Newsletters
On October 10, 2023, the Proposal for the 2024 State Budget was presented, mainly proposing the following changes to the IRS Code and related legislation:
🔸 Repeal of the regime for non-habitual residents (RNH): see more information on this change HERE;
🔸 New "Ex-Residents" Program: see more information on this amendment HERE;
🔸 Regime for "tax incentives for scientific research and innovation": see more information on this amendment HERE;
🔸 Changes to the system for taxing gains derived from stock options plans: see more information on this change HERE;
🔸 Allowances and compensation for travel in own car: it is proposed to repeal the rule that reduced the amount of allowances and compensation for travel in own car originally provided for civil servants, which will lead to the return of the following amounts:
- travel by own car: the value of € 0.36 becomes € 0.40 per kilometer;
- national internal travel:
- workers: the amount of € 50.20 will become € 62.75;
- members of the Government and equivalent in the private sector: the amount remains at €69.19, as it has not been reduced.
- travel abroad:
- workers: the amount of € 89.35 will be increased to € 148.91;
- members of the Government and equivalent in the private sector: the amount of € 100.24 becomes € 167.07.
🔸 Profit-sharing: proposed exemption up to a limit of five times the amount proposed for the minimum guaranteed monthly salary for amounts paid to employees as profit-sharing in companies, by way of a balance-sheet bonus, paid by entities whose average nominal valuation of fixed remuneration per employee in 2024 is equal to or greater than 5%.
🔸 Tax incentive for workers' housing: Income from work in kind resulting from the use of a permanent home located in Portugal, provided by the employer, if certain requirements are met, for the period between January 1, 2024 and December 31, 2026, is exempt from IRS and social contributions.
🔸 IRS Jovem (Young Professionals): The amounts of the exemptions provided for in this scheme are updated as follows:
🔸 30% of the amount spent on professional training is now deductible from the personal income tax (IRS), as training and education expenses, by any member of the household, with an overall limit of €800.
🔸 Changes to the marginal rates applicable to the IRS taxable income, with the new proposed table being as follows:
🔸 Tax incentive for workers' housing: Income from work in kind resulting from the use of a permanent home located in Portugal, provided by the employer, if certain requirements are met, for the period between January 1, 2024 and December 31, 2026, is exempt from IRS and social contributions.
🔸 IRS Jovem (Young Professionals): The amounts of the exemptions provided for in this scheme are updated as follows:
- 100% in the first year with a limit of 40 times the value of the IAS
- 75% in the second year with a limit of 30 times the value of the IAS
- 50% in the third and fourth years with a limit of 20 times the IAS value
- 25% in the final year with a limit of 10 times the value of the IAS
🔸 30% of the amount spent on professional training is now deductible from the personal income tax (IRS), as training and education expenses, by any member of the household, with an overall limit of €800.
🔸 Changes to the marginal rates applicable to the IRS taxable income, with the new proposed table being as follows:
