IRC reduction in Portugal's 2025 state budget

&amp;NewLine;<p><br>IRC and businesses are at the heart of Portugal's new state budget proposal for 2025&amp;period; This budget focuses on young people&amp;comma; families and pensioners&amp;comma; while incorporating specific measures to ease the tax burden on businesses&amp;comma; particularly small and medium-sized enterprises &amp;lpar;<a href&equals;"https&colon;&sol;&sol;vivreauportugalconsulting&period;com&sol;enregistrer-societe-portugal-online&sol;" data-type&equals;"page" data-id&equals;"9645">SMES<&sol;a>The proposed tax adjustments are designed to encourage capitalization and support growth in the entrepreneurial sector&amp;period;<&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<h2 class&equals;"wp-block-heading">IRC reduction and SME measures in Portugal's 2025 state budget<&sol;h2>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>The draft budget&amp;comma; always eagerly awaited by businesses&amp;comma; this year proposes some interesting&amp;comma; albeit limited&amp;comma; initiatives to improve their financial situation&amp;period; Here are the main measures that will affect SMEs &amp;colon;<&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p><strong>1&amp;period;&amp;Tab;IRC reduction for SMEs &amp;colon;<&sol;strong> The general corporate income tax rate has been lowered from 21 to 20 per cent, and for SMEs and small mid-caps from 17 to 16 per cent, with the taxable income ceiling raised from 25,000 to 50,000 euros;<br><strong>2&amp;period;&amp;Tab;Salary enhancement incentives &amp;colon;<&sol;strong> Salary increases will be increased to 200&amp;percnt; in IRC&amp;comma; with a ceiling of 4,350 euros&amp;comma; to encourage employers to raise their employees' salaries&amp;period;<br><strong>3&amp;period;&amp;Tab;Increased health insurance expenses &amp;colon;<&sol;strong> Health insurance expenses for employees and their families will be increased by 20&amp;percnt; for IRC&amp;comma purposes; encouraging companies to offer better social protection&amp;period;<br><strong>4&amp;period;&amp;Tab;IRS exemption on 15th month &amp;colon; <&sol;strong>Productivity bonuses and other bonuses&amp;comma; up to 6&amp;percnt; of the annual base salary&amp;comma; will be exempt from income tax &amp;lpar;<a href&equals;"https&colon;&sol;&sol;www&period;portaldasfinancas&period;gov&period;pt&sol;at&sol;html&sol;index&period;html" target&equals;"&lowbar;blank" data-type&equals;"link" data-id&equals;"https&colon;&sol;&sol;www&period;portaldasfinancas&period;gov&period;pt&sol;at&sol;html&sol;index&period;html" rel&equals;"noreferrer noopener">IRS<&sol;a>&amp;rpar; if wages have increased by at least 4&amp;comma;7&amp;percnt;&amp;period;<br><strong>5&amp;period;&amp;Tab;Reduction of autonomous tax rates &amp;colon;<&sol;strong> Autonomous tax rates for vehicles will be reduced by 0&amp;comma;5 points&amp;period; For cars up to 37,500 euros&amp;comma; the rate will be 8&amp;percnt;&amp;comma; 25&amp;percnt; for those between 37,500 and 45,000 euros&amp;comma; and 32&amp;percnt; for vehicles over 45,000 euros&amp;period;<br><strong>6&amp;period;&amp;Tab;Incentives for company capitalization &amp;colon; <&sol;strong>Companies that increase their equity will be able to deduct an amount equivalent to the Euribor rate plus 2 points from their taxable income&amp;period;<br><strong>7&amp;period;&amp;Tab;National minimum wage increase &amp;colon;<&sol;strong> The national minimum wage will rise to 870 euros in 2025&amp;comma; with a target of 1,020 euros by 2028&amp;comma; an increase of 6&amp;comma;1&amp;percnt; compared with 2024&amp;period;<br><&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>Finally, on the economic front, the budget proposal forecasts sustained growth for the Portuguese economy, accelerating to 2&amp;comma;1&amp;percnt; in 2025&amp;comma; above the eurozone average&amp;comma; forecast at 1&amp;comma;3&amp;percnt;&amp;period; This dynamism is underpinned by growing domestic demand and private consumption&amp;period;<&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>These measures testify to our determination to support SMEs while maintaining a fiscal framework favorable to investment and economic growth in Portugal&amp;period;<&sol;p>&amp;NewLine;