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IRS Jovem will be presented "in due time" and is worth 1.2 billion
Prime Minister Luís Montenegro said today that the Government's proposal for the IRS Jovem will be presented "in due course" and that it will have an impact of 1.2 billion euros.
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Economia Luís Montenegro
Luís Montenegro spoke after the end of the Council of Ministers meeting, where the additional reduction of IRS rates was approved, compared to the model included in the State Budget for 2024 (OE2024) and in force since January.
"Our proposal [of the Youth IRS] that we will bring in due time does not make any kind of discrimination on qualifications, (...), it applies to all young people up to 35 years old", said Montenegro, stressing that this is a measure "different from the one in force", namely due to the financial impact that it accounted for in 1,200 million euros.
"The measure is being prepared. It will not be long until we bring this measure that is strategic and we will present it in a timely manner", he said.
A government source clarified in the meantime that, of that amount, 1,000 million euros correspond to the tax relief of the invoice until 2028, of people up to 35 years old, through the redesign of the measure, which the executive intends to implement.
In the OE2024, the previous government pointed to an impact of 200 million euros on IRS revenue in 2024 due to the Youth IRS.
Without specifying when it intends to implement the new Youth IRS rules, the same government source mentioned that the objective is to approve an IRS table specifically to be applied to people up to 35 years old, whose rates will correspond to one third of the general rates that apply to income brackets (provided for in article 68).
Except for the first year of work in which young people are entitled to full exemption, the rates that will be applied to them from then on will be those included in this new table, with the current access conditions to the measure being eliminated - such as the level of education, for example.
Income from the 9th and highest income bracket will be excluded from the Youth IRS.
Read Also: IRS rate reduction applies to all income from 2024 (Portuguese version)
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