Law no. 26/20, of 20 July has been recently published in the National Gazette, introducing relevant amendments to the Industrial Tax Code.

In this regard, we highlight the following amendments:

• Reduction of the Industrial Tax rate, from 30% to 25%
• Increase of the withholding tax rate applicable to payments to non-resident suppliers, from 6.5% to 15%
• Unrealized foreign exchange gains and losses should be excluded in the computation of the taxable profit
• Autonomous taxation is now to be added to the tax payable
• Extension of the period for carry of tax losses, from 3 to 5 years

The amendments to the Industrial Tax Code will enter into force 30 days after the date of their publication in the National Gazette.

In view of the relevance of the new Law, KPMG shall make available soon a document where the most relevant matters are to be addressed.