Parliament approved today, specifically, the Government’s proposed law to reduce the IRC rate to 19% in 2026 and for taxation to continue to fall in the following two years, until it reaches 17% in 2028.
In the Budget, Finance and Public Administration Commission (COFAP), the reduction in general rates was approved with the votes of PSD, CDS-PP and Chega. The PS voted against.
In the diploma, the Government proposes to parliament to reduce the general IRC rate over the next three years, until it reaches 17% in 2028, foreseeing a reduction in the rate from the current 20% to 19% next year, to 18% in 2027 and to 17% from 2028 onwards.
In addition to the reduction in the general rate, a reduction in the rate that applies to the first slice of profits of small or medium-sized companies and small mid-cap companies was also approved in the specialty, to 15% from 2026.
At the moment, the rate that applies to the first 50,000 euros of SME taxable income is already lower than the general IRC rate, standing at 16%.
The reduction in the SME fee was voted on separately in the specialty, at the request of the PS parliamentary group. In relation to this relief, the PS abstained. The PSD, CDS-PP and Chega voted in favor of the reduction.