Portugal: Hotels, restaurants exempt from corporate tax on account for now

Portugal’s prime minister, António Costa, said that the accommodation and catering sectors will be exempt from payment on account of Corporate Income Tax (IRC) until December and will not have to show a drop in turnover of more than 40%.

Costa specified the scope of this government measure, integrated into the Economic and Social Stabilisation Programme, during an interview he gave to TVI on Thursday by journalists José Alberto Carvalho and Sérgio Figueiredo.

Asked about specific measures for tourism, Costa said that the Economic and Social Stabilisation Programme, approved on Thursday in the cabinet meeting, some exceptional measures for this sector.

“In the payment on account of IRC, which will vary according to the invoicing margin, for the whole accommodation and catering sector the exemption of payment is total. The exemption is total regardless of whether they are showing the breakdown of invoicing,” Costa said.

According to him, companies in the accommodation and catering sector are immediately treated as companies that show a drop in invoicing of more than 40%.

This measure will be included in the Supplementary Budget that the government intends to present on Tuesday and will be debated in parliament on 19 June.