On 25 November 2022, the Portuguese parliament approved the Budget for 2023. This budget includes the following corporate tax measures:

• Changes in current tax loss carry forward rules for corporate income tax (CIT). Along with other things, tax losses calculated in a given tax period to be carried forward indefinitely, with 65% of annual calculated taxable income offsetting the tax losses (currently 70%).
• Increase taxable income limit from EUR 25,000 to EUR 50,000 and reduced corporate tax rate of 17% for small and medium-sized enterprises (SMEs) related to agricultural, commercial or industrial economic activity. The rate is applicable in the two financial years following mergers, divisions, transfers of assets and exchanges of shareholdings, where qualifying small, medium-sized, or small-medium capitalized companies carried out activities between 1 January 2023 and 31 December 2026.
• Electricity and gas companies will be allowed to deduct 120% of the amount in the calculation of the taxable income from 2022. Taxpayers who carry out economic activities that manage at least 50% of turnover in the field of: (i) production, transport, distribution and trade of electricity or gas; or (ii) manufacture of petroleum products, refined or from waste, and fuel agglomerates.
• Taxpayers who carry out their activity in agricultural production, the expenses and losses incurred by the taxpayer relating to the acquisition of the following goods will be allowed to deduct 140% of the amount in the calculation of the taxable income in 2022 and 2023.
• Companies may not be exempted from corporate income tax if they have permanent establishment (PE) outside Portugal in last 12 years deducted tax losses.
• The possibility of deducting the amount of net increases in equity capital of companies is foreseen, at the annual rate of 4.5% and for 10 financial years. In micro, SMEs and small-medium capitalization, the deduction rate will be 5%. The deduction will be limited to EUR 2 million or 30% of EBITDA, whichever is greater.