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Autonomous taxation is a specific component of corporate taxation in Portugal and applies to certain business expenses regardless of whether the company generates profit. These taxes are charged separately from corporate income tax and are intended to discourage certain types of non-essential or non-deductible expenses.
Common expenses subject to autonomous taxation include company vehicles, per diems, representation expenses, undocumented costs, bonuses, and indemnities. The applicable rates depend on the type of expense, the company’s profit status and other compliance factors. Rates may be significantly higher when a company reports tax losses.
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Autonomous taxation can have a strong financial impact, especially for companies that are not familiar with these rules or that misclassify expenses. Proper accounting classification, documentation and tax planning are essential to avoid unnecessary costs.
Foreign companies operating in Portugal or newly established entities often overlook autonomous taxation when forecasting expenses. Understanding these rules early can improve budgeting and avoid compliance issues.
E-Golden provides support in understanding autonomous taxation, reviewing expense categories and ensuring full compliance with corporate tax expectations in Portugal.
