EY Tax Guide 2018

Reinvestment relief for capital gains
• Provided certain conditions are verified, a 50% relief is available
for capital gains, inter alia, derived from the disposal of tangible
fixed assets and intangibles.
Tax losses
• Currently, tax losses can be carried forward for 5 years
(12 years small and medium-size companies).
• The use of carried forward tax losses is limited to 70%
of the annual taxable profit.
Transfer pricing
• Generally, OECD guidelines are followed, namely, on
what concerns the methods and principles underlying the
determination of arm’s length prices.
• Related parties transactions need to be duly documented.
Transfer pricing files are required when the taxpayer has
obtained – in the previous year – a total revenue exceeding €3
million.
• Portugal has already implemented the country-by-country
reporting.
• Tax losses may be forfeited upon change of control.
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