At issue is the reduction in tax withholdings. Employees are the ones who will feel differences this year.
As had already been announced, the new year would bring Personal Income Tax (IRS).
The new withholding tax tables have been introduced and one of the many changes is in the IRS Young.
There is a reformulation and expansion of the IRS Jovem, a regime that will now be applied for 10 years (compared to the current five) to all young people up to 35 years old age (the age they are at the end of the year to which the income relates is relevant), regardless of their academic situation.
However, the exemptions from the IRS Jovem will not reach independent workers throughout this year. Only the accounts of employees change.
It states that workers with green receipts will maintain IRS withholdings in 2025. agreement will only be in 2026.
This is despite the fact that self-employed workers are also eligible for changes to the IRS Jovem; but they will only notice differences when they file their income tax return in a year.
Paula Franco, president of the Order of Certified Accountants (OCC), explains: law provides nothing for this context and, furthermore, the Finance Portal is not yet ready for this change – the issuance of invoices does not automatically qualify as IRS exemption for a worker who is covered by the IRS Jovem regime.
In the rules, there is a gap in the category B category, that of self-employed people.
“There is no provision for reducing withholding tax on category B income, which is unfair compared to category A”, laments president Paula Franco.
