PortugueseTaxation and social contributions
As a small country in Europe, Portugal's tax policy is an important part of its economic policy. Portugal's corporate tax rate is 21%, which is a tax that both domestic and foreign companies must pay. For non-Portuguese residents, they are only required to pay a flat rate of 21% on income derived from Portugal, a policy that has attracted foreign investment to some extent.
However, Portugal's tax policy does not focus solely on companies, but also involves the collection of personal income tax for residents. Residents of Portugal need to follow 14Progressive tax rates ranging from 5% to 48% tax their worldwide income. This progressive tax rate system is designed to encourage residents to pay more taxes at the lower income stage in order to reduce the tax burden on high-income earners.
In terms of social security, Portugal has a comprehensive social security system that covers a number of aspects such as family, pensions and unemployment benefits. These benefit funds are shared between the employer and the employee. Specifically, employers are required to contribute $23 to the employee's standard salary75% of social security contributions, while employees are required to deduct 11% from their standard salary as social security contributions. In addition, employers must also purchase additional workers' compensation insurance premiums for workers to ensure that workers are adequately covered in the event of injuries on the job.
For foreign employees, they can opt out of Portugal's social security contributions if they have already paid into a similar national scheme in their home country. This policy provides foreign employees with more flexibility to choose according to their needs.
In general, Portugal's tax policy and social security system are important supports for its economic stability and development. Through a reasonable tax policy and social security system, Portugal has attracted domestic and foreign investment, promoted economic development, and also guaranteed the basic welfare of its residents. The implementation of these policies is of great importance for the sustainable development of the Portuguese economy.