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Portugal is making some big changes to its taxation system in 2023. As part of the new Financial Act, both personal and corporate taxation rules and regulations will be adjusted. This article will provide a key overview of Portugal’s corporate financial changes for 2023; that individuals and businesses should be aware of as they plan for the coming year.

What are the personal financial act changes? Review now!

Tax obligations

  • Social security

    • IAS increased from €443.20 to €480.43; this increase affects the minimum monthly contributions to social security of the managers that do not take any salary out of the company from the actual monthly amount €154.01 to €166.95
    • The communication of admission of new employees must be made 15 days in advance
  • Salaries

    • Raising the minimum salary from €705 to €760, which is an increase of 7.8% and the non-taxable meal allowance per day went from €4.77 to €5.20 for regular payments, and from €7.63 to €8.32 with payment from a meal card
  • SAF-T file communication

    • The communication period of the SAF-T file must be until the 5th of the month, following the issuance of the document. Previously the communication period was the 12th of the following month
  • Contact information

    • Any entity that makes available telephone numbers for contact in its commercial communications must clearly disclose up-to-date information on the price of calls.
      • If not possible to disclose the amount because it is variable depending on networks, then you should detail how much it will cost overall for either a call to national mobile or landline network; so that people have a rough idea

Corporate income tax

  • Deduction of fiscal losses

    • Any fiscal losses incurred in periods prior to Jan 1st 2023 many now be deducted from taxable profits of periods starting from that date without any time frame limitations
  • Corporate tax income rate

    • The reduced IRC rate for SMEs now covers small mid-cap enterprises
  • Additional taxation rates

    • Electric vehicles are subject to an additional taxation at the rate of 10%
      • Differs for hybrid plug-in and LPG-powered light vehicles
  • Crypto assets (personal tax focus)

    • A new regulation is created on gain and income arising from crypto assets
      • Now taxation on the capital gains obtained from the alienation of crypto assets – exemptions do apply here
  • Stamp tax for crypto assets

    • Proposed to tax at the rate of 10% the free transmission of crypto assets, when deposited in Portugal

Other tax benefits

  • IRC (corporate income tax)

    • A ‘net job creation scheme’ is set up in which the related costs are considered at 120% for determining taxable income

How RHJ Accountants can help

The above list of changes are only a short overview of the recent alterations in corporate taxation for Portugal. If you would like to review the full list of changes, then you can download RHJ Accountants detailed document now. After reviewing the document, you can book a meeting with our team to understand how we can help improve your tax efficiency, or ensure you’re meeting all the rules in Portugal.

Our team of experienced accountants are available to provide personalised advice, tailored to your individual situation. Contact us today to find out more!

Whilst focusing on personal tax in Portugal, do you need to file a corporate tax return? Review our tax page online to understand more! Or maybe you need to hire a certified accountant in Portugal to help with other tax services, take a look at the different tax services we can help with today.

Want to speak about the changes? Contact us today!

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