Further to the Memorandum of Understanding concluded between the Portuguese Republic, the European Commission (EC), the International Monetary Fund (IMF) and the European Central Bank (ECB), the Portuguese Government announced its Report on Budgetary Strategy for the period 2011- 2015 on August 31, 2011. This includes several tax measures that will be implemented with the next State Budget, entering into force on January 1, 2012. The main measures that impact corporate taxation are as follows:

  • creation of an additional solidarity tax through the temporary increase of the State Surtax (introduced in 2010) from 2.5 % to 3 %, applicable to taxable income exceeding EUR 1,500,000 (currently, EUR 2,000,000) ; and
  • elimination of reduced CIT rates, elimination of tax exemptions and limitation of tax benefi ts.