RFAI, the Investment Support Tax Benefit

• Has your company made investments in tangible or intangible assets?
• Does it fit in the tourism, ICT, R&D, shared services, audiovisual, mining or manufacturing sectors?
• Is it not indebted to the State and Social Security?

If you meet these requirements, you can deduct from the collection determined in IRC, a percentage of that investment.

What investments are considered relevant?

• Tangible fixed assets (in new condition).
• Intangible assets (technology transfer, acquisition of patent rights, licenses, know-how or technical knowledge not protected by a patent).

Exceptions:

• Land (except for companies in the extractive industry)
• Construction, acquisition and renovation of buildings (except for manufacturing or administrative facilities)
• Light passenger or mixed vehicles
• Furniture and home furnishings
• Others not associated with productive activity.

How is the tax benefit calculated?

On the relevant investments, the rate of:

In the case of investments made in the North, Center, Alentejo, Azores and Madeira regions:

• 25% – if investment is less than 15 million Euros
• 10% – for investment exceeding 15 million Euros.

In the case of investments made in the Algarve, Greater Lisbon and Peninsula of Setúbal regions:

• 10%.

Other benefits

• Exemptions from IMI (for a period of up to ten years)
• IMT
• Stamp tax.

Important Notes:

• Maximum limit of 50% of IRC collection for existing companies;
• For new companies, the maximum limit is 100% of the IRC collection;
• In case of insufficient IRC collection, the amount not deducted can be deducted in the next 10 years of taxation;
• Net job creation.