Corporate Tax

In Portugal the standard corporate tax in 2007 is 25% with the addition of a 2.5% municipal tax making a total of 27.5%.
Companies with a turnover that is less than the limit defined in law may elect an alternative method of tax calculation that is based on the profit coefficients defined in the law.
Companies in the free trade zone of Azores and Madeira are eligible for a reduced tax rate of between 17.5% - 22.5%, depending on the type of company and the year in which the company was set up in the free trade zone.

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