IRS-exempt income of more than €500, as well as assets located in territories or countries considered “offshore”, will now have to be reported to Tax and Customs (AT).
The measure, the result of a PS proposal to amend the State Budget 2024 (OE2024), was approved in a special vote, with the PSD and PKP voting against, Chega and the Liberal Initiative abstaining, and the remaining parties voting in favor. .
This is a measure that stipulates that the annual return that taxpayers file with the tax authorities must include “all sources of income,” namely income not subject to tax exemption and “income not taxed by the IRS if it exceeds 500 euros.” , as well as assets located in countries, territories or regions with clearly more favorable treatment.”
In justifying the measure, PS recalls that, in addition to not reporting exempt and non-exempt income, certain special rules within the IRS provide for the exclusion from taxation of certain sources of income (or up to certain income limits), so these amounts are not reported on the IRS Model 3 return.
“In this way, to ensure greater transparency and rigor in the reporting of income received by taxpayers who are not exempt from filing an IRS Model 3 return—excused for tax evasion reasons—and thus providing a true illustration of the entire financial and estate situation , it is proposed to provide a general report of all income received annually, regardless of the applicable tax regime – i.e. regardless of whether they benefit from exclusion or exemption from the IRS,” the socialists say.
Discussion and voting on OE2024 by specialty began on November 23rd and will end on the 29th, the date of the final global vote on OE2024.