The European Commission announced on July 2, 2020 that, as part of efforts to mitigate the economic crisis caused by the COVID-19 pandemic, several State Aid schemes have been extended.
IV Regime of the International Business Centre of Madeira (IBCM), approved under the General Block Exemption Regulation (GBER), was one of the schemes extended for another three years.
This means that new applications from entities to Regime IV of the International Business Centre of Madeira (CINM) can now be made until the end of the year 2023. We recall that this tax regime when approved for an entity, is valid until the end of 2027.
This is very favorable news, as it gives the International Business Centre of Madeira greater stability, also giving more time to negotiate the next IBCM tax regime to be applied after the current one, which is a fundamental instrument of economic policy,in particular to contribute to the economic and social recovery of the Region.
This decision of the European Commission must now be ratified by the Portuguese Parliament, through an amendment to the Portuguese tax law, where the IBCM tax regime is established and regulated.
The IBM, fully integrated into the Portuguese and EU legal system and fully regulated and supervised by the competent authorities, provides national and international investors with a fully transparent and stable business environment, distinguishing themselves from traditional “tax havens” or “offshore jurisdictions”.