Acquisition cost between EUR 27,500 and EUR 35,000: 27.5%. Tax rate. © 2017 - 2021 PwC. 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. Non-documented expenses: 50% (70% for partially or fully exempted taxpayers). Corporate Tax 2020. 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. Companies can enjoy the partial tax exemption and tax exemption for new start-up companies, as provided in the tables below. Error! A reduced tax rate of 17% applies to the first EUR 15,000 of taxable profits of small and medium-sized enterprises. 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. Click the image to download. The latest comprehensive information for - Portugal Corporate Tax Rate - including latest news, historical data table, charts and more. Expat pensioners moving to Portugal will no longer be exempt of income tax. This maintains the rate at 19%, rather than reducing it to 17% from 1 April 2020. Alternative minimum tax – There is a prescribed minimum (effective) tax rate of 7.03%. Corporate Tax Rate in Portugal averaged 34.67 percent from 1981 until 2020, reaching an all time high of 55.10 percent in 1983 and a record low of 21 percent in 2015. 2020 Corporate Income Tax Rates. 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. 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%. 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 Keep up-to-date on significant tax developments around the globe with EY’s Global Tax Alert library. Incorporated businesses tax resident in Mozambique are subject to a 32% corporate income tax (CIT) rate on their worldwide profits. The Trading Economics Application Programming Interface (API) provides direct access to our data. Publish your articles and forecasts in our website. 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. 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. A base rate entity is a company that both: 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. Note 1: This includes corporate limited partnerships, strata title bodies corporate, trustees of corporate unit trusts and public trading trusts. According to the revised law, expat pensioners will now have to pay a flat rate of 10 percent on their foreign income in Portugal. Please see www.pwc.com/structure for further details. The general corporate income tax rate is 21%. Slovenia Highlights 2020 Page 2 of 8 Surtax – There is no surtax. 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%. 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. The VAT of 23 percent applies to less than half of the potential tax base. Acquisition cost of EUR 35,000 or more: 35%. Tax exemption/ rebate. Its amount is based on the net income companies obtain while exercising their business activity, normally during one business year. 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 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%. The rate will then reduce to 26% in the 2020–21 income year and 25% in the 2021–22 income year. 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). 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). Home > Insights > Tax > Tax Rates and Figures > 2020 Corporate Income Tax Rates. Capital Gains Tax in Portugal in 2020. Notable Corporate Tax Rate Changes in 2020 Ten countries have made changes to their statutory corporate income tax rates in 2020. 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). 2.5% applicable to the taxable profit exceeding EUR 1.5 million and up to EUR 7.5 million. Partial tax exemption for companies (from YA 2020) Forty-four states and D.C. have corporate income taxes on the books, with top marginal rates ranging from 2.5 […] The corporate tax rate (including a solidarity surcharge) stands at 15.825%. Corporate tax in Portugal. The state surtax is paid in three instalments. This page provides - Uruguay Corporate Tax Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. All rights reserved. Partial tax exemption and tax exemption scheme for new start-up companies. Companies are severely limited in the amount of net operating losses they can use to offset future profits and are unable to use losses to reduce past taxable income. 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 Tax incentives apply to certain types of businesses. 8.5% applicable to the taxable profit exceeding EUR 35 million. The content is current on 1 January 2020, with exceptions noted. CIT is also applicable to Portugal-source income attributable to a PE of a non-resident company in Portugal. 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. Representation and entertainment expenses: 10%. This measure sets the Corporation Tax main rate at 19% for the financial year beginning 1 April 2020. Buying or selling a business? Portugal and Germany follow, at 31.5 percent and 29.9 percent, respectively. Resident companies in Portugal are taxed on their worldwide income. Base rate entity company tax rate. The benchmark we use refers to the highest rate for Corporate Income. Corporate tax rarely applies to self-employed workers and freelancers in Portugal. 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 … print or share. 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