In the State Budget 2015, approved by the Portuguese Parliament at November 25th, are a number of aspects that can benefit businesses. “This way, the government concretizes the principle of foreseeability and fiscal stability, which is essential to ensure the effectiveness of this reform on investment promotion and attraction”, reads on document. Value presents to you a summary of some of the highlights:
Corporate Tax: this tax will be reduced from 23% to 21%. It shall also the possibility of reimbursement of this tax for taxpayers, in different condition of those provided in the system and methods of collection and reimbursement.
Green Taxation:
- Forecasts for repairing environmental damage: will be extended to all sectors of activity for tax purposes.
- Autonomous Taxation: these rates will be reduced by 10%, 27.5% and 35% to 5%, 10% and 17.5%, respectively, in the case of plug-in hybrid vehicles. For natural gas vehicles and gasoline, the rates shall be adjusted to 5%, 15% and 27.5%. These taxes will be charged according to the cost of purchasing of the vehicle.
- Rates of Depreciation (Business Income Tax): depreciation maximum rate will be 8% for wind power equipment. For solar equipment, the maximum rate will be reduced from 25% to 8%. Thus, the service life of these items will increase from 4 to 12.5 years, as in the case of wind power equipment.
- Depreciation of Vehicles: will be modified boundaries from which are accepted as tax expense depreciation of vehicles, acquired in tax periods beginning January 1st 2015 and after this date: € 62,500 for vehicles powered by energy electrical; € 50,000 for plug-in hybrid vehicles; € 37,500 for vehicles with gasoline or natural gas. For all other vehicles, the current limit of € 25,000 remains.
- Tourism Cars: there will be the possibility to deduct VAT on spend for the acquisition, construction, import, location, use, modification and repair of passenger cars electric or plug-in hybrids. Additionally, will be available a 50% deduction of input VAT on expenditure relating to tourism vehicles powered by CNG and LPG.
- Supports for the Roadway Transport: the costs incurred with the acquisition of electricity (130% of its value), CNG and LPG (at 120% of its value) for the supply of vehicles, will become deductible.
[photo credit: Ken Teegardin]
