The State Budget Law for 2020 has created an "IRS partial exemption regime, called "IRS Jovem" (Young PEOPLE IRS).
" Young people " that receives incomes as employees, for the first time, after finishing a given training. It will be valid for a period of 3 years.
They must meet, cumulatively, the following requirements:
- Between 18 and 26 years of age;
- Receive incomes as employees (Category A);
- Not be considered as dependants;
- Having concluded a training, superior or equal to level 4 in the Portuguese National Qualifications Framework.
Young people receiving a taxable income, including exempt incomes, of category A, equal or inferior to € 25.0753, benefit from a partial IRS exemption, of:
- 30% during the first year with a limit of 3 291,08 euros;
- 20% during the second year with a limit of 2 194,05 euros;
- 10% on the third year, with a limit of 1 097,03 euros.
Accumulation with other benefits:
This regime"may not be cumulated" with:
- Regime of the Non-Habitual Residents,
- Tax regime regarding the "Regressar" Program
- The exemption can only be used once by the same taxable person.
- The access to this regime is possible by selecting said option on the IRS tax return form "Declaração Mod 3".
Useful link: Folheto informativo IRS Jovem