IRC tax in Portugal second highest in the OECD

 In News, Tax

Taxes on companies in Portugal, which can reach 31.5%, are the second highest out of the 38 countries that comprise the OECD. (Organisation for Economic and Cooperation and Development)

This is according to the Fiscal Competitiveness Ranking 2023 compiled by the Tax Foundation and Instituto + Liberdade published on Thursday.
In overall terms, Portugal improved in the fiscal competitiveness index rising from 35th to 34th place, however it is still at the bottom of the league when it comes to high taxes, being the fifth worst when classified in five areas analysed: taxes on companies (IRC), taxes on personal income (IRS), taxes on consumption (VAT), and taxes on property (IMI) and international taxation (imports).
And despite some positive signs, Portugal is very negative when it comes to the three main taxes IRC, IRS, and VAT.
In the case of companies, “Portugal comes in second to last place with the study showing a high tax rate on companies and an overall complexity” says the report.
“And Portugal’s company tax is the third highest of the OECD countries while six countries that have overtaken Portugal in terms of GDP per capital over the past 20 years (Czech Republic, Estonia, Slovenia, Lithuania, Hungary and Poland) all have maximum IRC tax rates up to 20% and effective taxes to 18%”, says the report.