{"id":20619,"date":"2026-03-23T09:00:40","date_gmt":"2026-03-23T08:00:40","guid":{"rendered":"https:\/\/belzuz.com\/?post_type=publicacion&#038;p=20619"},"modified":"2026-03-20T10:57:38","modified_gmt":"2026-03-20T09:57:38","slug":"simplified-corporate-income-tax-cit-regime","status":"publish","type":"publicacion","link":"https:\/\/belzuz.com\/en\/publicacion\/simplified-corporate-income-tax-cit-regime\/","title":{"rendered":"Simplified Corporate Income Tax (CIT) Regime in 2026: tax framework, applicable coefficients and when it is advantageous for service companies"},"content":{"rendered":"<h2><strong>What is the simplified CIT regime<\/strong><\/h2>\n<p>The simplified regime for determining the taxable base is set out in Article 86-A of the Portuguese Corporate Income Tax Code and constitutes an alternative to the traditional method of determining taxable profit based on accounting records.<\/p>\n<p>Under this regime, the taxable base does not derive from the profit effectively recorded in the company\u2019s accounts. Instead, the legislator presumes a certain profit margin through the application of statutory coefficients to the income earned, considering that the remaining portion corresponds to the costs inherent to the activity.<\/p>\n<p>The purpose of this model is to simplify compliance with tax obligations and reduce administrative complexity, allowing smaller companies to determine their taxable base in a more straightforward and predictable manner.<\/p>\n<p>This regime is primarily intended for companies with low-cost structures and relatively simple activities and is particularly common among small service companies.<\/p>\n<h2><strong>Eligibility requirements for the simplified regime<\/strong><\/h2>\n<p>The application of the simplified regime depends on the cumulative fulfilment of certain legal requirements.<\/p>\n<p>According to the Corporate Income Tax Code, companies may opt for this regime provided that, among others, the following conditions are met:<\/p>\n<ul>\n<li>annual turnover not exceeding EUR 200,000 in the previous tax period;<\/li>\n<li>total balance sheet not exceeding EUR 500,000;<\/li>\n<li>no obligation to appoint a statutory auditor;<\/li>\n<li>not being directly or indirectly held, by more than 20% of the share capital, by entities that do not meet the requirements for applying this regime.<\/li>\n<\/ul>\n<p>If any of these conditions cease to be met, the company automatically becomes subject to the general CIT regime, based on accounting records and the determination of actual taxable profit.<\/p>\n<h2><strong>Coefficients applicable to service activities<\/strong><\/h2>\n<p>One of the key features of the simplified regime is the application of statutory coefficients for determining the taxable base, which vary depending on the nature of the income obtained.<\/p>\n<p>In the case of service activities, namely:<\/p>\n<ul>\n<li>consultancy<\/li>\n<li>management<\/li>\n<li>commercial intermediation<\/li>\n<li>professional services in general<\/li>\n<\/ul>\n<p>a coefficient of 0.75 generally applies.<\/p>\n<p>This means that 75% of the income obtained is considered taxable for CIT purposes, assuming that only 25% of the turnover corresponds to business costs.<\/p>\n<p>In practice, this mechanism results in a simplified taxation model where tax is levied on a presumed profit margin, regardless of the company\u2019s actual cost structure.<\/p>\n<h2><strong>Tax advantages of the simplified regime<\/strong><\/h2>\n<p>The simplified regime offers several advantages, particularly from an administrative and predictability perspective.<\/p>\n<p>It significantly reduces the complexity of determining taxable profit, avoiding the need to calculate multiple tax adjustments provided for in the Corporate Income Tax Code.<\/p>\n<p>Additionally, it provides:<\/p>\n<ul>\n<li>greater simplicity in calculating the taxable base;<\/li>\n<li>reduced administrative burden in terms of tax compliance;<\/li>\n<li>increased predictability in determining the taxable amount.<\/li>\n<\/ul>\n<p>For these reasons, this regime may be particularly suitable for service companies with high operating margins and low-cost structures.