RFAI – Tax Regime to Support
Investment
Tax Benefits
The RFAI – Investment Support Tax Scheme is a tax benefit that allows companies to deduct a percentage of the investment made in non-current assets (tangible and intangible) from their taxable income.
Benefit Status
Open
Benefit
IRC Collection Deduction
Territory
Mainland Portugal
Eligible Entities
SME
Other Companies
RFAI – Tax Regime to Support
Investment
Tax Benefits
The RFAI – Investment Support Tax Scheme is a tax benefit that allows companies to deduct a percentage of the investment made in non-current assets (tangible and intangible) from their taxable income.
Benefit Status
Open
Benefit
IRC Collection Deduction
Territory
Mainland Portugal
Eligible Entities
SME
Other Companies
Incentive Conditions
- The RFAI – Investment Support Tax Scheme is a tax benefit that allows companies to deduct a percentage of the investment made in non-current assets (tangible and intangible) from their taxable income.
- Mainland Portugal.
- The RFAI is applicable to IRC taxpayers who carry out an activity under the following codes of the Portuguese Classification of Economic Activities, Revision 3 (CAE-Rev.3):
- Extractive industries – divisions 05 to 09;
- Manufacturing industries – divisions 10 to 33;
- Accommodation – division 55;
- Catering and similar – division 56;
- Publishing activities – division 58;
- Motion picture, video and television programme production activities – group 591;
- Computer programming and consultancy and related activities – division 62;
- Activities of interest to tourism – subclasses 77210, 90040, 91041, 91042, 93110, 93210, 93292, 93293 and 96040;
- Administrative and business support service activities – classes 82110 and 82910.
- Data processing, information hosting and related activities and web portals – group 631;
- Scientific research and development activities – division 72;
- Their taxable profit is not determined by indirect methods;
- Keep the assets invested in the company:
- For a minimum period of three years, in the case of SMEs;
- For five years in other cases;
- If less, during the respective minimum useful life period;
- Until the period in which it is physically scrapped, dismantled, abandoned or rendered unusable;
- They do not owe the State or social security any contributions, taxes or levies, or have duly ensured payment of these debts
- Are not considered to be companies in difficulty under the terms of the Commission communication;
- Make a significant investment that will create jobs and maintain them until the end of the minimum maintenance period for the assets being invested in.
- 1.Tangible fixed assets
- Land, except where it is used to exploit mineral concessions, natural and spring mineral waters, quarries, clay pits and sand pits in investments in the extractive industry;
- Construction, acquisition, repair and extension of any buildings, unless they are manufacturing facilities or are used for tourism, audiovisual production or administrative activities;
- Light passenger or mixed vehicles;
- Furniture and articles of comfort or decoration, except hotel equipment used for tourism;
- Social equipment;
- Other investment goods that are not used to run the company.
- A voucher with a fixed value of 10,000 euros per beneficiary company, to be used for the intended purpose, based on the Digital Transition Services Catalogue.
- Companies may use services from the Digital Transition Services Catalogue with a value greater than the voucher awarded, provided they pay the remaining amount of the services directly to the service provider.
- 2. Intangible assets
- Consisting of expenditure on technology transfer, namely through the acquisition of patent rights, licences, know-how or technical knowledge not protected by patent and salary costs, which may not exceed 50% of the relevant applications, in the case of IRC taxpayers who do not fall into the category of micro, small and medium-sized enterprises.
- Deduction from corporate income tax of the amount corresponding to 10% or 30% of the relevant investments made, depending on the region in which the investment is made, with increases for certain expenses.
- Under certain conditions, the properties used by the promoter as part of the investments that constitute relevant applications may benefit (with the approval of the Municipality) from an exemption or reduction in IMT and stamp duty (on acquisition) and an exemption or reduction in IMI, for a period of up to 10 years from the year of acquisition or construction.
- The IRC deduction is limited to 50% of the value of the IRC collection in the tax period in which the relevant investments were made and if there is insufficient collection, the deduction can be made up to the tenth following tax year, complying with the defined limit.
