Portugal's Draft Budget Law for 2023 Includes Changes in Loss Carry Forward Rules, an Incentive for Capitalization of Companies, and Several Other Measures

Portugal's draft Budget Law for 2023 (Draft Law 38/XV/1) was submitted in parliament on 10 October 2022.  Some of the main measures include:

• A reduction in the allowed offset of losses carried forward from 70% to 65% of taxable profit, but with the removal of the time limit on losses carried forward, which will apply for losses incurred from 1 January 2023 as well as losses incurred prior to 1 January 2023 if the prior time limit has not yet expired;
• A revised provision providing t…