Profit-Sharing Bonuses in Portugal — Tax Treatment and Deductibility
What Are Profit-Sharing Bonuses?
Profit-sharing bonuses (gratificações de balanço) approved at the AGM are taxed as IRS Category A in the year of payment. Deductibility for managing partners with ≥1% ownership is capped at twice their monthly salary (CIRC Article 23-A).
Social Security
Non-regular profit-sharing bonuses may be exempt from Social Security contributions.