What is the standard Portugal IRC rate?

The standard corporate income tax (IRC) rate in Portugal is 21% on taxable income for companies resident in Portugal and for permanent establishments of non-resident entities.

What is the SME reduced IRC rate?

Small and medium enterprises (SMEs) pay a reduced IRC rate of 17% on the first €50,000 of taxable income. Income above €50,000 is taxed at the standard 21%. A company qualifies as an SME if it meets at least two of: turnover ≤ €50M, balance sheet total ≤ €43M, and employees ≤ 250.

What is Derrama Municipal?

Derrama Municipal is a municipal surtax applied on top of IRC. Each municipality sets its own rate up to a maximum of 1.5% of taxable income. Not all municipalities levy the full 1.5% — some charge less or nothing. Check with your local municipality for the exact rate.

Is there a state surtax (Derrama Estadual) in Portugal?

Yes, companies with taxable income above €1.5 million are also subject to Derrama Estadual (state surtax): 3% on income between €1.5M and €7.5M, 5% on income between €7.5M and €35M, and 9% on income exceeding €35M. This tool focuses on the standard IRC and municipal surtax for typical SME and mid-size companies.

Does this calculator cover the Autonomous Regions?

No. The Azores and Madeira apply reduced regional IRC rates (currently 16.8% and 14.7% respectively for the standard rate). This tool uses mainland Portugal rates only.

Is taxable income the same as accounting profit?

Not necessarily. Taxable income is accounting profit adjusted per the Portuguese Tax Code (CIRC) — adding back non-deductible expenses and applying specific deductions. Enter your CIRC-adjusted figure for an accurate IRC estimate.

Portugal Corporate Tax Calculator

Enter taxable income and company type to calculate Portugal IRC tax, including the 17% SME reduced rate and municipal surtax.

Company Details

Taxable Income (EUR)

€

Company Type

SME — 17% / 21% 17% on first €50,000; 21% on remainder. Turnover ≤ €50M, employees ≤ 250.

Standard Company — 21% Flat 21% on all taxable income. Large companies and non-qualifying entities.

Municipal Surtax (Derrama Municipal)

Maximum 1.5%. Varies by municipality — use 0% if your municipality does not levy it.

Enter your taxable income and click Calculate Tax to see results.

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Summary

Portugal levies corporate income tax (Imposto sobre o Rendimento das Pessoas Coletivas, or IRC) on companies resident in Portugal and on non-resident entities with a permanent establishment. The standard IRC rate is 21%. Small and medium enterprises (SMEs) with taxable income up to €50,000 benefit from a reduced rate of 17% on that portion, with the remainder taxed at 21%. On top of IRC, municipalities can apply a Derrama Municipal surtax of up to 1.5% on taxable income. This tool calculates the combined tax liability so companies can estimate their total IRC burden.

How it works

Enter your company's taxable income for the fiscal year in euros.
Select whether your company qualifies as an SME (turnover ≤ €50M, balance sheet ≤ €43M, employees ≤ 250).
Set the applicable municipal surtax rate (0% to 1.5%) for your municipality.
The calculator applies 17% IRC on the first €50,000 of income for SMEs and 21% on the remainder.
Municipal surtax is added to the IRC base to compute total tax due.
Results show IRC, surtax, total tax, after-tax profit, and effective rate.

Use cases

Estimate annual IRC liability before filing the Modelo 22 return.
Compare tax burden between SME and standard company status.
Model the impact of municipal surtax rates across different municipalities.
Plan profit distributions and retained earnings for cash-flow purposes.
Prepare financial projections for investors or lenders.
Verify AT (Autoridade Tributária) tax assessments for straightforward income scenarios.
Assess the benefit of qualifying as an SME for reduced IRC rates.

Frequently Asked Questions

Last updated: 2026-06-19 · Reviewed by Nham Vu