Corporate Income Tax (IRC) credit/deduction in tax periods beginning on or after 1 January 2014, of up to 10% of retained earnings reinvested, within a period of four years, from the end of the tax period, up to 25% of all the IRC due.
The maximum amount of retained and reinvested earnings, in each tax period, is € 12,000,000 per taxpayer.
In the case of taxpayers who are considered Small and Medium-Sized Enterprises (SMEs), a deduction of up to 50% of the IRC tax due is allowed.
The maximum amount of retained and reinvested earnings, in each tax period, is € 12,000,000 per taxpayer.
In the case of taxpayers who are considered Small and Medium-Sized Enterprises (SMEs), a deduction of up to 50% of the IRC tax due is allowed.
Requirements
Eligible investments:
- New tangible fixed assets, except:
- Land (except where it is intended for the commercial operation of mining concessions, mineral and spring waters, quarries, clay or sand pits in projects within the extractive industry);
- Construction, acquisition, repair and extension of any buildings (except where these are factories or intended for touristic, audiovisual production, and administrative activities);
- Light passenger or mixed use vehicles (except when used for the operation of public transport services or intended for rental during the taxpayer's normal business), pleasure boats and tourism aircraft;
- Furniture and comfort or decoration items, except hotel equipment used to tourist exploitation;
- Assets allocated to activities under concession or public-private partnership arrangements with entities of the public sector.
- Investment in intangible assets, covering expenses with technology transfer, namely acquisition of patent rights, licenses, know-how or technical knowledge outside the scope of the patent is also relevant, provided that they are subject to amortization or depreciation for tax purposes and are not acquired from related entities.
Aditionally, the beneficiary needs to:
- Be an IRC taxpayer resident in Portugal, or a non-resident with a permanent establishment in Portuguese territory, who undertakes primarily a commercial, industrial, or agricultural activity, except fishing, aquaculture, and primary agricultural production sectors;
- Be a SME;
- Have their tax and social security situation regularized.