The regime of the International Business Centre of Madeira, a key tool in the economic development of the region, has suffered some alterations.
The IBCM consists of a group of incentives, namely of fiscal nature and encompasses three areas: the Industrial Free Trade Zone, the Madeira International Shipping Registry and the International Services (http://www.ibc-madeira.com).
In the amending proposal for the State Budget for 2013, the Portuguese Government announced alterations to the Tax Benefits Statute increasing the ceilings allowing for companies with headquarters at the MIBC to benefit from the reduced rate of 5% on Corporate Income Tax (CIT).
However, it should be noted that the reduced rate of 5% foreseen for the licensed companies operating within the ambit of the IBCM is applicable up to a ceiling placed upon the annual taxable income which varies according to the number of jobs created.
According to the current increased ceilings, companies which create up to two job positions benefit from a reduced rate of 5% up to a ceiling of €2.73 million. Any other numbers which exceed this value will fall under the normal regime of tax benefits currently in force.
Companies which create between three and five jobs benefit from a reduced tax rate of 5% up to a ceiling of €3.55 million and others that create between six and 30 jobs benefit from the mentioned rate up to a ceiling of €21.87 million; between 31 and 50 jobs the ceiling increased to €35.54 whilst those that create between 51 and 100 jobs have an increased ceiling of €54.68 million.
Lastly, companies that create over 100 jobs have a reduced tax rate applicable to the recently increased ceiling of €205.50 million.
