Portugal to start reform of corporate taxation

Reform Project should be submitted by the Committee to the Portuguese Government until October 2013

Corporate Income Tax Reform Committee appointed by order of the Portuguese Secretary of State for Fiscal affairs to work under the direction of the Portuguese Government and will have the mission of carrying out a profound and comprehensive reform of the Portuguese Corporate Income Tax (IRC).

The Commission will have three major challenges in the intended Reform:

1. The Corporate Income Tax should be reviewed and simplified, together with other applicable tax regimes, in order to promote the investment and the internationalization of the Portuguese companies. In this regard, the Committee will have freedom to redesign the tax bases and the respective nominal rates, as well as the reorganization of the fiscal benefits that can enhance the growth of the Portuguese economy and making it appealing to foreign investment.
2. Tax compliance and accessory obligations should be simplified, through ways that can enhance safety and the trust of local and foreign investors and simultaneously diminish the burden of administrative costs to companies and individuals.
3. To restructure the Portuguese international tax policy, achieving a greater harmonization of the domestic legislation with the European Union standards, and redefining Portugal’s position as an exporting country, particularly among countries considered as priorities for the Portuguese investment, while negotiating international Tax Conventions.