Council of Ministers

Announcement of the Council of Ministers, of 23 May

Approves a legislative proposal and a Decree-Law laying down a package of tax incentives to investment, consisting of an Extraordinary Tax Credit for Investment ("CFEI") and of other tax measures to promote investment, in particular the strengthening of the Regime Fiscal de Apoio ao Investimento ("RFAI") (Tax Scheme to Support Investment) and the strengthening of contractual tax benefits for investment ("BFINC").

More precisely, the CFEI shall amount to a tax deduction in the amount of 20% of investment expenses, up to 70% of the final corporate income tax due, under the following terms:

  • Maximum investment of 5 million EUR;
  • Made between 1 June 2013 and 31 December 2013, and provided that the investment comes into operation or use until the end of the taxation period beginning on or after 1 January 2014;
  • Possibility to carry forward the CFEI in the 5 following financial years in case of insufficiency of the due tax

In general terms, investments in non-used depreciable tangible and intangible fixed assets. It should also be noted that the

CFEI is excluded from the scope of application of article 92(1) of the corporate income tax code (result of the corporate income tax assessment).

The RFAI, provides for (i) the extension of the period of validity of the benefit until 2017 and (ii) the increase of the limit of the benefit from the 25% currently in force to 50% of the final corporate income tax due.

Under BFINC the minimum value of investment is reduced from 5 to 3 million EUR and the time limit for the reply with the interministerial approval of the benefit (from the 90 days currently in force to 60 days).

On the other hand, it was decided to reduce by 30 days the time limit for the reply to an urgent binding information on tax matters (i.e., from 120 days to 90 days) and to establish the Gabinete Fiscal de Apoio ao Investidor Internacional (Tax Office of Support to International Investors).