The first Income Tax refunds have started to be paid and taxpayers are already seeing the money entering their bank accounts. The process takes place a few weeks after the start of the campaign to submit declarations relating to 2025 income, with the pace of payments depending on the type of declaration presented and the level of complexity of the tax settlement.
Faster payments with Automatic IRS
According to , the Government expects taxpayers covered by Automatic Income Tax to receive a refund in less than two weeks after submitting the declaration. According to the same source, in the case of declarations presented using the traditional model, the average payment period should be between three weeks and three and a half weeks.
In 2025, the average processing time for Automatic Income Tax was below two weeks, while in more complex situations the period was slightly extended, still remaining within the usual average. This data serves as a reference for this year’s campaign, which began in early April and already involves a significant volume of submissions.
The authorities’ expectation is to maintain deadlines similar to those of the previous year, in a context in which Automatic Income Tax gains greater weight in the universe of declarations submitted. This year, this modality should cover around two million taxpayers, driven by the inclusion of more young people in the Youth Income Tax integrated into the automatic system.
More contributors in the automatic system
Increased adherence to Automatic Income Tax has been identified as one of the factors that helps speed up the processing of refunds. By reducing the need for manual validation, the system allows for faster tax settlement.
Still, not all cases follow the same rhythm. Situations with additional income, such as capital gains or capital income, may require additional validations, which extends the payment period. Also changes in tax throughout the year, such as successive withholding tax tables, influence the final calculation.
Despite these variations, the majority of declarations continue to result in refunds, a trend that remains stable compared to previous years.
Refunds can be used to pay tax debts
There are situations in which the amount to be received may not reach the taxpayer in full. Your IRS refund may be garnished if you have active tax debts.
According to the Tax and Customs Authority, when there are tax enforcement proceedings underway at the time the credit is issued, the refund amount is automatically used to settle these debts. If the amount receivable is greater than the amount owed, the difference is returned to the taxpayer.
According to the same entity, this rule applies automatically at the time of calculating the IR, integrating the regular mechanism for offsetting tax credits and debts, ensuring that the State recovers missing amounts before transferring the remaining refunds.
Also read:
