The update to the IRS withholding tables announced by the government this Friday, combined with the reduction of the tax rates to level 6, will result in an annual gain of just €10.08 for taxpayers with a gross salary of €900, according to simulations by consultant Ilya for the Lusa agency.
However, according to Ilya’s calculations, for a single worker without children with a gross salary of 1,200 euros, the reduction in IRS rates leads to a reduction in annual tax of 88.79 euros. With higher incomes, the annual tax savings will be lower and will amount to 335 euros with a salary of four thousand euros to 267 euros with a salary of 25 thousand euros.
Just like CM As reported in Saturday’s release, the reduction in the withholding tax amount is set to take effect in September and will be retroactive to January. The Finance Ministry, led by Joaquim Miranda Sarmento, predicts that the rate cuts based on the PS proposal will have an impact of 500 million euros: this amount will be returned this year through new withholding tables of 350 million euros; and the remaining 150 million will be returned in 2025, according to the IRS return for 2024.
DETAILS
Victory of the majority
PS leader Pedro Nuno Santos says most Portuguese benefit from the reduction in IRS rates, starting from level 6.
“The right decision
Chega leader Andre Ventura says the government’s decision to apply new withholding tables to reduce IRS taxes this year is “correct.”
“Normal” option
Liberal Initiative leader Rui Rocha called the application of the new IRS income tax tables “normal” this year.