PS advance with IRS deduction of up to 200 euros for internal service costs

PS wants to allow a deduction of 200 euros from the IRS for the costs of domestic services.

The proposal was presented today at a press conference by the PS parliamentary group on amendments to the 2024 state budget, a government document on which a final global vote is scheduled for the 29th.

Along with Socialist Party parliamentary leader Eurico Brillante Diaz, former Secretary of State Miguel Cabrita said the measure to deduct the costs of domestic workers “is part of the so-called financial direction of the government’s decent work program.” .

“Less than a year ago, the criminalization of non-declaration of work was approved, which applies not only to domestic work, but to all forms of undeclared work. We know that in domestic work there is still a lot of informal work,” said the former Secretary of State for Labor and current PS deputy elected by Setúbal.

Subsequently, Miguel Cabrita justified the measures of the Socialist bench: “From a financial point of view, we give an incentive” to employers.

“Knowing that there are still many informal employment relationships in this sector, we say to those who employ people providing domestic services in the home that if they formalize these employment relationships, if they are declared – and this is everyone’s responsibility – Then it is possible to include in income for IRS purposes a deduction of part of expenses up to 200 euros. This is a measure aimed at combating the informal economy and tax evasion,” he emphasized.

At a press conference, Eurico Brillante Díaz touched globally on the proposed changes to the 2024 budget presented by the PS, starting by emphasizing that, from a political point of view, it is the budget document that Socialist MPs “easiest defend” in the Assembly Republic.

Citing wage and pension increases and expected IRS cuts next year, the Socialist parliamentary leader highlighted proposed amendments aimed at strengthening the fight against fraud and tax evasion by “strengthening declaratory obligations beyond coverage.”

“There will be a strengthening of the declaratory obligations towards the IRS for those who have assets outside the country, especially in tax havens,” he noted, before pointing out that from the point of view of territorial cohesion, the PS wants to reclassify IC8 between Pombal and Avelar, in the Leiria region , where there is a high level of accidents, as well as the strengthening of the “Happy Kindergarten” program for children under three years of age, where there is no provision from the social and private sectors.

In the area of ​​business competitiveness, Eurico Brillante Díaz, former Secretary of State for Internationalization, emphasized the socialist proposal for the equivalence of limiting the interest paid by families with mortgages and the interest paid by small and medium-sized companies.”

“We are moving forward to strengthen export credit in a situation of uncertainty when companies need to earn orders abroad,” he added.

Together with JS leader Miguel Costa Matos, the president of the PS collegium discussed his collegium’s measures regarding young people, especially displaced students.

“In this budget, we once again support young people’s approach to active living and completing their studies,” he said.

Also, according to Eurico Brillante Díaz, the PS panel wants to strengthen support for housing in areas such as rentals.

“We will adjust the income tax for those who have rental agreements,” he added.