|International Tax Rules||30||59.94|
Portugal ranks 33rd overall on the 2019 International Tax Competitiveness Index, one place better than in 2018.
- Corporations can deduct their property taxes from their taxable income.
- Portugal has a territorial tax system, exempting foreign dividend and capital gains income for most countries.
- Portugal provides above-average capital cost write-offs for investments in machinery.
- Portugal has a high corporate tax rate of 31.5 percent.
- Companies are severely limited in the amount of net operating losses they can use to offset future profits and are unable to use losses to reduce past taxable income.
- The VAT of 23 percent applies to less than half of the potential tax base.