According to the report accompanying the State Budget proposal (2026 State Budget), "with regard to IRC, tax revenue is estimated to decrease by €199 million in 2026 compared to the estimated 2025 total, totalling €9.532 billion, corresponding to a 2% reduction."

The document states that "this increase in IRC revenue reflects a one percentage point decrease in the tax rate."

The report also states that this reduction has a budgetary impact of 300 million euros in 2026.

The Government noted that it "submitted a request to the Assembly of the Republic for legislative authorisation to continue the reduction path already initiated in 2025, with the change of the corporate income tax rate from 21% to 20%."

This legislative authorization aims to "reduce the corporate income tax rate to 17% in 2028 (with a reduction of one percentage point per year) and to 15% for the first 50,000 euros of profit of micro, small, and medium-sized enterprises (SMEs) in 2026."