The Portuguese Budget Bill for 2018 was presented to the Parliament on 13 October 2017.
The most important features of the Budget Bill are as follows:
-Gains derived from the transfer of shares or rights of non-Portuguese entities, with more than 50% of their value being related to Portuguese immovable property, will be subject to corporate income tax.
-In order to determine the taxable income of a foreign permanent establishment (PE), taxpayers must adopt adequate and justified proportional attribution criteria in respect of losses, expenses and negative capital variations arising from transactions involving both PEs and taxpayers.
– The maximum corporate income tax deduction period and the amount for the investment of retained earnings will be increased to 3 years and EUR 7,500,000 respectively.
The tax measures proposed by the Budget Bill will generally be applicable from 1 January 2018.
