The budget law for 2025, which was published on December 31, 2024, introduced the following tax changes:
- Reduction in the general corporate income tax from 21% to 20%—with the rate for small and medium enterprises now capped at 16% for the first €50K of taxable base
- Reduction of .5% in the autonomous tax rates for certain vehicles
- Increase in the overall and per employee cap for the tax incentive for the increase in wages
- Enhancement of the tax incentive for the capitalization of companies—deduction increased by 50% and now calculated by applying a notional interest rate to the accrued net eligible equity increase corresponding to the average 12-month EURIBOR rate for the tax period, plus a 2% spread (limited to the higher of € 4 million and 30% of the tax EBITDA)
For more information, contact a KPMG tax professional in Portugal:
António Coelho | antoniocoelho@kpmg.com
Rui Martins | ruimartins@kpmg.com
Pedro Alves | pmalves@kpmg.com