Cutting IRC “extremely important”

Portugal’s Minister of the Economy, António e Costa Silva said over the weekend that an across-the-board reduction in IRC for all companies would send out “an extremely important sign for industry as a while” and “particularly beneficial given the current crisis”.

“Today, given the crisis that we have, I think it would be extremely beneficial to have an across-the-board reduction and from this gauge that impact this could have on the future”, said the minister in statements to journalists on the sidelines of a visit to Portuguese companies at a footwear trade fair in Milan, Italy.
“I hope that in the negotiations on making an agreement on tax and competitiveness and, on the State Budget, we can have a reduction in corporation tax”. (IRC)
Whilst there is a reduction in IRC foreseen for companies in the government’s budget programme if they “reinvest part of their profits in economic activity, or hire young qualified talent, and invest in technology”, Costa Silva said that it had always been “very clear that the country, at some time, would have to make this across-the-board reduction in IRC”.
“I have not changed my mind”, he said, explaining that what had happened (the war in Ukraine and spiralling energy costs) had taken place “after the discussion and was a part of the government’s programme” of “selective reduction” included.
“But I think we are heading towards a general reduction which will send out an extremely important sign to industry”, he emphasised, adding: “I think that if we have companies and unions on board we will be able to overcome all such crises”.
Portugal’s IRC tax is currently 21% on company profits up to €1.5 million. A surtax is added for those companies that earn greater profits, as well as a municipal tax on top.