The Portuguese Tax Authorities published in the Official Gazette Decree-Law nr. 66/2016 on 3 November 2016. The Decree establishes a voluntary regime for revaluating tangible fixed assets and investment properties, with the purpose of encouraging company capitalization.
Through this voluntary regime, taxpayers subject to corporate income tax may enjoy a special 14% assessed until 15 December 2016 rate on the value increase of revaluation reserves of tangible fixed assets used in commercial, industrial or agricultural activities as well as investment properties. Alternatively, depreciation increases may be deductible for tax purposes under certain circumstances. The amount assessed must be paid in equal parts until 15 December of the years 2016, 2017 and 2018.
Also, the taxpayer will be able to deduct the additional depreciations from the revaluation considering a mark-up ranging from 3% to 7%, contingent that the revaluated assets are maintained for five years as from the reevaluation date.
