Tax Alert - Amendments to the Corporate Income Tax

The Law no. 64/2025, of November 7, has been published, amending the Corporate Income Tax (IRC) Code by reducing the general tax rates.

Regarding taxpayers covered by paragraphs 1 and 5 of Article 87 of the IRC Code, the general tax rates have been changed, as set out in the following table:

Tax periods	Tax rates
Beginning during the year 2025	20%
Beginning during the year 2026	19%
Beginning during the year 2027	18%
Beginning on or after January 1, 2028	17%

 For the situations provided for in paragraph 2 of Article 87 of the Corporate Income Tax Code (CIRC), that is, for taxpayers qualified as a small or medium-sized enterprise (SME) or a small mid-cap company, the corporate income tax (IRC) rate applicable to the first 50.000,00€ of taxable income is set out in the table below:

Tax periods	Tax rates
Beginning during the year 2025	16%
Beginning on or after January 1, 2026	15%

 To the portion of taxable income exceeding the amount referred to above, the corporate income tax (IRC) rates set out in paragraph 1 of Article 87 of the CIRC shall apply (as shown in the first table).

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The Law no. 65/2025, of November 7, has been published, amending the Tax Benefits Statute.

The purpose of this law is to repeal paragraph 2 of Article 19-B of the Tax Benefits Statute (EBF), which stated that “taxpayers for whom there is an increase in the wage gap among employees compared to the previous fiscal year are excluded from this regime.”

For any additional clarification, our team remains at your disposal.