Portuguese banks can offset their losses against IRC
Banks in Portugal will be able to offset 100% of their imparities (a reduction in the recoverable amount of a fixed asset below book value) against their corporation tax.
The measure was approved at the last meeting of the Council of Ministers. The measure should solve the problem of the bank imparity tax regime, foreseeing a levelling of accounting regulations for tax purposes over a transitional period of five years.
According to the news from newspaper Expresso, the Government separated credits that were individually evaluated from those that were evaluated as a parcel in order to calculate a different deduction.
However, the measure failed and the Government decided to approve a complete offset against IRC tax.
Furthermore, the five year transition period will enable banks to join up whenever they want to the fiscal levelling accounting regulations governing presentation of financial returns.