- Limit of 50% deduction from the taxable income per tax period, does not apply in the tax period in which the company commences its activity and in the following 2 years (except if the company is the result of a demerger).
- In the North, Centre and Alentejo Regions and the Autonomous Regions of the Azores and Madeira:
- 30% of the relevant investments, in relation to investment made up to the amount of €15,000,000; 10% of the relevant investments, in relation to investment exceeding the amount of €15,000,000.
- In the Algarve, Greater Lisbon and Setúbal Peninsula regions, the CIT deduction = 10% of relevant investments.
- In the North, Centre and Alentejo Regions and the Autonomous Regions of the Azores and Madeira:
Incentive Conditions
The RFAI is applicable to IRC taxpayers who carry out an activity under the following codes of the Portuguese Classification of Economic Activities, Revision 3 (CAE-Rev.3):
Extractive industries – divisions 05 to 09;
Manufacturing industries – divisions 10 to 33;
Accommodation – division 55;
Catering and similar – division 56;
Publishing activities – division 58;
Motion picture, video and television programme production activities – group 591;
Computer programming and consultancy and related activities – division 62;
Activities of interest to tourism – subclasses 77210, 90040, 91041, 91042, 93110, 93210, 93292, 93293 and 96040;
Administrative and business support service activities – classes 82110 and 82910.
Data processing, information hosting and related activities and web portals – group 631;
Scientific research and development activities – division 72;
Their taxable profit is not determined by indirect methods;
Keep the assets invested in the company:
For a minimum period of three years, in the case of SMEs;
For five years in other cases;
If less, during the respective minimum useful life period;
Until the period in which it is physically scrapped, dismantled, abandoned or rendered unusable;
They do not owe the State or social security any contributions, taxes or levies, or have duly ensured payment of these debts
Are not considered to be companies in difficulty under the terms of the Commission communication;
Make a significant investment that will create jobs and maintain them until the end of the minimum maintenance period for the assets being invested in.
1. Tangible fixed assets
Land, except where it is used to exploit mineral concessions, natural and spring mineral waters, quarries, clay pits and sand pits in investments in the extractive industry;
Construction, acquisition, repair and extension of any buildings, unless they are manufacturing facilities or are used for tourism, audiovisual production or administrative activities;
Light passenger or mixed vehicles;
Furniture and articles of comfort or decoration, except hotel equipment used for tourism;
Social equipment;
Other investment goods that are not used to run the company.
A voucher with a fixed value of 10,000 euros per beneficiary company, to be used for the intended purpose, based on the Digital Transition Services Catalogue.
Companies may use services from the Digital Transition Services Catalogue with a value greater than the voucher awarded, provided they pay the remaining amount of the services directly to the service provider.
2. Intangible assets
Consisting of expenditure on technology transfer, namely through the acquisition of patent rights, licences, know-how or technical knowledge not protected by patent and salary costs, which may not exceed 50% of the relevant applications, in the case of IRC taxpayers who do not fall into the category of micro, small and medium-sized enterprises.
Deduction from corporate income tax of the amount corresponding to 10% or 30% of the relevant investments made, depending on the region in which the investment is made, with increases for certain expenses.
Under certain conditions, the properties used by the promoter as part of the investments that constitute relevant applications may benefit (with the approval of the Municipality) from an exemption or reduction in IMT and stamp duty (on acquisition) and an exemption or reduction in IMI, for a period of up to 10 years from the year of acquisition or construction.
The IRC deduction is limited to 50% of the value of the IRC collection in the tax period in which the relevant investments were made and if there is insufficient collection, the deduction can be made up to the tenth following tax year, complying with the defined limit.
Limit of 50% deduction from the taxable income per tax period, does not apply in the tax period in which the company commences its activity and in the following 2 years (except if the company is the result of a demerger).
In the North, Centre and Alentejo Regions and the Autonomous Regions of the Azores and Madeira:
30% of the relevant investments, in relation to investment made up to the amount of €15,000,000; 10% of the relevant investments, in relation to investment exceeding the amount of €15,000,000.
In the Algarve, Greater Lisbon and Setúbal Peninsula regions, the CIT deduction = 10% of relevant investments.
