An amendment to the tax regime for non-habitual residents, was passed last night by Parliament. This page provides - Uruguay Corporate Tax Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Non-documented expenses: 50% (70% for partially or fully exempted taxpayers). The VAT of 23 percent applies to less than half of the potential tax base. Visit our. A regional surtax (Derrama Regional) applies in the Autonomous Region of Madeira at the following rates: In the Autonomous Region of the Azores, a reduction of 20% of the above rates shall be applicable. Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 14.5% to 48% for 2020. Acquisition cost of EUR 35,000 or more: 35%. By continuing to browse this site you agree to the use of cookies. ... tax treaty network following the OECD Model Convention most types of income are exempt or liable to a lower tax rate. The corporation tax rate in Portugal is 21% on the net profit of a business, plus surtaxes that may apply. 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 corporate tax rate (including a solidarity surcharge) stands at 15.825%. The rate will then reduce to 26% in the 2020–21 income year and 25% in the 2021–22 income year. Certain withholding taxes apply to income generated in Portugal that is attributable to non-residents without a permanent establishment in the country. 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. An exemption Corporate tax in Portugal. Portugal vs Germany clash on EU corporate tax avoidance. Download historical data for 20 million indicators using your browser. 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. Please see www.pwc.com/structure for further details. 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 state’s corporate tax component score, in both the 2019 and 2020 Index, also benefits from the state’s decision to decouple from GILTI, which was newly 2020 Corporate Income Tax Rates. Exceptions Click the image to download. The regime is not applicable to the profit allocated to the foreign PE up to the amount of the losses attributable to that PE that have been taken into account by the Portuguese taxpayer when computing the respective taxable income of the previous five tax years (12 tax years in case of small and medium-sized enterprises [SMEs]). Error! Corporate tax rarely applies to self-employed workers and freelancers in Portugal. Acquisition cost between EUR 27,500 and EUR 35,000: 27.5%. Keep up-to-date on significant tax developments around the globe with EY’s Global Tax Alert library. Revenues from the Corporate Tax Rate are an important source of income for the government of Portugal. Capital gains – Capital gains derived by corporations are, in principle, taxed as ordinary business profits at the prevailing corporate income tax rate (24% for income earned as from tax year 2019). © 2017 - 2021 PwC. 5% applicable to the taxable profit exceeding EUR 7.5 million and up to EUR 35 million. 3% applicable to the taxable profit exceeding EUR 1.5 million and up to EUR 7.5 million. 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. 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 general corporate tax rate applies to active business income in excess of the business limit. Many states also levy taxes on corporate income. Buying or selling a business? Hungary (9 percent), Ireland (12.5 percent), and Lithuania (15 percent) have the lowest corporate income tax rates. This measure sets the Corporation Tax main rate at 19% for the financial year beginning 1 April 2020. Slovenia Highlights 2020 Page 2 of 8 Surtax – There is no surtax. Taxation of dividends – Dividends received from another Slovene company, an EU subsidiary, or a non- EU subsidiary established in a country not included on the black list published by the Ministry of Finance Last Updated January 15, 2020. Mozambique. CIT is also applicable to Portugal-source income attributable to a PE of a non-resident company in Portugal. 2013 and subsequent YAs. Social. A special tax rate applies for shares held in other corporations. 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). A comparison of tax rates by countries is difficult and somewhat subjective, as tax laws in most countries are extremely complex and the tax burden falls differently on different groups in each country and sub-national unit. Incorporated businesses tax resident in Mozambique are subject to a 32% corporate income tax (CIT) rate on their worldwide profits. There is an optional regime to exclude from taxation the profits and losses allocated to a foreign permanent establishment (PE) of a Portuguese company. 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. The total amount of the expenses incurred with bonuses paid to managers or board members if the respective amount corresponds to more than 25% of the annual salary and exceeds EUR 27,500: 35%. (2) Nova Scotia provides a corporate tax holiday under s. 42 of their Income Tax Act for the first 3 taxation years of a new small business after incorporation. The general corporate income tax rate is 21%. Corporate Tax 2020. The Corporate Tax Rate in Portugal stands at 21 percent. 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). The content is current on 1 January 2020, with exceptions noted. Companies can enjoy the partial tax exemption and tax exemption for new start-up companies, as provided in the tables below. The Trading Economics Application Programming Interface (API) provides direct access to our data. The benchmark we use refers to the highest rate for Corporate Income. Law and Practice Law and Practice. Additionally, SMEs that are located in Portuguese inland regions benefit from a rate of 12.5% on the first EUR 25,000 of the taxable amount, also being subject to the standard CIT rate on the excess. Please try again. 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. 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%. The state surtax is levied on resident taxpayers carrying on commercial, industrial, or agricultural activity and by non-residents with a PE in Portugal. Portugal Taxation 2020. income tax rate (24% for income earned as from tax year 2019), with certain credits available for taxes already paid. 9% applicable to the taxable profit exceeding EUR 35 million. Direct access to our calendar releases and historical data. source: Autoridade Tributária e Aduaneira. Partial tax exemption and tax exemption scheme for new start-up companies. A base rate entity is a company that both: This is an oversimplification, as your tax rate can vary depending on your specific business entity, what type of industry you are in, and more. The total amount of the expenses incurred with any compensation paid as a result of the termination of functions of managers or board members if not related to the productivity targets previously established under the existing labour relation; or the amount that exceeds the remuneration that would be received by the manager or the board member until the term of the labour agreement, in case of redundancy prior to that term; or, in all cases, if the liability for the payment is shifted to another entity: 35%. Expat pensioners moving to Portugal will no longer be exempt of income tax. Alternative minimum tax – There is a prescribed minimum (effective) tax rate of 7.03%. Tax exemption/ rebate. The rate has gradually come down in the last decade, leaving it slightly below the EU average of 21.51%. The state surtax is paid in three instalments. From the 2017–18 to 2019–20 income years, companies that are base rate entities must apply the lower 27.5% company tax rate. Publish your articles and forecasts in our website. The corporate tax rate (including a solidarity surcharge) stands at 15.825%. According to the revised law, expat pensioners will now have to pay a flat rate of 10 percent on their foreign income in Portugal. 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. 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. 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. The Google group alone recently avoided taxation of profits in the EU to the tune of almost €20bn a year in this way (Photo: Carlos Luna) ... German presidency's broken promises on 'fair tax' 17. February 19, 2021. 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. ... Portugal, South Africa and the United Arab Emirates. Partial tax exemption for companies (from YA 2020) 4.5% applicable to the taxable profit exceeding EUR 7.5 million up to EUR 35 million. Tax rate. The Corporate Tax Rate in Uruguay stands at 25 percent. Please contact for general WWTS inquiries and website support. 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 Chapter by chapter, from Albania to Zimbabwe, we summarize corporate tax systems in more than 160 jurisdictions. However, businesses pay corporate tax in Portugal at a flat rate of 21% of their taxable profits. 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2020 portugal corporate tax rate 2020