Global

Details

  • Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 9/13/2013

Portugal - Corporate income tax proposals for 2014 

September 13:  Portugal is currently considering measures that would reform the corporate income tax law. A goal is to increase the competiveness and environment for foreign investment in Portugal.

Among the measures being considered are proposals that would:


  • Reduce the rate of corporate income tax, with the rate reduction to be phased in beginning in 2014 and with an ultimate rate ranging between 19% and 17% by 2018
  • Provide a simplified tax regime for small business taxpayers
  • Allow a carryforward of tax losses for a 15-year period (increased from the current five-year period)
  • Reduce the threshold for the deduction of net interest and financing expenses to €1 million (the current threshold amount is €3 million)
  • Adopt a worldwide participation exemption regime for dividends received by Portuguese entities (currently, the regime only applies for dividends from a Portuguese or EU country source)
  • Allow an optional participation exemption for profits and losses of permanent establishments located abroad
  • Provide tax group relief, and reduce the minimum holding requirement from 90% to 70%
  • Combine and enhance the investment incentive tax regime and contractual investment incentive regime
  • Provide for a patent box regime
  • Allow 20-year amortization for intangible assets with no defined useful life

These proposals are currently at the public consultation stage, and thus are subject to amendment.


Read a September 2013 report [PDF 154 KB] prepared by the KPMG member firm in Portugal: Corporate Income Tax 2014




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now