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Law 73/2013 of 3 September, which establishes the financial regime of the local municipalities and inter-municipal entities, stipulates that municipalities may annually decide to implement a surcharge up to a maximum limit of 1.5% on taxable profit, subject to and not exempt from corporate income tax.

A reduced Municipal Surcharge rate can be applied for companies with a turnover of less than €150,000 during the previous taxation period.


What is Municipal Surcharg?

The Municipal Surcharge applies to taxable profit before deduction of reportable tax losses. In the municipalities of Lisbon and Oporto, the Municipal Surcharge rate is 1.5%, and taxpayers whose turnover during the previous year did not exceed €150,000 are exempt.

To find out more about the fees applicable in other municipalities of the country and any reductions and/or exemptions, please contact us.

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