The European Commission authorised an amendment to the Zona Franca da Madeira scheme (ZFM scheme) requested by the Portuguese Government on December 30, 2011.
Through this amendment the relevant ceiling to the annual base of taxable income is increased to 36.7%, as indicated in the table below published in the European Commission decision:
|
Current ceilings |
Proposed ceilings |
||
|
Number of jobs created |
Tax base ceilings (Eur Millions) |
Number of jobs created |
Tax base ceilings (Eur Millions) |
|
1-2 |
2 |
1-2 |
2,73 |
|
3-5 |
2.6 |
3-5 |
3,55 |
|
6-30 |
16 |
6-30 |
21,87 |
|
31-50 |
26 |
31-50 |
35,54 |
|
51-100 |
40 |
51-100 |
54,68 |
|
>100 |
150 |
>100 |
205,5 |
The rate of inflation for years 2007-2013 and the impact of the raise of the Corporate Income Tax rate applicable in Madeira since January 2012 justified the increase of the ceilings relevant to the annual base of taxable income. To this limit is applicable a reduced rate of taxation of 5% regarding the activities effectively and materially performed in Madeira.