Portugal: new extraordinary tax credit introducedJuly 29, 2013
On 16 July 2013, the Official Gazette published Law No 49/2013, which introduces an extraordinary tax credit with effect from 17 July 2013.
The extraordinary tax credit aims at promoting economic growth through the granting of a special tax credit calculated as a fraction of the investments incurred between 1 July 2013 and 31 December 2013.
The credit is of 20% of the investment and will be used against the taxable amount of 2013, without exceeding 70% of this amount.
Any excess credit can be carried forward for five years.
The investment favored with the credit may not exceed €5,000,000.
In order to benefit from the tax credit, companies need to comply with the following requirements:
- Keep proper accounts
- Not be subject to taxation on indirect methods
- Have its tax situation duly regularized
The tax credit is not granted if any other tax incentive of a similar nature is already granted.
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