2024 State Budget: Main Measures for Companies

The State Budget for 2024 presents a set of significant measures aimed at supporting and stimulating the business sector in Portugal.
In this article, we have compiled the main measures that directly affect Portuguese companies. Discover more on this article.

1. Reduction of the IRC Rate for Startups

Startups benefit from a reduced IRC rate of 12.5% applied to the first €50,000 of taxable income, in contrast to the regular rate of 17%. This measure aims to encourage entrepreneurship and support innovative and high-growth companies.

2. Tax Incentive for Salary Enhancement

Companies that increase their workers’ salaries by at least 5% can benefit from a 50% increase in salary charges, in addition to being able to award bonuses of up to €4,100 exempt from IRS and TSU. This incentive seeks to promote the improvement of salary conditions in the private sector.

3. Tax Benefits for Skilled Workers

Expenses on electricity and gas by companies will increase by 20%, except for those whose main business is the production or distribution of energy.

4. Increased Energy Spending

Expenses on electricity and gas by companies will increase by 20%, except for those whose main business is the production or distribution of energy. This support aims to alleviate the impact of energy costs on business operations.

5. Incentive for Merchandise Fleet Renewal

IRC exemption is foreseen for the renewal of the fleet of goods, provided that the value obtained from the sale of old vehicles is reinvested in new vehicles until 2025. This measure aims to modernize the fleet and reduce the environmental footprint.

6. Support for workers’ housing

Companies that provide housing to their employees will have their rent expenses exempt from IRS and Social Security contributions until 2026. This incentive seeks to improve the quality of life of workers and attract talent.

7. Extinction of Taxes on Extraordinary Profits

Taxes on extraordinary profits in the energy and food retail sectors will be abolished, justified by the current socio-economic context.

8. Incentives for company capitalisation

There will be an increase in the tax incentive for companies investing with equity, including a new variable rate linked to Euribor for the next seven years.

These measures aim to stimulate economic growth, promote innovation and improve labour and investment conditions in Portugal. Companies should be aware of the new opportunities and adjust their strategies to maximise the tax benefits and incentives offered by the State Budget 2024.