The Government’s proposal will still have to be approved by deputies. The document, which was submitted to the AR on January 7th, provides for tax exemption in the year in which the car is registered or registered for the first time.
On January 7th, Bill 49/XVII/1 was introduced, authorizing the Government to amend several provisions of the Single Circulation Tax Code. The initiative by Luís Montenegro’s executive was accepted and sent to the Budget, Finance and Public Administration committee.
This Monday, the draws attention to a paragraph in the proposal that will allow tax exemption for cars that have a new registration or new number plate. The measure will only be applicable in 2028, after the “transitional standard” foreseen by the Government.
In the legislative text, which can realize that: “the application, in the year of registration or registration, of an exemption in proportion to the number of whole months that have elapsed since January 1st until the date of registration or registration”.
This exemption will bring a discount to those who buy a new car. In practical terms, if you buy a car in April, for example, and register or register it at that time, you will have the benefit of not having to pay IUC until that date.that is, you will be exempt between January 1st and the date of registration or enrollment. However, the following year it returns to normal and then you will pay the tax in full.
IUC payment made in the same month for everyone (but only in 2027)
Car owners, instead of paying the IUC on the anniversary of the vehicle’s registration, will start paying or in installments in two or three installments until October, regardless of the vehicle’s birthday month – as was the case until now.
According to the initiative, the IUC will be paid “by the end of April”, being paid to the Tax and Customs Authority (AT) in a single installment, in the month of April, when its amount is equal to or less than 100 euros”.
Being sugreater than 100 euros and equal to or less than 500 euros, can be paid “in two installments, in the months of April and October”. If it is more than 500 euros, it is delivered “in three installments, in the months of April, July and October”.
“The single billing documents relating to the second and third installments are obtained by the taxpayer on the finance portal”, points out the legislative text.
Case If you do not pay an installment within the defined deadlines, this “implies the immediate due date of the remaining installments”.
The decree provides for a transitional regime in which changes produce “from January 1, 2027”, and these deadlines will be relevant for the first time in 2028.
The objective of the transitional rule is to avoid situations in which taxpayers could pay the IUC for 2026 and 2027 in a short period of time.
In the initiative, the Government explains that this transitional rule for 2027 “ensures the fiscal neutrality of the measure” and opens up the “possibility for the taxpayer to request the annulment of the IUC assessment for the year 2027 in cases where the registration of a vehicle in categories A, B, C, D or E is canceled during that year and before the anniversary date of the registration”.
The general rules of the new model also provide that “when reactivating a canceled registration, the tax must be settled and paid within 30 days from the date of reactivation”. The new annual payment model applies to all vehicles.
In short, this year you will still pay the IUC in the month of your car’s anniversary, but if the initiative passes the scrutiny of the deputies, prepare for payment in April in the year 2027.
