Tax bonuses increased 32% to 2.4 billion euros in 2016

  • ECO News
  • 3 January 2018

Tax bonuses granted by the Finance ministry to banks, foundations, companies, sports clubs and municipalities had a 32% increase.

The Finance ministry has granted tax benefits to companies, councils and foundations worth 2.4 billion euros throughout 2016, according to the Portuguese newspaper Correio da Manhã. It is an increase of around 32% in comparison to the previous year, according to data disclosed by the Portuguese Tax Authority.

The tax bonuses include ten taxes, among which stands the Company Tax (IRC) and the yearly Municipal Tax on Real Estate (IMI). The latter is the tax that explains the increase in tax benefits granted in 2016, which led to a 700 thousand euros’ rise.

Banks, foundations, companies, sports clubs and municipalities stand among the beneficiaries of this tax relief, since the Finance ministry, headed by Mário Centeno, broadened the benefits to another seven thousand entities in 2016. According to the list disclosed by the Tax Authority, around 300 entities received tax benefits higher than one million euros.

The Lisbon municipality, EDP group and TAP, with a tax relief of 45 million, 38 million and around 22 million euros, respectively, head the list of entities with the largest volume of tax benefits.

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