The Council of Ministers recently approved a set of changes to the IRS, which include the extension of automatic IRS to taxpayers who pay salaries to domestic workers and the elimination of the obligation to declare interest and meal allowance.
The new rules, which result from the implementation of the state budget to 2024 (OE2024), simplify some tax procedures and ensure greater clarity in reporting.
Automatic IRS starts to include deduction with housework
Taxpayers who pay wages to domestic workers will be able to benefit from the IRS collection from the IRS through automatic IRS.
According to the Government-approved regulatory decree, the 5% deduction on the pay paid to domestic workers (up to the 200 euros global limit) will now be automatically considered in the pre-named statement.
This change will allow taxpayers who opt for this benefit have the IRS completed automatically, just needing to confirm the data and submit the declaration. If they do not agree with the amounts presented, they may refuse the IRS automatic and deliver model 3 to the usual molds.
In addition, if the taxpayer does not make any action, the automatic statement will be automatically considered delivered at the end of the legal deadline, avoiding submission late penalties.
End of the obligation to declare interest and meal allowance
Another of the changes approved by the Council of Ministers concerns the elimination of the obligation to report certain income in the IRS Declaration. The amendment revokes a rule introduced into the state budget to 2024, which determined that taxpayers should report:
- Income subject to liberatory rateslike the Bank deposit interest and other capital income.
- NOT SUBJECT TO IRSsince superior to 500 euroslike the meal subsidy or AS Cost aids.
With this revocation, taxpayers are no longer required to include this information in the IRS annual statement, which simplifies its filling and reduces the possibility of errors or omissions.
In addition, the diploma clarifies which financial assets detained in jurisdictions with more favorable tax regimes that must be declared, ensuring greater legal certainty and operationalization of this obligation.
Transposition of European Directive on Malparado Credit
In the same Council of Ministers, a Bill was approved to transpose the European Directive on Malporado Credit, harmonizing the rules for non-productive credit managers and buyers (NPL).
This measure arises following the decision of the European Commission to bring Portugal to the Court of Justice of the European Union (TJUE), due to delays in the transposition of this directive, whose deadline ended on December 29, 2023.
The purpose of the directive is to foster a secondary market for poorly credits, establishing common supervision rules for interveners in this sector.
Other approved measures
The government also approved a bill that extends the increase in IRC to the expenses of companies that increase the salaries of its workers, regardless of this resulting in wage disparity within the company.
Conclusion
Recent IRS changes introduce measures aimed at simplifying the income statement, including the extending of automatic IRS to homework expenses and the end of the obligation to report interest and meal allowance.
In addition, the transposition of the European Directive on Malparrado Credit aims to ensure greater regulation in the financial sector, while the tax incentive to increased wages reinforces the encouragement of workers’ compensation growth.
With these changes, it seeks to make the income declaration process simpler and more affordable for taxpayers, while adapting national legislation to European requirements.
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