Portugal To Lower Corporate Tax
25 April 2013
Posted by: Author: Ulrika Lomas
Source: Ulrika Lomas (Tax-News.com, Brussels)
The Portuguese Government has recently unveiled details of its growth, employment, and industrial development strategy, which includes plans to reform corporation tax.
Portugal's Economy and Employment Minister Alvaro Santos Pereira revealed that the Government's growth strategy is based on seven key axes, notably training and qualifications, financing, corporate consolidation, the promotion of investment and fiscal competitiveness, internationalization, entrepreneurship and innovation, and logistics infrastructure.
Pereira said that to promote investment and to increase fiscal competitiveness, the Government plans to reform and to lower corporation tax (IRC), to make the country more attractive for foreign investment. Although Pereira did not provide specific details, he did indicate that the corporate tax cuts would be significant and would be introduced gradually. The corporate tax rate in Portugal is currently 24%.
Other measures contained in the growth strategy include plans to draw up a national program aimed at reducing bureaucracy. Here, Pereira stressed that it is absolutely essential that Portugal streamline investments. The Government also plans to promote entrepreneurship and innovation through its "Start Up Portugal" program and to improve the financing of the economy by strengthening the role of the country's deposit bank CGD. Finally, the Government intends to set up a specialized financial institution to provide small- and medium-sized companies with better access to finance.
Concluding, Pereira explained that the Government's growth program has yet to be discussed and examined openly with the country's opposition parties and social partners.