Minimum 15% Tax Rate for Multinationals Approved
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Loading... - Callum Mitchell
- 08 Jul 2024
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The Portuguese Government will implement a minimum taxation mechanism of 15% for multinational and national groups, as part of a package of measures approved today by the Council of Ministers. This measure is among 60 initiatives aimed at accelerating the Portuguese economy and aligns with the European Union (EU) directive on a minimum level of taxation for the profits of multinational companies and large national groups.
Minister of State and Finance Joaquim Miranda Sarmento highlighted in a press conference that the transposition of this directive "should have been done by the end of 2022" and is currently "a year and a half late." He emphasized that the government is "doing something that the Portuguese State should have already done, ensuring that multinationals pay the fair minimum value of their taxes."
The directive, which came into force on January 1st, introduces a minimum effective tax rate of 15% for large companies operating in EU member states. It applies to multinationals and large national groups with combined financial revenues of up to 750 million euros per year.
By adopting this measure, the government aims to ensure a fair taxation system for large corporations, enhancing the equity and efficiency of the tax framework in Portugal.
