Deduction from the taxable profit of the amount corresponding to 7% of the share capital contributions made in each tax year, up to a limit of € 2,000,000.00.
Deduction in the year in which the share capital contributions are made and in the following five tax periods.
Relevant contributions:
Deduction in the year in which the share capital contributions are made and in the following five tax periods.
Relevant contributions:
- Contributions in cash upon the incorporation of an entity or an increase in the share capital;
- Contributions in kind made as part of a share capital increase corresponding to the conversion of credits into capital, and capital increases using profits generated in the relevant tax year, provided that the registration of the capital increase is made before the filing of the tax return for the relevant tax year.
Requirements
Entities which cumulatively meet the following conditions:
- Being a commercial company or civil company under commercial form, cooperative, public company, and other collective persons of public or private law with head office or effective management in Portuguese territory;
- The taxable profit is not determined by indirect methods;
- The eligible entity does not reduce its share capital with repayment to the shareholders, either in the tax period of the relevant contributions for the Conventional Remuneration of Share Capital or in the following five years.
