More than 70% the 308 The country's local authorities will tax the profits of companies based on spills. Are more 12 Comparing to 2023. But there are two fewer municipalities applying the maximum rate, of 1,5%.
The number of local authorities that, this year, will charge corporate income tax to companies located in their municipality, rising to 216. Are more 12 face a year ago, when 204 municipalities had decided to apply the municipal surcharge. So, the 308 country chambers, more than 70% chose to tax the profits of companies relating to the exercise of 2023, according to ECO's accounts based on list of the Tax Authority (AT).
IRC collection rate
Taxa 1,50%: Aljustrel, Almodovar, Alvito, Castro Verde, Cuba, Ferreira do Alentejo and Serpa, Taxa 1,30%: Moura, Taxa 1,25%: Beja, Taxa 1,00%: Odemira, Ourique and Vidigueira and No indication: Ravines and Mértola
Business volume: Taxable persons whose turnover, not previous period, do not exceed € 150.000,00)
Exemptions: Aljustrel, Almodovar, Beja, Moura, Reduced rate-1%: Alvito, Cuba, Ferreira do Alentejo and Serpa, Reduced rate-0,01%: Castro Verde, Odemira, Ourique and Vidigueira and No indication: Ravines and Mértola.
there are still 92 local authorities that will not apply the tax, many of which are located in the interior of the continent and in the Azores and Madeira archipelagos. The information released by the Tax Authorities aims to correctly complete the model income declaration 22 of IRC that companies must submit by 31 May or until the last day of the fifth month following the end date of the tax period.
On the other hand, there are two fewer municipalities applying the maximum rate, of 1,5%. This year, 125 municipalities opted for the highest tax, while, in 2023, They were 127 the cameras in this table. Between the 125 municipalities that charge the highest rate, There are several that offer tax reductions or exemptions if the turnover has not exceeded the 150 thousand euros. There are municipalities that also define other criteria to grant relief in the municipal tax, such as the creation of jobs, the change of the registered office to the municipality and the exercise of an activity in a specific area.
The law provides that the municipal surcharge is levied on taxable income (and not exempt) of IRC that corresponds to the proportion of income generated in the geographical area of the municipality. The general rate cannot go beyond 1,5% and local authorities can apply tax exemptions and reductions.
In the circulated letter that accompanies the list of surcharge rates to be applied to the exercise of 2023, AT explains that “the normal municipal surcharge rate is applied when the taxpayer does not meet the requirements to take advantage of any reduced rate or exemption launched by the municipality”.
In the same document, signed by the deputy director general of AT, Helena Pegado Martins, The tax authorities also state that only companies that meet the specific requirements defined by the municipality and that do not meet “the requirements to take advantage of any of the exemptions” launched by the local authorities can benefit from the reduced rates of the municipal surcharge..
Among the municipalities that will charge the maximum rate of 1,5%, no exemptions or fee reductions, are Aveiro, Customs Faith, Freixo de Espada a Cinta, Portimão, Vila Real de Santo António, Celorico da Beira, Nazareth, Campo Maior, Marvão or Alandroal.
Lisbon, Felgueiras, Maia, Port, Braga, Figueira da Foz, Abrantes, Leiria, Guimarães, Alcochete, Ílhavo, Cantanhede, Miranda do Douro, Fundão or Cuba are among the municipalities that combine the maximum rate with tax reductions or exemptions.
Almada, Barreiro, Coimbra, Santarém, Paredes de Coura, Cascais, Lourinhã, Peniche, Covilhã, Barcelos, S. João da Madeira, Vale de Cambra, Alcacer do Sal, Beja or Évora will apply a rate lower than 1,5%.
While Bragança, withe Castle, Obidos, Baiao, Póvoa do Varzim, Arganil, Oliveira do Hospital, Look, Portalegre, Bombarral, Loulé, Monchique, Silves, Funchal (Madeira) or Santa Cruz das Flores (Azores) are among the municipalities that will not charge taxes to companies.
IRC collection rate
Taxa 1,50%: Aljustrel, Almodovar, Alvito, Castro Verde, Cuba, Ferreira do Alentejo and Serpa, Taxa 1,30%: Moura, Taxa 1,25%: Beja, Taxa 1,00%: Odemira, Ourique and Vidigueira and No indication: Ravines and Mértola.
Business volume: Taxable persons whose turnover, not previous period, do not exceed € 150.000,00)
Exemptions: Aljustrel, Almodovar, Beja, Moura, Reduced rate-1%: Alvito, Cuba, Ferreira do Alentejo and Serpa, Reduced rate-0,01%: Castro Verde, Odemira, Ourique and Vidigueira and No indication: Ravines and Mértola.
News: Lidador News/ECO
