CIT - General Corporate Income tax rates reduction

In brief

Law 64/2025 of 7 November, published in the Official Gazette, amends the Corporate Income Tax (CIT) Code, reducing the general CIT rates.

In detail

The reduction of the general CIT rate has been approved, as follows:

• 19%, for tax periods beginning on or after 1 January 2026;

• 18%, for tax periods beginning on or after 1 January 2027;

• 17%, for tax periods beginning on or after 1 January 2028.

SMEs and Small Mid Caps will be subject to a 15% rate on the first € 50,000 of taxable income, for tax periods beginning on or after 1 January 2026.

^{© 2025 PwC. This communication is of an informative nature and intended for general purposes only. It does not address any particular person or entity nor does it relate to any specific situation or circumstance. PricewaterhouseCoopers Tax Services TLS, Lda. We will not accept any responsibility arising from reliance on information hereby transmitted, which is not intended to be a substitute for specific professional business advice.}