Lisbon, Oct. 30, 2024 (Lusa) - The president of Portugal countersigned on Wednesday the decree of parliament transposing the European directive on a minimum tax for multinationals, considering it complex, but noting the ‘broad consensus’ with which it was approved.

In a note published on the official website of the Presidency of the Republic, Marcelo Rebelo de Sousa stated that ‘despite the complexity of the proposed legal regime, which affects its effective application’, he decided to promulgate this decree ‘given the purpose pursued and the very broad consensus translated into votes in favour and abstentions’.

The decree enacted today, based on a proposal by the PSD/CDS-PP government submitted on 11 September, transposes into national law European Union (EU) Directive 2022/2523 on the minimum worldwide level of taxation for multinational and large national groups within the Union.

It was approved in general, special and final votes on 18 October, with PSD, PS, Livre, CDS-PP, PAN voting in favour, Chega, BE and PCP abstaining and IL voting against. A request presented by the PSD to dispense with the final drafting of this decree was unanimously approved, in order to speed up the process of sending it for promulgation.

According to the Parliament's website, the decree was sent to the Belém Palace on 22 October.

At stake is the transposition into national legislation of the Pillar Two Directive, which establishes a worldwide minimum level of taxation for multinational and large national groups in the EU.

The profits of large multinationals and national groups or companies with a combined annual turnover of at least €750 million will be taxed at a minimum effective tax rate of 15%.

According to the secretary of state for tax affairs, the first reporting and payment obligation will be in 2026 with reference to 2024.

IEL/ADB // ADB.

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