Entrepreneurship incentives for 2017

22 December, 2016

After the approval of the State Budget for 2017 and at a time when the promulgation of the diploma by the President of the Republic is pending, we recall what is expected in terms of incentives for entrepreneurship, especially the Seed Program.

According to Augusto Paulino, Head of Tax of Your Group and Partner of Your Advisory, the new State Budget is meager, however there are measures that may be considered less friendly to the attraction of investment and fiscal competitiveness.

However, Your Group indicates some tax changes for 2017 that have an impact on companies.

For entrepreneurs, the Seed Program stands out – it is an incentive to entrepreneurship and IRS level (deduction of 25% of investments in startups), and also a way for small businesses to attract individual investors. It is applicable to companies with a maximum number of 20 employees and whose value of immovable property held does not exceed 20 thousand euros.

Another important issue for entrepreneurs is the reduction of the special payment on account – reduction of the minimum limit of special payment on account for companies, from one thousand euros to 850 euros.

Benefit to the companies of the interior – the small and medium companies that settle in the interior once again have benefits, materializing in the reduction of the IRC rate to 12.5% ​​for the first 15 thousand euros of taxable income.

For all companies there are also tax benefits – various tax benefits are extended to 2017, such as the IRC benefit to job creation for young people and the long-term unemployed, and The doubling of the ceiling (from 5 to 10 million euros) of eligible expenses for the IRC collection deduction.

Benefits to the capitalization of companies – the conventional remuneration scheme for the share capital is extended to most companies (so far large companies have been excluded). The annual deduction applicable to the determination of taxable income goes from 5% to 7% of the amount of capital injections made up to EUR 2 million, is also applicable for 6 years (before 4 years) and is limited to 25% of EBITDA (before 30 %).

Source: Jornal Económico

Author: Fernanda Pedro

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