The Single Circulation Tax (IUC), popularly known as “car stamp”, will undergo significant changes, according to Jornal de Negócios. The new IUC rules provide for the elimination of tax payments in the month corresponding to the vehicle’s registration, replacing it with a single date for all owners: December 31st.
This measure is part of the Agenda for Tax Simplification, which will be discussed at the Council of Ministers and presented this Thursday afternoon. The initiative aims to reduce bureaucracy in the payment process and make it easier for taxpayers to comply with tax obligations.
Installment payments for amounts over 100 euros
Another new feature in the IUC rules is the introduction of the possibility of payment in installments, applicable to amounts greater than 100 euros. This measure will allow drivers to split the cost of the tax into several installments, offering greater financial flexibility.
Impact on taxpayers
With this change, all vehicle owners now have the same deadline to pay the tax, regardless of the car’s registration date. This standardization aims to reduce confusion and simplify tax calendars, especially for those who own multiple vehicles.
He highlighted that these measures are part of a broader package of reforms aimed at modernizing and simplifying the Portuguese tax system, responding to demands for greater clarity and practicality in tax procedures.
The Single Circulation Tax (IUC) is an annual tax that all owners of vehicles registered in Portugal are required to pay. Introduced in 2007, the IUC replaced the old Municipal Vehicle Tax and is calculated based on different factors, such as engine capacity, type of vehicle, registration date and CO2 emissions. This tax aims to contribute to State revenue and encourage the use of more environmentally friendly vehicles.
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