Aiming to promote tax competitiveness with other legal systems of the European Union, and thus create the appropriate conditions for the development of the start-up and scaleup ecosystem in Portugal, Law no. 21/2023 was published today, which introduced tax incentives for stock options plans created by micro, small or medium-sized entities or small or mid-cap entities operating in the field of innovation.
The main measures introduced by this diploma are:
- Taxation of shares acquired under the stock options plan only at the time of the sale;
- Exemption from taxation of 50% of the income derived from the sale of the share and taxation at a flat rate of 28%;
- Exit tax in case of termination of the tax residency in Portugal of the individual (thus being treated as a disposal of shares);
- Taxation of the free transfer of the shares acquired as a gain;
- The entity may be held subsidiary liable for tax due as a result of a subsequent ascertainment of the non-application of the regime by the Portuguese Tax Authorities, if it has confirmed its applicability to the beneficiary or not responded to a clarification request within 90 days;
- Shareholders with at least 20% of equity or voting rights and members of the governing body are excluded from this regime, except if the entity was qualified as a micro, small or medium-sized entity in the year prior to the creation of the stock options plan
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