On 27 October 2021, the Portuguese parliament rejected the government’s 2022 budget bill (Bill 116/XIV/3). The draft bill was submitted in parliament on 11 October 2021 and includes various tax-related measures, including revised personal income tax brackets/rates, an increased reduction (exemption) of qualifying taxable IP income under the patent box regime, a new tax incentive regime for recovery, and other measures.
With the rejection of the draft bill, a new budget bill must be drafted and submitted, which is not expected until after possible government elections in early 2022.
