Company tax 0%-5% until 2020 * No taxation on dividends or interests * Company incorporation 2 weeks * Share Capital Lda: 5.000 € * EU VAT No. * VAT 16%.
Company tax 17% * No taxation on dividends or interests * Company incorporation within one day * Share capital Pte. Ltd: 1 S$ * VAT 7% * Further incentives and tax benefits.
Company tax 5% after tax refund * No taxation on dividends or interests * Company incorporation within one day * Share capital Ltd: 1.250 €, minimum 250 € * EU VAT No. * VAT 18%.
Company tax below 13% * Company incorporation within a few days * Share capital GmbH: 20.000 CHF * VAT 8% * Further incentives and tax benefits.
Taxation Madeira / Portugal
The table below shows the corporation tax rates for newly established companies (new corporations) up to the year 2020. Example: Incorporation 2008: Tax rates 2008+2009 = 3%; 2010-2012 = 4%; and from 2013 onwards = 5% corporation tax per annum
| 2007-2009 | 3% |
| 2010-2012 | 4% |
| 2013-2020 | 5% |
The use of the low taxation rates requires creating a certain number of jobs in relation to the taxable income/profit.
Up to an income/profit of € 2 million, 1 to 2 jobs are required. Part-time jobs count as well as full-time jobs.
In addition it is a requirement that if no more than 5 jobs are created, a minimum amount of € 75,000.00 must be invested in the first two years.
Our fees already include the provision of 1 employee. We can also assist you in portraying the minimum investment of € 75,000.00.
| Work Places/Jobs | Reduced tax rate up to the following income/profit |
|---|---|
| 1-2 | € 2.0 million |
| 3-5 | € 2.6 million |
| 6-30 | € 16.0 million |
| 31-50 | € 26.0 million |
| 51-100 | € 40.0 million |
| above 100 | € 150.0 million |
All joint stock companies (old corporations) licensed before 31.12.2000 are totally tax-free until the end of 2011. As of 2012 they will then be taxed at 5%. At the same time the preferential tax rate will probably depend on the number of jobs created.
Holding companies
The SGPS is a special form of holding company. According to the EU parent-subsidiary directive, the holding company can receive dividends from other subsidiaries within the EU without any deduction of capital gains tax. The so-called old corporations with the legal form of SGPS benefit from total tax exemption up to and including 2011. Any other income of the holding company is taxed at the reduced tax rate of 22.5% instead of the Portuguese standard rate of 25%. No capital gains tax is charged for dividends paid by the Madeira SGPS.
Turnover Tax
A reduced turnover tax rate of 16% applies on Madeira, giving it one of the lowest rates in Europe. This is especially interesting for data services offered via the Internet in the form of downloads for example.
