Are you going to submit your income tax return? Find out how to do it

by Andrea
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Are you going to submit your income tax return? Find out how to do it

If you are going to submit your IRS declaration for the first time in 2025 and already feel some concern about the process, know that there is no reason to be alarmed. It is not necessary to be a tax expert, as much of the information is automatically filled in, and the process is well guided.

Furthermore, you can always seek support from the Tax Authority (AT) to clarify any doubts, whether by phone or email. The Finance Portal also provides informative materials, such as leaflets, step-by-step guides and answers to frequently asked questions, which help to simplify this task.

Although it is natural that, at first, submitting the declaration takes some time, familiarization with the process will allow this task to become simpler and faster in the following years. However, do not leave it until the last few days of the deadline, as at that time the system may be overloaded or subject to technical failures.

The essentials you should know before starting

If you have recently started earning income or, until now, have entrusted this task to someone else, it is important to understand the fundamental concepts of the IRS. The IRPF (Individual Income Tax) applies to income obtained in the previous year. Thus, in 2025 you will declare the income you earned in 2024, says .

How to submit the declaration?

The declaration is submitted exclusively online, on the Finance Portal. If you do not yet have an access password, you must request it in advance, as it is essential to comply with this tax obligation.

Deadlines: delivery runs from April 1st to June 30th, these dates being applicable to both salaried and self-employed workers. Expenses and income are, in most cases, automatically filled in, simplifying the process and eliminating manual calculations.

Who is required to submit the IRS?

The IRS is levied on all income, in cash or kind, obtained by residents in Portugal, regardless of whether they originate abroad. Even though income from work is the most common, there are six categories of income that can be subject to taxation and that you should be aware of when filling out the declaration.

Category A: income from employment

Includes wages, subsidies and other income from salaried work. These values ​​must be declared in Annex A.

Category B: self-employed workers

Covers income resulting from professional, business activities or isolated acts, such as green receipts.

  • For those who are on the simplified regime or performed isolated acts, Annex B is used.
  • In the case of taxpayers with organized accounting, it is necessary to complete Annex C.

If you earn both Category A and Category B income, you must report both sources of income. In addition, self-employed workers must submit Annex SS, referring to Social Security.

Other income categories

There are also other categories that may be subject to tax:

  • Category E: capital income, such as profits from financial investments.
  • Category F: property income, resulting from property rentals.
  • Category G: equity increments, such as gains obtained from the sale of properties or shares.
  • Categoria H: pensions, including old-age, disability, maintenance or survival pensions.

If you have bank accounts in foreign or digital institutions not recognized by Banco do Portugal, you must declare them in Annex J.

Who is exempt from submitting the declaration?

There are some situations in which it is not mandatory to submit an Income Tax return:

  • Income from work or pensions of less than €8,500 per year (or €4,104 in the case of alimony), as long as they have not been subject to withholding tax.
  • Isolated acts with a value of less than €2,037.04 (four times the value of the Social Support Index in 2024).
  • CAP agricultural subsidies with an annual value of less than €2,037.04.

However, these exemptions do not apply if you opt for joint taxation or if you earn income in kind.

How many declarations should a household submit?

The number of declarations to be submitted depends on the composition of the household and the nature of the income received.

Adult children who still live with their parents

If you have children under 25 who live with you and earned, in 2024, an income of less than €11,480 (€820 x 14), they can be included in the household, as long as they have not made withholding tax. However, in some cases, it may be more advantageous for the dependent to submit an individual declaration. It is therefore recommended that you simulate both situations before sending the declaration.

Couples with or without children

Couples can opt for separate taxation, submitting individual declarations, or joint taxation, submitting a single declaration with the income of the entire household. To choose the best option, you must carry out simulations to determine which regime results in the lowest tax payable or the highest refund.

The Automatic IRS

For some taxpayers, there is the possibility of using Automatic Income Tax, which presents a pre-filled declaration. This option significantly simplifies the process, as the taxpayer simply needs to validate and confirm the data presented.

However, this feature is not available to everyone. For example, self-employed people under the simplified regime or with organized accounting are left out, as well as taxpayers who accumulate income from various categories.

By following these instructions and using the tools made available by the IRS, it will be easier to fulfill this tax obligation smoothly and without surprises. Plan ahead and, if necessary, don’t hesitate to seek technical support.

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