The changes in the IRS, namely the reduction of rates, come into force today, after the publication of three diplomas this Wednesday in the “Diário da República”. In practice, taxpayers up to the sixth group will pay less tax on income, even if they have to receive retroactive payments until January.
The tax cuts are to be made monthly, but to do so the government will have to publish new income tax tables so that salaries can reflect the rate cuts. The commitment has already been made by the Finance Ministry, which in a statement specified that “the new income tax tables are to come into force in September.”
On the other hand, taxpayers will also be entitled to retroactive payments for January. This Wednesday, the new levels were published: the rate for level 1 (with a taxable income of up to €7,703) has decreased from 13.25% to 13%, for the second from 18% to 16.5%, for the third from 23% to 22%. In the fourth group, it increases from 26% to 25%, in the fifth from 32.75 to 32%, and in the sixth group, the last to be affected by the reduction, it increases from 37% to 35.5%. According to the modeling carried out by consultant Ilya for the Lusa agency, this update will result in an annual gain of €10.08 for taxpayers with a gross salary of €900.
Other diplomas have also been published that will only come into force next year, such as the abolition of tolls on internal motorways and VAT on electricity.
Author: Raquel Oliveira
Source: CM Jornal
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