The corporate income tax (IRC) rate for 2025 is expected to undergo significant changes, reflecting a reduction in the tax burden for companies in Portugal. It is anticipated that the standard IRC rate will be lowered by 1 percentage point, decreasing from the current 21% to 20%. This change is part of a continuous effort to create a more competitive tax environment and support business growth.
Additionally, Small and Medium Enterprises (SMEs) and Small Mid Caps will benefit from a reduced rate applied to the first €50,000 of taxable income. The rate, currently set at 17%, will be reduced to 16%. This adjustment represents an additional support measure for smaller businesses, promoting their financial sustainability and market competitiveness.
These changes underline the Government’s commitment to fostering a more favorable environment for investment and economic development in the country.