The Portuguese National Assembly has recently adopted the Budget 2013.
Under the new measures there will be a reduction in the number of income tax brackets from eight to five. The top marginal income tax rate will be increased from 46.5% to 48% and will also be subject to an additional 2.5% solidarity tax. The threshold for application of the top rate of income tax will be lowered from EUR 153,300 to EUR 80,000 under the proposals.
Previously the middle-income earners in Portugal with annual income between EUR 40,001 and EUR 80,000 were subject to a marginal tax rate of 35.5%. Now, this is increasing to 45%. Personal income exceeding the annual minimum salary will be subject to an additional 4% surtax in 2013.
It has also been planned in the budget to increase corporate capital gains tax from 25% to 28%.
