The parliamentary groups of PS, Livre, and PCP voted against. BE was absent from the vote, as their sole representative, Mariana Mortágua, is participating in the humanitarian aid flotilla mission to Gaza.
The government proposes to reduce the general corporate income tax rate over the next three years, aiming for a rate of 17% by 2028. The initiative suggests a decrease from the current rate of 20% to 19% next year, 18% in 2027, and 17% from 2028 onward.
During the debate over the proposal on Thursday, Finance Minister Joaquim Miranda Sarmento described the tax reduction as a “strategic choice” for the country, intended not only to promote growth and wages but also to enhance “social cohesion.”
“This proposal is not just a technical amendment to the corporate tax code. It is a political statement, a strategic choice, and a decisive step toward building a more competitive, fair, and future-ready economy,” stated the minister.
Besides the reduction of the general rate, the initiative includes a decrease in the rate applied to the first portion of profits for small or medium-sized enterprises and small mid-cap companies, to 15% starting in 2026.
Currently, the rate applied to the first 50,000 euros of taxable income for SMEs is already lower than the general corporate tax rate, standing at 16%.
