Helen Mamerow
18/07/2024 16:30:10
Due to the elections in Portugal in 2024 the new prime minister and his government is trying to combat price inflation and the scarcity of housing supply for its citizens. The new program includes several measures with tax implications, namely for the youth, families and businesses. It will be interesting to see if this program, will be translated into concrete proposals for more legislation for a change to be approved by this Parliament and this Government in the future.
Here are some of the most important proposals:
FOR Individuals
Income Tax - A maximum rate of 15% applied to all young people up to 35 years of age, except for the highest income bracket.
Exemption from contributions and taxes on performance bonuses, up to the limit equivalent of one month’s salary.
Encourage savings through the creation of tax-free savings accounts.
Increase of the tax incentives for companies that hire people with disabilities above the legal quota.
Gradual implementation of the goal for the tax and social security systems to consider the number of children per family, including tax benefits for large families.
Strengthen tax incentives measures to increase the birth rate, including the self-employed.
FOR Companies
Amend two percentage points reduction per year of the corporate income tax rate, from 21% to 15% over three years.
Reduce the standalone taxation on company cars by 20%.
Simplification of the CIT with the aim of increasing the attractiveness of investment and economies of scale.
Creation of an exceptional and temporary regime for the elimination or reduction of the tax cost of construction or rehabilitation works on properties intended for permanent residence, regardless of their location in Urban Rehabilitation Areas (ARU), including, among others, the application of a reduced VAT rate to construction and rehabilitation works and services, as well as the increase of costs tax deductibility.
Discussing the access of companies owned by venture capital to the qualification of small and medium enterprises (SMEs).
FOR REAL STATE
Elimination of Property Transfer Tax (IMT) and stamp duty on the purchase of primary and permanent residences by young people up to the age of 35.
Simplify property registration procedures, combine notarial and tax registration and reduce transaction costs, especially for small rural properties.