The reduction in the general IRC rate from 20% to 19% in 2026 was approved today in parliament in the final global vote, with votes in favor of PSD, CDS-PP, Chega, IL, PAN and JPP.
PS, Livre, PCP and BE voted against.
The new rate provided for in the diploma will apply to the income that companies obtain in 2026.
In addition to reducing the rate from the current 20% to 19% next year, the diploma establishes a reduction in the rate in the following two years. The rate will increase to 18% in 2027 and to 17% from 2028.
In addition to the reduction in the general rate, there will be a reduction in the rate that applies to the first slice of profits of small or medium-sized companies and small mid-cap companies.
At the moment, the rate that applies to the first 50,000 euros of SME taxable income is already lower than the general IRC rate, standing at 16%. From next year, it will be 15%.
To become a reality, the decree of the Assembly of the Republic will still have to be promulgated by the President of the Republic and published in the Official Gazette.
During the debate on the initiative in general, on September 19, the Minister of Finance, Joaquim Miranda Sarmento, considered the reduction a “strategic choice” for the country, not only to promote growth and wages, but also “social cohesion”.
The IRC reduction, which began in the 2025 tax period, with a reduction in the general rate from 21% to 20%, will have an impact on next year’s public accounts.
In the State Budget proposal report for 2026, the Government says that reducing the rate by one percentage point would imply a loss of revenue of 300 million euros.