25.05.2023 ITR (International Tax Review)

Opinion article by Mariana Morais Teixeira | "Portuguese tax incentive to the capitalisation of companies"

Mariana Morais Teixeira signs the opinion article entitled "Portuguese tax incentive to the capitalisation of companies", published in the digital edition of 23 May 2023 of ITR (International Tax Review).

The Lawyer overviews Portugal’s new tax incentive regime designed to boost the country’s capital-depleted private sector.

« The State Budget Law for 2023 introduced a new Incentive to the Capitalization of Companies (ICE), replacing and reshaping two incentives with similar scope, establishing a new tax deduction for Portuguese companies financed via equity. Some changes to the incentive were published very recently (Law 20/2023, May 17), and we will address them below.

The ICE aims to anticipate, at least in part, the adoption of the proposal for a Directive on laying down rules on a debt-equity bias reduction allowance (DEBRA). Currently, the ICE is not accompanied by any additional limitation on the deduction of financing costs, beyond the thin capitalisation regime in force. […]».

Click here to read the article.