This is one of the 60 measures in the package that the Government presented to accelerate the Portuguese economy, although it is also the transposition of a European Union (EU) directive on a minimum level of taxation on the profits of multinational companies and large national groups.

Portugal was late in complying with the transposition of the directive, and the European Commission had opened an infringement procedure.

As the Minister of State and Finance, Joaquim Miranda Sarmento signalled at the press conference after the Council of Ministers meeting, the transposition "should have been done by the end of 2022, it is already a year and a half late".

Thus, the Government is "doing something that the Portuguese State should have already done and imposing that multinationals pay the fair minimum value of their taxes", he added.

At issue is the community law that came into force on January 1st to introduce a minimum effective tax rate of 15% for large companies active in EU member states, covering multinationals and large national groups with higher combined financial revenues of up to 750 million euros per year.

The community directive followed the global agreement reached by the G20 and the OECD and aims to create “greater equity and stability in the tax landscape in the EU and globally, limiting the race to the bottom of corporate tax rates and reducing the incentive to that companies transfer profits to jurisdictions with low taxes”, as signalled by the European Commission upon approval.