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MPs confused over EDP's 0.7% corporation tax rate

edpPylonA row has broken out over the amount of tax EDP paid in 2017, with the Socialist parliamentary leader asking the Government to clarify whether the effective tax rate paid was really just 0.7% and, if so, whether measures are planned for greater tax justice.
In a letter sent to the Ministry of Finance, Socialist MPs asked whether the government will confirm the news published in Espresso stating that EDP paid only 0.7% in Corporate Income Tax (IRC) in 2017, the lowest rate of any company listed on the Portuguese stock exchange.
If this tax rate is confirmed, MPs foresee, "the introduction of new measures within the fiscal framework that will ensure more justice in the taxation of companies, especially those which are better able to contribute to the state's revenues."
The group of Socialist MPs, "considers it important to clarify this matter, taking into account that the Portuguese do not understand why a company such as EDP, which last year had a turnover of €1.52 billion, pays taxes at rates below a large part of the Portuguese public on their income."
EDP boss, António Mexia, clarified that the newspaper Expresso, "confuses the accounting report reflected in the report and accounts with the amounts actually paid in corporation tax by EDP, in Portugal."
"Approximately €10 million related to 2017 refers to the EDP Group, which operates worldwide, and benefits from a series of events outside Portugal, including the US tax reform - equivalent to about of €44 million - and the exemption of capital gains from the sale of assets in Spain (about €200 million)," states EDP’s Mexia.
"The IRC paid in 2016, in Portugal, was €333 million and, in 2015, was €193 million," added the millionaire company chief.


0 #1 Peter Booker 2018-03-13 15:29
It is significant that Mexia speaks in terms of amounts of money rather than percentages. He has not actually denied the figure of 0.7%.