Government publishes IRS retention tables for 2021 next week

25-11-2020
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The Government will publish the adjustment in the IRS withholding tables for 2021 next week, guaranteed the Deputy Secretary of State and Tax Affairs, António Mendonça Mendes.

During the third day of discussion and voting on the specialty of the 2021 State Budget proposal (OE2021), the minister defended to translate the “fiscal stability” followed by the Executive during the Covid-19 pandemic, Mendonça Mendes highlighted the adjustment in the tables of retention of the IRS, which guaranteed to be done next week, as well as other measures envisaged by the Government, such as the e-Voucher program, aimed at stimulating consumption in the catering, accommodation and culture sectors “when the pandemic situation allows this program to be done”, as well as the decrease in VAT on electricity.

The OE2021 provides that the changes to the IRS withholding tables are essentially directed at dependent workers with a gap between tax withheld and payable, an adjustment equivalent to 200 million euros, even though it also safeguards pension increases.

"The extraordinary adjustment that we are going to make results from the adjustment that is necessary to make in the segments where there is a difference between withholding tax and tax payable", said Mendonça Mendes at the press conference presenting the Budget, stressing that the adjustment of the tables would be around 2 % “For this group, even if the retentions are proportional and not progressive.

The Secretary of State for Tax Affairs today highlighted the tax incentives of 550 million euros to domestic demand in the OE2021 proposal, as well as the ENP proposal for the increase in IMI and IMT rates for companies with headquarters in 'offshores', the prohibition on access to public support for companies in these conditions and the change in the concept of a permanent establishment "so that multinationals start paying taxes in Portugal".

According to Mendonça Mendes, the Government “was not limited to just making adjustments and ensuring pure and hard fiscal stability”, highlighting the flexibility in the payment of tax obligations.

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The Government will publish the adjustment in the IRS withholding tables for 2021 next week, guaranteed the Deputy Secretary of State and Tax Affairs, António Mendonça Mendes.

During the third day of discussion and voting on the specialty of the 2021 State Budget proposal (OE2021), the minister defended to translate the “fiscal stability” followed by the Executive during the Covid-19 pandemic, Mendonça Mendes highlighted the adjustment in the tables of retention of the IRS, which guaranteed to be done next week, as well as other measures envisaged by the Government, such as the e-Voucher program, aimed at stimulating consumption in the catering, accommodation and culture sectors “when the pandemic situation allows this program to be done”, as well as the decrease in VAT on electricity.

The OE2021 provides that the changes to the IRS withholding tables are essentially directed at dependent workers with a gap between tax withheld and payable, an adjustment equivalent to 200 million euros, even though it also safeguards pension increases.

"The extraordinary adjustment that we are going to make results from the adjustment that is necessary to make in the segments where there is a difference between withholding tax and tax payable", said Mendonça Mendes at the press conference presenting the Budget, stressing that the adjustment of the tables would be around 2 % “For this group, even if the retentions are proportional and not progressive.

The Secretary of State for Tax Affairs today highlighted the tax incentives of 550 million euros to domestic demand in the OE2021 proposal, as well as the ENP proposal for the increase in IMI and IMT rates for companies with headquarters in 'offshores', the prohibition on access to public support for companies in these conditions and the change in the concept of a permanent establishment "so that multinationals start paying taxes in Portugal".

According to Mendonça Mendes, the Government “was not limited to just making adjustments and ensuring pure and hard fiscal stability”, highlighting the flexibility in the payment of tax obligations.

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