The Council of Ministers is set to approve a proposal on Friday to reduce the corporate tax rate (IRC) to 19% in 2026, 18% in 2027, and 17% in 2028.
These announcements were made by Luís Montenegro during the opening of the state of the nation debate in parliament.
“Tomorrow the Council of Ministers will approve the allocation of an extraordinary supplement for all pensions up to 1,567.50 euros,” he stated.
According to Montenegro, the extraordinary supplement will be paid in September and will amount to 200 euros for pensions up to 522.50 euros, 150 euros for pensions between 522.50 euros and 1,045 euros, and 100 euros for pensions between 1,045 and 1,567.50 euros.
Amid some noise in the room, Luís Montenegro responded: “I want to believe that this proposal’s support came from both the applause from some benches and the catcalls from others.”
The Prime Minister announced that, also on Friday, the Council of Ministers will approve the corporate tax reduction proposal to be submitted to the Assembly of the Republic. Thus, the IRC will decrease to 19% in 2026, 18% in 2027, and 17% in 2028.
He detailed that for small and medium-sized enterprises, it will decrease to 15% on the first 50,000 euros of reported profit in 2026.
“These decisions, along with the overall reduction in personal income tax (IRS), the IRS Jovem scheme, exemption from contributions and taxes on productivity bonuses up to 6% of the annual salary, among other fiscal measures, open a new era of fiscal attractiveness for Portugal (…) without forgetting fairness with our retirees,” he argued.
[Updated at 3:53 PM]
