The associations criticize the changes introduced by the 2024 Budget, which consider treating taxpayers in identical situations differently only by the date of reassessment of the degree of disability.
Associations representing people with disabilities challenge the way they are being IRS tax benefits applied following the changes introduced by the State Budget for 2024.
At issue is the treatment given to citizens holding a multipurpose certificate who, after a reassessment of the degree of incapacity, begin to present a disability of less than 60%says .
According to the understanding of the Tax and Customs Authority (AT), taxpayers reassessed after January 1, 2024 only maintain the full IRS tax deduction during the first year after reevaluation, then suffering a gradual reduction of this benefit. Those who were reevaluated before that date continue to benefit from the full deduction until a new reassessment, under the principle of most favorable treatment.
The difference in treatment has led to criticism from the Portuguese Association of Disabled People (APD) and the Portuguese League Against Cancer (LPCC), which consider the potentially discriminatory situation for creating a distinction between taxpayers with identical situations solely based on the date of revaluation.
The theme comes after several years of disputes between taxpayers and the tax authorities. Until recently, the AT understood that a revaluation below 60% implied the loss of tax benefits, except in cases related to changes to the criteria of the National Disability Table.
Several taxpayers challenged this interpretation in court and obtained favorable decisions. AT revised its understanding this year through a circulated letter, recognizing the right to benefits and paving the way for the refund of overpaid tax.
However, the same guidance clarified that the legal change of 2024 created a new transitional regime for taxpayers who lose disability status equal to or greater than 60% after at least five years of benefit. In these cases, the tax deduction progressively decreases over four years.
A LPCC admits recourse to court to contest the new situation, although it favors a legislative solution. APD has also alerted the Ministry of Finance to the problem.
