Flash News NA 20/09/2024

Portugal_New IRS tables September and October

The Government recently announced the implementation of new IRS withholding tables, which promise to bring significant changes to Portuguese taxpayers.

The new withholding tax tables will reduce the amount of IRS withheld from salaries and pensions, resulting in an increase in net income for workers and pensioners. This increase will be felt in September and October, with lower retention rates to compensate for what was retained until August.

Will apply to all taxpayers who receive income from dependent employment (salaries) or pensions. In September and October, but the rates will be lower or, in many cases, zero. For example, for single or married taxpayers with two taxpayers, withholding will be zero for salaries of up to 1,175€ and pensions of up to 1,202€.

Starting in November, retention rates will be adjusted again but will still be lower than those applied until August.

If the paying entity is unable to apply the new tables in September, the excess amount withheld must be deducted from the Income Tax to be withheld in October, or in the following months until the end of the year.

To clarify all issues related to the day-to-day human resources of your company, Nominaurea has qualified professionals who are available to help you. Contact us!

You may find the new tables at:

Tabelas de Retenção do IRS (portaldasfinancas.gov.pt)