The government will propose to social partners on Wednesday a selective cut in the IRC for companies that promote wage increases and invest in research and development, according to the proposal to which Lusa had access.
The measures are part of the government’s proposal for a medium-term agreement to improve income, wages and competitiveness, which will be presented this afternoon during the social dialogue.
The document provides for a “selective corporate tax reduction (IRC) for companies with dynamic collective bargaining, with higher wages and smaller pay scales”.
The government also proposes a selective cut of the IRC. in front of “for companies investing in R&D [Investigação e Desenvolvimento]strengthening the conditions of the corporate research and development tax incentive scheme (SIFIDE II) in the direct investment component”.
In the proposal discussed in the Social Dialogue, the government is moving towards creating the Entrepreneurial Capitalization Incentive (ICE), “aggregation of Retained and Reinvested Earnings Deduction (DLRR) and Conventional Capital Remuneration (RCSS)”.
At the same time, it proposes to simplify tax incentives for capitalization and investment through the “elimination of redundancies and limitations inherent in the current existing instruments” and to improve the investment aid tax regime (RFAI).
It is also proposed to reformulate the system of declaration and deduction of tax losses with a view to simplifying it.
This proposal for a medium-term agreement on income, wages and competitiveness does not take into account a cross-cutting reduction of the IRC rate (currently at 21%, to which the state and municipal surcharges are also added).
On September 18, the Economy Minister, António Costa Silva, spoke out in favor of a cross-cutting cut of the IRC rate, as it would be “favourable”.
After these statements, and when asked about tax changes that could be included in the OE2023, the Minister of Finance, Fernando Medina, referred the matter to the negotiations with the social partners, in the framework of the Agreement on Income and Competitiveness, noting that, “on this matter, of the IRC, the government, like all other matters of the agreement, has a vote”, reserving itself “to speak on the matter at the end of negotiations”.
Source: DN
