The municipalities may levy a local surcharge (derrama) of up to 1.5% on the annual taxable profit of resident companies and non-resident companies with a Portuguese permanent establishment. Municipalities are allowed to levy a lower surtax for companies with a turnover not exceeding EUR 150,000. With regard to the tax year 2007 (assessment year 2008), the district of Bragança in mainland Portugal, Funchal (the sole district in Madeira), and the district of Angra do Heroísmo in the Azores Islands, will not impose the local surcharge. The breakdown by rates and municipalities of the standard derrama is as follows: Rate (%)...