iCalculator™ PT - Portugal Corporation Tax Calculator 2024
Welcome to the Corporation Tax Calculator for Portugal for the year 2024, exclusively on iCalculator™ PT. This intuitive tool is designed to assist business owners, CFOs, and tax professionals in estimating their corporation tax liability for the year. With ever-changing tax laws and regulations, staying updated can be a challenge. Our calculator simplifies this process by providing a streamlined way to calculate your corporate tax in Portugal in 2024, ensuring you're well-informed and prepared for your financial obligations.
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How to calculate Corporation Tax in Portugal
You can calculate Corporation Tax in Portugal for resident and non-resident companies by multiplying the profits acrued by the appropriate corporation tax rate. We have included the Corporation Tax formula for Portugal so that you can calculate corporation tax manually or update your systems with the relevent corporation tax rates in Portugal. The latest corporation tax rates in Portugal for 2024 are displayed in the Portugal tax tables. For those who prefer to use the Portugal Corporation Tax Calculator rather than calculate the tax manually, we have included a step-by-step guide to using the calculator for Corporation Tax calculations (see the guides under "How to use the Portugal Corporation Tax Calculator").
Portugal Corporation Tax formula
The Corporation Tax in Portugal for corporations and SMEs is calculated using the following Corporation Tax formula:
Corporation Tax = a x (b / 100)
Where:
- a = The net profit earned that is subject to tax in Portugal.
- b = The relevent rate of corporations tax in Portugal associated with residence and location.
Corporation Tax Rates in Portugal
A flat corporate income tax of 21% applied to the amount of taxable global income on tax resident entities. A standard CIT rate of 20% and 16.8% in the Autonomous regions of Madeira and Azores respectively. This includes Permanent Establishments (PEs) of non-resident entities registered therein.
Non-commercial entities that are not industrial, or agricultural in nature are subject to a CIT at 21% of the global amount of taxable income.
Subject Matter Experts Reduced Rates
A reduced tax rate of:
- 12.5% on companies located in Portuguese mainland
- 13% in autonomous regions of Madeira
- 17% on Autonomous regions Azores
applies to SMEs on the first EUR € 15,000.00 of taxable income. The standard corporate income tax rate shall apply to the excess. These companies are considered based on the concept of micro, small, and SMEs (Subject Matter Experts) as defined in EU commission recommendation 2003/361.
Corporation Tax Compliance in Portugal
Corporate taxes are subject to self-assessment in Portugal. Electronic filing is mandatory within 5 months of the end of the tax year. Advanced corporate tax and the national surtax are payable in installments.
The tax year is considered as the calendar year, although a different tax year can be requested if it coincides with the accounting period. Once selected, the tax accounting period should be maintained for at least 5 years.
Consolidated returns are permissible upon meeting the defined criteria. Penalties and interest are payable for late filing and failure to comply with the tax law.
Basis of Coporation Tax
Similar to PIT, Resident entities are taxed on worldwide income and non-resident companies are subject to tax only on Portuguese-source revenue. Profits generated by residents on foreign source are taxed as per corporate tax regime.
How to use the Portugal Corporation Tax Calculator
You can view the calculator inline or full screen. The inline view displays the calculator surrounded by the normal menus and links to other tools and supporting information. The full screen view removes or the unnecessary information so you can focus solely on using the Portugal Capital Gains Calculator. The following step-by-step guides to calculating capital gains tax online with the Portugal Capital Gains Tax Calculator covers all the functions within the capital gains tax calculator:
How to complete a Corporation Tax Calculation
- Select Normal View or Full Screen View.
- Select Resident Company on Non-resident Company
- Select whether you are a SME (Subject Matter Expert)
- Select your location in Portugal for Corporation tax purposes.
- Enter the total amount of Global Income that is profit.
- Enter the total amount of Income generated in Portugal that is profit.
The Corporation Tax Calculator will then automatically calculate the tax due based on the details entered.
Historical Capital Gains Tax in Portugal
We also provide capital gains tax calculators for Portugal for the following years: