Parliament Approves VAT Group Scheme and Gradual Corporate Tax Cuts, Boosting Business Incentives

• Parliament approved a new VAT group regime allowing companies in the same economic group to consolidate VAT balances for payment or recovery.
• The regime requires companies to have close financial, economic, and organizational ties, with the parent company confirming the group VAT return.
• The new system does not change the normal VAT activities of individual group members.
• Corporate tax (IRC) will gradually decrease by 1% per year, from 21% in 2025 to 17% in 2028.
• The first slice of profits for SMEs and small-cap companies will be taxed at a reduced 15% rate from 2026.

Source: portugalresident.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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