Taxes in the Autonomous Region of the Azores are different from the values charged on the mainland. VAT, IRC and IRS rates are significantly lower to support the archipelago’s economy and business, boosting business competitiveness. Tax Rates in the Azores The Autonomous Regions Finance Law provides for a tax reduction of up to 30% compared to the rest of the country. Thus, Regional Legislative Decree n.º 15-A/2021/A , of 31 May, approved and published in the Diário da República, stipulates tax measures that change the rates of the main taxes, during the year 2021. IRC rates The IRC is a tax that is levied on the income of companies working in mainland Portugal and islands. Since January 2021, the corporate income tax (IRC) in the Azores archipelago has been reduced by 30% compared to the rates paid by companies on the mainland.
Thus since that date the IRC rate has stood at 16.1% in this archipelago. VAT rates As of July 1, 2021, Value Added Tax (VAT) rates will be reduced by 30% compared to Mainland rates. Therefore, the normal rate will be 16%, the intermediate rate will be situated at 9% and the reduced rate will be fixed at 4%. IRS rates As of January 2022, personal income Algeria Phone Number tax (IRS) rates will benefit from a 30% reduction compared to mainland rates, regardless of the amount of taxable income. Tax Rates In Mainland Portugal and Madeira The tax rates applied on the mainland are higher compared to the Azores archipelago and the Autonomous Region of Madeira. IRC rate Currently, in mainland Portugal, the general corporate income tax rate is 23%.
In the Autonomous Region of Madeira, the IRC rate is situated at 14.7%, except for companies that are registered with the International Business Center of Madeira (CINM), which benefit from an IRC rate of 5% or small and medium-sized companies. companies that are taxed at 11.9% on the first 25 thousand euros of taxable income. To consult situations in which other rates apply or more information on surcharges and autonomous taxation, consult the Corporate Income Tax Code . VAT rates Mainland VAT rates are as follows: Normal rate - 23% Intermediate rate - 13% Reduced rate - 6% In the Autonomous Region of Madeira, the rates are slightly lower when compared to the mainland: Normal rate - 22% Intermediate rate - 12% Reduced rate - 5% It is important to mention that there are measures foreseen in the State Budget for 2021, namely the IVAucher.