Portugal: new extraordinary tax credit introduced

July 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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