ICE – Encouraging company Capitalisation

Tax Benefits

ICE – Incentive for the Capitalisation of Companies stimulates and facilitates the capitalisation of companies through the deduction from taxable profit of eligible net increases in equity.

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Benefit Status

Open

Benefit

Deduction from Taxable income

Territory

Mainland Portugal

Eligible Entities

Commercial SMEs
Industrial SMEs
Agricultural SMEs

ICE – Encouraging company Capitalisation

Tax Benefits

ICE – Incentive for the Capitalisation of Companies stimulates and facilitates the capitalisation of companies through the deduction from taxable profit of eligible net increases in equity.

Download the Infosheet

Benefit Status

Open

Benefit

Deduction from Taxable income

Territory

Mainland Portugal

Eligible Entities

Commercial SMEs
Industrial SMEs
Agricultural SMEs

Incentive Conditions

Areas of Intervention

The ICE – Incentive for the Capitalisation of Companies stimulates and facilitates the capitalisation of companies through the deduction from taxable profit in the context of eligible net increases in equity.

Beneficiary Entities

IRC taxable persons who carry out commercial, industrial or agricultural activities as their main activity:
Commercial or civil companies in commercial form;
Co-operatives;
Public companies;
Other legal persons governed by public or private law with registered offices or effective management in Portugal.

Eligible Transactions

Eligible increases in equity resulting from:
- Contributions made in cash as part of the incorporation of companies or an increase in the beneficiary company’s share capital;
- Contributions in kind made as part of a share capital increase corresponding to the conversion of credits into capital;
- Share premiums;
- Appropriation of distributable accounting profits, in accordance with commercial legislation, to retained earnings or directly to reserves or capital increases.
Net increases in eligible equity, the difference, positive or negative, between:
- Increases in eligible equity;
- Outflows, in cash or in kind, in favour of the owners of the capital, by way of capital reduction or sharing of assets, and distributions from reserves or retained earnings.

Incentives

The deduction from taxable income is limited, in each tax period, to the higher of the following limits:
- €4,000,000; or
- 30% of the result before depreciation, amortisation, net financing costs and taxes, under the terms of article 67 of the IRC Code.
The part of the deduction that exceeds 30 per cent is deductible in determining the taxable profit of one or more of the five subsequent tax periods, after the deduction for that same period, not exceeding the limits laid down.

Incentive Conditions

The ICE – Incentive for the Capitalisation of Companies stimulates and facilitates the capitalisation of companies through the deduction from taxable profit in the context of eligible net increases in equity.

Location

Mainland Portugal.

Beneficiary Entities

IRC taxable persons who carry out commercial, industrial or agricultural activities as their main activity:
Commercial or civil companies in commercial form;
Co-operatives;
Public companies;
Other legal persons governed by public or private law with registered offices or effective management in Portugal.

Eligible Transactions

Eligible increases in equity resulting from:
Contributions made in cash as part of the incorporation of companies or an increase in the beneficiary company’s share capital;
Contributions in kind made as part of a share capital increase corresponding to the conversion of credits into capital;
Share premiums;
Appropriation of distributable accounting profits, in accordance with commercial legislation, to retained earnings or directly to reserves or capital increases.
Net increases in eligible equity, the difference, positive or negative, between:
Increases in eligible equity;
Outflows, in cash or in kind, in favour of the owners of the capital, by way of capital reduction or sharing of assets, and distributions from reserves or retained earnings.

Incentives

The deduction from taxable income is limited, in each tax period, to the higher of the following limits:
€4,000,000; or
30% of the result before depreciation, amortisation, net financing costs and taxes, under the terms of article 67 of the IRC Code.
The part of the deduction that exceeds 30 per cent is deductible in determining the taxable profit of one or more of the five subsequent tax periods, after the deduction for that same period, not exceeding the limits laid down.

Other Grants