MAIN TAX BENEFITS 2024 (IRC)
The tax benefits available in 2024 offer significant opportunities for companies looking to grow and innovate. It is essential to be aware of these incentives and how they can be utilized to optimize financial and competitive performance.
TAX BENEFITS 2024
rfai
Tax Regime for Investment Support
The RFAI, established by Decree-Law No. 162/2014, aims to support companies in enhancing their investment capacity. This regime allows a percentage of the investments made to be deducted from the IRC tax base.
Eligible Sectors: Only companies in specific sectors can benefit from this regime. The eligible activities include:
Extractive Industries: divisions 05 to 09
Manufacturing Industries: divisions 10 to 33
Accommodation: division 55
Catering and Similar Services: division 56
Publishing: division 58
Audiovisual Production: group 591
Consultancy and Computer Programming: division 62
Data Processing and Web Portals: group 631
Scientific Research and Development: division 72
Tourism: specific subclasses
Administrative and Support Services: classes 82110 and 82910
Eligibility Requirements: Interested companies must meet the following conditions:
Maintain organized accounting.
Ensure that taxable profit is not determined by indirect methods.
Retain the investment assets for a minimum period of:
3 years (for SMEs) or
5 years (or the minimum useful life period).
Be up to date with tax obligations and Social Security contributions.
Not be classified as financially distressed.
Carry out investments that create and maintain jobs.
Relevant Investments:
Tangible Fixed Assets:
Excludes land (except for specific cases), passenger cars, decorative furniture, among others.
Intangible Assets:
Includes expenses related to patents and technology transfers, limited to 50% of relevant applications (excluding SMEs).
Tax Benefits: IRC taxpayers can benefit from:
Deduction from IRC Tax Base:
25% in specific regions up to €5,000,000, and 10% on the excess.
10% in the Algarve and Greater Lisbon regions.
Exemptions and Reductions:
Exemption or reduction of IMI and IMT for up to 10 years.
Exemption from Stamp Duty on relevant acquisitions.
SIFIDE II
Tax Incentive System for Research and Development
SIFIDE II aims to enhance the competitiveness of Portuguese companies by promoting investments in R&D. It has been in effect since 2013 and will end in 2025.
Beneficiaries: Taxpayers residing in Portugal who carry out R&D activities.
Eligible Expenses: Include:
Tangible fixed assets.
Expenses for qualified personnel.
Costs related to patent registration and maintenance.
Tax Benefit: Allows recovery of up to 82.5% of R&D investment. The base deduction rate is 32.5%, with an incremental rate of 50% on the increase in expenses compared to the average of the previous two years.
ICE
Capitalization Incentive for Companies
The ICE, established by the State Budget Law of 2023, aims to increase the capitalization of companies.
Tax Benefits: Deduction corresponding to the application of the 12-month Euribor rate on eligible net increases in equity.
Salary Enhancement Incentive
This incentive, present in Law No. 82/2023, aims to improve the salary conditions of workers.
Tax Benefits: 50% increase on costs associated with salary increases for workers with indefinite-term contracts.
Tax Benefits for Productive Investment Contracts
Investment projects valued at €3,000,000 or more may benefit from a credit ranging from 10% to 25% of relevant applications, in addition to exemptions from IMT and IMI.
Conditions: Projects must demonstrate technical, economic, and financial viability, contributing to the strategic development of the national economy and job creation.
The tax benefits available in 2024 offer significant opportunities for companies looking to grow and innovate. It is essential to be aware of these incentives and how they can be utilized to optimize financial and competitive performance.
For more information or assistance with applications for these incentives, please do not hesitate to contact us.