Portugal | Corporate taxes reduced to attract foreign investment

Portuguese prime minister Pedro Passos Coelho speaks to parliament

Portugal’s proposed State Budget for 2015 includes a reduction of two percentage points on corporate tax – to 21 percent – in an effort to attract foreign investment, according to official information.
If the budget is approved by Parliament, this will be the second drop in two years of the Company Income Tax (IRC).
With this measure, the government is expected to lose around 200 million euros in tax revenue, a loss that can be offset with income resulting from combatting fraud and tax evasion.
Approved early on Monday after an 18-hour meeting, the proposed State Budget for 2015 outlines a deficit of 2.5 percent of Gross Domestic Product (GDP) and economic growth of 1.5 percent, as set out in the Fiscal Strategy Document, prepared in conjunction with the tripartite committee of the European Central Bank, European Commission and International Monetary Fund and presented in April. The draft law on the State Budget is expected to be delivered to parliament yesterday. MDT/Macauhub