Portugal

IRC fee lowers one point to 18%. Measure costs EUR 300 million

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 08/10/2026, 15:41:24 UTC.

Briefings

The Portuguese government announced a reduction in the general Corporate Income Tax (IRC) rate from 19% to 18% effective for tax periods starting in 2027, with the first impact on public accounts occurring in 2028. This change is part of a phased reduction plan, including a lower rate for the first 50 euros of taxable material for SMEs. The government acknowledged that the previous 20% to 19% cut already resulted in a 300 million euro loss in 2027, which is now included in the 2027 budget. The budget office projects a shift from a 0.2% surplus to a 0.2% deficit in 2027, though the government anticipates a slight surplus in 2028.

Key points

• The general Corporate Income Tax (IRC) rate in Portugal will decrease from 19% to 18% for tax periods starting in 2027.
• The first impact of this reduction on public accounts will occur in 2028 due to the liquidation of the 2026 tax period at the new rate.

Context

This fiscal adjustment follows the Law No. 64/2025, which established the new rates. The reduction applies to periods starting in 2027, with the SME rate cut from 16% to 15% also included in the same legislative framework.

Limitations

The evidence covers the specific IRC reduction plan and its immediate fiscal impact on public accounts. It does not provide data on the total revenue impact on the state budget beyond the 300 million euro loss already accounted for in the 2027 budget, nor does it include information on future economic effects or alternative policy scenarios.

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