One of the visible faces of the impact of political decisions on the daily lives of companies is the state budget. The 2021 version of this document brings additional challenges in the current pandemic context. In Portugal and throughout Europe, national budgets are presented that include measures to stimulate economic recovery. It is no coincidence that, for many years, political and legal stability has been one of the crucial points on which to focus when analyzing a company`s external environment. The political-legal context is essential for business development and directly influences the ability of companies to implement their strategy. Given the current context of strong economic contraction and the creation of the basis for the recovery scenario for 2021, some measures to promote investment and job creation that do not exist would be expected. There are also additional restrictions on the use of tax benefits and access to government support by certain companies. In the current context, it is crucial to have a defined course with clear objectives and measures to achieve these objectives, minimizing the impact of events on changes in the external environment, as is the case with the state budget. Please note that fixes may take a few weeks to filter the different RePEc services. SMEs with losses without tightening autonomous taxation – The IRC Code provides for a ten percentage point increase in autonomous tax rates for businesses that have suffered losses.
With this measure, an SME that has made a profit at least 1 of the previous 3 years and losses in 2020 and 2021 will not suffer the expected increase in the autonomous tax rate; Reduced VAT rate for disinfectant gel masks – The reduced VAT rate applies to trade in these products; Ir`s deductible gym – As in the fields of catering, hairdressing, veterinary and workshop, it is possible to deduct 15% of the VAT paid on sports and gymnastics expenses. This is a measure to support the fitness sector, where the Covid pandemic has had a major impact19; Regarding the recovery in 2021, the Banco de Portugal estimates GDP growth at 5.2%, the Public Finance Council at 4.8% and the European Commission is more optimistic with a growth rate of 6%. These projections now correspond to the projections of other bodies such as the Public Finance Council, which estimates a decline of 9.3%, the Banco de Portugal, which now forecasts an 8.1% decline in GDP, and the European Commission, which estimated a 9.8% decline in the Portuguese economy in July. « Responding to more than 40 measures of the state budget » – Business Journal If you know of any missing elements that cite this, you can help us create these links by adding the relevant references in the same way as above for each SEO article. If you are a registered author of this article, you can also check the « Quote » tab in your RePEc Author Service profile, as some quotes may be awaiting confirmation. Personal property for professional use – With the attribution / dissatisfaction of the private property of the entrepreneur to his professional activity, unlike the current situation, no capital gain is calculated. The calculation of capital gains takes place only with the sale of the property to third parties. There is also an impact on the settlement of revenues in the year in which they occur and in the following three years, by recording the revenues and expenses associated with the activity; In short, the 2021 budget will not significantly change the management of most companies, but will have an impact on certain sectors (tourism, hotels, hotels, gyms) and certain restrictions on access to support measures for large companies. Tax benefits for joint external support measures – increase in expenditure by 10 percentage points in 2021 and 2022 with the participation of SMEs in joint external projects. These expenses are deductible for the deduction of taxable profit up to 110% of its value; (Porto/ISCAP/©CECEJ and NIPE/University of Minho) VAT exemption for the purchase of goods to fight against Covid19 – The VAT exemption has been granted until 30 September. April 2021 for the purchase of medical devices and equipment to fight against Covid19 at the national level; Companies with offshore connections will be excluded from public support – The budget proposal states: « Public support created under exceptional and temporary measures to respond to the Covid-19 pandemic is excluded: companies with their headquarters or efficient management in countries, territories or regions with significantly more favourable tax regimes ».
This exclusion applies to tax aid and incentives, as well as to state-guaranteed credit lines (Covid19 lines) and simplified redundancies; For technical questions about this article or the correction of authors, titles, abstracts, bibliographic or download information, please contact:. General contact details of the supplier: edirc.repec.org/data/nipampt.html. What will be the impact of the 2021 state budget on companies? Domestic Appreciation – As happened in 2020, the Domestic Appreciation Program provides for a deduction for the IRC collection of 20% of expenses resulting from job creation in inland regions.