After a long and difficult negotiation, the European Commission has authorized a new aid scheme for companies wishing to set up operation s in the International Business Centre of Madeira. These can set up activities within the ambit of the industrial free trade zone, the international services and the international shipping register. This new regime has some innovative characteristics as compared to the previous scheme, also authorized by the Commission. Companies that , between 1 January 2003 and 31 December 2006 , apply and obtain a proper license to carry out their activities within the IBC will be able to enjoy a reduced rate of corporate tax of 1% in 2003-2004, 2% in 2005-2006 and 3% in 2007-2011. In order to enjoy this regime of tax benefits , companies have to create a certain number of permanent jobs. Companies that create more than five jobs will have access to the regime without further conditions. Those that create between one and five jobs will be eligible only if they undertake a minimum investment of EUR 75 000 during the first two years of operations. It must be stressed that the tax benefits will be limited to tax base ceilings, which vary from EUR 1.5 million (where less than three new jobs are created) to EUR 125 million (where more than 100 new jobs are created). Furthermore, companies licensed under this new regime will have to start their activities within a fixed time limit: six months in the case of international services and one year in the case of industrial activities.   For more detailed information or to receive a copy of Decree-Law nr. 163/2003, of the 24 th of July, which describes this regime of tax benefits, please contact S.D.M. at sdm@sdm.pt .