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The Imposto sobre os Rendimentos de Pessoas Singulares (personal income
tax (IRS)) is assessed annually. Returns for income received in the previous
year must be submitted from 1 February to 15 March for categories A and H, and
from 16 March to 30 April for the other categories (these periods may be
extended to May if you choose the online option).
A Taxpayer’s Card is required and is obtained from the Tax Authorities by
presenting a valid identity document, i.e. an identity card or passport. A
provisional taxpayer’s number (Documento Provisório de Identificação
Fiscal - Provisional Tax Identification Document) is allocated for the first
few months.
IRS Is levied on the value of the following categories of income:
- Category A – Income from employment
- Category B – Income from business and professional services
- Category E – Investment income
- Category F – Property income
- Category G – Income from capital
- Category H – Pensions
Residents are subject to IRS on income earned anywhere in the world. You will
be considered to be tax-resident in Portugal for a given tax year if:
- you remain in Portugal for more than 183 days during the tax year;
- having remained in Portugal for a shorter period in a given year, on 31
December of that year you have accommodation such as to suggest that you
intend it to be a permanent residence;
- you are a member of the crew of a vessel or aircraft whose companies are
based in Portugal.
All members of a family are considered to be resident in Portugal if the
person responsible for the family lives in Portugal.
Portugal has bilateral agreements with other Member States to avoid double
taxation of income. If you earn income in another Member State, for example, you
will only have to pay tax on that income in that country.
For further information you should consult the Local Tax Office. Married
taxpayers who are not separated or living separately and unmarried couples
present their annual tax return jointly. This includes all income earned in or
outside Portugal, including the income of dependants and people who are
considered to be part of the household. Unmarried taxpayers pay tax
individually.
The following deductions are made from taxable income: health, education and
vocational training expenditure (of the taxpayer and dependants), nursing home
expenditure (relating to ascendant relatives or dependants), expenditure on the
purchase of or repairs/improvements to a dwelling (including the purchase of
renewable-energy equipment), costs relating to certain insurance premiums, ‘PPR
- Plano Poupança Reforma’ (private pension plans) accounts and other
fiscal benefits.
The employer must deduct a percentage of the employee's monthly salary (‘tax
deduction at source’) depending on their marital status and the number of
dependants. A proportion of 25% is deducted from the salary of non-residents
(see the International Double Taxation Agreements).
Income tax rates vary according to the seven scales of annual income defined,
and may range from 10.5% for income below EUR 4 544 to 42% for income in excess
of EUR 61 260.
Useful references:
Text last edited March 2008
Source: European Union
© European Communities, 1995-2009
Reproduction is authorised.
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