The new IRS tax relief will be approved at the Council of Ministers next week and will take effect in November, being retroactive to January. This measure aims to reduce the tax burden on Portuguese taxpayers.
The estimated budgetary cost of this IRS reduction is 400 million euros. The amount represents a significant impact on public finances, but the Executive justifies the measure as necessary to support Portuguese families.
The adjustment mechanism will be made retroactively, which means taxpayers will receive the difference corresponding to the first months of the year in their November salaries. This correction will allow taxpayers to be compensated for the difference between the IRS that was charged and what should have been applied since January.
