Taxation in Portugal

Taxation

An aspect of fiscal policy
Policies Government revenue Tax revenue Non-tax revenue Tax law Tax bracket Tax threshold Exemption Credit Deduction Tax shift Tax cut Tax holiday Tax advantage Tax incentive Tax reform Tax harmonization Tax competition Double taxation Representation Unions Medical savings account Tax, tariff and trade
Economics Price effect Excess burden Tax incidence Laffer curve Optimal tax Theory Optimal capital income taxation
Collection Revenue service Revenue stamp Tax assessment Taxable income Tax lien Tax refund Tax shield Tax residence Tax preparation Tax investigation Tax shelter Private tax collection Tax farming
Noncompliance Tax avoidance Tax evasion Tax resistance Tax haven Smuggling Black market Transfer mispricing Unreported employment Tax shelter
Distribution Tax rate Progressive Regressive Proportional
Types Direct Indirect Per unit Ad valorem In rem Capital gains Carbon Consumption Dividend Ecotax Excise Fuel Georgist Gift Gross receipts Income Inheritance (estate) Land value Payroll Pigovian Property Sales Sin Single Stamp Steering Turnover Value-added (VAT) Corporate profit Excess profits Windfall profits Negative (income) Flat Wealth
International Financial transaction tax Currency transaction tax Tobin tax Spahn tax Tax equalization Tax treaty Permanent establishment Transfer pricing European Union FTT
Trade Custom Duty Tariff Import Export Tariff war Free trade Free trade zone Trade agreement
Religious Church tax Eight per thousand Teind Tithe Fiscus Judaicus Leibzoll Temple tax Tolerance tax Jizya Kharaj Khums Nisab Zakat
By country List of countries by tax rates Tax revenues as %GDP Albania Algeria Argentina Australia Azerbaijan Bangladesh Bhutan Bulgaria Canada China Colombia France Germany Greece Iceland India Indonesia Iran Ireland Israel Italy Japan Kazakhstan Lithuania Malta Namibia Netherlands New Zealand Norway Pakistan Palestinian territories Peru Philippines Poland Russia Singapore South Africa Sweden Switzerland Tanzania United Kingdom United States Uruguay

Taxes in Portugal is levied by both the federal and the regional governments. Tax revenue in Portugal stood at 32.5% of GDP in 2013^[1] Most important revenue sources, include the income tax, Social security contributions, corporate tax and the value added tax, which are all applied on the federal level.

Employment income earned in subject to a progressive income tax, which apply to all who are in the workforce. Furthermore, a long list of tax allowances can be deducted, including a general deduction, health expenses, life and health insurance and education expenses. Furthermore, an extraordinary tax of 3.5% is also being applied in 2015 on to all employment and state pension income over €6,790. Currently, for year 2014, the personal income taxation system is as follows:^[2]^[3]

Taxable income	Tax on this income
Up to €7,000	14.5%
€7,001 and €20,000	28.5%
€20,001 and €40,000	37%
€40,001 and €80,000	45%
Over €80,000	48%

The corporate tax rate in Portugal is 23%^[4] It was lowered by 2% down from 25% in 2014, as a part of a tax reform. Some corporate enterprises are exempted from corporation tax, e.g. charitable foundations, Church institutions, and sports clubs.

Three different VAT rates apply. General rate of 23%. Furthermore, two reduced rates apply of a rate of 13% for ordinary wine, spring, mineral, medicinal and carbonated water,tickets for cultural events. And a further reduced rate of 6% apply on cereals, meat, shellfish, fruit, and vegetables, other essential foods, books and newspapers, medicines, passenger transport and hotel accommodation.^[5] Furthermore, the Azores have lower VAT rates, that instead apply on the rates 18%, 10% and 5%.^[6] A business with a turnover of less than 10,000 Euro a year is exempt from VAT.

All employment income is subject to social security contributions. The employee's contribution is 11% of the salary. The employer's contribution is 23.75% of the salary.^[7] There is no income ceiling. The contribution covers pension, unemployment, health and care insurance.

References

↑ "OECD". Portugal tax revenue GDP.
↑ "KPMG". Income tax in Portugal. Retrieved 22 April 2016.
↑ http://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/portugal/index_en.htm
↑ "KPMG". Corporate tax in portugal rate.
↑ "KPMG". Vat rates in portugal.
↑ "Meridian". New VAT rates on the Azores.
↑ "KPMG". Social Security rates in Portugal.

Taxation in Europe

Sovereign states	Albania Andorra Armenia Austria Azerbaijan Belarus Belgium Bosnia and Herzegovina Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Georgia Germany Greece Hungary Iceland Ireland Italy Kazakhstan Latvia Liechtenstein Lithuania Luxembourg Macedonia Malta Moldova Monaco Montenegro Netherlands Norway Poland Portugal Romania Russia San Marino Serbia Slovakia Slovenia Spain Sweden Switzerland Turkey Ukraine United Kingdom

States with limited recognition	Abkhazia Kosovo Nagorno-Karabakh Republic Northern Cyprus South Ossetia Transnistria

Dependencies and other territories	Åland Faroe Islands Gibraltar Guernsey Jersey Isle of Man Svalbard

Other entities	European Union

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