Every year, Portuguese taxpayers have a simple opportunity to donate and support social, cultural or humanitarian institutions at no additional cost: it is called IRS consignment. When filling in the annual income statement, it is possible to indicate that 0.5% of the tax due to the state is channeled to an entity at your choice.
What is the IRS consignment?
IRS consignment is a tax mechanism that allows the taxpayer to allocate part of his tax, which would be paid to the state anyway, to an authorized entity, as explained by.
According to the Tax Authority (AT), this is a measure that “does not imply any cost to the taxpayer, nor does it change the value of the reimbursement, if any.”
The percentage to be assigned is 0.5% of the tax settled. This amount is transferred directly to the chosen entity, and may be an IPSS, an animal protection association, cultural institutions or social solidarity, duly inscribed with the OT.
How to make the consignment?
The process is simple and can be done directly in the IRS statement (model 3), table 11, or the equivalent option of the automatic IRS. Just indicate the NIF of the entity to whom you want to consign.
According to Deco Proteste, “taxpayers who choose to automatic IRS should check if this option is active before validating the statement.” The official list of eligible entities is published annually by the Tax Authority.
Who can receive the consignment?
Only entities previously authorized by the OT can benefit from the consignment. The list is available on the Finance Portal and is updated every year.
It is advisable to confirm that the NIF of the entity you want to support is on this list before submitting the statement.
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What if you do nothing?
In this case, the 0.5% of the tax is in the state coffers. It does not harm the taxpayer, but also does not contribute directly to any specific cause.
As the Tax Authority recalls, it is an opportunity to “help those who need it most, without any burden on you.”
An impact option
For many institutions, this small IRS fraction makes a big difference. It is through these supports that they can maintain essential services, such as support for the elderly, solidarity food or local cultural projects.
Simple gesture with impact
Consigning 0.5% of your IRS is a simple, free and impact gesture. It costs nothing to the taxpayer and can help a lot who depends on these supports. When filling your statement, think about who would like to help.
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