Portugal

In Portugal, the headline Corporate Income Tax (CIT) rate is set at 21%. Companies are required to submit their CIT returns by the last day of the fifth month following the end of the tax year. The final CIT payment is also due by this date. Additionally, estimated CIT payments must be made in three installments, typically in July, September, and December, with a possible waiver for the last installment under certain conditions.

Portugal applies a progressive Personal Income Tax (PIT) system with rates for residents reaching up to 48%, alongside a solidarity surtax for high-income earners. Non-residents are taxed at a flat rate of 25% on employment or self-employment income. Tax returns are due by June 30th of the following year, with extended deadlines available for certain taxpayers. The final payment is due by the same date, and Portuguese authorities may issue tax assessments by July 31st, with the tax payable by August 31st.

In Portugal, the withholding tax rates vary depending on the type of income. For residents, the rate is 25% across dividends, interest, and royalties. Non-residents are subject to the same 25% rate for dividends and royalties, while interest may be exempt depending on certain conditions.

Portugal operates a multi-tiered VAT system. The standard VAT rate is 23%, with reduced rates of 13% and 6% applied to certain goods and services. Special reduced rates apply in the Autonomous Regions of Madeira and the Azores. The VAT covers a wide range of transactions, including goods and services supplied within Portugal, intra-EU acquisitions, and exports, which are zero-rated.

As a rule, employers are required to make monthly social security contributions at the standard rate of 23.75% on the monthly gross remuneration of their employees.
Social security contributions are deductible for CIT purposes.