The Portugal Corporation Tax Calculator is designed to allow free online calculations for resident and non-resident companies, SME's (Subject Matter Experts) and corporations who have accrued income from profits in Portugal. The calculator allows corporation tax calculations for multiple scenarios including location specific allowances and rates for Mainland Portual, Madeira and Azores, rates and allowances tailored for tax filing status, profit amounts and allowances in 2023. This calculation provides you with two important pieces of financial information, the first is the amount of corporation tax you owe on profits generated in Portugal, the second is the net amount of profit after tax which allows you to view exactly how your business investments in Portugal are performing. Once you have calculated the corporation tax due, you can print the document or email the corporations tax document to yourself or a colleague for later reference.
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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 2023 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").
The Corporation Tax in Portugal for corporations and SMEs is calculated using the following Corporation Tax formula:
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.
A reduced tax rate of:
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.
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.
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.
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:
The Corporation Tax Calculator will then automatically calculate the tax due based on the details entered.
If you found this information about Corporation Tax in Portugal useful and liked our free online corporation tax calculator for Portugal then you will probably find the following calculators and supporting Portugal tax tables useful.