Corporation Tax is charged on profts made by corporate entities at a rate of 21%. In addition these corporate entities may have to pay a municipal surcharge of up to 1.5% depending on the area they are located in. The rate of corporation tax in the Azores is 16.8 %.

Companies in Portugal present their accounts on a calendar year basis unless they request to present them on a different time period. This request will automatically be given if the company is part of a group of companies which present their accounts on a date which is different from the 31 December.

In addition to the basic tax rates tax is also charged on certain types of expenses presented by the entity.

• Passenger Motor Vehicle  costs including depreciation, rental, repairs, insurance, car tax, tolls and fuel. The level of taxation depends on the cost of the motor vehicle and whether the company is incurring tax losses.
• Entertaining Costs are taxed at the rate of 10%.
• Undocumented expenses are taxed at a rate of 50 percent. This amount is increased to 70 percent if the entity does not have a commercial, industrial or agricultural activity.