<\/p>\n<h2><strong>Limitations and disadvantages<\/strong><\/h2>\n<p>Despite its advantages, the simplified regime also entails relevant limitations that must be carefully assessed.<\/p>\n<p>The main limitation lies in the fact that it does not allow the deduction of the actual expenses incurred by the company for tax purposes.<\/p>\n<p>Thus, in service activities subject to the 0.75 coefficient, it is assumed that only 25% of turnover represents costs, even where the company\u2019s actual expenses are significantly higher.<\/p>\n<p>Consequently, this regime may be less tax efficient in situations where:<\/p>\n<ul>\n<li>the company has high operating costs;<\/li>\n<li>there is a significant workforce structure;<\/li>\n<li>relevant expenses are incurred with facilities, technology or subcontracting.<\/li>\n<\/ul>\n<p>In such cases, the general CIT regime, based on actual profit, may result in taxation more aligned with the company\u2019s economic reality.<\/p>\n<h2><strong>When is the simplified regime advantageous<\/strong><\/h2>\n<p>The choice between the simplified regime and the general CIT regime should be based on a specific analysis of the company\u2019s cost structure, business model and scale of operations.<\/p>\n<p>In general, the simplified regime tends to be more efficient where:<\/p>\n<ul>\n<li>the company has high operating margins;<\/li>\n<li>actual costs represent a relatively low percentage of turnover;<\/li>\n<li>the activity is carried out through a simple operational structure.<\/li>\n<\/ul>\n<p>Conversely, where operating costs exceed the presumed margin established by the applicable coefficient, the simplified regime may lead to higher taxation compared to the general regime.<\/p>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p>The simplified CIT regime remains, in 2026, a relevant option for small companies in Portugal, allowing for a simplified determination of the taxable base and reduced compliance complexity.<\/p>\n<p>However, in the case of service activities \u2014 including consultancy, management or intermediation \u2014 the application of the 0.75 coefficient, as provided for in Article 86-A of the Corporate Income Tax Code, implies that a significant portion of income is automatically considered taxable.<\/p>\n<p>For this reason, opting for this regime should be preceded by a detailed tax analysis, in order to assess whether the legislator\u2019s presumed cost margin reflects the company\u2019s actual economic reality. The <a href=\"https:\/\/belzuz.com\/en\/areas-de-practica\/derecho-fiscal-y-tributario\/abogados-fiscal-tributario-lisboa-oporto-portugal\/\">Tax Law Department<\/a> of <a href=\"https:\/\/belzuz.com\/en\/\">Belzuz Abogados, S.L.P.<\/a> \u2013 Portugal Branch remains fully available to support and advise on this matter.<\/p>\n","protected":false},"featured_media":12436,"template":"","categories":[],"area-de-practica":[223],"publicaciones":[122],"idioma-publicacion":[71],"class_list":["post-20619","publicacion","type-publicacion","status-publish","has-post-thumbnail","hentry","area-de-practica-fiscal-and-tax-law","publicaciones-miguel-paixao","idioma-publicacion-ingles"],"acf":[],"_links":{"self":[{"href":"https:\/\/belzuz.com\/en\/wp-json\/wp\/v2\/publicacion\/20619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/belzuz.com\/en\/wp-json\/wp\/v2\/publicacion"}],"about":[{"href":"https:\/\/belzuz.com\/en\/wp-json\/wp\/v2\/types\/publicacion"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/belzuz.com\/en\/wp-json\/wp\/v2\/media\/12436"}],"wp:attachment":[{"href":"https:\/\/belzuz.com\/en\/wp-json\/wp\/v2\/media?parent=20619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/belzuz.com\/en\/wp-json\/wp\/v2\/categories?post=20619"},{"taxonomy":"area-de-practica","embeddable":true,"href":"https:\/\/belzuz.com\/en\/wp-json\/wp\/v2\/area-de-practica?post=20619"},{"taxonomy":"publicaciones","embeddable":true,"href":"https:\/\/belzuz.com\/en\/wp-json\/wp\/v2\/publicaciones?post=20619"},{"taxonomy":"idioma-publicacion","embeddable":true,"href":"https:\/\/belzuz.com\/en\/wp-json\/wp\/v2\/idioma-publicacion?post=20619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}