The tax benefits provided for in the Interior Enhancement Program (PVI) had an impact of around 27 million euros in 2020, revealed the Ministry of Territorial Cohesion, highlighting the approval of investment projects in those territories.
“The support of the Regional Operational Programs has already resulted in the approval of more than 4,600 investment projects in the interior, with a value of more than 1.5 billion euros [sendo 818 milhões de apoio de fundos europeus] which resulted in the creation of more than 11 thousand jobs ”, added the guardianship, referring that they were granted within the scope of the PVI’s priorities.
In force since September 2018 and revised in March 2020, the PVI aims at economic development, expanding opportunities and improving the quality of life in the interior territories, with a focus on science, innovation and competitiveness, “Fixing those who live and work there and attracting new workers, families and companies”.
“Only during the year 2020, support lines were opened with a global total of 629 million euros from European funds Regional Operational Programs, of which 311 million specifically for the interior territories ”, indicated the Ministry of Territorial Cohesion, in response to the agency Lusa.
In addition to these support lines, this year the National Production Support Program was launched, with a global allocation of 100 million euros, half of which for the interior territories.
Regarding the implementation of the tax benefits regime within the scope of the PVI, which is part of the Work in the Interior program, the impact in 2020 was “about 27 million of euros ”.
Among the tax benefits for the interior are the accounting of rents of students as education expenses, the increased spending on education of students enrolled in institutions in the interior, in addition to increasing the limit of deductions in IRS (Personal Income Tax) from 502 euros to 1,000 euros, for three years, for families moving to the interior.
Other tax benefits are a reduced rate of corporate income tax (Corporate Income Tax) for small and medium-sized companies in the interior (12.5% for the first 25 thousand euros of tax base), increase of 20% of the benefits provided for in the Deduction for Retained and Reinvested Profits (DLRR) regime, a tax regime of investment support (RFAI) with more favorable conditions, and favorable tax conditions for forest management entities or forest management units.
With regard to the interior territories map, launched in 2017, which covers 165 municipalities and 73 parishes in 21 other municipalities, the office of the Minister for Territorial Cohesion, Ana Abrunhosa, reiterated that “it is out of date and that its review is important ”, Including for the implementation of some of the measures of the Work in the Interior program.
“In our view, it should be the municipalities, if they agree with this assessment, to initiate this exercise, which may undergo a review of the indicators to be considered for determine what an interior territory is and how we should differentiate, among these territories, those that need greater support or incentives ”, he defended.
Regarding measures that enhance the development and access to vocational training actions in the interior territories, which are provided for in Working in the Interior, the Ministry of Territorial Cohesion highlighted the recently reopened APOIAR.PT program, which has support for the insertion of young people in the labor market or to the professional retraining of the unemployed through the conclusion of internship contracts.
This program also includes mark-ups and specific supports for the interior, including “the possibility of internship grants up to 95%, an increase of 20% in the Employment Prize and a valuation of application scores presented for the interior territories ”.
In addition, the ATIVAR.PT Incentive measure provides the employer with financial support for the conclusion of employment contracts, which is increased by 25% for the territories of the interior of the country, said the guardianship, adding that this aid for hiring workers it can be combined with the support of the Employment Interior MAIS ”.
As for the reinforcement of the Qualifica Centers network, there is creation of 34 new centers, 14 of which are inland.
In relation to the creation of a national information aggregation platform that allows the dissemination of business reception infrastructures, incentives and support of a national, regional and local nature to companies and families, foreseen in the Work in the Interior program, the Ministry said that “ is in preparation ”, with the prospect that it may be presented“ during the second half of this year ”.
Regarding the Regressar Program, which supports emigrants or Portuguese-descendants who wish to return to the country, with incentives of up to 7,000 euros, or up to 7,600 euros if they settle in an interior territory, the measure extended until 2023 and extended to those who create businesses or their own jobs.
The Work in the Interior program should also be extended. “With the pandemic, the program’s extension will be inevitable. Not only because there are measures such as housing, which we hope will reach their peak in the context of the Recovery and Resilience Plan, but also because we have to take into account the success of the measures already implemented, namely + CO3SO Jobs, in future support ”.
Companies with 14.5 billion European funds
No program Midnight Express, which aired last Friday at SIC Notícias, the Minister for Territorial Cohesion predicted that direct support to companies would disappear, at least, EUR 14.5 billion by 2030.
“It will not be for lack of funds that good business projects will be left unfulfilled ”, said Ana Abrunhosa.
At stake are the direct support that companies will have at their disposal between 2021 and 2029, either through the “normal” community funds, coming from the Portugal 2020 community framework or the future Portugal 2030 framework, from the “extraordinary” recovery funds, coming from the Plan Recovery and Resilience for 2021-2026 or Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU).
As for direct support, to the 4,600 million foreseen by the government under the PRR, the Minister for Cohesion adds another five billion to Portugal 2030 and REACT-EU funds (billion) and incentives yet to be launched, approved or implemented within the scope of Portugal 2020 (3,850 million).