The IRS descent approved in early summer has started to take effect now. August and September salaries will be higher, but this increase means lower reimbursements next year.
If you already received it, you probably has noticed. The salary that fell into the account is higher than last month. The explanation is simple: the IRS descent, approved in July, is having an effect now.
The government reduced to source retention rate between 0.4% and 0.6% in the eight first echelonsbut the ninth also feels the difference because the rate is progressive.
In late August, there is more money available and in September it will be the same. The increase in meaning is significant because it has retroactive effects on January. From Octobera retention rate will be approximate to the previousthat is, the effect is much lower because it does not accumulate the descent of the last months And, therefore, the salary will be similar to July again.
In 2024 there was also a reduction, the invoice arrived in this year’s hits, and this will also happen in the next. The Portuguese are Pay less IRS nowbut in the reckoning, in 2026, one of the two: Either you will receive less or you may even have to pay.
