The Tax and Customs Authority once again ‘collapsed’ with the courts when trying to withdraw tax benefits from cancer patients whose disability had been revised to values below 60%. In 2025, the Constitutional Court rejected an appeal presented by the tax authorities, reinforcing an interpretation that has been followed by higher judicial bodies.
At stake are contributors who have been recognized in the past as having a disability equal to or greater than 60% and who maintain the same oncological pathology, despite medical reevaluation. The now consolidated understanding prevents the automatic loss of tax benefits associated with this condition.
According to the newspaper Expresso, the Supreme Administrative Court analyzed this issue five times throughout 2025, always with unanimous decisions favorable to taxpayers. In all rulings, the judges rejected the Tax Authority’s position.
According to the same source, the judges understood that the law should be applied more favorably when the reassessment of a disability resulting from the same oncological disease is at stake, ruling out restrictive readings of the tax regime.
The tax authorities’ argument was not convincing
The Tax Authority maintained that maintaining the benefits would create situations of inequality between taxpayers. This understanding was rejected by the courts, writes the newspaper, which highlights the distinction made between those who have never reached 60% disability and those who have already had this degree recognized.
The judges considered the two situations not comparable, since, in the second case, there is a prior recognition of the severity of the disease, even if it is later revised.
Constitutional Court date to portal
Following the Supreme Court’s decisions, the Tax Authority filed an appeal with the Constitutional Court. The request ended up being rejected on two occasions, in October and November, adds the publication.
The Constitutional Court concluded that the tax authorities did not raise, adequately or within the legal deadlines, any question of constitutionality that would justify reconsidering the case.
The Constitutional Court judges also ruled out the idea that these decisions guarantee permanent tax benefits. Protection only applies in the context of reassessment of disability, when there was previously a degree equal to or greater than 60%.
The ruling emphasizes that the law does not prevent new medical evaluations nor establish a definitive right, limiting itself to safeguarding specific situations associated with the same oncological disease.
Reactions from the patients
The Portuguese League Against Cancer criticized the actions of the Tax Authority, considering that the interpretation defended by the tax authorities is harmful to patients. According to , the organization also regrets the lack of response from the Ministry of Finance to requests for meetings and admits appealing to Parliament if the situation is not clarified.
The tax benefits under discussion include the partial exclusion of income subject to IRS and higher limits on tax deductions. These mechanisms have a direct impact on the tax burden borne by cancer patients. There is a transitional regime created during the Government of António Costa, but, according to the newspaper, this is only reflected in the final tax settlement, having no immediate effects on the beneficiaries’ monthly income.
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