29.9 percent, respectively. See also Corporate Taxation of Investment Income (1) NL, NT, NU and PE use the federal small business limit. Tax Policy – Combined State and Federal Corporate Income Tax Rates in 2020 Corporations in the United States pay federal corporate income taxes levied at a 21 percent rate. Dividends distributed to wholly or partially exempt taxpayers regarding participations held for less than one year: 23%. The state surtax is levied on resident taxpayers carrying on commercial, industrial, or agricultural activity and by non-residents with a PE in Portugal. 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