|
Portugal - TAXES ACCOUNTING |
|
Corporate tax
Tax rate for resident companies |
The rate of the company tax (IRC) is 25% in 2005. A municipal surcharge (Derrama) can be also perceived and varies between 0% and 10% according to city halls. Lisbon applicates the highest Derrama rate of 10%, therefore the IRC global rate in Lisbon is 27.5%.
There are reduced IRC rates: a 20% rate applies for instance to non commercial, industrial or agricultural activity-oriented companies.
|
| |
|
Taxe rate on long-term capital gains |
In Portugal, capital gains are taxed at the rate of 25% + Derrama rate (0-10%).
These following elements are deductible to find out the fiscal result:
- Depreciations
- Interests
- The payment of the executives is entirely deductible,
- Royalties
The fiscal loss of a year can be put postponed on one or some of the 6 following accounting years. Moreover, the carry-back method is not authorized.
|
| |
|
System governing groups of companies and dividends paid by subsidiaries to their parent companies |
Dividends paid to non-resident companies:
Payment at source 25% full of discharge (unlisted companies) or 12.5% (recently privatized companies).
Infringements by international agreements.
Dividends paid to residents companies:
Payment at source 15% or 7.5% for 5 years for recently privatized companies.
|
| |
|
Tax rate on branches |
Branches are taxed in Portugal with the corporate tax and a municipal tax as any company registered in Portugal.
|
Income tax
Fiscal year |
The fiscal year begins on January 1st and ends on December 31st of the same year.
|
| |
|
Income tax rate |
Tax Schedule 2005 for a single person:
| In euros | Rate | | 0 - 4.266 | 12% | | 4.266 - 6.452 | 14% | | 6.452 - 15.997 | 24% | | 15.997 - 36.792 | 34% | | 36.792 - 53.322 | 38% | | > 53.322 | 40% |
The married taxpayers is the object of a common levy. No wealth tax.
|
| |
|
VAT rates
Standard rates |
21%
|
| |
|
Reduced rates |
The reduced rates From VAT vary between 5% and 12%: 12% for catering, petrol and some foodstuffs. The rate From 5% applies to most From food products, water, publications, electricity, transport, hotel business and leisure activities.
|
|
Accounting
Introduction
The Portuguese accounting principles use the concepts of coherence, prudency, and historicalcosts.
|
Obligations and publications
The financial statements of companies must contain a balance sheet, an income statement as profit and loss account, information notes and the director's report.
Certification and auditing
The controls of audit are compulsory for Limited Companies (Participac?es Sociais's Sociedades Gestoras).
Professionals and representative organizations
The "Statutory Auditors" have the exclusive right to sign audit reports.
|
Export Entreprises SA ©, All rights reserved
Last modified in
January 2003
|
|
