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Portugal's Council of Ministers Approves Tax Program Including Corporate Tax Rate Reduction, Pillar 2 Global Minimum Tax, and Other Measures

10 July 2024

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Proposed Changes

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Portugal

Portugal's Council of Ministers approved a tax program on 4 July 2024 that contains 60 measures meant to accelerate the economy. Some of the main measures include: A gradual reduction in the 21% corporate tax rate to 19% in 2025, 17% in 2026, and 15% from 2027, along with a reduction in the 17% rate for SMEs to 12.5% over the same period; The implementation of the Pillar 2 global minimum tax in accordance with Council Directive (EU) 2022/2523; The introduction of a VAT group regime from 2025, along with an increase in the turnover thresholds for the cash VAT...