When managing an investment project, rigorous monitoring is crucial to ensuring that it is fully implemented, that deadlines and targets are met and that the incentive received is maximized.
What are the management activities/tasks? Here are a few of them!
Formalizing incentive payment requests;
Monitoring the execution of the project and its contractualized indicators;
Assisting in the preparation for on-site inspections and overseeing them on the day of the visit.
RFAI is a tax incentive aimed at promoting investment in productive innovation and job creation.
This tax benefit allows companies to deduct up to 30% of eligible investments from their corporate income tax (IRC).
If the deduction cannot be fully applied due to insufficient tax liability, the unused amount can be carried forward and deducted over the following 10 tax periods.
What Are Eligible Investments?
Machinery and equipment
IT equipment
Patents and licenses
Building construction and renovation works
Applicable Investments
The tax benefits apply only to initial investments that:
Involve the creation of a new establishment;
Increase the capacity of an existing establishment;
Diversify the production of an establishment;
Fundamentally change the overall production process of an existing establishment.
Who Can Benefit? RFAI applies to corporate income tax (IRC) taxpayers operating in activities classified under specific codes of the Portuguese Classification of Economic Activities (link).
Note: The company must retain the assets acquired through this investment for a minimum period of 3 years (for SMEs) or 5 years (for other companies).
At STREAM, we help make your business more tax-efficient, maximizing tax savings.
