At the Budget, Finance, and Public Administration Committee (COFAP), the reduction of general tax rates was approved with votes from PSD, CDS-PP, and Chega, while the PS voted against it.
In the proposal, the government suggests a reduction of the corporate income tax rate over the next three years until it reaches 17% in 2028. The plan envisages lowering the rate from the current 20% to 19% next year, to 18% in 2027, and to 17% starting from 2028.
In addition to the reduction of the general rate, a decrease in the rate applied to the first segment of profits for small or medium-sized enterprises and small-medium capitalization companies to 15% starting in 2026 was also approved in the committee stage.
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%.
The reduction for SMEs was voted on separately in the committee stage at the request of the PS parliamentary group. Regarding this tax relief, the PS abstained, while PSD, CDS-PP, and Chega voted in favor of the reduction.
