"Level of corporate income tax matters, but so do stable laws" (with Mafalda Alves)

[...] «With the same perspective, Mafalda Alves, Partner in charge of the tax department at SRS Legal, points out that "historically, lowering the corporate income tax rate does not mean losing tax revenue. On the contrary, reducing this tax burden makes investment (domestic and foreign) more attractive and competitive, which helps to broaden the tax base and thus maintain or even increase revenue."

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In Mafalda Alves' view, "reducing the tax burden is fundamental to increasing investment and the consequent growth of the economy". As this SRS Legal lawyer explains, "although the GDP recorded a positive variation in 2023, the evolution of the economy cooled from 2022 to 2023, and a downward trend is expected for the coming years". In this sense, the tax expert adds, "it is urgent to take measures to recover the economy, and reducing the corporate income tax rate is a proven measure in this regard."

Tax is only one factor when deciding on investment

Mafalda Alves, a partner at SRS Legal, believes that "the tax factor has weight, especially in an economy whose investment and growth potential is still considered low". However, she stresses, "there are other factors that we need to improve if we want to continue attracting investment, such as simplifying the granting of licenses, or investing in the reform of public administration and justice."»