For IRS declarations running from April through June, there are several updates to take into account in Annex B (freelancers), with more tables to complete: 17A, 17B, 17C and 17D. All are destined to declaring expenses and charges borne by the independent worker in the exercise of a business activity (income, electricity, water, transportation, communications and insurance, among others). They stem from modifications to the Simplified Regime introduced in the 2018 State Budget.
Parents with children studying in universities in the interior of the country can receive a 40% tax credit in 2019 for expenses up to €1,000. This tax break is an increase from 30% with a maximum of €800 as compared to families whose children normally live and study from home.
One of the flagship measures of the upcoming 2019 State Budget is intended to encourage emigrants to return to Portugal by granting a 50% discount on their “IRS” over the following 3 to 5 years. In addition, the proposal allows for deductions of associated expenses, such as the cost of the return trip and housing expenses. As part of a package of incentives targeting the relocation of young professionals back to Portugal, the proposal will embrace all those who left the country by 2015 and returning in 2019 or 2020.
Starting in 2017, the Portuguese Tax Authority (“AT) is making available Automatic IRS Reporting to over one million taxpayers in Portugal. The change is part of “Simplex”, a programme designed to reduce bureaucracy at all levels of government.