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Tax Changes for 2016 in Portugal

Personal Income Tax (PIT)

►► Monthly minimum wage

Decree-Law 254-A/2015, of 31st December, has been published increasing the Portuguese monthly minimum wage from €505 to €530 as of 1st January 2016.

►► Extraordinary PIT rate

Law 159-D/2015, of 30th December, has been published establishing the revocation of the extraordinary PIT rate of 3,5% as of 1st January 2017. Therefore, employment and pension incomes earned from this date onward, will no longer be subject to this extraordinary tax rate.

In addition, this law also establishes that for employment and pension incomes earned during the year 2016, the extraordinary rate shall be applied according to the following table, instead of the single rate of 3,5% that was applied to the incomes regardless of its annual value:

tabla_enero_pt1eng

Corporate Income Tax (CIT) & Value Added Tax (VAT)

Decree-Law 253/2015, of 30th December, has been published in order to extend the Portuguese Tax Budget for 2015 to the year 2016 until the Portuguese Tax Budget for 2016 enter into force.

At this moment, the Portuguese Tax Budget for 2016 was not yet approved. Therefore, the CIT rate in force is 21% and VAT rates are as follows:

tabla_enero_pt2eng

In addition, for 2016, it was replaced by the new government four holidays that had been removed in the past and which are as follows:

tabla_enero_pt3 eng

At any time, is expected the new Portuguese Tax Budget for 2016. As soon as it is published, we will keep you informed of all tax news that may have impact in your activity in Portugal.

2017-09-18T16:03:16+00:00 18/02/2016|Latest news|