Across-the-board corporate tax cut ‘extremely important’

  • Lusa
  • 19 September 2022

The economy minister stated on Sunday that a reduction in corporate income tax across all companies would be "an extremely important signal for the entire industry"

Portugal’s economy minister, António Costa Silva, said on Sunday that a reduction in corporate income tax across all companies would be “an extremely important signal for the entire industry” and “extremely beneficial” given the current crisis.

“Today, given the crisis we are facing, I think it would be extremely beneficial to have this reduction across the board and, from there, see what impact it may have in the future,” the minister said, speaking to journalists on the sidelines of a visit to Portuguese companies taking part in the MICAM footwear fair in Milan, Italy, from today to Tuesday.

“I hope that in the negotiation of the income and competitiveness agreement and, afterwards, in the state budget, we can have this aim of reducing corporate income tax,” he added.

Although the government programme provides for a selective reduction in corporate income tax, aimed at companies that reinvest part of their profits in economic activity, invest in technological innovation or hire qualified young people, Costa Silva said that he had always been “unequivocal that the country, somewhere, had to make this across-the-board reduction in corporate income tax”.

“I haven’t changed my mind”, he assured, explaining that what happened was that “after the discussion, and within the scope of the Government’s programme”, what was registered was “the figure of the selective reduction.”

“But I think we are on the way to a transversal reduction, which will be an essential signal for the entire industry,” he emphasised, adding: “I think that if we have the companies associated with this, [and] also the unions, within the scope of social concertation, we may have the capacity for collective action to overcome all these crises.”

Concerning the discussion on the income agreement, the minister refused to comment. “I do not want to anticipate what will happen. But we are going to take proposals that I think are also very interesting for companies,” he said.

The corporate income tax rate is 21% on company profits up to €1.5 million. A state surcharge is added to this rate for companies with higher profits and a municipal surcharge.