IRC – The impairment losses maximum threshold has been updated (financial entities)
Tax Alert 32-2018
Regulatory Decree no. 13/2018, of 28 of December, was officially published, which establishes the maximum threshold for impairment losses and other deductible corrections on the assessment of the taxable income of the entities subject to the supervision of Bank of Portugal, as well as the rules applicable for its determination, according to articles 28-A (2) and 28-C (1) of the CIT Code.
The annual accumulated amount of the impairment losses and other corrections of value for specific credit risk, resulting from the usual activity, may not exceed again (and as a definitive rule) the mandatory minimum thresholds established in the Notice 3/95 of the Bank of Portugal, in force before its repeal by the Notice 5/2015 of the Bank of Portugal.
This legislation revokes Regulatory Decree no. 11/2017, of 28 December, and enters into force on 29 December 2018.