Regional Government denies carrying out arms deals in the Madeira Free Trade Zone – Portugal

The Regional Finance Secretariat of Madeira clarified, this Monday, that the commercial company Softbox Madeira Unipessoal “does not understand, nor has it ever understood, the exercise of trade and industry activities in military goods and technologies, therefore, consequently, these activities cannot be carried out within the Institutional scope of the Madeira Free Trade Zone”, reads a statement.The reaction appears after CM having reported, this Sunday, that the Ministry of Defense, on March 21, 11 days after the legislative elections, authorized arms deals to be carried out in the Madeira Free Trade Zone (ZFM). As reported by Morning mail, Carlos Pires, current Secretary of State for Defense, granted Softbox Madeira Unipessoal the license to carry out commercial and industrial activities in military goods and technologies, in an order published in ‘Diário da República’ on April 11. However, the Madeira Regional Finance Secretariat claims that “To date, no request for authorization of these activities and/or change in the purpose of the aforementioned company has been registered, nor is there pending any registration of changes to the corporate purpose or statutes of this entity with the Private Registry of the Free Zone of Madeira “.

Regarding the tax benefits of companies in the Madeira Free Zone paying a 5% IRC rate on profits from operations carried out with entities not resident in Portugal or installed in the ZFM, it is also mentioned in a statement that the licensing of commercial activities ” does not understand the desiderata of the Madeira Free Trade Zone”, so it will not be possible to “benefit from the tax benefit regime in force”.