Introdution:
This is an investment incentive which comprises an IRC (Profit Tax) reduction up to 25% on the ammount of investment in 2022. It’s only applicable to profit oriented Companies (not applicable to NGOs, associations or sole traders) using the General Profit Tax Regime (not applicable to Simplified Regime). It’s application is direct, on 2022 IRC Model 22 submission in 2023.
Who can benefit:
- IRC Profit Tax subject companies
- No Debt to Tax Office
- Not possible to cease working contracts from 1st July 2022 to 30th June 2025
- Not possible to distribute profits / dividends from 1st July 2022 to 30th June 2025
- Investments must be kept on company for, at least, 5 years
- Missing any of these conditions, means the refund of the incentive, adding 15% agravated interest
What’s the incentive:
- Máx. 5.000.000€ de elegible investment
- Incentive is deducted on Profit Tax to pay by year end
- 10% Incentive on eligible investment up to last 3 years average investment
- 25% Incentive on the ammount exceeding last 3 years average investment
- Max incentive is 70% of due Profit Tax, possible to be used up to 2027
Elegible Expenses:
- Tangible and Biological Assets, non consumable, bought new between 1st January and 31st December 2022
- Depreciable Intangible Assets (ex: projects, patents, brands, licences, etc)
Non Eligible Expenses:
- terrains
- passenger cars
- boats
- airplanes
- furniture
- Note: if an expense is in this list, it can be eligible if they are part of companies economic activity
What to do?
If you’ve investments which fit in this incentive, and pretend to use it, you should notify your company’s account manager on those investments, after balancing carefully the penalties if you miss the criteria in the future.
