Update of the general IRS rates
The general IRS rates for the 1st and 2nd brackets have fallen from 13.25% to 13% and from 18% to 16.5%, respectively.
The 3rd bracket falls from 23% to 22%, and the 4th bracket from 26% to 25%.
For the 5th and 6th brackets, whose rates were 32.75% and 37%, they fall to 32% and 35.5%, respectively.
No reductions are planned for the last three IRS brackets, contrary to the Government’s initial proposal.
New table
Minimum subsistence amount
The minimum subsistence amount (mínimo de existência) is a way of ensuring that all taxpayers, especially those on lower incomes (as well as large families), have a certain disposable income on which they pay no tax, ideally leaving them with enough money to cover their basic needs.
This means that they only become subject to IRS when their income exceeds the minimum subsistence amount.
The minimum subsistence amount is the higher of €11,480 and 1.5 x 14 x IAS (Social Support Index), i.e. [(€509.26 x 14) x 1.5] = €10,964.46.
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