IRS Jovem is a tax regime aimed at young people aged up to 35, which allows a significant reduction in tax on income from work, through a progressive exemption. This guide explains step by step how you can benefit from this measure and what your main requirements are.
What is IRS Jovem?
The Youth Income Tax consists of an exemption applied to income from work (categories A and B) for a period of up to 10 years. The objective is to reduce the tax paid, encouraging the financial stability of young people. For example, a young person who earns €1,000 per month (€14,000 annually) can save around €800 in the first year, accumulating savings of more than €7,200 over the 10 years.
Step by step to access Youth Income Tax
Step 1: Check eligibility
Before applying for IRS Young, make sure you meet the following criteria:
- Be aged up to 35 years (inclusive).
- Obtain income from work in categories A (dependent work) or B (independent work).
- Not be considered a dependent for tax purposes.
Step 2: Request the employer
You can choose to apply IRS Jovem directly to withholding tax. To do this, inform your employer that you wish to benefit from the scheme. It is not necessary to fill out an official form – just communicate in writing, indicating the year in which you started declaring income independently.
Step 3: Submit the annual income tax return
Between April and June of the year following the income obtained, you must complete the Income Tax declaration (Model 3) on the Finance Portal. At this time, indicate the option for Youth Income Tax.
The exemption percentage varies depending on the year in which you started earning income as a non-dependent. For example:
- If you started earning in 2022, in 2025 you will be in the fourth year of exemption (75%).
Step 4: Exemption table
The exemption from Youth Income Tax is progressive and depends on the year in which you are in the regime:
- 1st and 2nd year: 90% exemption.
- 3rd year: 80% exemption.
- 4th year: 75% exemption.
- 5th to 10th year: 70% exemption.
These percentages apply to income up to a limit defined by the Social Support Index (IAS).
Step 5: Respect deadlines
The annual Income Tax declaration must be submitted between April and June. In addition, it is necessary to confirm the option for the regime annually during this period.
Step 6: Other important considerations
- The Young IRS does not apply to those who benefit from tax regimes such as non-habitual residents or incentives for scientific research.
- If you do not request the regime in the year in question, you can request a correction or refund of the tax in the annual declaration.
IRS Jovem is a measure that offers significant tax advantages for young workers, promoting savings and financial autonomy. By following this, you can ensure you fully benefit from the scheme and maximize your savings over time.
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