The State Budget for 2022 approved the extension of the special tax regime applicable to entities licensed to operate in the Madeira Free Trade Zone until 31 December 2023 (effective as of 1 January 2022). Previously this regime would only be applicable to entities licensed until 31 December 2021.

As a result, the amendment to article 36-A of the Code of Fiscal Benefits will allow income of entities licensed to operate in the Madeira Free Trade Zone until 31 December 2023 to benefit from a number of tax incentives, until 31 December 2027, including taxation at a reduced corporate income tax rate of 5% for certain income.

For more information on this Tax Alert please contact:
[email protected]