Corporation Tax (“IRC”)
The Basics
What are the IRC rates?
| Type of Income |
Rates |
| Resident and non-resident companies with permanent establishment in Portugal* |
up to 12.500 |
12,5% |
| Above 12.500 |
25% |
| Non-resident companies without permanent establishment in Portugal (e.g. Offshore company)** |
25% |
| Non-legal persons without permanent in Portuguese territory (e.g. charity associations) |
20% |
*Surcharge (“derrama”) of 1,5% on the taxable profit, resulting in a maximum combined rate of 26,5%
**See Withholding tax rates on “Non-residents companies” section
What rates are applicable?
| Type of Income |
Rates |
| Rental Income |
15% |
| Capital Gains |
25% |
Definitive withholding tax would be applicable in the following situations:
| Type of Income |
Rates |
| Dividends and income from nominative or bearer securities and the liquidation proceeds attributed to shareholders |
21,5% |
| Dividends distributed to entities resident in an European Union Member State |
0-21,5% |
| Royalties/technical assistance and equipment rentals |
15% |
| Income from bonds and other financial investments |
21,5% |
| Interest and royalty payments between associated companies (4), where the beneficial owner is a company of another Member State or a permanent establishment situated in another Member State of a company of a Member State (Directive n.º 2003/49/EC) |
0-21,5% |
| Prizes from raffles, sweepstakes, lotto, games and contests |
35% |
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