Portuguese tax reform would lower tax rate and widen application of the participation exemption

European Tax Newsalert

The Portuguese government has appointed a think tank to consider a comprehensive corporate income tax (CIT) reform package. This package would simplify the CIT regime and promote Portugal’s tax competitiveness, with the intention of attracting and retaining investment.

Following a public discussion period, we expect the measures to enter into force in January 2014.

US multinational corporations (US MNCs) with Portuguese subsidiaries, operations in Europe or emerging markets (particularly Portuguese-speaking countries), or Portuguese research and development (R&D) activities should consider the potential impact of the proposed tax changes.



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