The Portuguese Council of Ministers sent to parliament proposed reforms of the corporate tax system on 13 October 2013, which will aim to improve Portugal’s tax competitiveness and encourage investment.
The proposed reforms would reduce the corporate tax rate from 25 percent to 23 percent from 2014 with the possibility of further reducing the rate to between 17 percent and 19 percent from 2016 and the government aims to directly compete with countries such as Poland and the Czech Republic in attracting foreign investment.
For small and medium sized enterprises new incentives would also be created to promote investment and boost economic growth and simplified regulations would be introduced to reduce compliance costs for businesses.
