OE2026: CCP proposes 15% IRC for SMEs up to the first 100 thousand euros of profit

The Portuguese Confederation of Commerce and Services (CCP) today proposed to the Government to reduce the corporate income tax rate for small and medium-sized enterprises (SMEs) to 15% up to the first 100 thousand euros of profit.

The suggestion is part of the set of proposals sent to the executive within the scope of the State Budget for 2026 (OE2026), especially in the fiscal area, which were delivered today by hand by the president of the CCP, João Vieira Lopes, at the social concertation meeting.

The meeting was attended by the Minister of Labor and the Minister of Finance, to discuss the general lines of the OE2026 proposal, which will be submitted to parliament on October 10.

Regarding corporate income tax (IRC), the first slice of SME profits already has a different rate compared to the general corporate income tax rate and the Government proposed to Parliament that, from 2026, taxation be reduced from 16% to 15%, but only up to the first 50 thousand euros of the taxable amount.

The CCP now proposes that this tax be applied to up to the first €100,000, doubling the profit threshold that benefits from a reduced rate. Above this threshold, companies are taxed at the standard rate.

The confederation also wants the Government to propose to Parliament an amendment to the Corporate Income Tax Code to further reduce the autonomous taxes paid by companies on expenses incurred with automobiles.

The CCP notes that, last year, despite the brackets having been updated, the reduction in rates was “only 0.5% percentage points”, and is now proposing an additional reduction.

For vehicles with a purchase price of less than €37,500, the rate is proposed to be reduced from 8.5% to 7.2%, a cut of 0.8 percentage points. For vehicles purchased between €37,500 and €45,000, the rate is proposed to be reduced from 25% to 22.5%, a decrease of 2.5 percentage points. For vehicles with a purchase price of €45,000 or more, the rate is proposed to be reduced from 32% to 28.8%, a decrease of 3.2 percentage points.

Regarding plug-in hybrid light passenger vehicles, he argues that they should fall, in each bracket, to 2.25%, 6.75% and 13.5%.

On the other hand, the confederation led by João Vieira Lopes also proposes that, when companies are called by the Tax and Customs Authority (AT) to prove the return of VAT, the suspension of the refund will have a time limit.

In cases where proof of reimbursement is required and with the rules for suspending the inspection procedure period (designed for subsequent verification of compliance with tax obligations), the reimbursement is suspended for an indefinite period.

“As inspection procedures can legally last one year and be suspended for another 12 months, the taxpayer can go at least 24 months without refunds, and, if he is an exporter, he may be relegated to a situation of insolvency, and the subsequent payment of compensatory interest does not reverse the situation to which he was “condemned” by the lack of a decision of the inspection”, justifies the CCP.

To avoid this, the confederation proposes that the VAT Code should provide for a maximum limit of six months for the tax authorities to assess the legitimacy of the amount to be refunded, counting “from the submission of the periodic declaration”.

Regarding the regime to encourage the capitalization of companies, the CCP argues that the regime has a formulation that, apparently, contradicts the purpose it seeks to achieve”, and therefore proposes “its conversion into a tax deduction without depending on the “decapitalization” of the company or the sale of the stake”.

Regarding the IMI surcharge, the CCP wants the rate to apply only to taxable property values ​​of €1.2 million, instead of €600,000, for both individuals and companies. In the case of properties owned by companies, the rates vary depending on the value of the property, and therefore, the confederation proposes adjusting the different thresholds that determine the rate to be applied to legal entities.