portugal corporate tax rate 2020

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. The Corporate Tax Rate in Uruguay stands at 25 percent. However, businesses pay corporate tax in Portugal at a flat rate of 21% of their taxable profits. Click the image to download. 4.5% applicable to the taxable profit exceeding EUR 7.5 million up to EUR 35 million. Many states also levy taxes on corporate income. According to the revised law, expat pensioners will now have to pay a flat rate of 10 percent on their foreign income in Portugal. Slovenia Highlights 2020 Page 2 of 8 Surtax – There is no surtax. Portugal Producer Deflation Eases in January, Portugal Current Account Swings to Gap in December, Portugal Inflation Rate Confirmed at 11-Month High, Portugal Consumer Confidence at 10-Month High, Portugal Business Confidence at 6-Month Low, Portugal Industrial Output Shrinks in November, Portugal Trade Deficit Nearly Halves in October, Commodity-Linked Currencies Poised to Extend Momentum, Coffee Hits 2-1/2-Year High on Low Brazil Output, FTSE 100 Rebounds at End of Volatile Session, South African Stocks End at Near 2-Week Low. Keep up-to-date on significant tax developments around the globe with EY’s Global Tax Alert library. By continuing to browse this site you agree to the use of cookies. An amendment to the tax regime for non-habitual residents, was passed last night by Parliament. 3% applicable to the taxable profit exceeding EUR 1.5 million and up to EUR 7.5 million. 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 … The rate will then reduce to 26% in the 2020–21 income year and 25% in the 2021–22 income year. Corporate Tax 2020. The corporate tax rate (including a solidarity surcharge) stands at 15.825%. The content is current on 1 January 2020, with exceptions noted. 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. 2.5% applicable to the taxable profit exceeding EUR 1.5 million and up to EUR 7.5 million. Certain withholding taxes apply to income generated in Portugal that is attributable to non-residents without a permanent establishment in the country. Dividends distributed to wholly or partially exempt taxpayers regarding participations held for less than one year: 23%. A base rate entity is a company that both: All rights reserved. Payments made to open accounts of financial institutions in a jurisdiction with a clearly more favourable tax regime, unless proof is made that the operations effectively took place and do not have abnormal conditions or exaggerated amounts: 35%. A reduced tax rate of 17% applies to the first EUR 15,000 of taxable profits of small and medium-sized enterprises. The general corporate tax rate applies to active business income in excess of the business limit. Tax exemption/ rebate. Portugal vs Germany clash on EU corporate tax avoidance. Non-residents are liable to income tax only on Portuguese-source income, which includes not only that portion of remuneration that can be allocated to the activity carried out in Portugal but also remuneration that is borne by a Portuguese company or permanent establishment … Corporate tax rarely applies to self-employed workers and freelancers in Portugal. 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). Exceptions PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Home > Insights > Tax > Tax Rates and Figures > 2020 Corporate Income Tax Rates. Its amount is based on the net income companies obtain while exercising their business activity, normally during one business year. © 2017 - 2021 PwC. Special WHT rates apply to income generated in Portugal that is attributable to non-residents without a PE in Portugal (see the Withholding taxes section for more information). A flat CIT rate of 21% applies on the global amount of taxable income realised by companies resident for tax purposes in mainland Portugal (also applicable to Portuguese PEs of foreign entities). Last Updated January 15, 2020. Portugal Taxation 2020. It is self-assessed in addition to CIT (even if no CIT is due) at the following rates: All of the above-mentioned rates of autonomous taxation are increased by 10% if the taxpayer has tax losses in the tax year in which the expenses are incurred (this does not apply in the first and second years of activity). Portugal has a high corporate tax rate of 31.5 percent (the OECD average is 23.3 percent). As of 2020, small business tax rates for C corporations is 21% but S corporations and sole proprietors are not taxed at the corporate level and are subject to personal income tax levels. Resident companies in Portugal are taxed on their worldwide income. 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. Social. 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. This is an optional regime that must cover, at least, all the PEs located in the same jurisdiction, and is mandatory for a minimum three-year period. ... Portugal, South Africa and the United Arab Emirates. Base rate entity company tax rate. Incorporated businesses tax resident in Mozambique are subject to a 32% corporate income tax (CIT) rate on their worldwide profits. Portugal and Germany follow, at 31.5 percent and 29.9 percent, respectively. This page provides - Uruguay Corporate Tax Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Capital Gains Tax in Portugal in 2020. Please try again. The Corporate Tax Rate in Portugal stands at 21 percent. CIT is also applicable to Portugal-source income attributable to a PE of a non-resident company in Portugal. This maintains the rate at 19%, rather than reducing it to 17% from 1 April 2020. By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement. Alternative minimum tax – There is a prescribed minimum (effective) tax rate of 7.03%. 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