Portugal: tax changes in 2023 due to the approval of the General State Budget
Law 24-D/2022 of 30 December approves the State Budget for 2023, with specific amendments to the Personal Income Tax Code (Código do IRS) and Corporate
The General Directorate of Taxes (DGT) in binding consultation V2203-23 of 26 July 2023 analyses the case of Article 29. 1 of Law 27/2014, of 27 November, on Corporate Income Tax, referring to the 15 % tax rate for newly created companies, in the case of a company incorporated in April 2017, sold in June 2017 to four different legal entities without control over the company, starting the economic activity of real estate development. The company had accrued losses from 2017 to 2021, while with a foreseeable positive taxable base in 2022, due to the sale of one of the real estate developments in July 2022.
The DGT concludes that the referred company shall be regarded as a “newly created company”, therefore entitled to the reduced CIT tax rate of 15% in the first year of 2022 provided that: (i) The company was not part of any group from the date of its incorporation in June 2017, in accordance with article 42 of the Commercial Code; (ii) The promotional activity had not previously been carried out by other persons or related entities, in accordance with article 18 CIT Law; (iii) The activity had not previously been carried out by an individual with more than 50% shareholding in the company.
Law 24-D/2022 of 30 December approves the State Budget for 2023, with specific amendments to the Personal Income Tax Code (Código do IRS) and Corporate
On February 16, the Prime Minister of Portugal confirmed the measures leading to the substantial amendment of the Golden Visa program, emphasizing that the main
The commonly known as “Startups Law”, published on December 22, 2022 (the “Law”), has been wonderfully received by all those who are in the process