19/09/22

EUROPE: Reducing corporate income tax beneficial, says Portuguese economy minister.

As published on euractiv.com, Monday 19 September, 2022.

Reducing corporate income tax for companies would be an important signal for the entire industry and beneficial given the current crisis, Economy Minister António Costa Silva said on Sunday.

“Today, given the crisis we are facing, I think it would be extremely beneficial to have this reduction across the board and, from there, see what impact it may have in the future,” the minister said, speaking to journalists on the sidelines of a visit to Portuguese companies taking part in the MICAM footwear fair in Milan from Monday to Tuesday.

“I hope that in the negotiation of the income and competitiveness agreement and, afterwards, in the state budget, we can have this aim of reducing corporate income tax,” he added,

Although the government programme provides for a selective reduction in corporate income tax, aimed at companies that reinvest part of their profits in economic activity, invest in technological innovation or hire qualified young people, Costa Silva said that he had always been “unequivocal that the country, somewhere, had to make this across-the-board reduction in corporate income tax.”

“I haven’t changed my mind,” he assured, explaining that what happened was that “after the discussion, and within the scope of the Government’s programme,” what was registered was “the figure of the selective reduction.”

The corporate income tax rate is 21% on company profits up to €1.5 million. A state surcharge is added to this rate for companies with higher profits and a municipal surcharge.