The Proposed OE2022 wants to revise the tax regime on stock options for tech startups and to exempt from IRC 85% of royalties and other revenues from the exploitation of intellectual property.
The government wants to make Portugal one of the most attractive countries in Europe for startups and other companies that generate revenue from the sale of intellectual property, by changing the tax regime applicable to patents (patent box).
In the proposed State Budget for 2022 (OE2022), António Costa’s government plans to exempt from Corporate Income Tax (IRC) 85% of royalties and any income from the exploitation of intellectual property, including the sale of software.
“Considering that in 2020 we will see the biggest investment in R&D since records began and as a way of stimulating the continued growth of investment in R&D, in 2022 the limit of non-taxation for income from industrial property covered by the patent box regime will be increased from 50% to 85%,” reads the State Budget report.
On the other hand, the same document mentions that the government will revise the tax regime on stock options for technological startups, promising to “align with the best European practices” and to improve the IRS benefit for employees whose remuneration package includes shares in the company they work for.