The new contributions from the food distribution sectors, to tackle the inflationary phenomenon, and energy, to curb prices, come into force on 31 December.

The diploma defines the application of the temporary solidarity contribution, within the scope of what the Government calls “an emergency intervention to face the high prices” of energy, which it calls 'CST Energia' and applies to “excess profits calculated in periods of taxation for IRC purposes starting in the years 2022 and 2023”.

This contribution is intended for resident IRC taxpayers who carry out, as their main activity, a commercial, industrial or agricultural activity, as well as non-resident IRC taxpayers with a permanent establishment in Portuguese territory, who carry out activities in the sectors of crude oil, natural gas, coal, and refining.

“Excess profits are considered to be part of the taxable profits, determined under the terms of the Corporate Income Tax Code, in relation to each of the tax periods that exceed the corresponding to a 20% increase in relation to the average taxable profits in the four tax periods, starting in the years 2018 to 2021”, determines the law, defining that this contribution rate is 33%.

CST Distribuição Alimentar is payable by resident IRC taxable persons who carry out, as their main activity, a commercial, industrial or agricultural activity, as well as by non-resident taxable persons with a permanent establishment in Portuguese territory, who operate food trade establishments of products of animal and vegetable origin, fresh or frozen, processed or raw, in bulk or pre-packaged.

The CST Distribuição Alimentar rate, also of 33%, does not apply to micro or small companies and is applicable to excess profits calculated in 2022 and 2023, corresponding to the portion of taxable profits that exceed the corresponding to a 20% increase in relation to the average of taxable profits in the four tax periods beginning in the years 2018 to 2021.

The revenue obtained from CST Energia will be allocated to financial support for end energy customers, in particular vulnerable families, and aid to end energy customers, promoting investment in renewable energy, energy efficiency or decarbonization technologies.

CST Energia is also intended to support companies in sectors with intensive use of energy, as long as it is related to renewable energies, energy efficiency, or decarbonization technologies, and support to develop energy autonomy.

The revenue obtained from CST Distribuição Alimentar is allocated to at least one of the four purposes defined by law, including actions to support the increase in charges for food goods in favour of the most vulnerable population, namely through social sector entities.

This contribution is also intended to “guarantee the implementation” of the consumer protection policy, via the Consumer Fund, and to financially support micro and small businesses in commerce, services, and restaurants “particularly affected by the increase in operating costs and inflation and the decline in demand”.

Lastly, revenue from CST Distribuição Alimentar is earmarked for measures to support the qualification of professionals working in micro and small businesses in the trade, services, and catering sectors, to increase the resilience of these companies, through the partial allocation of revenue to the Modernization Fund of Commerce for this purpose.

The law that regulates temporary solidarity contributions on the energy and food distribution sectors was promulgated by the President of the Republic, according to a note published on the website of the Presidency of the Republic.