The Law 64/2015, of July 1 (in portuguese), approving the IV Regime for the tax benefits of the International Business Centre of Madeira (IBC), was published. Thus it becomes possible the licensing and installation of new entities within the institutional framework of the IBC under the new regime.
According to the terms of the IV Regime, consensus with the European Commission, the companies licensed to operate within the IBC will benefit from a reduced corporate income tax rate of 5% with the application of tax benefits guaranteed until December 31st, 2027.
In addition, these entities will be eligible for exemption from withholding tax on the payment of dividends, among other tax exemptions and reductions, in addition to the general provisions of the Portuguese regime, including the participation exemption regime.
The IV Regime reinforces the attractiveness, credibility and stability of the IBC as a dedicated and effective business center for structuring and developing international operations and attraction of foreign direct investment.