OE 2024: everything companies need to know

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Every year, at the end of each year, a State Budget is prepared, which sets out how the public accounts will be managed in the following year. Despite the government's situation at the end of the previous year, the 2024 State Budget followed the normal path, having been approved on 29 November and coming into force on 1 January 2024.


As usual, this 2024 State Budget foresees several changes at the tax level and, in this article, we explore the main changes introduced that affect companies.


The priorities of the 2024 State Budget

The State Budget (OE) is a public management hungary whatsapp number database that sets out the State's expected revenues and expenditure for the following year. The State Budget bill for each year must be submitted to the Assembly of the Republic by 10 October of the previous year and then approved. The 2024 State Budget was no exception.


The OE 2024, an abbreviated form of the State Budget for 2024, which, as mentioned, came into force on January 1st, has, according to the OE 2024 page , three priorities for this new year: increasing income, promoting investment and protecting the future.


Regarding companies, the main priority will be to encourage the "capitalization of the business fabric, as an essential element of the economy's competitiveness and resilience”.


Changes introduced by the 2024 State Budget with effects on private companies

National minimum wage update

Although this measure is not aimed at companies, it affects the accounts of those that have workers whose base salary equals the guaranteed minimum monthly remuneration (RMMG).


For these workers, the base salary increases from the previous €760 to €820 per month . This also means an increase in the Single Social Tax (TSU), in the part paid by the company, of €14.25 per worker, when the normal rate is applied.


Updating the value of the worker's travel allowances and travel expenses in his/her own vehicle

The values ​​of allowances for public employees, which are used by private companies as a reference, will increase in 2024, rising to:

in the case of travel in the employee's own vehicle, €0.40 per kilometer;

in the case of travel within the national territory, €62.75 per day for most workers and €69.19 for administrators, managers and senior staff;

in the case of travel abroad, €148.91 per day for most workers and €167.07 for administrators, managers and senior staff.


Tax incentive for salary appreciation

Following the incentive introduced in the previous year, the 2024 State Budget establishes another tax incentive for salary appreciation that favours the determination of taxable income for IRC and IRS taxpayers with organised accounting: the charges corresponding to the salary increase for workers with an indefinite-term employment contract are considered at 150% of the respective amount , recorded as a cost for the year.


Only costs related to workers covered by a dynamic collective labor regulation instrument are considered, in the part in which they exceed the RMMG, whose fixed remuneration has increased by at least 5% .


Tax incentive for workers' housing

Income from employment in kind paid to workers resulting from the use of permanent housing located in national territory provided by the employer, relating to the period between 1 January 2024 and 31 December 2026, is exempt from IRS and social contributions.


The determination of the taxable profit of the respective employers is also benefited by means of accelerated depreciation: a depreciation quota corresponding to twice the normal rate may be applied to properties owned, built, acquired or converted into housing for workers who benefit from the same regime.


Incentive to capitalize companies

In order to promote investment, the 2024 State Budget provides that, when determining the taxable profit of legal entities with registered offices or effective management in Portugal, an amount corresponding to the application of the 12-month Euribor rate, plus a spread of 1.5 percentage points, may be deducted from the amount of net increases in eligible equity. This corresponds to an increase in relation to the previous rate of 4.5%.


When it comes to micro, small or medium-sized companies or small-mid-cap companies (Small Mid Cap), the added spread increases to 2 percentage points.