[World Tax News] Portugal Cuts Corporate Tax | UAE Adopts CRS 2.0 and More

Editorial Team – [2025] 180 taxmann.com 411 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week:

1. Portugal implements phased reduction of the Corporate Income tax Rate

Portugal has enacted Law No. 64/2025, dated 7 November 2025 and published in the Official Gazette, establishing a decrease in the standard corporate income tax rate from 20% to 17%, effective from 1 January 2028 onwards, with interim reductions to 19% in 2026 and 18% in 2027. Additionally, the law establishes a reduced corporate income tax rate of 15% applicable to the initial EUR 50,000 of taxable income for SMEs that directly and primarily conduct economic activities of an agricultural, commercial, or industrial character. This provision takes effect from 1 January 2026.

Finally, the law stipulates that the aforementioned reduction in the standard corporate income tax rate applies to the total income of entities having their registered office or effective management located in Portuguese territory whose principal activity does not consist of agricultural, commercial, or industrial activities.

Source – Law no. 64/2025

2. UAE Ministry of Finance confirms adoption of updated Common Reporting Standard (CRS 2.0)

The UAE Ministry of Finance has affirmed the country’s commitment to adopt the updated Common Reporting Standard (CRS 2.0), issued by the Organisation for Economic Co-operation and Development (OECD) under the Automatic Exchange of Information (AEOI). The amendments will take effect from 1 January 2027, with the first exchanges of information under CRS 2.0 commencing in 2028. This update includes, inter alia, the exchange of information relating to crypto assets.

This decision underscores the UAE’s strong standing in global competitiveness indices and reaffirms the transparency and high governance standards of its financial system. It also supports the UAE’s strategy to attract foreign investment by aligning the CRS 2.0 implementation timeline with tax reporting requirements established under the Crypto Asset Reporting Framework.

CRS 2.0 builds upon the framework originally set out under Federal Decree No. (48) of 2018 and Cabinet Resolution No. (93) of 2021 by widening its scope to cover electronic money, central bank digital currencies, and specified crypto-asset-related activities. It further introduces enhanced audit and reporting obligations to ensure that the expansion of the digital asset ecosystem and financial innovation does not undermine international tax transparency.

Together, CRS 2.0 and the Crypto Asset Reporting Framework (CARF) represent a major milestone in the UAE’s ongoing commitment to the highest global standards of tax transparency and its deepening cooperation with international bodies such as the OECD and the global financial community. This strengthens the UAE’s role as a leading financial centre grounded in sound governance and international compliance.

Source – Ministry of Finance

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