Law No. 68/2025, of 7th November amended Article 87 of the Corporate Income Tax Code. This diploma establishes a gradual reduction of the general corporate income tax rate by 1 percentage point per year until 2028.

Currently set at 20%, the general corporate income tax rate will be reduced according to the following schedule:

• From 1 January 2026: 19%
• From 1 January 2027: 18%
• From 1 January 2028: 17%

The law also provides that, for Small and Medium-sized Enterprises (SMEs) and Small Mid-Cap companies, the rate applicable to the first €50.000 of taxable income will be 15% as from 2026.

For more information on this matter, please do not hesitate to contact the Tax Law Department of Ana Bruno & Associados, Sociedade de Advogados, SP, Lda.